HB 1304 Summary

• Requires the Department of Transportation 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 50% below 2019 levels by 2045.

• Mandates implementation of the clean fuel standard for diesel and gasoline on or before January 1, 2027, using Argonne National Lab's GREET model to measure lifecycle greenhouse gas emissions.

• Establishes mechanisms for generating credits when diesel, gasoline, or alternative fuels have carbon intensity below annual standards, and deficits when carbon intensity exceeds standards.

• Permits optional rulemaking provisions including cost containment mechanisms, infrastructure support programs, credit trading and banking, and linking to similar policies in California, Washington, and Oregon.

• Exempts aviation, railroad locomotives, military vehicles, and interstate waterborne vessels from the clean fuel standard, with optional opt-in provisions for these sectors.