Benefits of the Clean Fuel Standard
The Clean Fuel Standard (CFS) reduces greenhouse gas emissions from transportation fuels, improves air quality, and expands access to affordable, low-carbon fuels across Washington.
In 2023, the program reduced an estimated 2 million tons of greenhouse gases—the equivalent of taking nearly 450,000 cars off the road —for less than 1 cent per gallon of gasoline.
Reduce greenhouse gas emissions
Transportation is Washington’s largest source of greenhouse gas emissions, making up about 40% of the state’s total emissions.
Fuels create pollution at every stage of their life cycle — from production and refining to transportation and use in vehicles. The CFS reduces emissions by expanding the availability and affordability of low-carbon fuels, which ultimately displaces the use of fossil fuels. The policy does this by creating a revenue stream for producers and suppliers of low-carbon fuels – including liquid and gaseous alternative fuels, and electricity – that can be used to expand production and further decarbonize.
Reducing fossil fuel combustion also reduces some of the most harmful air pollutants linked to asthma, cancer, asthma, heart disease, and other health problems. These impacts fall hardest on people who live near highways, ports, and freight corridors.
A 2022 independent analysis found that, once fully phased in, the Clean Fuel Standard could contribute to $1.8 to $3.8 billion in total economic benefits, largely through improved health outcomes and reduced health care costs.
The lifecycle of gasoline and diesel fuels
Expanding fuel choices and reducing price risk
The CFS increases the availability of low-carbon fuels in Washington, giving consumers more choices across the state.
By reducing reliance on global fossil fuel markets, the program also helps limit exposure to fuel price spikes. It supports renewable liquid and gaseous fuels, and transportation electrification, all while driving down emissions.
Supporting economic development
The CFS supports economic growth by encouraging the production and supply of low-carbon fuels in Washington.
CFS credits provide an important revenue source for companies developing new fuels and technologies. This support helps drive:
- Innovation
- Job creation
- New business opportunities
The Legislature also created a tax credit for alternative jet fuel that is produced and used in Washington—the first state-level incentive of its kind. The Department of Revenue is developing guidance and application materials for this credit.
Utility investments in clean transportation
Participating electric utilities generate CFS credits when they provide electricity for electric vehicle charging. When utilities sell those credits, they must reinvest the 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 reinvestment activities to Ecology each year.
Utility investment reporting and summaries
Each year, participating electric utilities report their Clean Fuel Standard investments to Ecology by April 30, as required by WAC 173-424-710(6). Ecology posts these reports publicly.
So far, five participating electric utilities have sold credits, and one has invested revenue.
|
Utility |
Credits earned |
Credits sold |
Revenue |
Revenue invested |
|
Avista Utilities |
27,322 |
15,880 |
$243,230 |
$243,230 |
|
Chelan County PUD #1 |
8,903 |
0 |
$- |
$- |
|
Clark Public Utilities |
73,851 |
1,000 |
$25,000 |
$- |
|
Cowlitz County PUD #1 |
7,571 |
0 |
$- |
$- |
|
Douglas County PUD #1 |
3,088 |
0 |
$- |
$- |
|
Franklin County PUD #1 |
1,529 |
0 |
$- |
$- |
|
Jefferson County PUD #1 |
4,458 |
0 |
$- |
$- |
|
Klickitat County PUD #1 |
597 |
597 |
$14,925 |
$- |
|
Lewis County PUD #1 |
1,137 |
0 |
$- |
$- |
|
Mason County PUD #1 |
3,626 |
0 |
$- |
$- |
|
Okanogan County Electric Co-op |
786 |
0 |
$- |
$- |
|
Orcas Power & Light |
4,488 |
0 |
$- |
$- |
|
Pacific County PUD #2 |
890 |
0 |
$- |
$- |
|
PacifiCorp |
2,863 |
0 |
$- |
$- |
|
Peninsula Light Company |
10,180 |
0 |
$- |
$- |
|
Puget Sound Energy |
634,675 |
0 |
$- |
$- |
|
Seattle City Light |
301,859 |
0 |
$- |
$- |
|
Skamania County PUD #1 |
353 |
353 |
$8,825 |
$- |
|
Snohomish County PUD #1 |
188,060 |
0 |
$- |
$- |
|
Tacoma Power |
46,605 |
0 |
$- |
$- |
|
Wahkiakum County PUD #1 |
127 |
127 |
$3,175 |
$- |
What utilities invested in
During the 2023–2024 period, Avista Utilities partnered with local community organizations—including Meals on Wheels and The Council of Aging & Human Services —to support clean transportation projects.
- Electric vehicles
- Charging infrastructure
- Related support services
These projects helped meet clean transportation goals while directly serving community needs.
You can read all participating utilities’ full investment reports on our Data & Reports page.
For comparison, the Oregon Clean Fuels Program provides examples of similar utility investments.
Backstop aggregator for residential charging credits
On May 31, 2023, Ecology designated the Forth Mobility Fund as the Clean Fuel Standard backstop aggregator.
The backstop aggregator is a nonprofit organization that:
- Collects unclaimed credits from residential electric vehicle charging when a utility does not participate
- Sells those credits
Forth Mobility Fund reports annually to Ecology on how it uses these credits.
Related links
Contact information
Abbey Brown
Clean Fuel Standard Technical Lead
cfs@ecy.wa.gov
360-819-0158
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