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-BILL AS INTRODUCED S.171
-2026 Page 1 of 7
+S.171
 
-VT LEG #384977 v.1
-S.171 1
-Introduced by Senator White 2
-Referred to Committee on  3
-Date:  4
-Subject: Climate change; air pollution; transportation; fuels 5
-Statement of purpose of bill as introduced:  This bill proposes to direct the 6
-Commissioner of Environmental Conservation to adopt rules to implement the 7
-Clean Fuels Program. 8
-An act relating to the Clean Fuels Program 9
-It is hereby enacted by the General Assembly of the State of Vermont:  10
-Sec. 1.  23 V.S.A. chapter 43 is added to read: 11
-CHAPTER 43.  CLEAN FUELS PROGRAM 12
-§ 4301.  DEFINITIONS 13
-As used in this chapter: 14
-(1)  “Greenhouse gas” has the same meaning as in 10 V.S.A. § 552. 15
-(2)  “Low carbon fuel standards” means standards for the reduction of 16
-greenhouse gas emissions, on average, per unit of fuel energy. 17
-(3)  “Motor vehicle” has the same meaning as in section 4 of this title. 18
-BILL AS INTRODUCED S.171
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+An act relating to the Clean Fuels Program
 
-VT LEG #384977 v.1
-§ 4302.  CLEAN FUELS PROGRAM 1
-(a)  The Commissioner of Environmental Conservation shall adopt, by rule, 2
-low carbon fuel standards for gasoline, diesel, and fuels used as substitutes for 3
-gasoline or diesel, which shall be the basis of the Clean Fuels Program. 4
-(b)  The Commissioner may adopt the following related to the standards, 5
-including: 6
-(1)  a schedule to phase in implementation of the standards in a manner 7
-that reduces the average amount of greenhouse gas emissions per unit of fuel 8
-energy of the fuels by 10 percent below 2018 levels by the year 2030 or by a 9
-later date if the Commissioner determines that an extension is appropriate to 10
-implement the standards; 11
-(2)  standards for greenhouse gas emissions attributable to the fuels 12
-throughout their lifecycles, including emissions from the production, storage, 13
-transportation, and combustion of the fuels and from changes in land use 14
-associated with the fuels; 15
-(3)  provisions allowing the use of all types of low carbon fuels to meet 16
-the low carbon fuel standards, including biofuels, biogas, natural gas, liquefied 17
-petroleum gas, gasoline, diesel, hydrogen, and electricity; 18
-(4)  standards for the issuance of deferrals, established with adequate 19
-lead time, as necessary to ensure adequate fuel supplies;  20
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+Sponsors:
 
-VT LEG #384977 v.1
-(5)  exemptions for fuels that are used in volumes below thresholds 1
-established by the Commissioner; 2
-(6)  standards, specifications, testing requirements, and other measures as 3
-needed to ensure the quality of fuels produced in accordance with the low 4
-carbon fuel standards, including the requirements for motor fuel quality; and 5
-(7)  adjustments to the amounts of greenhouse gas emissions per unit of 6
-fuel energy assigned to fuels for combustion and drivetrain efficiency. 7
-(c)  Before adopting standards under this section, the Commissioner shall 8
-consider the low carbon fuel standards of other states, including Washington 9
-and Oregon, for the purpose of determining schedules and goals for the 10
-reduction of the average amount of greenhouse gas emissions per unit of fuel 11
-energy and the default values for these reductions for applicable fuels. 12
-(d)  The Commissioner shall provide exemptions and deferrals as necessary 13
-to mitigate the costs of complying with the low carbon fuel standards upon a 14
-finding that the 12-month rolling weighted average price of gasoline or diesel 15
-in Vermont is not competitive with the 12-month rolling weighted average 16
-price in New England. 17
-(e)  The Commissioner shall adopt, by rule, provisions for managing and 18
-containing the costs of compliance with the standards, including provisions to 19
-facilitate compliance with the standards by ensuring that persons may obtain 20
-BILL AS INTRODUCED S.171
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+Sen.  Rebecca White,
 
