CLEAN TRANSPORTATION STANDARD

Illinois General Assembly - Full Text of SB0041

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB0041

Introduced 1/13/2025, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

New Act

Creates the Clean Transportation Standard Act. Establishes a clean
transportation standard to reduce lifecycle carbon intensity of fuels for
the ground transportation sector by specified amounts. Provides for
related rulemaking and calculations. Provides that the clean
transportation standard shall take the form of a credit marketplace
monitored by the Environmental Protection Agency. Provides for
verification and data privacy requirements for the Agency. Provides for
penalties for failing to offset deficits in certain situations, and for
penalties for submitting false information. Exempts airline, rail,
ocean-going, and military fuel. Provides that the Agency must develop a
periodic fuel supply forecast. Establishes findings. Defines terms.
Contains other provisions. Effective immediately.
LRB104 06940 BDA 16977 b

A BILL FOR

SB0041
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AN ACT concerning transportation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
Clean
5
Transportation Standard Act.

6

Section 5.
Findings.
The General Assembly finds that:
7

(1) The transportation sector in this State is a
8

leading source of criteria air pollutants and greenhouse
9

gas emissions, which collectively endanger public health
10

and welfare by causing and contributing to increased air
11

pollution and climate change.
12

(2) Shifting from petroleum-based transportation fuels
13

to alternative fuels has the potential to significantly
14

reduce transportation emissions of air pollutants and
15

greenhouse gases and is recommended by the
16

Intergovernmental Panel on Climate Change as an important
17

pathway for holding global warming at 1.5 degrees Celsius.
18

A clean transportation standard would promote innovation
19

in, and production and use of, nonpetroleum fuels that
20

reduce vehicle-related and fuel-related air pollution that
21

endangers public health and welfare and disproportionately
22

impacts disadvantaged communities.
23

(3) Credits generated through the use of clean fuel

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under this Act will promote innovation and investment in
2

clean fuels.

3

Section 10.
Definitions.
As used in this Act:
4

"Agency" means the Environmental Protection Agency.
5

"Aggregator" or "credit aggregator" means a person who
6
registers to participate in the clean transportation standard
7
program on behalf of one or more credit generators to
8
facilitate credit generation and to trade credits.
9

"Aviation fuel" means a fuel suitably blended to be used
10
in aviation engines.
11

"Backstop aggregator" means a qualified nonprofit entity
12
approved by the Agency to aggregate credits for electricity
13
used as a transportation fuel when those credits would not
14
otherwise be generated.
15

"Board" means the Pollution Control Board.
16

"Carbon intensity" means the amount of lifecycle
17
greenhouse gas emissions per unit of fuel energy expressed in
18
grams of carbon dioxide equivalent per megajoule.
19

"Clean fuel" means a transportation fuel that is
20
domestically produced and has a carbon intensity below the
21
clean transportation standard carbon intensity standard in a
22
given year.
23

"Clean transportation standard" means the standard adopted
24
by the Board under Section 15 for the reduction, on average, of
25
lifecycle carbon intensity of fuels used for on-road

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transportation. If there is an industry-accepted standard for
2
calculating the carbon intensity of different modes of
3
transportation, such as off-road, light rail, and other forms
4
of mass transportation, the Board shall adopt that standard
5
for those modes of transportation.
6

"Consumer Price Index for All Urban Consumers" or "CPI-U"
7
means the index published by the Bureau of Labor Statistics of
8
the United States Department of Labor that measures the
9
average change in prices of goods and services, United States
10
city average, all items.
11

"Credit" means a unit of measure generated when clean fuel
12
is provided for use in this State, such that one credit is
13
equal to one metric ton of carbon dioxide equivalent.
14

"Credit generator" means a regulated entity that generates
15
a credit in the clean transportation standard.
16

"Deficit" means a unit of measure generated when a fuel
17
provided in this State has a carbon intensity that exceeds the
18
clean transportation standard for the applicable year,
19
expressed in metric tons of carbon dioxide equivalent.
20

"Deficit generator" means a regulated entity that
21
generates a deficit in the clean transportation standard.
22

"Fuel" means any one or more of the following that is used
23
to power vehicles or equipment for the purpose of
24
transportation: electricity or a liquid, gaseous, or blended
25
fuel, including gasoline, diesel, liquefied petroleum gas,
26
natural gas, or hydrogen.

