In an era where sustainability is no longer just a buzzword, the construction industry is at the crossroads of innovation and environmental responsibility. Construction materials face heightened scrutiny as climate-conscious building projects become standard in the public and private sectors. The U.S. Environmental Protection Agency (EPA) has launched a new construction materials labeling program to address the growing interest in clean building materials and to promote the current administration’s Buy Clean Initiative. This initiative seeks to eliminate the guesswork in “green” construction by offering a standardized labeling system. The EPA intends to create a system to help architects, contractors, and developers choose materials with significantly lower embodied carbon emissions. This requirement is rapidly expanding for government-funded projects. The program extends beyond the use of an “eco-badge” and attempts to align federal procurement with broader environmental policies. But where did the program originate, how will it be implemented, and how will it impact the construction industry?

The Origins of the Program

The EPA’s new labeling initiative builds upon the federal government’s efforts to promote cleaner materials in construction in both public and private sectors. President Biden’s Executive Order 14057, a component of the Buy Clean Initiative addressing clean energy and job creation, prioritizes American-made, lower-carbon construction materials in federal procurement and federally funded projects.

Funded by the Inflation Reduction Act (IRA), the EPA plans to create a publicly accessible registry of certified materials and products with lower embodied carbon. This registry will allow buyers and standard-setting bodies to identify and source environmentally friendly construction materials. Certifications will be tiered based on the product’s compliance with EPA criteria. Other federal agencies, including the General Services Administration (GSA) and the Federal Highway Administration (FHWA), are expected to adopt the program to meet their low-carbon procurement goals under the IRA.

Key Elements and Implementation of the Labeling Program

The program will initially focus on construction materials with high embodied carbon, such as asphalt, concrete, glass, and steel. In its early phases, the label will primarily address greenhouse gas (GHG) emissions from the production stage — covering raw material extraction, transportation, and manufacturing. The EPA plans to eventually expand the label’s coverage to include other stages of the material life cycle.

The program will be rolled out in three phases:

• Phase I: The EPA will collaborate with manufacturers to enhance the quality and consistency of data reported by manufacturers in Environmental Product Declarations (EPDs).
• Phase II: The EPA will establish GHG emission thresholds based on EPDs and industry benchmarks.
• Phase III: The EPA will allow manufacturers to apply labels to their qualifying products, with compliance verified by conformity assessment bodies (CABs). The certified products will be listed in a public registry.

The EPA is considering a tiered labeling system recognizing varying carbon reduction levels. Although the EPA is still considering how best to structure the tiered system, one option it is considering is a “Good, Better, Best” approach:

• “Best” would denote products with the lowest embodied carbon,
• “Better” would signify well better than average reductions, and
• “Good” would represent products that meet the minimum criteria, exceeding industry averages.

Addressing Greenwashing Concerns

The EPA has incorporated several safeguards to combat greenwashing – the practice of exaggerating environmental benefits. First, focusing on data quality ensures product claims are backed by verifiable data. The EPA will set guidelines for data collection and require third-party verification of EPDs to minimize the risk of manufacturers overstating their products’ environmental benefits. Second, the tiered labeling system adds nuance to product claims. The EPA seeks to ensure that labels reflect specific and measurable carbon reductions. Rather than vague promises, the labels should represent tangible differences in environmental impact. Third, through the public registry, the EPA seeks to promote transparency by providing detailed information about the criteria and verification processes behind each product’s certification. In theory, this level of visibility will reduce the likelihood of deceptive marketing practices.

Impact on the Construction Industry

According to the EPA, construction materials account for over 15% of global GHGs. The label program will thus significantly impact the industry, from contractors to design professionals, and may affect the selection of materials across public and private sectors. The new program’s impact could mirror that of the EPA’s Energy Star initiative from the early 1990s, which set higher standards for energy efficiency and helped shift the market over time. Like Energy Star, the new label requirements may initially face slow adoption, but cities and states may eventually incorporate them into building codes and procurement processes. Despite early challenges in keeping pace with local regulations, Energy Star has become widely recognized, with cities like New York and Boston mandating reporting for energy efficiency. Similarly, the EPA’s new labeling program could push contractors and developers to adopt low-carbon materials as sustainability expectations grow.

Certain companies have already begun updating their EPDs to align with the new standards, showing the program’s influence on market practices. The Federal Highway Administration is also encouraging the use of low-carbon materials. As the program expands, state and local governments and private developers are expected to increasingly prioritize low-carbon materials, making it essential for industry professionals to stay ahead of these evolving standards.

Conclusion

The EPA’s new construction materials labeling program will reshape how the construction industry approaches sustainability. While the timeline for widespread adoption is uncertain, the shift toward cleaner, greener building practices is well underway. To learn more about this program and how it may impact businesses, contact a Taft attorney.