Defining Clean Transportation Standards for Illinois

October 27, 2025

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by Hannah Spangler (Farm Week Now) During the spring 2023 session of the Illinois General Assembly, lawmakers introduced new legislation to establish a Clean Transportation Standard (CTS), a policy aimed at reducing the carbon intensity of transportation fuels used across the state.

Senate Bill 1556, the original proposal sponsored by state Sen. David Koehler, D-Peoria, called for a 20% reduction in the lifecycle carbon intensity of on-road transportation fuels over 10 years. The bill was ultimately withdrawn following opposition from Illinois Farm Bureau and numerous other groups. Among other issues, IFB raised concerns about regulatory clarity and the scope of authority granted to the Illinois Environmental Protection Agency and the Pollution Control Board.

Similar legislation has continued to surface in 2024 and 2025, signaling growing momentum behind efforts to decarbonize the transportation sector in Illinois. If CTS legislation is adopted in Illinois, the state could be the first to do so in the Midwest, joining California, Oregon, Washington and New Mexico, which has a policy taking effect next year.

What is a clean transportation standard

A CTS, also known as a Low Carbon Fuel Standard (LCFS), is a market-based policy designed to reduce greenhouse gas emissions from transportation fuels by encouraging the use of renewable fuels such as corn-based ethanol and soy-based renewable diesel, as well as biodiesel.

It works by measuring carbon intensity (CI) scores of fuels, based on full lifecycle emissions, from production to consumption. Fuels with lower carbon intensity than an annual benchmark generate credits, while those with higher carbon intensity scores generate deficits.

Although IFB does not have a specific policy on a CTS, Noelle Neef, IFB assistant director of energy, said the organization’s existing policies align with several key components, particularly its support for “market-based solutions” that provide financial incentives for farmers to voluntarily adopt conservation practices, including practices that “increase climate resilience, improve water quality and soil health, sequester more carbon in the soil and prevent soil erosion.”

“We also have policy in support of expanding the use of renewable fuels and programs and efforts to increase renewable fuel production in Illinois,” Neef said, noting IFB’s current policies that align with the goals behind creating a CTS.

Additionally, IFB is in favor of using the U.S. Department of Energy’s GREET (Greenhouse gases, Regulated Emissions and Energy use in Technologies) model to measure carbon intensity. This scientifically developed tool is already used in other states and federal clean fuel programs and was included in the original CTS legislation introduced by state Sen. Kohler in 2023.

Biofuels: the alternative to electric vehicles

Electric vehicles (EV) and electrification are terms that may come to mind when people think of decarbonizing the transportation sector. However, Neef said these methods are costly and ignore agricultural practices and biofuels that can offer an immediate and cost-effective solution.

Madhu Khanna, a professor of agricultural and consumer economics at the University of Illinois and researcher with the Center for Advanced Bioenergy and Bioproducts Innovation, said the success of electrification depends on a cleaner power grid and major infrastructure upgrades. She noted that EVs are still costly, have limited range and rely on a charging network that is not yet widespread.

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Unlike existing CTS programs in California and other coastal states that penalize crop-based biofuels, Neef said Illinois has an opportunity to design a system that recognizes and rewards on-farm conservation practices, such as cover cropping, reduced tillage and optimized fertilizer use.

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A well-designed CTS could help bolster the continued use and expansion of higher blends of biofuels, while creating a new type of voluntary credit-based market for farmers. Neef said this balanced approach could help stabilize fuel prices and expand markets for Illinois-grown commodities. READ MORE

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Clean transportation could start with farmers (Farm Week Now)
Biofuels belong in Illinois' clean energy future (Illinois Corn Growers Association/Farm Week Now)

Excerpt from Farm Week Now: “Agriculture can play a key role in helping us decarbonize the economy,” said Madhu Khanna, whose research with the Center for Advanced Bioenergy and Bioproducts Innovation at the University of Illinois centers on market-based incentives for clean technologies in agriculture. “Corn produced with cover crops and converted to ethanol will have a lower carbon intensity than corn produced without cover crops.”

Noelle Neef, assistant director of energy for Illinois Farm Bureau, said if Illinois adopts a CTS, it could serve as a market-based policy to decarbonize the transportation sector and expand domestic markets for Illinois corn and soybeans.

“Anytime we can expand, or possibly expand the domestic use of what we raise out here, we’ve got to get on board,” said Morgan County farmer Steve Turner.