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"Fuel pathway" means a detailed description of all stages
2
of a transportation fuel's production and use, including
3
feedstock growth, extraction, processing, transportation,
4
distribution, and combustion or use by an end user.
5

"Lifecycle carbon intensity" means the quantity of
6
greenhouse gas emissions per unit of energy, expressed in
7
carbon dioxide equivalent per megajoule, emitted by the fuel,
8
including both direct and indirect sources, as calculated by
9
the Agency under subsection (2) of Section 20 using the
10
methods described under Section 30.
11

"Military tactical vehicle" means a motor vehicle owned by
12
the U.S. Department of Defense or the U.S. military services
13
and used in combat, combat support, combat service support,
14
tactical or relief operations, or training for such
15
operations.
16

"Petroleum-only portion" means the component of gasoline
17
or diesel fuel before blending with ethanol, biodiesel,
18
biofuel, or other clean fuel.
19

"Provider" means:
20

(1) with respect to any liquid fuel, hydrogen fuel,
21

and renewable propane used as a fuel source for
22

transportation, the person who refines, produces, or
23

imports the fuel;
24

(2) with respect to any biomethane, the person who
25

imports or produces, refines, treats, or otherwise
26

processes biogas into biomethane used as a fuel source for

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transportation;
2

(3) with respect to electricity used as a fuel source
3

for transportation, the person who is the direct provider
4

of electricity, the electric vehicle charging service
5

provider, the electric utility, the electric vehicle fleet
6

operator, the electric vehicle manufacturer, and the
7

owners or operators of charging stations located on
8

commercial property; or
9

(4) with respect to other types of fuel, a person
10

determined to be the provider by the Agency.
11

"Provider" does not include the owner or operator of a
12
residential charging station.
13

"Regulated entity" means any entity, whether a credit
14
generator or deficit generator, that has registered, on a
15
mandatory or permissive basis, to participate in the clean
16
transportation standard.
17

"Sustainable aviation fuel" means an aviation fuel with a
18
carbon intensity sufficient to generate credits under the
19
clean transportation standard upon its production or supply.
20

"Tactical support equipment" means equipment using a
21
portable engine, including turbines, that meets military
22
specifications, is owned by the U.S. Department of Defense or
23
the U.S. military services or its allies, and is used in
24
combat, combat support, combat service support, tactical or
25
relief operations, or training for such operations. "Tactical
26
support equipment" includes, but is not limited to, engines

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associated with portable generators, aircraft start carts,
2
heaters and lighting carts.

3

Section 15.
Rulemaking and baseline calculations for clean
4
transportation standard.
5

(a) To the extent allowed by federal law, within 24 months
6
after the effective date of this Act, the Agency shall propose
7
and the Board shall adopt rules establishing a clean
8
transportation standard in order to reduce, within 10 years of
9
the adoption of the Agency's rules by the Board, the lifecycle
10
carbon intensity of fuels for the ground transportation sector
11
by 25% below the 2019 baseline level as calculated under this
12
Section. After the 25% reduction described in this Section is
13
attained, the Agency shall prepare a report that proposes
14
further reductions in the lifecycle carbon intensity of fuels
15
for the ground transportation sector for the following 10
16
years. The report prepared by the Agency shall include
17
proposed changes to this Act that are required to implement
18
those reductions. The rules proposed and adopted shall be
19
subject to public notice and comment under the Illinois
20
Administrative Procedure Act. The Board may recommend to the
21
General Assembly reductions to the clean transportation
22
standard below those adopted in accordance with this Act,
23
using factors, including, but not limited to, advances in
24
clean fuel technology. The rules adopted by the Board under
25
this Section shall include fees for the registration of

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regulated entities to offset the costs incurred by the Board
2
and the Agency that are associated with implementing the clean
3
transportation standard. These fees shall be used only in
4
connection with the administration of the program and may be
5
levied differently based on whether a regulated entity is a
6
credit generator or deficit generator. Except where otherwise
7
provided in this Act, the Agency shall consider rules that are
8
harmonized, to the extent practicable, with the regulatory
9
standards, exemptions, reporting obligations, and other clean
10
transportation standard compliance requirements and methods
11
for credit generation of other states that have adopted
12
low-carbon fuel standards or similar greenhouse gas emissions
13
requirements applicable specifically to transportation fuels.
14

