HI SB2768

Requires the Hawaii State Energy Office to adopt rules establishing a clean fuel standard for alternative fuels that reduces average carbon intensity by at least 10% below 2019 levels by 2035 and at least 50% below 2019 levels by 2045.

Implementation date for the clean fuel standard must be on or before January 1, 2026.

Requires use of Argonne National Lab's GREET model to measure lifecycle greenhouse gas emissions for diesel, gasoline, and alternative fuels from production through transportation.

Creates a credit and deficit mechanism where fuels below the annual carbon intensity standard generate credits and fuels above the standard generate deficits, with options for trading and banking credits.

Exempts diesel, gasoline, and alternative fuels used by aircraft, railroad locomotives, military vehicles, and interstate waterborne vessels unless they voluntarily opt into the program.