S.B. 1120 Summary

• Requires the Department of Transportation to conduct a feasibility study on implementing a clean fuel standard for alternative fuels and submit findings to the legislature no later than 60 days before the 2027 regular session.

• Mandates the Department of Transportation to adopt rules governing a clean fuel standard for alternative fuels by January 1, 2028, with implementation for diesel and gasoline no later than January 1, 2029.

• Establishes carbon intensity reduction targets of at least 10 percent below 2019 levels by 2035 and at least 50 percent below 2019 levels by 2045, using Argonne National Lab's GREET model to measure lifecycle greenhouse gas emissions.

• Creates credit and deficit mechanisms for fuels meeting or exceeding the annual carbon intensity standard, with exemptions for fuels used in aircraft, railroad locomotives, military vehicles, and interstate waterborne vessels.

• Authorizes optional provisions including cost containment mechanisms, infrastructure deployment programs for electric and alternative fuel distribution, credit trading and banking, and linking Hawaii's standards to similar policies in California, Oregon, and Washington.