HawaiiHawaii would set pollution targets for transportation fuels
Hawaii's transportation department would set fuel pollution rules by 2028, with gasoline and diesel standards starting in 2029 and targets extending through 2045.
What it does
The state transportation department would set rules to lower the average pollution from transportation fuels, with exemptions for fuel used by aircraft, trains, military vehicles, and interstate vessels.
Fuel providers could earn credits for lower-pollution fuels and owe deficits for higher-pollution fuels. Rules must allow credits to be traded or saved and cap credit prices to help protect consumers.
The department would publish estimated gasoline and diesel costs each year, review consumer protections if costs exceed 15 cents per gallon, report program results, and hold county information sessions.
Argument forCleaner fuel rules could cut transportation pollution, while directing much of some public and utility credit value to underserved communities.
Argument againstFuel suppliers could pass clean fuel compliance costs to drivers, even though the rules must cap credit prices and trigger consumer review above a set cost.
More detail
The Department of Transportation would adopt rules for a clean fuel standard for transportation fuels. The standard would cover fossil fuels and other transportation fuels sold, supplied, or dispensed for use in Hawaii, with listed exemptions. The rules must include annual carbon-intensity targets, credit and deficit accounting, and exemptions for fuel used by aircraft, rail, military vehicles, and interstate waterborne vessels. The department must adopt the rules by January 1, 2028. Gasoline and diesel standards would begin January 1, 2029; targets call for emissions intensity at least 10% below 2019 levels by 2035 and 50% by 2045.
The rules would provide credits for lower-carbon fuels and deficits for fuels above the annual standard, with options to earn, trade, and save credits. Credit and deficit rules would apply to regulated fuels used for transportation in Hawaii. The rules must allow electricity providers and alternative fuel users to opt in for certain uses. The rules must include a credit market and a maximum credit price of $200 in 2026 dollars, adjusted for inflation. Suppliers unable to cover deficits must take part in the market; remaining deficits carry forward with interest capped at 5% a year. The credit market and price cap would operate under the rules adopted by January 1, 2028. Remaining deficits may carry into later periods, with interest no higher than 5% yearly.
The Department of Transportation would track and report fuel costs and program results, and hold public sessions. These duties apply to the clean fuel standard for alternative fuels and its effects on gasoline and diesel consumers. If calculated compliance cost exceeds 15 cents per gallon for gasoline or diesel, the department must decide within 60 days whether consumer protection action is warranted and publish its reasons. If action is warranted, it must take one or more listed steps. Cost calculations go to the legislature by March 1 each year. The first program report is due within two years after the standard is adopted, with reports every two years after that; county sessions begin within one year.
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Where it stands
- Introduced
- Adopted
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 15Received.Introduced
Environment & EnergyTransportationMental Health