Clean Fuel Standard

Transportation fuels create pollution at every stage of production and use.

Under the Clean Fuel Standard, producers of low-carbon transportation fuels earn revenue that incentivizes them to expand production and decarbonize even more. As low-carbon fuels become more affordable and available, they displace the use of fossil fuels, leading to reductions in greenhouse gas emissions.

Reducing fossil fuel combustion often reduces some of the most harmful air pollutants too. These pollutants, which contribute to health problems like cancer, asthma, heart disease, fall hardest on people who live near highways, ports, and freight corridors. As of 2019, nearly one million Washingtonians lived within a quarter mile of heavy traffic roadways. Since then, the state’s population has increased by over 500,000 people, with the majority of that growth occurring in major metros.

Expanding consumer choice and driving investment

The Clean Fuel Standard creates more opportunities to choose low-carbon fuels, rather than continuing to rely on the volatile global fossil fuel market. Because producers are incentivized to invest in new fuel technologies, consumers benefit from a more diverse market to choose from.

The Clean Fuel Standard also drives economic and community investment. The policy is an important revenue source for companies developing new low-carbon fuels and technologies, which drives innovation, job creation, and new business opportunities.

Utilities that earn Clean Fuel Standard revenue for providing electric vehicle charging must invest it in high-impact greenhouse gas reduction projects that benefit communities with the highest levels of air pollution. As of 2025, utilities have invested just over $1.2 million.

Measuring impact

Each year we assess the Clean Fuel Standard’s impact, including expected greenhouse gas reductions.

In our most recent report, we found that the policy is performing even better than expected. We estimate that the Clean Fuel Standard reduced an estimated 3 million tons of greenhouse gases in 2024—the equivalent of taking nearly 700,000 cars off the road—for less than 1 cent per gallon of gasoline.

How utilities must reinvest their revenue

The only Clean Fuel Standard participants that are required to invest revenue in specific projects are electric utilities that have opted into the program. Utilities that earn revenue for providing at-home electric vehicle charging must invest that revenue in projects that reduce the most greenhouse gas emissions and benefit communities with the highest levels of air pollution.

Ecology worked with the Washington Department of Transportation and the Washington Department of Commerce to identify eligible project types and develop guidance on how utilities should prioritize these investments. Utilities report their investment activities to Ecology each year.

Utilities are already using this funding to support community projects

For example, Puget Sound Energy recently awarded more than $7 million to nearly 30 organizations for transportation electrification projects across the state. Examples include fleet electrificaiton, workforce development programs, and electric mobility hubs.

You can learn more about utility investments on our Data & Reports page.

When utilities opt out

Utilities are not required to participate, but their activities still generate credits. If a utility opts out of the program, a non-profit appointed by Ecology—known as a “backstop aggregator”—steps in on its behalf. The organization sells unclaimed credits from residential EV charging and invests the revenue in equitable transportation electrification projects across the state. Ecology selected Forth Mobility to serve in this role.

Frequently asked questions