(b) The Agency shall calculate the baseline carbon
15
intensities of the petroleum-only portion of all
16
transportation fuels produced or imported in 2019 for use in
17
this State by:
18

(1) reviewing and considering the best available
19

applicable scientific data and calculations; and
20

(2) using a lifecycle emissions, performance-based
21

approach that is technology-and-feedstock neutral.

22

Section 20.
Contents of clean transportation standard.
The
23
clean transportation standard adopted by the Board, by rule,
24
shall:
25

(1) apply to all providers in the State;

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(2) be measured based on a lifecycle carbon intensity
2

that shall be calculated by the Agency in accordance with
3

Section 30;
4

(3) recognize voluntary farm emissions reductions that
5

contribute to the reduced carbon intensity of fuels by
6

allowing credit generators to use individualized
7

farm-level carbon intensity scoring for approved
8

sustainable agricultural practices and by requiring the
9

Agency to use the GREET model's Feedstock Carbon Intercity
10

Calculator (FD-CIC) to determine individualized farm-level
11

carbon intensity scoring;
12

(4) take into consideration the low-carbon clean
13

transportation fuel standards that are pending or have
14

been adopted in other states, including their provisions
15

related to the inclusion of additional credit
16

opportunities from activities and projects that support
17

the reduction or removal of greenhouse gas emissions
18

associated with transportation in the State, and that
19

allow regulated entities to generate credits under any
20

overlapping current and future federal transportation fuel
21

statutes and regulations;
22

(5) include a credit price cap (i) that is to be
23

determined by the Agency and confirmed by the Board to
24

contain costs if the fuel supply forecasts determine that
25

not enough credits will be available and (ii) that shall
26

be adjusted annually by the rate of inflation as measured

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by the most recently available 12 months of the Consumer
2

Price Index for All Urban Consumers;
3

(6) contain a structure for compliance that conforms
4

with the marketplace system described in Section 25,
5

including, but not limited to, details, such as:
6

(A) methods for assigning compliance obligations
7

and methods for tracking tradable credits;
8

(B) mechanisms that allow credits to be traded,
9

transferred, sold, and banked for future compliance
10

periods;
11

(C) mechanisms that provide for the creation of a
12

list of accepted credit transactions and a list of
13

prohibited forms of credit transactions, which may
14

include trades involving, related to, or associated
15

with any of the following:
16

(i) any manipulative or deceptive device;
17

(ii) a corner or an attempt to corner the
18

market for credits;
19

(iii) fraud or an attempt to defraud any other
20

entity;
21

(iv) false, misleading, or inaccurate reports
22

concerning information or conditions that affect
23

or tend to affect the price of a credit; and
24

(v) applications, reports, statements, or
25

documents required to be filed under this Act that
26

are false or misleading with respect to a material

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fact or that omit a material fact necessary to
2

make the contents therein not misleading;
3

(C) procedures for verifying the validity of
4

credits and deficits generated under the clean
5

transportation standard;
6

(D) mechanisms by which persons associated with
7

the supply chains of transportation fuels that are
8

used for purposes that are exempt from the clean
9

transportation standard described in Section 40 and
10

persons that are associated with the supply chains of
11

transportation fuels and will generate credits may
12

register with the Agency to participate in the clean
13

transportation standard program; and
14

(E) an administrative procedure by which a
15

regulated entity may contest the Board's or Agency's
16

calculation prior to the levying of a penalty for
17

failure to remedy a given deficit;
18

(F) procedures that will allow the Agency to
19

cancel or reverse (i) a credit transfer that is
20

determined to be a prohibited transaction under items
21

(i) through (v) of subparagraph (B) or (ii) any other
22

prohibited transaction as determined by the Board in
23

rulemaking;
24

(7) contain a program review procedure whereby the
25

Board or Agency shall, every 3 years after the
26

implementation of the clean transportation standard,

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solicit feedback from and consult with representatives
2

