Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4543 Compare Versions

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1	1	HOUSE . . . . . . . . No. 4543
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES , April 16, 2024.
5	5	The committee on Telecommunications, Utilities and Energy, to whom
6	6	was referred the petition (accompanied by bill, House, No. 3859) of
7	7	Marjorie C. Decker relative to clean fuel standards, reports recommending
8	8	that the accompanying bill (House, No. 4543) ought to pass.
9	9	For the committee,
10	10	JEFFREY N. ROY. 1 of 4
11	11	FILED ON: 4/5/2024
12	12	HOUSE . . . . . . . . . . . . . . . No. 4543
13	13	The Commonwealth of Massachusetts
14	14	_______________
15	15	In the One Hundred and Ninety-Third General Court
16	16	(2023-2024)
17	17	_______________
18	18	An Act relative to a just transition to clean energy.
19	19	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
20	20	of the same, as follows:
21	21	1 SECTION 1. Chapter 25A of the General Laws, as appearing in the 2022 edition, is
22	22	2hereby amended by adding the following section:-
23	23	3 Section 11F 2/3. (a) As used in this section, the following words shall have the following
24	24	4meanings:
25	25	5 “Carbon intensity,” means the quantity of lifecycle greenhouse gas emissions associated
26	26	6with a unit of specific transportation fuel, expressed in grams of carbon dioxide equivalent per
27	27	7megajoule of transportation fuel,
28	28	8 “Clean fuel,” means a transportation fuel that has a carbon intensity level that is
29	29	9below the clean fuels carbon intensity standard in a given year,
30	30	10 “Credit,” means a unit of measurement equal to one metric ton of carbon dioxide
31	31	11equivalent and that serves as a quantitative measure of the degree to which a fuel provider’s 2 of 4
32	32	12transportation fuel volume is lower than the carbon intensity established by the clean fuel
33	33	13standard,
34	34	14 “Deficit,” means a quantitative measure of the degree to which a fuel provider’s
35	35	15volume of transportation fuel is greater than the carbon intensity than permissible according to
36	36	16the annual clean fuel standard,
37	37	17 “Full fuels lifecycle" means the aggregate of greenhouse gas emissions, including
38	38	18direct emissions and significant indirect emissions, such as significant emissions from land use
39	39	19changes, as determined by the Argonne Greenhouse gases, Regulated Emissions, and Energy use
40	40	20in Technologies (GREET) model or a subsequent prevailing standard;
41	41	21 "Sustainable aviation fuel," means a clean fuel that can be blended and used with
42	42	22conventional petroleum jet fuels without the need to modify aircraft engines and existing fuel
43	43	23distribution infrastructure, and that have a lower carbon intensity than the carbon intensity of
44	44	24conventional petroleum jet fuels. Sustainable aviation fuel includes jet fuels derived from
45	45	25coprocessed feedstocks at a conventional petroleum refinery.
46	46	26 “Transportation fuel provider” means an entity that functions as an importer, blender,
47	47	27refiner, or wholesale retailer of transportation fuels,
48	48	28 (b)(1) The Department of energy resources shall establish a clean fuel standard that
49	49	29reduces the aggregate carbon intensity of transportation fuels by 80% from 1990 levels by 2050,
50	50	30establishes a mechanism for the generation and trading of credits at a market-based rate to offset
51	51	31carbon deficits, and supports clean energy and accessible transportation projects in
52	52	32disadvantaged communities. 3 of 4
53	53	33 (b)(2) The clean fuel standard shall apply to transportation fuel providers with the
54	54	34exception of fuels for aviation, railroad locomotives, military vehicles, interstate waterborne
55	55	35vessels, and fuels imported, blended, refined, or wholesaled in volumes below thresholds
56	56	36established by the Department. Sustainable aviation fuel and other clean fuels, as determined by
57	57	37the Department, shall be eligible to generate credits for the transportation fuel provider on an
58	58	38opt-in basis.
59	59	39 (b)(3) The Department shall establish an annual schedule to phase-in implementation of
60	60	40the clean fuel standard’s carbon intensity reduction that considers the cost of compliance, the
61	61	41technologies available to fuel providers, and the need to maintain fuel quality and availability.
62	62	42The aggregate carbon intensity of a transportation fuel shall be measured on a full fuels lifecycle
63	63	43basis. The full fuels lifecycle shall be assessed annually and shall include all stages of fuel and
64	64	44feedstock production and distribution, from feedstock generation or extraction through the
65	65	45distribution and delivery and use of the finished fuel by the ultimate consumer.
66	66	46 (c)(1) The clean fuel standard shall establish a mechanism that assigns credits to
67	67	47transportation fuel providers whose fuel or fuels’ carbon intensity is below the standards adopted
68	68	48by the Department and a market for the trading of credits at a market-based rate. Credits shall be
69	69	49quantified based on the total emissions across the lifecycle of the provider’s fuel and the annual
70	70	50maximum allowable carbon emission intensity for that year. These credits may be applied to
71	71	51future obligations or be traded on a market mechanism, established by the Department to satisfy
72	72	52or offset compliance obligations of transportation fuel providers incurring a deficit.
73	73	53 (c)(2)Fuel providers subject to the clean fuel standard shall comply by importing,
74	74	54blending, refining, or wholesaling transportation fuels with an aggregate carbon intensity that is 4 of 4
75	75	55at or below the standard as determined by the Department or by purchasing credits to offset any
76	76	56aggregate deficit incurred from transportation fuels exceeding the maximum allowable carbon
77	77	57intensity for that year.
78	78	58 (d) Public entities serving as credit generators, to include but not limited to utilities and
79	79	59state agencies, shall invest or direct a percentage, to be determined by the Department, of the
80	80	60entity’s overall credit value to support clean energy and accessible transportation projects in
81	81	61disadvantaged communities beyond existing local, federal, and state incentives. The Department
82	82	62shall determine projects and goals under this subdivision in consultation with credit generators,
83	83	63communities, community leaders, and environmental justice advocates.
84	84	64 (e) The Department shall promulgate rules, regulations, plans, proposals, procedures, and
85	85	65administrative fees as are necessary and appropriate to effectuate a clean fuel standard and credit
86	86	66marketplace to ensure compliance with this section and to offset the costs of implementation of
87	87	67the clean fuel standard.