Greenhouse gases: embodied carbon building materials.

The document was reformatted from a traditional legislative print layout (with line numbers, page headers like '96' and 'AB 1704', and sequential page numbering) to a web page presentation with navigation elements, search functionality, and collapsible sections. No legal language was added, removed, or altered.

The bill now amends Sections 38561.3 and 38561.6 of, and adds Section 38561.4 to, the Health and Safety Code, expanding scope from a minor Conservation Corps amendment to comprehensive building materials carbon regulation.

Requires the State Air Resources Board to develop by December 31, 2026 a framework for measuring average carbon intensity of building materials in new construction, including projects with at least 5 new residential units or 10,000 square feet of nonresidential space.

Requires the state board to develop by December 31, 2028 a comprehensive strategy for a 40 percent net reduction in greenhouse gas emissions from building materials by December 31, 2035, with baseline based on 2026 environmental product declarations.

Adds Section 38561.4 requiring the state board to determine whether lower-embodied-carbon materials have reached cost parity with conventional materials before implementing any provisions. If not at parity, the board must delay or suspend implementation for at least 5 years and may repeat this indefinitely until cost parity is achieved.

Defines 'cost impact' as a 5 percent or more increase in operational or overall material cost, or schedule delay, attributable to incorporating a lower carbon material compared to the baseline material.

Projects are deemed to comply with targets if the entity uses lower-carbon materials up to feasibility and cost impact limits but still cannot achieve the target due to unfeasibility or cost impact, provided documentation is submitted to the state board.

Authorizes an embodied carbon trading system using Global Warming Potential per gross square foot (kg CO2e/sq ft) as the unit of measurement, with integration by December 31, 2026 and implementation on or after January 1, 2029, subject to the cost parity delay.

Limits penalties for violations to those described in specific subdivisions of Section 42402 of the Health and Safety Code, and declares these penalties the exclusive enforcement mechanism against regulated entities. No penalties may be applied to projects deemed to comply under the feasibility/cost impact provisions.

Exempts the state board's development of the framework and strategy from CEQA (Public Resources Code Division 13), exempts reporting regulations from the Administrative Procedure Act, and prohibits attributing adverse environmental impacts from material manufacture to the construction project under CEQA.

The entire California Conservation Corps provision (amendment to Section 14000 of the Public Resources Code) was removed from the bill. The March version included a nonsubstantive change to findings and declarations relating to the corps; this is no longer part of the bill.

A new cap was added to Section 38561.4(b): total delay or suspension of implementation may not exceed 10 years in the aggregate. Previously, the state board could continue delaying in five-year increments indefinitely until cost parity was reached. Now, even if low-carbon materials never reach cost parity, the regulations must take effect after at most 10 years of cumulative delays.

A citation typo was corrected in Section 38561.3(g): 'Title 25 24' was changed to 'Title 24' of the California Code of Regulations.

The fiscal committee vote designation changed from 'no' to 'yes,' indicating the bill now requires approval by the Assembly Fiscal Committee, likely due to the removal of the Conservation Corps provision or other budgetary considerations.