Clean fuels standard
What we know
A clean fuels policy is a performance-based incentive program that reduces climate pollution from ALL fuels (e.g., gas/diesel, biofuels, electricity). It is based on lifecycle carbon accounting (Material extraction > processing > manufacturing > distribution > use > maintenance > disposal/recycle).
- It assigns a carbon intensity (CI) score to all fuels.
- A carbon intensity target level is set, which decreases over time. Fuels above the level generate credits. Fuels above the standard generate deficits. Fuels above the standard generate credits.
- The fuel wholesaler (e.g., refiner or utility) or blender manages their credit balance and can buy/sell directly from/to other credit holders.
What we're doing
In October 2021, the Walz Administration directed state agencies to engage with stakeholders to determine if and how Minnesota should move forward with a Clean Fuels Standard (CFS). The goal is to cut our transportation emissions in half, create new jobs and attract new investment to our state, and reduce air and water pollution.
Engagement built on past work with stakeholders to inform how we can move forward together. Stakeholder meetings took place in October-December 2021. Stakeholder engagement included a range of perspectives including environmental justice, agricultural/rural, environmental/conservation, petroleum marketers, labor and economic development, utilities and business. There will be opportunities for the public to learn more about a Clean Fuels Standards and provide input as the process moves forward. If you are interested in learning more about engagement opportunities, please contact us.
Through stakeholder engagement meetings, we explored if and how MN should move forward on a CFS. The Clean Fuels Standard in Minnesota Summary Report (PDF) summarizes the feedback received from a diverse group of stakeholders between October 2021 and January 2022.