Bill > SB3693

This bill, the Clean Transportation Standard Act, establishes a program to reduce the carbon intensity, meaning the amount of greenhouse gas emissions per unit of fuel energy, of fuels used in ground transportation by 25% below 2019 levels within ten years of its adoption, with an effective date of January 1, 2027. The program will operate as a credit marketplace, monitored by the Environmental Protection Agency (EPA), where companies that provide cleaner fuels will earn credits, and those providing fuels with higher carbon intensity will incur deficits. These credits and deficits can be traded, allowing companies to meet their obligations by either reducing their fuel's carbon intensity or purchasing credits from others. The bill exempts aviation, rail, ocean-going, and military fuels from this standard but allows them to opt-in for credit generation. It also mandates the EPA to develop periodic fuel supply forecasts to ensure sufficient clean fuels are available and includes provisions for penalties for failing to offset deficits or for submitting false information, while also establishing an advisory council to guide the EPA in developing the program's rules.