Home | Reducing carbon pollution from transportation
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.
- 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 Minnesota 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.
Clean Transportation Standard Work Group
The 2023 Legislature established the Clean Transportation Standard (CTS) Work Group to study and address information gaps and opportunities related to implementing a standard in Minnesota. The work group was jointly convened by the Commissioners of Agriculture, Commerce, Transportation and the Pollution Control Agency.
A CTS is a technology and fuel-neutral market-based policy framework that requires carbon intensity reductions for transportation fuels including gasoline, diesel, biofuels and electricity. When structured and implemented properly, a CTS can reduce transportation greenhouse gas emissions, create green jobs, attract new investments, reduce air and water pollution, and improve soil and water health in Minnesota. A CTS could be the largest single policy for reducing carbon pollution from transportation in Minnesota.
The work group was tasked with considering a CTS program that requires an aggregate carbon intensity of transportation fuel supplied to Minnesota be reduced by 25% by 2030, 75% by 2040, and 100% by 2050 (compared to 2018 levels).
2023-24 Clean Transportation Standard Work Group Report
The work group met between July 2023 and January 2024. The work group's report to the Legislature was delivered on Feb. 1, 2024, and includes the work group's recommendations and suggested areas for further exploration, as well as the scenario modeling results that informed work group discussion.
Download fully accessible PDFs of report
- Executive summary (PDF)
- Report with the appendices (PDF)
- Report without the appendices or addendum (PDF)
- Full report (PDF)
Download appendices
Appendices provide additional information and analyses that guided the development of this report.
- All appendices (PDF)
- Appendix A: Technical Glossary (PDF)
- Appendix B: Sample of Existing State Programs Improving Ecosystem Services, Water and Soil Health on Working Lands (PDF)
- Appendix C: State Comparison Chart (PDF)
- Appendix D: Work Group Charter (PDF)
- Appendix E: Work Group Participation (PDF)
- Appendix F: Work Group Meeting Summaries (PDF)
- Appendix G: Informational Webinars (PDF)
- Appendix H: Credit and Deficit Calculations (PDF)
- Appendix I: Modeling Overview (PDF)
- Appendix J: Compliance Scenario Modeling (PDF)
- Appendix K: Residential EV Charging Credit Revenue Estimates (PDF)