Purpose of the Bill

The bill aims to establish a "clean transportation standard" in Minnesota to reduce the carbon intensity of transportation fuels and move towards net zero greenhouse gas emissions by 2050.

Main Provisions

• Clean Transportation Standard: The bill sets goals for reducing the carbon intensity of fuels used in Minnesota, with a significant decrease (25% and 75% below 2018 levels) to be achieved 10 and 20 years after the enactment.
• Annual Standards: The Minnesota Department of Transportation will set annual standards for carbon intensity and penalize those who fail to meet them.
• Credits and Deficits: Fuel providers generating low-carbon fuels will earn credits, and those exceeding carbon standards will face deficits, which can be traded in a credits market.
• Fee System: A fee system is established for participants to fund the administrative costs of the program, with specific details on how fees are allocated among the participants.
• Rulemaking and Enforcement: The commissioner will develop rules to implement the program, and penalties will be applied to those who violate these standards.
• Report Requirements: Regular reports will be submitted to the state legislature to update on program progress and compliance, including audits and verifications.

Significant Changes to Existing Law

• Amending Existing Statutes: The bill modifies Minnesota Statutes section 13.721, related to transportation data, to accommodate new regulations under the clean transportation standard.
• New Legal Structure: It proposes a new legal framework under the newly coded Minnesota Statutes chapter 174B, which will specifically oversee the clean transportation program.

Relevant Terms

• Clean transportation
• Carbon intensity
• Greenhouse gases
• Credits and deficits
• Fuel providers
• GREET model
• Rulemaking
• Carbon emissions reduction