Pennsylvania HB 2063: An Act establishing clean fuels standards; establishing the Clean Fuels Standards Board; imposing duties on the Clean Fuels Standards Board and the Department of Environmental Protection; and establishing the Fair Market Credit Trading Program.

Bill Text

PRINTER'S NO. 2647
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2063
Session of
2025
INTRODUCED BY TAKAC, MIHALEK, HILL-EVANS, SANCHEZ, STEELE,
VITALI, MAYES, RIVERA, CEPEDA-FREYTIZ, FRANKEL, E. NELSON,
PASHINSKI, BOROWSKI, FLEMING, HADDOCK, MALAGARI AND BRENNAN,
NOVEMBER 21, 2025
REFERRED TO COMMITTEE ON ENERGY, DECEMBER 3, 2025
AN ACT
Establishing clean fuels standards; establishing the Clean Fuels
Standards Board; imposing duties on the Clean Fuels Standards
Board and the Department of Environmental Protection; and
establishing the Fair Market Credit Trading Program.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Findings and declarations.
Section 103. Definitions.
Chapter 3. Clean Fuels Standards Board
Section 301. Establishment.
Section 302. Composition.
Section 303. Terms.
Section 304. Officers.
Section 305. Quorum and voting.
Section 306. Vacancies.
Section 307. Compensation and expenses.
Section 308. Proceedings.
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Section 309. Transparency.
Section 310. Powers and duties.
Chapter 5. Standards
Section 501. Transportation fuels.
Section 502. Heating fuels.
Section 503. Implementation.
Section 504. GREET model and carbon intensity.
Section 505. Exemptions and eligibility.
Chapter 7. Fair Market Credit Trading Program
Section 701. Establishment.
Section 702. Components.
Section 703. Participation.
Chapter 9. Miscellaneous Provisions
Section 901. Rulemaking.
Section 902. Reports.
Section 903. Co-compliance.
Section 904. Compliance waiver.
Section 905. Preemption.
Section 906. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Clean Fuels
Standards Act.
Section 102. Findings and declarations.
The General Assembly finds and declares as follows:
(1) According to the most recent Greenhouse Gas
Inventory issued by the department, the transportation sector
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and heating fuel sector are the second and third largest
sources of greenhouse gas emissions in this Commonwealth.
(2) Through the development and implementation of clean
fuels standards for transportation fuel and heating fuel,
this act is intended to:
(i) Reduce greenhouse gas emissions from the
transportation sector and heating fuel sector.
(ii) Incentivize production of clean fuels for the
transportation and heating fuel sectors within this
Commonwealth through a system of credits, which can be
sold through private transactions to entities that are
required to reduce the carbon intensity of transportation
fuels and heating fuels supplied to and used in this
Commonwealth.
(3) This act is intended to be technology neutral and
not to exclude any clean fuel or any specific type of
transportation fuel or heating fuel.
(4) Implementation of clean fuels standards will
increase the optionality of available transportation fuels
and heating fuels in this Commonwealth and increase overall
fuel resilience and grid reliability.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agricultural co-product." A secondary or incidental product
derived from the processing or use of an agricultural product,
including, but not limited to, plant residue, animal waste,
distiller's grains, oilseed meal or another material suitable
for conversion to transportation fuel or heating fuel.
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"Agricultural products." Crops, livestock or other farm-
based commodities that are grown, raised, harvested or produced
for use as food, feed, fiber, fuel or industrial raw material or
other materials suitable for conversion to transportation or
heating fuel.
"ASTM." The American Society for Testing and Materials
International.
"Board." The Clean Fuels Standards Board established under
section 301.
"Carbon dioxide equivalent." A unit of measurement that is
used to standardize the effects of various greenhouse gases and
is calculated using Equation A-1 in 40 CFR Pt. 98 Subpt. A
(relating to general provision). Carbon dioxide equivalent may
be stated as CO2e.
"Carbon intensity." The life cycle emissions per unit of
fuel energy expressed in grams of carbon dioxide equivalent per
megajoule, supplied to and used in this Commonwealth, as
calculated under the GREET model adopted by the board.
"Carbon intensity target." The carbon intensity value for a
given compliance year that is used to calculate the credits and
deficits accrued by a program participant as set by the clean
fuels standard.
"Clean fuel." A fuel sold or supplied for use in this
Commonwealth that has a carbon intensity below the clean fuels
standards as est