Washington House Bill 1091 (HB 1091) calls for a 10% reduction in the carbon intensity (CI) of
transportation fuels by 2028 and a 20% CI reduction by 2035, targeting producers and importers of transportation fuels with high carbon intensity (e.g., gasoline and diesel). The legislation establishes a credit and deficit system for producing, importing, or dispensing transportation fuels in the state, where regulated parties will have to demonstrate that their full portfolio of fuel collectively meets a carbon intensity standard to be set by the state’s Dept. of Ecology. Excess credits from compliant parties can be sold to bring others into compliance. Credits can also be created through carbon capture projects, biofuel projects, non-utility electric vehicle charging, and infrastructure programs.
There are exceptions for boats, locomotives and aircraft. Military vehicles and equipment are also exempt, as is fuel that’s exported from Washington. Special fuel used in agriculture, mining, timber harvest and construction are exempt until Jan. 1, 2028.