If approved, the transportation department would adopt rules by January 1, 2028, to lower the average emissions tied to fuels used in transportation.
The transportation department would set rules that measure fuel emissions, award credits for cleaner fuels, and require lower average emissions over time, with listed transportation exemptions.
The department may add credit-trading, cost-control, and voluntary credit options, including directing at least half of some credit value to transportation projects serving underserved communities.
The Department of Transportation would adopt rules for a clean fuel standard covering alternative transportation fuels. The rules would cover fossil-free fuels used for transportation, as well as diesel and gasoline. The rules must measure emissions across fuel production, transportation, and use with the Argonne National Laboratory GREET model. Fuels below an annual carbon-intensity limit would earn credits, while fuels above the limit would create deficits. The rules must exempt fuel used by aircraft, railroad locomotives, military vehicles, and interstate waterborne vessels. The rules must include procedures to verify credits and deficits and must review the emissions model every three years. Rules would be adopted no later than January 1, 2028, with diesel and gasoline implementation beginning January 1, 2029. The required targets would be at least 10 percent below 2019 levels by 2035 and at least 50 percent below 2019 levels by 2045.
The Department of Transportation may add flexible compliance, credit-trading, and credit-use rules to the clean fuel program. Possible rules could cover electric utilities, energy producers, exempt transportation users, off-road fuel users, public agencies, and fuels below department-set volume limits. The department may allow credits to be traded or saved for later compliance periods. Electric utilities and public agencies could be required to direct at least half of their overall credit value to electrified transportation programs benefiting overburdened or underserved populations. The department may allow exempt users and users replacing gasoline or diesel in off-road, heating, cooling, and temporary power uses to earn credits. The department may set fuel-quality measures, connect the program with similar programs elsewhere, and create cost-containment options. These optional mechanisms would be adopted through rules under chapter 91 of the Hawaii Revised Statutes; the supplied text does not set a separate deadline for them.
No hearings or votes scheduled.