from stakeholder groups, including representatives from
3

the fuel production industry, the transportation industry,
4

the agricultural industry, environmental advocacy
5

organizations, labor organizations, representatives from
6

impacted environmental justice communities, as defined in
7

Section 801-10 of the Illinois Finance Authority Act, and
8

representatives from related State agencies; the substance
9

of the consultations shall include, but may not be limited
10

to, a review of the economic impact of the clean
11

transportation standard, whether the clean transportation
12

standard is adhering to the established carbon intensity
13

reduction goals, the health impact of the emissions
14

reductions on disadvantaged environmental justice
15

communities, as defined in Section 801-10 of the Illinois
16

Finance Authority Act, and whether access to
17

transportation has been affected as a result of the
18

implementation of the clean transportation standard;
19

(8) include annual carbon intensity reduction
20

standards that are to be met by regulated entities and
21

that result in the attainment of carbon intensity
22

reduction targets set by the Board;
23

(9) maximize benefits to the environment and natural
24

resources and develop safeguards and incentives to protect
25

natural lands and enhance environmental integrity,
26

including biodiversity;

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(10) aim to support, through credit generation or
2

other financial means, voluntary farmer-led efforts to
3

adopt agricultural practices that benefit soil health and
4

water quality;
5

(11) support equitable transportation electrification
6

that benefits all communities and is powered primarily
7

with low-carbon and carbon-free electricity;
8

(12) seek to improve air quality and public health,
9

targeting communities that bear a disproportionate health
10

burden from transportation pollution;
11

(13) establish, in consultation with the Department of
12

Agriculture and the Department of Transportation, a
13

procedure for determining fuel pathways that:
14

(A) is consistent for all fuel types;
15

(B) is based on science and engineering; and
16

(C) accounts for any on-site additional energy use
17

by a carbon capture technology employed in the fuel
18

production process, including, but not limited to,
19

generation, distillation, and compression;
20

(14) recognize that farmers who can demonstrate use of
21

production methods that lower the carbon intensity of
22

their commodities shall be compensated a fair market value
23

that is, at minimum, commensurate with costs associated
24

with those low-carbon production methods or shall be
25

provided a fair share of the increased market value of the
26

end-use product that their commodity is used to produce.

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Compensation may come in a variety of forms, including,
2

but not limited to, practice-based incentive payments,
3

outcome-based incentive payments, price premiums, or other
4

forms of payment. The Agency shall also protect farm data
5

by ensuring farmer ownership of data for a specific amount
6

of time or negotiated on an annual basis;
7

(15) contain mechanisms to excuse noncompliance from
8

enforcement action if compliance is impossible, including
9

rules that shall specify the criteria and procedures for
10

the Agency to determine whether a period of noncompliance
11

is excusable in accordance with Sections 50 and 55;
12

(16) include mechanisms by which providers who would
13

be eligible to generate credits from electricity used as
14

transportation fuel may assign their right to generate
15

credits to an aggregator, and include mechanisms by which
16

a backstop aggregator may register with the program to
17

generate credits if an electric utility opts out of the
18

program; and
19

(17) provide indirect accounting mechanisms, such as
20

book-and-claim or mass-balancing for clean fuels entering
21

fungible supply systems that can access this State.

22

Section 25.
Credit market; verification and data privacy;
23
compliance and penalties.
24

(a) The clean transportation standard adopted by the Board
25
shall take the form of a credit marketplace with the following

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structure. The marketplace shall consist of a system of
2
credits and deficits monitored by the Agency. The Agency shall
3
compile a list of fuel pathways that providers may use to
4
generate credits. Providers seeking to be credit generators
5
must register with the Agency and attest to the transportation
6
fuels they provide in the State in order to qualify to generate
7
credits. Each deficit generator must register and comply with
8
the program. Fuels that are registered with the program must
9
have a dedicated, verifiable fuel pathway with a carbon
10
intensity score measurable by software described in Section 30
11
and assigned a unique identifier by the Agency. Providers
12
reaching or exceeding the required reduction of lifecycle
13
carbon intensity under the clean transportation standard shall
14
receive credits from the Agency upon verification described in
15
subsection (b) at the end of a reoccurring reporting period as
16
determined by the Agency. Fuel providers that are deficit
17
generators during a year shall eliminate the deficit by either
18
providing transportation fuels whose carbon intensity is at or
19
below the level of that year's annual clean transportation
20
standard or by purchasing credits to offset the deficit. The
21
system of credits created under this subsection shall provide
22
credits based on a lifecycle emissions performance-based
23
approach that is technology neutral, feedstock neutral, and
24
has the purpose of achieving transportation fuel
25
decarbonization.
26

