A bill to establish a standard to reduce the carbon intensity of transportation fuels; to establish a market for trading carbon intensity credits; and to provide for the powers and duties of state and local governmental entities.
The bill would establish a clean fuel standard to reduce the carbon intensity of transportation fuels. It would require the Department of Environment, Great Lakes, and Energy (EGLE) to use this standard to establish a market for trading carbon intensity credits. Fuel providers that produced fuels below the standard would receive credits that could be traded or sold. Fuel providers that produced fuels above the standard would have to reduce the fuels' carbon intensity below the standard or acquire credits to offset the deficit. A fuel provider that failed to correct a deficit could be ordered to pay a civil fine of 200% of the value of the credits needed to offset the violation. Ultimately, by the end of 2035, the bill would require the carbon intensity of all transportation fuel produced or imported for use in the State to be reduced to at least 25% below a 2019 baseline level.
Co-sponsored by Sens.
Referred to the Committee on Energy and Environment
