RELATING TO A CLEAN FUEL STANDARD.
What changed between versions
The entire credit clearance market provision (former subsection c) was removed. This had set a maximum credit price of $200 per compliance period (inflation-adjusted) and allowed deficit carry-forward with interest capped at 5% per year, protecting consumers from unreasonable fuel price increases.
The entire consumer cost calculation and protection provision (former subsection d) was removed. This had required DOT to annually calculate the per-gallon consumer cost, set a 15-cent-per-gallon threshold for gasoline or diesel, and mandated corrective actions (reducing the carbon intensity schedule, activating the clearance market early, or other measures) if the threshold was exceeded.
Biennial legislative reporting requirements (former subsection e) were removed, including reports on implementation status, emissions reduction data, market impacts, and proposed legislation.
Annual public informational sessions in each county (former subsection f) and pre-amendment public session requirements (former subsection g) were removed.
Subsection (b) was changed from 'shall adopt rules' to 'may adopt rules,' making all provisions in that subsection (cost containment, electricity credits, opt-in mechanisms, quality standards, inter-jurisdictional linking, credit trading/banking, volume exemptions) permissive rather than mandatory.
The requirement for fuel to retire credits or deficits was changed from fuel 'sold, supplied, or dispensed for consumption within the State' to fuel that is 'exported from the State.' This fundamentally shifts the compliance obligation from all in-state fuel transactions to only exported fuel.
Electricity credit generation (subsection b(2)) was narrowed: 'electric vehicle charging provider' was removed as an eligible entity, and the scope changed from 'electricity used in transportation' to 'electricity to replace gaseous fuels used in transportation.'
The automatic acceleration mechanism (former subsection b(12)) designed to tighten carbon intensity targets to prevent credit oversupply was removed entirely.
The electric vehicle charging provider credit calculation mechanism based on public fast charging infrastructure capacity (former subsection b(13)) was removed entirely.
Inter-jurisdictional coordination (subsection b(8)) was changed from 'consultation and coordination' to 'linking the clean fuel standard to similar policies in other jurisdictions,' indicating a stronger integration requirement with programs like California's Low Carbon Fuel Standard.
The cost analysis projection period in the findings section was shortened from 'through 2045' to 'through 2040.'
The lifecycle modeling update requirement was changed from 'at least biennially or triennially' to a fixed 'every three years based on a review of the best available scientific literature.'
The effective date was changed from July 1, 2026 to July 1, 3000, which effectively prevents the bill from taking effect unless the date is subsequently amended.
The proviso in the greenhouse gas definition that protected DOT and Hawaii State Energy Office rulemaking authority from being limited by consultation with the Department of Health was removed.