PA Clean Fuel Standard Bill Released & Referred to House Energy Committee

Bi-partisan legislation to establish a Clean Fuel Standard in Pennsylvania was introduced in the state House last month. House Bill 2063 is sponsored by Rep. Paul Takac (D) and Rep. Natalie Mihalek (R). Last week, HB 2063 was referred to the House Energy Committee, which triggered the release of the bill language.

Variations of a Clean Fuel Standard go back to the previous legislative session, when Senator Gene Yaw (R) released a co-sponsorship memo in 2023. The PPA has been involved in a larger stakeholder group in the past 3 years to evaluate an energy policy that is not centered around electrification. Other participants in the working group included representatives from the state farmers association, major oil companies, renewable natural gas (RNG) producers, landfill operators, and companies operating large delivery fleets.

HB 2063 would require all fuel producers to reduce the carbon intensity of their fuels by 15 percent over ten years. The plan is intended to establish an incremental pathway to decarbonization while minimizing risks of price spikes or supply disruptions. Under the bill, a credit-trading system would be established to incentivize the production and use of renewable diesel, biodiesel, and other low-carbon fuels. These “drop-in” fuels have been promoted as a practical route to reducing emissions without requiring vehicles, heating systems, or furnaces to be replaced or converted to electric. Notably, the Takac proposal would be the first Clean Fuel Standard in the nation to cover heating fuels as well as transportation fuels.

PPA has actively contributed to the stakeholder process, particularly on issues affecting fuel marketers. However, the association will continue working with its members to gather feedback on the proposal and develop an official position. The legislation is expected to undergo public hearings and close examination by lawmakers and stakeholders in the coming months.