IL SB0041

Creates the Clean Transportation Standard Act requiring a 25% reduction in lifecycle carbon intensity of ground transportation fuels within 10 years of rule adoption, measured against a 2019 baseline

Establishes a credit marketplace administered by the Illinois EPA where providers of clean fuels earn tradeable credits and providers of high-carbon fuels must purchase credits to offset deficits, with penalties up to 10 times the credit value for unresolved deficits

Exempts aviation fuel, locomotive fuel, ocean-going vessel fuel, and military tactical vehicle fuel from compliance requirements, though providers of these fuels may opt in to generate credits if using clean fuels

Requires utilities and backstop aggregators participating in the program to invest all credit trading revenue in transportation decarbonization projects, with at least 50% directed to environmental justice communities

Mandates use of Argonne National Laboratory's GREET model for calculating carbon intensity, with provisions for individualized farm-level carbon intensity scoring to recognize voluntary agricultural emissions reductions