Pending Regulations

Hawaii became the fifth U.S. state to adopt a clean fuel standard when Governor Josh Green signed SB 2999 into law as Act 258 on July 15, 2026. The program is enacted but not yet operating. The Hawaii Department of Transportation (HDOT) must adopt program rules by January 1, 2028, and the compliance obligation for gasoline and diesel begins January 1, 2029.

• Administering agency: Hawaii Department of Transportation
• Reduction targets: at least a 10% reduction in transportation fuel carbon intensity below 2019 levels by 2035, rising to at least 50% by 2045
• Structure: a performance-based credit and deficit market with credit trading and banking, modeled on the California, Oregon, and Washington programs
• Carbon intensity accounting: lifecycle CI calculated using Argonne National Laboratory's GREET model
• Cost containment: a credit clearance market caps the credit price at $200 per compliance period in 2026 dollars, adjusted annually for inflation
• Sector scope: aviation, rail, military, and interstate marine fuels are exempt, with provisions allowing those sectors to opt in voluntarily

How electricity is treated as a credit-generating fuel will be settled during HDOT's rulemaking. The statute's findings identify renewable electricity as one of the markets the standard is intended to open, and every existing West Coast program credits EV charging. But the registration pathways, energy economy ratios, and reporting requirements that determine what a kilowatt-hour is actually worth in Hawaii do not exist yet.

FuSE is tracking the HDOT rulemaking as it develops.

Clean fuel standard legislation is pending in Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, and Vermont.

When a program opens for enrollment, participants who have their asset data and metering already organized can start credit generation immediately. FuSE offers a pre-enrollment review.