-VT LEG #384977 v.1
-credits for fuels used as substitutes for gasoline or diesel and by creating 1
-opportunities for persons to trade credits. 2
-(f)  The Commissioner shall exempt from the standards any person who 3
-imports in a calendar year less than 500,000 gallons of gasoline and diesel fuel 4
-in total.  Any fuel imported by persons that are related or share common 5
-ownership or control shall be aggregated together to determine whether a 6
-person is exempt under this subsection. 7
-(g)(1)  The Commissioner, by rule, shall prohibit fuels that contain biodiesel 8
-from being considered an alternative fuel under these standards unless the fuel 9
-meets the following standards: 10
-(A)  Fuel that consists entirely of biodiesel, designated as B100, shall 11
-comply with ASTM D6751 and shall have an oxidation stability induction 12
-period of not less than eight hours as determined by the test method described 13
-in European standard EN 15751. 14
-(B)  Fuel that consists of a blend of diesel fuel and between six and 15
-20 volume percent biodiesel, and designated as biodiesel blends B6 to B20, 16
-shall comply with ASTM D7467 and shall have an oxidation stability 17
-induction period of not less than 20 hours as determined by the test method 18
-described in European standard EN 15751. 19
-(2)  The Commissioner may adopt rules different from those required 20
-under subdivision (1) of this subsection if an ASTM or EN standard applicable 21
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+Location: Senate Committee on Natural Resources and Energy
 
-VT LEG #384977 v.1
-to biodiesel is approved or amended after the effective date of this act or if the 1
-Commissioner finds that different rules are necessary due to changes in 2
-technology or fuel testing or production methods. 3
-(3)  As used in this subsection, “biodiesel” means a motor vehicle fuel 4
-consisting of mono-alkyl esters of long chain fatty acids derived from 5
-vegetable oils, animal fats, or other nonpetroleum resources, not including 6
-palm oil. 7
-(h)  In adopting rules under this section, the Commissioner shall evaluate: 8
-(1)  safety, feasibility, net reduction of greenhouse gas emissions, and 9
-cost-effectiveness; 10
-(2)  potential adverse impacts to public health and the environment, 11
-including air quality, water quality, and the generation and disposal of waste in 12
-this State; 13
-(3)  flexible implementation approaches to minimize compliance costs; 14
-and 15
-(4)  technical and economic studies of comparable greenhouse gas 16
-emissions reduction measures implemented in other states and any other 17
-studies as determined by the Commissioner. 18
-(i)(1)  The provisions of this section shall not apply to fuel that is 19
-demonstrated to have been used in any of the following: 20
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+Last Recorded Action: 1/6/2026 - Read 1st time & referred to Committee on Natural Resources and Energy
 
-VT LEG #384977 v.1
-(A)  motor vehicles used solely as farm vehicles; 1
-(B)  motor vehicles used primarily to transport logs; 2
-(C)  motor vehicles that are not designed primarily to transport 3
-persons or property, that are operated on highways only incidentally, and that 4
-are used primarily for construction work; 5
-(D)  watercraft; and 6
-(E)  railroad locomotives. 7
-(2)  The Commissioner shall, by rule, adopt standards for persons to 8
-qualify for the exemptions provided in this subsection. 9
-Sec. 2.  IMPLEMENTATION 10
-(a)  Public engagement process.  Before commencing rulemaking, the 11
-Commissioner of Environmental Conservation shall use the forms of public 12
-engagement described in this subsection to inform the design and 13
-implementation of the Clean Fuels Standard.  Any failure by the Department of 14
-Environmental Conservation to meet the specific procedural requirements of 15
-this section shall not affect the validity of the Commissioner’s actions.   16
-(1)  The Department of Environmental Conservation shall hold at least 17
-six public meetings, and of those meetings, at least three shall allow members 18
-of the public to participate in person and remotely.   19
-(2)  The meetings shall be held in at least six different geographically 20
-diverse counties of the State.   21
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+Committee Activity - Witnesses Who Testified
 
-VT LEG #384977 v.1
-(3)  The meetings shall be recorded and posted on the Department’s 1
-website.   2
-(4)  The Commissioner shall consult with the Agency of Transportation 3
-and the Department of Public Service on the design of the Clean Fuels 4
-Program. 5
-(b)  Interim reports.  On or before September 1, 2027, and March 1, 2028, 6
-the Commissioner shall submit to the General Assembly an interim report on 7
-the development of the Clean Fuels Program. 8
-(c)  Final rules.  On or before January 15, 2029, the Commissioner shall file 9
-the final proposed rules on the Clean Fuels Program with the Secretary of 10
-State. 11
-Sec. 3.  EFFECTIVE DATE 12
-This act shall take effect on July 1, 2026. 13
+Regular Session 2025-2026