The implementation of a more sustainable approach to building that assists builders and purchasers of construction materials in identifying products with lower carbon levels is underway. The EPA’s new Label Program will strive to make buying cleaner products a more straightforward task. This program should help federal and local government entities streamline the process of finding and using cleaner manufactured construction project materials.
The Fee, Smith & Sharp team breaks down the basics of the new Label Program to explain how new regulations may potentially impact product liability, construction legalities, and business and commercial litigation in Texas. Our nationally recognized law firm strives to remain at the forefront of the changing construction landscape to better serve our clients.
Purpose of the U.S. EPA Label Program
The U.S. Environmental Protection Agency (EPA) is establishing an implementation approach for a Label Program designed to enable purchasers to more efficiently identify products and materials for construction consisting of substantially lower levels of embodied carbon. Embodied carbon refers to a per-unit greenhouse gas emissions (GHG) quantity demonstrated as carbon dioxide equivalents (CO2e) within construction materials and product life cycles, starting with extraction, transportation, and ending with manufacturing.
The significance of construction products and materials to the country’s infrastructure cannot be examined without an internal look at the environmental costs of their production. According to the EPA’s documentation cited above, the production of construction products and materials is responsible for approximately 15% of greenhouse gas (GHG) emissions through the production stage of these materials.
Because of the Inflation Reduction Act (IRA) funding of $100 million to support the Buy Clean initiative in the Implementation Approach for a Label Program, the EPA is charged with identifying and labeling these construction products and materials. The Buy Clean federal procurement objectives also seek to prioritize American-made products meeting these qualifying thresholds. Learn more about reducing embodied carbon of construction materials through the IRA.
Goals of the EPA Through the Label Program
The Label Program strives to identify manufacturers who wish to cover their materials under the Label Program, making their construction materials and products more straightforward to identify. The Label Program also supports professionals using these products in federally funded projects, starting with the procurement phase in purchasing lower embodied carbon construction materials and products.
As the Label Program is established throughout the market, procurement-adjacent professionals can focus on using low-embodied carbon construction materials and products in federally funded projects. These goals may translate into the plans of state and local governments striving to buy clean.
The Label Program seeks to identify manufacturers willing to invest in the initiative, making them aware of federally funded construction projects for which their products may qualify.
Who the EPA Label Program Impacts
Our clients in the following fields may experience the impacts of the new Label Program:
- Construction materials and products manufacturers
- Building, construction, and demolition professionals
- Contractors and construction specifiers
- Professionals in the architecture, engineering, and procurement industry
- Federal, state, and local entities
Manufacturers of construction products and materials are encouraged to produce and disclose product information through environmental product declarations. The labeling program seeks to support manufacturers in the opportunity to have their products qualify for the Label Program, with the goal of making the choice to buy green a more straightforward process for any professional engaged in the industry.
Label Program Phasing
The Label Program will initially focus on the asphalt, concrete, glass, and steel industries, producing products with lower embodied GHG emissions throughout their production stages. These materials represent a significant portion of construction materials purchased using federal funding. The program highlights these products because of their high embodied carbon levels and the available data.
The EPA plans to create similar processes for collecting and reporting data for other materials to include in the Label Program. Targeted materials for the initiative include aluminum, gypsum, insulation, roofing materials, and wood products. The EPA has identified three phases applicable to any material or product, allowing them to move through each phase self-paced.
Phase I: Data Quality Improvement
The focus is on standardizing data and improving its quality for calculating embodied carbon in construction materials, with the goal of providing better information to the market through Environmental Product Declarations (EPDs).
Phase II: Threshold Setting
The labeling program will create individualized thresholds and product standards using EPDs and industry data, potentially in a tiered format of good, better, and best.
Phase III: Materials and Products Labeling
The EPA will identify and label products and materials meeting threshold requirements.
A Timeline of the Implementation Approach for the Label Program
The EPA expects that initial products identified in the initiative may be labeled under the program by the end of the 2026 fiscal year ending in September 2026. Phase I of the Label Program should take 6 to 18 months to meet the minimum data quality requirements.
The EPA also anticipates taking 6 to 18 months for the Threshold Setting in Phase II of the program. Timeline variances in the timeline may increase or decrease depending on the ability to meet minimum data requirements in the initial phase and address stakeholder input.
The Labeling Materials and Products Phase (Phase III) will take an average of 6 to 12 months to complete. Additional products may take less time to complete this phase, as manufacturers may have already completed some necessary steps.
Completing all three phases of the Label Program will take a new material or product 18 to 48 months.
Do You Have Questions About the Impact of the EPA’s New Label Program on Your Business?
The Texas trial lawyers of Fee, Smith & Sharp can help you interpret the impact of state and federal laws on your business and how to legally approach green marketing with consideration to any anti-greenwashing laws that may apply. Our construction industry experience can provide essential insight into procuring federal, state, and local contracts requiring construction products and materials to meet the Label Program’s standards.
Our legal experience in state and federal jurisdictions allows us to aggressively defend you and your business when necessary, allowing you to focus entirely on continuing operations. Contact us to learn more today.
