Michigan Senate Bill SB0275

Michigan 2023-2024 Regular Session

• Introduced: 4/19/23
• Refer: 4/19/23

Caption

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

Impact

The passage of SB 275 would significantly impact state laws related to environmental protection and transportation. It grants authority to the Department of Environment, Great Lakes, and Energy to oversee the implementation of the clean fuels standard and to develop rules for compliance. The bill emphasizes a lifecycle emissions performance-based approach, thereby promoting innovative technologies and practices among fuel providers. This move is expected to streamline efforts toward meeting greenhouse gas emission reduction targets as part of broader state initiatives addressing climate change.

Summary

Senate Bill 275 aims to establish a new regulatory framework for reducing the carbon intensity of transportation fuels in the state of Michigan. Specifically, it mandates a reduction of at least 25% in carbon intensity levels compared to a 2019 baseline by the year 2035. The bill sets clear definitions for key terms such as 'clean fuel' and 'credit,' which will allow fuel providers to participate in a market for trading carbon intensity credits. The goal is to incentivize the production and use of cleaner transportation fuels while holding providers accountable for exceeding the set standards.

Contention

While the bill is praised for its ambitious environmental objectives, it is not without points of contention. Critics may argue about the feasibility of the 25% reduction, raising concerns about the economic implications for fuel providers and potential impacts on fuel prices. Furthermore, issues surrounding the compliance burden on smaller fuel companies versus larger entities could become a focal point in debates. The inclusion of provisions allowing for tradable credits raises questions about market dynamics and fairness in the energy landscape.