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 total greenhouse gas emissions associated with the life-cycle of the fuel, 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 over the annual reporting period.

The program is designed to achieve a 10 percent reduction in the carbon intensity of diesel and gasoline used in New Jersey by 2030, compared to 2019 levels. It includes various mechanisms for compliance, such as the ability to trade credits and the option for alternative fuel producers to voluntarily participate in the program. Additionally, 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 improving public health through reduced air pollution and aims to create jobs in various sectors by promoting low-carbon fuel technologies.