Current Legislation

The Illinois Clean Transportation Standard Act

Illinois Senator David Koehler (D-Peoria) introduced the Clean Transportation Standard Act—Senate Bill 41—in January 2025. The act would set a requirement to reduce the lifecycle carbon intensity of transportation fuels used in Illinois by at least 25 percent below 2019 levels within 10 years.

Under the Illinois clean transportation standard, higher-emitting fuel producers would be held accountable for reducing greenhouse gas emissions over time while supporting a portfolio of clean fuels. The policy would account for emissions associated with all transportation fuels from “well to wheels”—including fuel production, transportation or distribution, and end use—and would create incentives for fuel producers to reduce emissions along the supply chain. This would support deployment of alternative, lower-carbon fuels, including electricity, hydrogen, and biofuels.

With a clean transportation standard, Illinois households would enjoy more choices and have increased access to cleaner fuels, often available at a lower cost. The program would produce net positive economic impacts, generating 114,000 jobs and contributing over $600 million annually in labor income statewide. It would benefit farmers and the Illinois biofuel industry, reduce public health impacts from vehicles, and support the adoption of electric vehicles.

Why Illinois and why now?

Illinois has a strong policy landscape supporting the state’s transition to a cleaner energy future. The 2021 Climate and Equitable Jobs Act (CEJA) commits the state to transition to carbon-free electricity by 2045 and make significant investments in clean energy technologies like wind, solar, and energy efficiency. The law also directs the state to invest in clean transportation through clean vehicle rebates and electric utility planning to help meet the state’s goal of one million electric vehicles on the road by 2030.

More action is needed to put Illinois’s transportation sector on track to meet its climate goals. Transportation is the largest source of greenhouse gas emissions in the state, as well as a significant source of health-harming criteria pollution.

Much of the progress the state has made so far in achieving its climate goals has taken place in the electricity sector. A clean transportation standard would provide a necessary framework to transition the state to a cleaner transportation system while supporting the state’s urban and rural economies.

A clean transportation standard would complement the state’s existing clean energy policies by providing critical financial support for clean fuel deployment, supporting the state’s goals around the transition to electric vehicles. It would also provide financial incentives for biofuel producers in Illinois—the third-largest ethanol and biodiesel producing state—to reduce emissions along their supply chains.

Illinois has the opportunity to lead as the first Midwestern state to implement a clean transportation standard. Already a leader in biofuels production, the state is no stranger to incentivizing the production and use of clean fuels in transportation. Designing a uniquely Midwestern clean transportation standard that supports farmers in adopting climate-smart agricultural practices would benefit soil health and water quality while contributing to greenhouse gas reductions.