(b) The Agency must, in collaboration with the Department

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of Agriculture and the Department of Transportation, establish
2
acceptable methods to verify that the transportation fuel used
3
by regulated entities has been provided following the pathway
4
bearing the unique identifier as attested by the regulated
5
entity. The Agency is authorized to contract with third party
6
verifiers to accomplish this requirement. Upon registering
7
with the program, regulated entities must agree to provide
8
data related to the registered fuel pathway used to generate
9
credits or deficits with the Agency as required to administer
10
the program. Upon registering with the program, regulated
11
entities must agree to be subject to periodic audits as
12
determined by the Agency.
13

All information gathered by or provided to the Agency or
14
contractors of the Agency, either by regulated entities,
15
agents of regulated entities, or growers of feedstock used in
16
a registered fuel pathway by regulated entities, through
17
either voluntary disclosure or audit, must not be shared by
18
the Agency with any party except in relation to the
19
administration of the clean transportation standard absent
20
written consent by the regulated entity and the entity from
21
which the data was gathered. This data must not be used for any
22
purpose outside of the administration and enforcement of the
23
clean transportation standard except by written consent from
24
the original data holder. Ownership of all data shared or
25
collected by the Agency for the administration and enforcement
26
of the clean transportation standard is retained with the

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entity from which the data originates. Data protected under
2
this subparagraph does not include a regulated entity's credit
3
or deficit balance, which may be publicly disclosed by the
4
Agency.
5

(c) Deficit generators who fail to offset their deficits
6
at the conclusion of any compliance period administered by the
7
Agency shall be subject to a civil penalty established by the
8
Agency subject to the following limitations:
9

(1) the value of the penalty shall correspond to the
10

amount of deficits attributed to a given regulated entity
11

at the time the transaction has completed; and
12

(2) for every one deficit the regulated entity fails
13

to offset, the penalty for failure to offset that deficit
14

shall not exceed 10 times the value of the credit needed to
15

offset the deficit.
16

(d) Regulated entities that submit false information in
17
support of an application to register for the clean
18
transportation standard, that share false information during
19
an audit or in support of an attestation, or that otherwise
20
share false or inaccurate information to the Agency or a
21
contractor working under the direction of the Agency shall be
22
subject to penalties to be determined by the Agency by rule.
23
Penalties under this paragraph may include monetary penalties,
24
forfeiture of credits, and reversals of prohibited
25
transactions as described in subparagraph (B) of paragraph (6)
26
of Section 20. The Agency may waive penalties under this

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subparagraph. If the violator under this subsection is a
2
credit generator, following 3 violations, the Agency may
3
remove the violating credit generator from the clean
4
transportation standard. In determining whether penalties
5
should be applied and, if a penalty is to be applied, the
6
amount of penalties to be levied for violations under this
7
subparagraph, the Agency shall consider:
8

(1) evidence of willfulness by the regulated entity to
9

submit false information;
10

(2) the scope of the false information;
11

(3) evidence of past submissions of false information;
12

and
13

(4) efforts undertaken by the regulated entity to
14

remedy the false submission.
15

(e) The penalties provided for in this Section may be
16
recovered in a civil action brought in the name of the people
17
of the State of Illinois by the State's Attorney of the county
18
in which the violation occurred or by the Attorney General.
19
Any penalties collected under this Section in an action in
20
which the Attorney General has prevailed shall be used to
21
offset registration fees in support of the administration of
22
the clean transportation standard program. Any amount of
23
penalties collected in addition to the amount needed to
24
administer the clean transportation standard program shall be
25
deposited into the Environmental Protection Trust Fund, to be
26
used in accordance with the provisions of the Environmental

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Protection Trust Fund Act.
2

(f) The Attorney General or the State's Attorney of a
3
county in which a violation occurs may institute a civil
4
action for an injunction, prohibitory or mandatory, to
5
restrain violations of this Act or to require such actions as
6
may be necessary to address violations of this Act.
7

(g) The penalties and injunctions provided in this Act are
8
in addition to any penalties, injunctions, or other relief
9
provided under any other law. Nothing in this Act bars an
10
action by the State for any other penalty, injunction, or
11
other relief provided by any other law.

