summary
Introduced
01/29/2024
01/29/2024
In Committee
01/29/2024
01/29/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill would establish a low-carbon transportation fuel standard program in the Department of Environmental Protection (DEP). Under the program, each refiner, wholesaler, or importer of diesel or gasoline, and each producer of alternative fuel, would be required to ensure that the fuel refined, sold, imported, or produced by the entity, as applicable, and supplied for use in the State, meets the low-carbon transportation fuel standard, on an annual basis. The low-carbon transportation fuel standard would be a maximum level of greenhouse gas emissions associated with the entire life-cycle of a given unit of fuel, including its production, transportation, and consumption. An alternative fuel, under the bill, is any fuel used for transportation other than gasoline or diesel. Such fuels could include hydrogen, biodiesel, or electricity. In implementing the program, the DEP would be required to establish a system of salable and tradable credits and deficits, under which a given unit fuel that exceeds the low-carbon transportation fuel standard would generate a credit and a given unit of fuel that does not meet the standard would generate a deficit. Entities regulated under the program would be required to ensure that they do not generate any net deficits in a given year, after offsetting their deficits with credits they generate or purchase from third parties. The bill would establish certain requirements for the low-carbon transportation fuel standard program, as enumerated in subsection b. of section 3 of the bill, including the requirement that the program reduce the greenhouse gas emissions associated with the diesel and gasoline used in the State by 10 percent below 2019 levels by the year 2030. The bill would also enumerate certain optional requirements for the program, in subsection c. of section 3 of the bill, including mechanisms whereby producers of alternative fuel can voluntarily opt-in to the program to generate credits when the fuel use displaces the combustion of gasoline or diesel for a non-transportation use. Finally, the bill would direct the DEP to consult with fuel and transportation experts while developing the program, and it would authorize the DEP to consider linking New Jersey's program with similar policies in other jurisdictions.
AI Summary
This bill would establish a low-carbon transportation fuel standard program in the New Jersey Department of Environmental Protection (DEP). The program would require refiners, wholesalers, importers of diesel or gasoline, and producers of alternative fuels to ensure that the fuel they supply for use in the state meets a low-carbon standard, which sets a maximum level of greenhouse gas emissions associated with the entire life-cycle of the fuel. The program would create a system of tradable credits and deficits, where fuel that exceeds the standard generates credits and fuel that does not meet the standard generates deficits. The bill sets a requirement for the program to reduce the greenhouse gas emissions associated with diesel and gasoline used in the state by 10% below 2019 levels by 2030, and provides flexibility for the DEP to include other provisions, such as cost containment mechanisms and allowing alternative fuel producers to opt-in to generate credits.
Committee Categories
Agriculture and Natural Resources
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 01/29/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S2425 |
BillText | https://pub.njleg.gov/Bills/2024/S2500/2425_I1.HTM |
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