This bill establishes a low-carbon transportation fuel standard program within the New Jersey Department of Environmental Protection (DEP) aimed at reducing greenhouse gas emissions from the transportation sector. The program mandates that refiners, wholesalers, importers of diesel and gasoline, and producers of alternative fuels ensure their products meet an annual low-carbon transportation fuel standard. This standard will be based on the carbon intensity of fuels over their entire life-cycle, including production, transportation, and consumption. The bill also introduces a system of tradable credits and deficits, where fuels exceeding the standard generate credits, while those that do not will incur deficits. Entities must ensure they do not generate net deficits annually by offsetting them with credits.

The program is designed to achieve a 10% reduction in the greenhouse gas emissions associated with diesel and gasoline used in New Jersey by 2030, compared to 2019 levels. It includes various mechanisms for compliance, such as the ability for producers of alternative fuels to voluntarily opt-in to generate credits. The DEP is tasked with consulting fuel and transportation experts during the program's development and may consider linking New Jersey's standards with similar initiatives in other states. The bill emphasizes the importance of a technology-neutral and science-based approach to incentivize job creation and improve public health through reduced air pollution.