The "Concrete and Asphalt Innovation Act of 2025" aims to strengthen the competitiveness of cement, concrete, and asphalt production in the United States by fostering the research, development, demonstration, and commercial application of technologies that reduce emissions. This initiative seeks to achieve significant greenhouse gas and copollutant reductions, enhance domestic production, stabilize supply chains, and create quality jobs within the industry.

The bill establishes a comprehensive research program within the Department of Energy (DOE) focusing on critical areas such as carbon capture and utilization, the development of alternative low-emission materials, and advanced heat-generation technologies. This program also emphasizes minimizing energy and natural resource consumption, reducing copollutants, and utilizing high-performance computing for material design. A 5-year strategic plan will guide these efforts, with biennial updates.

A key component is a demonstration initiative, authorized with $200 million for fiscal years 2025 through 2029, to showcase methods for producing low-emissions materials. This initiative prioritizes projects demonstrating regional and technological diversity, significant emissions reductions, and leveraging non-Federal matching funds. The DOE will also provide technical assistance to eligible entities, helping them update local codes, conduct lifecycle assessments, and navigate regulatory processes.

Furthermore, the bill authorizes the Secretary of Commerce, through NIST, to establish or support two Manufacturing USA institutes. These institutes will focus on low-emissions cement/concrete and asphalt binder/mixtures, developing standardized testing, validating new materials, and quantifying embodied greenhouse gas emissions. They will also support workforce development through education and training programs for a skilled labor force.

To incentivize adoption, the Federal Highway Administration (FHWA) will create a performance-based grants program for States. This program offers reimbursement for the additional costs of using low-emissions materials in highway projects and provides a 2% incentive on the cost of these materials. States must update their specifications and standards to be eligible, and the FHWA will maintain a public directory of approved low-emissions products.

An advance purchase commitment program is also established, allowing States to use federal highway funds for projects incorporating innovative, domestically produced low-emissions materials. This includes provisions for multiyear contracts with producers, designed to encourage continuous innovation and long-term emissions reductions. These contracts require materials to demonstrate superior durability and performance or meet specific environmental and energy efficiency criteria.

Finally, an Interagency Task Force for Concrete and Asphalt Innovation will be established, comprising representatives from DOE, DOT, GSA, DOD, and NIST. This Task Force will coordinate efforts, provide recommendations on engineering performance standards, testing guidelines, and incentives, and engage with stakeholders across the industry. Both the demonstration initiative and the Task Force can be terminated once sufficient low-emissions materials are commercially available domestically at competitive prices.