Michigan House Bill HB5083

Michigan 2023-2024 Regular Session

• Introduced: 10/3/23
• Refer: 10/3/23

Caption

Environmental protection: air pollution; low-carbon fuel standard; provide for. Creates new act.

Impact

The legislation has significant implications for state laws governing transportation fuel standards. It grants the state authority to regulate carbon emissions associated with various fuels, facilitating a move toward cleaner energy options. This can potentially encourage investments in renewable energy technologies and create economic opportunities in the clean fuels sector. Additionally, it aims to align state initiatives with broader environmental goals as outlined in the MI Healthy Climate Plan, promoting sustainability in transportation.

Summary

House Bill 5083 aims to establish a standard for reducing the carbon intensity of transportation fuels in Michigan. The bill outlines the creation of a market for trading carbon intensity credits, with the goal of incentivizing cleaner fuel production and usage. It specifies that from December 31, 2035, the carbon intensity of all transportation fuel must be reduced to at least 35% below baseline levels identified from 2019 data. The Department of Environment, Great Lakes, and Energy is tasked with implementing this standard, and compliance will involve calculations based on a life-cycle emissions performance approach that is technology-neutral.

Contention

While the bill has support from environmental advocates who see it as a critical step toward fighting climate change, there may be contention regarding its broader implications for fuel providers and consumers. Critics may argue that increased regulations could raise costs related to fuel production and compliance, which might be passed down to consumers. Moreover, stakeholders such as agricultural organizations may express concerns regarding the methods for verifying emissions reductions and how it impacts traditional farming practices, particularly in their pursuit of a balanced approach that recognizes voluntary emissions reductions.