Illinois bill aims to establish Midwest’s first clean fuel standard

Illinois State Sen. Dave Koehler, D-Peoria, discusses SB 1556 during a subject matter hearing held by the Illinois Senate Committee on Energy and Public Utilities. / SOURCE: Office of Illinois Sen. Dave Koehler

March 27, 2024

BY Erin Voegele

Legislation introduced in the Illinois Senate earlier this year aims to create a technology-neutral clean fuel standard (CFS) that would reduce the carbon intensity of transportation fuels by 20% by 2038. The Illinois Senate Committee on Energy and Public Utilities addressed the bill during a subject matter hearing on March 22.

Illinois State Sen. Dave Koehler, D-Peoria, introduced the bill on Feb. 8. The legislation, SB 1556, tasks the Illinois Environmental Protection Agency with establishing rules for a CFS to reduce the carbon intensity (CI) from the on-road transportation sector by 20% by 2038. Further reductions could be implemented by the agency based on advances in technology. 

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Under the CFS, the CI of transportation fuels would be calculated using the U.S. Department of Energy’s GREET model and would include all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution, delivery and use of the finished fuel by the ultimate customer.

The bill exempts aviation fuels from the CFS but provides that producers of sustainable aviation fuel (SAF) would be eligible to generate credits on an opt-in basis that could be applied to future obligations or traded with other parties.

Similar CFS and low carbon fuel standard (LCFS) programs have been established in California, Oregon, Washington and New Mexico. Efforts are underway to develop CFS and LCFS programs in several other states, including Minnesota and New York.

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“It’s time we take action to protect our environment,” Koehler said in a March 22 statement. “This measure would allow Illinois to lead the charge to promote sustainable fuels that create a cleaner future for our state.”

“We owe it to future generations to safeguard our environment today,” he continued. “This is a monumental step forward in our efforts to combat climate change, positioning Illinois as a trailblazer in the global movement toward environmental sustainability.”

According to Koehler’s statement, work on SB 1556 is ongoing as conversations continue, with the aim of creating a program that incorporates feedback from stakeholders and advocates. 

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