HI HB1304

Requires the Department of Transportation to adopt rules establishing a clean fuel standard for alternative fuels, with implementation for diesel and gasoline by January 1, 2027

Mandates reduction of average carbon intensity by at least 10% below 2019 levels by 2035 and at least 50% below 2019 levels by 2045

Creates a credit and deficit system where fuels below the annual carbon intensity standard generate credits, while fuels above the standard generate deficits

Exempts fuels used by aircraft, railroad locomotives, military vehicles, and interstate waterborne vessels, with opt-in provisions for these sectors to generate credits when using alternative fuels

Allows potential linking of Hawaii's clean fuel standard to similar programs in California, Washington, and Oregon, and permits use of carbon intensity pathways already approved in those states