For farmers like Turner, this policy could create a voluntary carbon market if they implement certain conservation practices that lower the carbon intensity of feedstocks. Neef explained the program would differ from other carbon markets because the voluntary program provides flexibility to farmers, allowing them to opt in or out each year and implement the practices that work best for their farms.

A CTS would measure the carbon intensity of fuels and feedstocks using the GREET (Greenhouse gases, Regulated Emissions and Energy use in Technologies) model. IFB’s policy supports the use of the GREET model, which the U.S. Department of Energy developed to evaluate the environmental impacts of fuels, products, energy systems and technologies across the supply chain. USDA’s Feedstock Carbon Intensity Calculator is often used alongside GREET to measure feedstock carbon intensity, reflecting a farmer’s adoption of conservation practices.

This approach to measuring carbon intensity has practical implications for farmers who are already adopting conservation strategies. Turner said he implements no-till and strip-till methods, both effective ways to lower CI scores that farmers could be incentivized for under a CTS. He also uses nutrient management strategies, including variable rate technology, to apply fertilizer more precisely and efficiently, all examples of what can be assessed using the GREET model.

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Another potential benefit of a CTS is farmers could participate even if they have been using conservation practices for decades. For example, Henry County farmer Brian Corkill told FarmWeek he’s been growing cover crops for so long that he couldn’t participate in existing carbon markets.

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While practices like cover cropping and no-till farming contribute to environmental benefits and lower carbon intensity, they haven’t always been rewarded in existing carbon markets. Neef said this is also something that could change under a CTS.

“Currently, our biofuel policies don’t reward farmers for adopting climate-smart practices,” Khanna added. “By accounting for differences in practices implemented at the farm level and paying a premium for corn grown with climate-smart practices for corn ethanol, biofuel policies can incentivize adoption of these practices.”

To incentivize farmers to implement such practices, farmers have to verify their use of these practices and carbon sequestration. Khanna said these are among the biggest challenges in participating in carbon markets.

When Corkill first went through the process of getting his CI score, he found it data-intensive and burdensome. “There’s a lot of data collection that’s involved … even more than I thought there would be,” he said.

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He’s now using John Deere Operations Center to streamline data sharing, offering a more efficient way to manage data collections and verification requirements. This shift to digital mapping means he can easily share verified data with third-party auditors or biofuel plants without the burden of manual paperwork. It’s made the process more manageable and worthwhile, so he plans to participate in the CI score process again next year.

Turner, who participates in ADM’s re:generations program, found the verification process to be relatively simple. He shares digital maps from FSA and other information on tillage, fertilizer use and cover crop practices. Turner said while some farmers may be hesitant to share their data, the program, which pays farmers for implementing conservation practices, was voluntary and not overly demanding. READ MORE

Excerpt from Illinois Corn Growers Association/Farm Week Now: Farmers stand to financially benefit from a Clean Transportation Standard (CTS) for Illinois if it is crafted to support agriculture rather than hinder it.

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Illinois lawmakers are discussing policy to reduce emissions from our transportation sector that recognizes biofuels and agriculture as a solution.

If our commodity associations and farm organizations continue to proactively represent farmers in CTS conversations, the policy could build demand in the domestic ethanol, biodiesel and renewable diesel fuel industry. Illinois is a large fuel market. Our location and the state’s tax policy already encourage blending biofuels, but there is a tremendous opportunity for growth.

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The right policy will include the following key points:

For carbon reductions from biofuel blending, the program should only recognize domestically produced biofuels, helping keep foreign feedstocks like Brazilian ethanol, palm oil and used cooking oil out of the marketplace. In California’s fuel standard, foreign feedstocks are given preferential treatment that hurts our domestic corn ethanol, soybean-based biodiesel and renewable diesel industries.
The CTS for Illinois should use the Argonne greenhouse gases, regulated emissions and energy use in technology (GREET) model to calculate life cycle carbon intensity for all fuels, electricity and feedstocks. This ensures lifecycle emissions of all technologies are compared fairly and equally.
The right policy will include farming practices in Argonne GREET model calculations to further reduce the carbon intensity of biofuels. Illinois could be the first in the nation with this type of policy. Additionally, farmers can be directly compensated for implementing voluntary on-farm practices such as cover crops, reduced tillage and nitrogen management on any corn or soybean acre in Illinois.
And, negotiated well, the final CTS for Illinois will be a template. Our proactive approach to something that seems scary, but has real potential for agriculture, will give other states something new to use as a model. Consider the impact on U.S. corn and soybean farmers if even half of our states implemented a fuel policy that recognizes biofuels and promotes their use as a carbon-reducing strategy? READ MORE