An Act relative to fuel standards

SD 2505 establishes a clean fuel standard requiring transportation fuel providers in Massachusetts to reduce the carbon intensity of fuels by 80% from 1990 levels by 2050. It creates a credit-trading system where providers earning credits for low-carbon fuels (like electric vehicles or biofuels) can sell them to offset deficits from higher-carbon fuels. Public entities generating credits must invest a portion of their credit value in clean energy and transportation projects within disadvantaged communities. The law applies to most transportation fuels but excludes aviation, rail, military, and interstate waterborne vessels. Compliance is measured using full lifecycle emissions data, including indirect impacts like land use changes.