An Act relative to fuel standards

This bill establishes a new clean fuel standard in Massachusetts that requires transportation fuel providers to reduce their aggregate carbon emissions by 80 percent from 1990 levels by the year 2050. The law applies to all fuel suppliers, including those providing electricity for transportation, and mandates that emissions be calculated based on the entire lifecycle of the fuel, from production to consumer use. To meet these targets, the Department of Energy Resources will create a market where companies can trade credits; providers that exceed the emission limits can generate credits by selling low-carbon fuels, while those falling short must purchase credits to offset their excess emissions. The bill also directs the department to set up a phased schedule that gradually lowers the maximum allowable carbon intensity for fuels over time to ensure steady progress toward the 2050 goal.