12

Section 30.
Lifecycle carbon intensity calculations;
13
software.
The lifecycle carbon intensity calculation conducted
14
by the Agency under paragraph (2) of Section 20 shall use the
15
Argonne National Laboratory's GREET model and shall include
16
all stages of fuel and feedstock production and distribution,
17
from feedstock generation or extraction through the
18
distribution, delivery, and use of the finished fuel by the
19
ultimate consumer. The Agency shall, as needed and
20
periodically as established by rule, use as up-to-date a model
21
as possible, taking into account staffing and hiring needs.
22
Carbon intensity values calculated for clean fuel pathways
23
under construction or in operation using the current version
24
of the GREET model shall be allowed if the GREET model is
25
revised during the compliance year. In calculating the

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lifecycle carbon intensity, the mass values for all greenhouse
2
gases that are not carbon dioxide must be adjusted to account
3
for each of their relative global warming potentials. This
4
adjustment shall be performed using the global warming
5
potential deemed most accurate by the Agency for each
6
greenhouse gas for the period during which reductions in
7
greenhouse gas emissions are to be attained under the clean
8
transportation standard. When measuring the carbon intensity
9
of clean fuels, the Agency shall use the GREET model's
10
Feedstock Carbon Intensity Calculator (FD-CIC) for the
11
purposes of accounting for variations in farming practices
12
across different fuel pathways.

13

Section 35.
Investments by backstop aggregators and
14
utilities.
In implementing this Act, the Agency and Board
15
shall establish rules directing participating utilities and
16
backstop aggregators under the standard to invest all revenue
17
earned from trading credits toward investments into
18
distribution, grid modernization, infrastructure and other
19
projects that support transportation decarbonization, with at
20
least 50% of such revenues supporting environmental justice
21
communities as defined in Section 801-10 of the Illinois
22
Finance Authority Act. All labor paid for with money from
23
required investments under this Section shall be subject to
24
the prevailing wage. The Agency and Board shall determine
25
projects and goals under this Act in consultation with

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relevant stakeholders, including, but not limited to, credit
2
generators, affected communities, and environmental justice
3
advocacy organizations.

4

Section 40.
Exemptions.
The following fuels are exempt
5
from the clean transportation standard established in Section
6
15:
7

(1) aviation fuels;
8

(2) transportation fuel used in locomotives;
9

(3) transportation fuel used in ocean-going vessels;
10

and
11

(4) fuel used in military tactical vehicles and
12

tactical support equipment owned by the U.S. Department of
13

Defense or the U.S. military services.
14
However, providers of these fuels, if deemed to be clean
15
fuels, shall be eligible under the rules adopted pursuant to
16
this Act to receive credits on an opt-in basis that may be
17
applied to future obligations or sold to deficit generators.

18

Section 45.
Agency reporting obligation.
Within 12 months
19
after the implementation of the clean transportation standard,
20
the Agency shall submit a report to the General Assembly
21
detailing the implementation of the clean transportation
22
standard, the reductions in greenhouse gas emissions that have
23
been achieved through the clean transportation standard, and
24
targets for future reductions in greenhouse gas emissions.

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These reports shall include feedback solicited from
2
stakeholders under paragraph (7) of Section 20.

