House Bill 1986 HD2 was introduced on January 26, 2026. It would require the Hawaii Department of Transportation to adopt rules by January 1, 2028 “governing a clean fuel standard for alternative fuels in the state.” The clean fuel standard would target a 10% CI reduction in transport fuels from 2019 levels by 2035, extending to at least 50% by 2045. A similar bill (SB1120) passed both chambers in 2025 but was not reconciled and reported out of Conference Committee before the Hawaii legislative session ended for the year.
2026 marks the third year that a low-carbon fuel standard bill has come under consideration in Hawaii. A previous version of the bill passed the Senate and moved to the House where it failed to gain traction or passage before the Hawaii legislature adjourned on May 3, 2024.
Separately, two other bills introduced in January 2026 – House Bill 1694 and House Bill 1695 – would create additional support for renewable fuels. If passed, these 2026 bills would provide up to a $2‑per‑gallon tax credit for in‑state SAF production and expand renewable fuel production tax credits in Hawaii, respectively
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