The 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. It 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 program will also implement 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.

The bill outlines specific requirements for the program, including a target to reduce greenhouse gas emissions from diesel and gasoline by 10% below 2019 levels by 2030. It also allows for optional provisions, such as mechanisms for alternative fuel producers to voluntarily participate in the program 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. Overall, the bill aims to promote the use of low-carbon fuels, improve public health by reducing air pollution, and stimulate job creation in various sectors.