Bill > S2278

This bill establishes a Clean Fuel Standard designed to reduce the carbon intensity of transportation fuels by 80% from 1990 levels by 2050. The bill defines key terms such as "carbon intensity" (greenhouse gas emissions per unit of fuel) and creates a credit system where transportation fuel providers can generate and trade credits based on their fuel's emission levels. The standard will create a market-based mechanism allowing fuel providers to either produce low-carbon fuels or purchase credits to offset their carbon deficits. Public entities generating credits will be required to invest a portion of their credit value into clean energy and accessible transportation projects in disadvantaged communities. The standard will not apply to aviation, railroad, military, or interstate waterborne vessel fuels where federal preemption exists, but providers in these sectors can voluntarily generate credits. The department overseeing the standard will establish an annual implementation schedule that considers compliance costs, available technologies, and fuel quality, and will assess the full lifecycle emissions of transportation fuels annually. The bill authorizes the department to create necessary rules, regulations, and administrative procedures to implement and enforce the Clean Fuel Standard.