If enacted, the legislation will set a carbon pollution standard against which transportation fuels would be judged. Fuels that don’t meet the standard would generate debts to the producers, while fuels that exceed them would generate credits, which could be sold to the debtors. The standard would gradually tighten.
Fossil fuel producers could meet the standards by blending ethanol into fuels, selling lower-carbon fuels like biodiesel, making improvements to oil refineries, funding carbon-capturing projects or investing in electric vehicles and charging stations. They could also buy credits from fuel producers — including electric utilities — that sell lower-carbon fuels, effectively subsidizing them.
The bill also would require electrical utilities to use
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