3

Section 50.
Fuel supply forecasting.
In consultation with
4
the Department of Transportation and the Department of
5
Agriculture, the Agency must develop a periodic fuel supply
6
forecast to project the availability of fuels to the State
7
necessary for compliance with clean transportation standard
8
requirements. The fuel supply forecast for each upcoming
9
compliance period must include, but is not limited to, the
10
following:
11

(1) an estimate of the potential volumes of gasoline,
12

gasoline substitutes, and gasoline alternatives, and
13

diesel, diesel substitutes, and diesel alternatives
14

available to the State. In developing this estimate, the
15

Agency must consider, but is not limited to, considering:
16

(A) the existing and future vehicle fleet in this
17

State; and
18

(B) any constraints that might be preventing
19

access to available and cost-effective clean fuels by
20

the State, such as geographic and logistical factors,
21

and alleviating factors to the constraints;
22

(2) an estimate of the total banked credits and
23

carried over deficits held by regulated entities, credit
24

generators, and credit aggregators at the beginning of the
25

compliance period, and an estimate of the total credits

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attributable to fuels described in paragraph (1);
2

(3) an estimate of the number of credits needed to
3

meet the applicable clean transportation standard
4

requirements during the forecasted compliance period; and
5

(4) a comparison in the estimates of paragraphs (1)
6

and (2) with the estimate in paragraph (3), for the
7

purpose of indicating the availability of fuels and banked
8

credits needed for compliance with the requirements of
9

this chapter.
10

The Agency may appoint a forecast review team of relevant
11
experts to participate in the fuel supply forecast or
12
examination of data required by this Section. The Agency must
13
finalize a fuel supply forecast for an upcoming compliance
14
period by no later than 90 days prior to the start of the
15
compliance period.

16

Section 55.
Forecast deferral.
17

(a) No later than 30 calendar days before the commencement
18
of a compliance period, the Agency shall issue an order
19
declaring a forecast deferral if the fuel supply forecast
20
under Section 50 projects that the amount of credits that will
21
be available during the forecast compliance period will be
22
less than 100% of the credits projected to be necessary for
23
regulated parties to comply with the scheduled applicable
24
clean transportation standard adopted by the Agency for the
25
forecast compliance period.

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(b) An order declaring a forecast deferral under this
2
Section must set forth:
3

(1) the duration of the forecast deferral;
4

(2) the types of fuel to which the forecast deferral
5

applies; and
6

(3) which of the following methods the Agency has
7

selected for deferring compliance with the scheduled
8

applicable clean transportation standard during the
9

forecast deferral:
10

(A) temporarily adjusting the scheduled applicable
11

clean transportation program standard to a standard
12

identified in the order that better reflects the
13

forecast availability of credits during the forecast
14

compliance period and requiring regulated entities to
15

comply with the temporary standard;
16

(B) requiring regulated entities to comply only
17

with the clean transportation standard applicable
18

during the compliance period prior to the forecast
19

compliance period; or
20

(C) suspending deficit accrual for part or all of
21

the forecast deferral period.
22

(c) In implementing a forecast deferral, the Agency may
23
take an action for deferring compliance with the clean
24
transportation standard other than, or in addition to,
25
selecting a method under paragraph (3) of subsection (b) only
26
if the Agency determines that none of the methods under

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paragraph (3) of subsection (b) will provide a sufficient
2
mechanism for containing the costs of compliance with the
3
clean transportation standard during the forecast deferral.
4

(d) If the Agency makes the determination specified in
5
subsection (c), the Agency shall:
6

(1) include in the order declaring a forecast deferral
7

the determination and the action to be taken; and
8

(2) provide written notification and justification of
9

the determination and the action to:
10

(A) the Governor;
11

(B) the President of the Senate;
12

(C) the Speaker of the House of Representatives;
13

(D) the Majority and Minority Leaders of the
14

Senate; and
15

(E) the Majority and Minority Leaders of the House
16

of Representatives.
17

(e) The duration of a forecast deferral may not be less
18
than one calendar quarter or longer than one compliance
19
period. Only the Agency may terminate, by order, a forecast
20
deferral before the expiration date of the forecast deferral.
21
Termination of a forecast deferral is effective on the first
22
day of the next calendar quarter after the date that the order
23
declaring the termination is adopted.

24

Section 60.
Conflicts with other State programs.
Nothing
25
in this Act precludes the Agency or Board from adopting or

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maintaining other programs as permitted or required by
2
existing or future legislation to reduce greenhouse gas
3
emissions from the transportation sector.

4

Section 99.
Effective date.
This Act takes effect upon
5
becoming law.

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