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The Vermont Clean Transportation Standard

Vermont may soon follow California in the design and implementation of a regulatory policy that will encourage fuel suppliers to blend higher levels of ethanol and biodiesel. It will also increase the cost of traditional fossil fuels in order to incentivize the adoption of lower carbon fuels and lower emission vehicles.

How will it work? All transportation fuels will be assigned a carbon intensity (CI) that measures life-cycle emissions. Sellers of traditional fossil fuels will need to purchase credits, lower carbon fuels will generate credits. The purchase and sale of credits will occur on an exchange. This policy provides incentives for selling and purchasing lower carbon fuels and disincentives for higher carbon fuels.

Watch a presentation on the proposal here.