Hawaii Legislature Passes Clean Fuel Standard Program
Hawaii lawmakers late Wednesday passed legislation to establish a Clean Fuel Standard program aimed at reducing transportation emissions through a market-based credit system for low-carbon fuels, positioning the state to become the fifth in the U.S. to adopt a program similar to those in California, Oregon, Washington, and New Mexico.
Gov. Josh Green has until July 15 to sign Senate Bill (SB) 2999 into law, though he must notify lawmakers by June 30 if he intends to veto the measure.
The legislation directs Hawaii’s Department of Transportation to adopt program rules by Jan. 1, 2028, with implementation beginning Jan. 1, 2029.
The program would require transportation fuel carbon intensity reductions of at least 10% below 2019 levels by 2035 and at least 50% below 2019 levels by 2045, according to the bill text.
SB 2999 would establish a credit market designed to incentivize the production and use of lower-carbon fuels while incorporating consumer protection measures intended to limit fuel price impacts and protect against market disruptions. The legislation also includes opt-in provisions for alternative aviation, marine, and rail fuels and expands eligibility to additional sectors, including heating, cooling, and temporary power generation.
“The Low Carbon Fuels Coalition celebrates and applauds the Hawaii legislature for passing the clean fuel standard. Programs in other states have not only exceeded carbon intensity targets, but inspired significant economic development. Hawaii is now in line to reap those proven benefits,” said Robin Vercruse, executive director of the Low Carbon Fuels Coalition (LCFC), in a statement.
Patrick Serfass, executive director of the American Biogas Council (ABC), said in a release that the program could expand market opportunities for renewable natural gas (RNG) and biogas-derived electricity.
“Hawaii’s clean fuel policy will expand markets for low-carbon fuels like renewable natural gas (RNG) and biogas-generated electricity,” Serfass said. “When biogas projects capture methane from organic waste streams such as agriculture, wastewater, and landfills, they produce the lowest-carbon transportation fuel available, while creating jobs, reducing emissions, and strengthening local economies.”
Other states currently considering clean transportation fuel programs include Massachusetts, Illinois, Pennsylvania, Maryland, Michigan, Minnesota, New Jersey, and New York.
Reporting by Bryan Sims, bsims@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com