California Environmental Quality Act: exemptions: transit projects.

Replaced legislative passage tracking (Senate/Assembly passage dates, Secretary and Chief Clerk signature lines, Governor receipt line) with the official chaptered format: 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' header, Chapter 742 designation, and Governor approval date of October 13, 2025.

Reformatted page headers and footers from 'SB 71' to 'Ch. 742' and adjusted line wrapping throughout to match the official chaptered layout. No changes to statutory language.

The only difference is presentational: the 'from' version is the clean chaptered legislative document, while the 'to' version is the same bill text displayed within a website layout that includes navigation menus (home, FAQ, sitemap, login), search tools, version history dropdowns, and share buttons. No policy language was added, removed, or altered.

The CEQA exemption for qualifying public transit projects (bus, light rail, ferry, microtransit, etc.) was changed from indefinite to a sunset date of January 1, 2040.

A new exemption was added for projects that combine a qualifying transportation project with a housing development project that is either subject to nondiscretionary approval or already exempt from CEQA. This exemption also sunsets on January 1, 2040. The housing component remains subject to all other applicable legal requirements.

The exclusion of non-zero-emission Tier 4 rail projects in serious, severe, or extreme air quality nonattainment areas was made permanent by removing the prior time limit that had allowed such projects to qualify for the exemption until January 1, 2040.

Section 21168.6.9 of the Public Resources Code was removed from the list of sections amended by this bill, narrowing the bill's statutory footprint.

The requirement that zero-emission transit fueling and charging infrastructure projects be consistent with the State Air Resources Board's 2020 Mobile Source Strategy (adopted October 28, 2021) was removed. Projects now only need to be carried out by a public transit agency and meet location criteria.

Added 'protection' as a qualifying action alongside improvement, institution, or increase for bus rapid transit, bus, light rail, microtransit, paratransit, shuttle, and ferry projects. This means maintaining existing service levels now qualifies for the CEQA exemption, not just expanding or improving service.

Removed 'passenger rail' from the general transit exemption in paragraph (5)(A). Passenger rail is handled separately in paragraph (6) with its own criteria and sunset provisions.

Removed references to 'certified Tier 4 or cleaner locomotives' from the general transit exemption in paragraph (5)(A) and its associated sunset provision. Locomotive emissions standards are no longer part of this particular exemption category.

Accelerated the sunset date for near-zero-emission, low NOx, compressed natural gas, or hybrid powertrain vehicle eligibility from January 1, 2040 to January 1, 2032. After that date, projects used primarily by these vehicle types will no longer qualify for the exemption.

Added a geographic requirement that the project must be located on a site wholly within the boundaries of an urbanized area or urban cluster as designated by the U.S. Census Bureau. This limits the exemption to projects in defined urban areas.

Changed the standard for State Air Resources Board Mobile Source Strategy compliance from 'in compliance with' to 'is consistent with.' This is a materially lower threshold that gives transit agencies more flexibility in how they align with ARB regulations.

Added a requirement that the Judicial Council adopt rules of court by July 1, 2026 to implement the 365-day resolution deadline for environmental leadership transit project litigation.

Added a severability declaration stating that the bill's provisions are severable from one another.

Multiple CEQA exemptions that were previously extended indefinitely are now set to expire on January 1, 2040. A new sunset provision (subdivision k) repeals the entire section as of that date.

Transit projects under paragraph (5) must now be located entirely within an existing public right-of-way or existing highway right-of-way (whether or not in use for rail or mass transit), in addition to being within an urbanized area or urban cluster. This is a stricter location requirement than the prior version, which only required the site to be wholly within an urbanized area or urban cluster.

Passenger rail projects under paragraph (6) must now be located entirely within an existing rail right-of-way or existing highway right-of-way, whether or not the right-of-way is in use for passenger rail transit. This is a new geographic restriction not present in the prior version.

Projects using certified Tier 4 or cleaner (non-zero-emission) rolling stock or locomotives are now excluded from the CEQA exemption if located in an air basin designated as a serious, severe, or extreme nonattainment area for particulate matter and ozone. This adds an air quality-based geographic exclusion.

Zero-emission infrastructure projects under paragraph (7) no longer require compliance with specific ARB regulations (Innovative Clean Transit, Commercial Harbor Craft, In-Use Locomotive). Instead, they must be consistent with the State Air Resources Board's 2020 Mobile Source Strategy. New location requirements were added: the project must be on property owned/leased/operated by the local agency, within an existing public right-of-way, or on property owned by a public or private utility within an urbanized area.

The bill now amends Section 21168.6.9 of the Public Resources Code to extend environmental leadership transit project provisions indefinitely (previously set to expire January 1, 2026), extends the lead agency approval deadline from January 1, 2025 to January 1, 2027, and requires legal challenges to these projects to be resolved within 365 calendar days with Judicial Council rules to be adopted by July 1, 2026.

Multiple exemption sunsets were extended from January 1, 2032 to January 1, 2040. This affects the period during which transit projects used primarily by near-zero-emission, low NOx engine, compressed natural gas fuel, or hybrid powertrain vehicles remain exempt from CEQA.

A new paragraph (6) in Section 21080.25(b) creates a permanent CEQA exemption for public passenger rail projects (other than light rail eligible under paragraph 5) that are exclusively used by zero-emission trains or certified Tier 4 or cleaner rolling stock or locomotives, including maintenance of stations and terminals. A sunset applies only to non-zero-emission Tier 4 locomotives after January 1, 2040.

The requirement that certain transit projects be located on a site wholly within the boundaries of an urbanized area or urban cluster as designated by the U.S. Census Bureau was deleted, removing a geographic limitation on the exemption.

Subparagraph (B) of paragraph (5) now includes certified Tier 4 or cleaner locomotives in the list of vehicle types that trigger the 2040 sunset, meaning projects used primarily by these locomotives will lose their exemption after that date.

Passenger rail is added as an eligible transit type in the CEQA exemption, alongside bus rapid transit, microtransit, paratransit, shuttle, ferry, and light rail service.

Certified Tier 4 or cleaner locomotives (as defined in Section 1033.101 of Title 40 of the Code of Federal Regulations) are added as an acceptable vehicle type for projects to qualify for the CEQA exemption, in addition to zero-emission and near-zero-emission vehicles.

A new exception is created for transportation network company (TNC) operated transit services: they may now qualify for the CEQA exemption if the services are operated by a microtransit provider contracted by the lead agency that uses a managed fleet of multipassenger vehicles dedicated to that service. Previously, all TNC-operated transit services were categorically excluded.

The sunset date after which the exemption no longer applies to projects used primarily by near-zero-emission, low oxide of nitrogen engine, compressed natural gas fuel, or hybrid powertrain vehicles is extended from January 1, 2032 to January 1, 2040.

References to the Office of Planning and Research are updated to the Office of Land Use and Climate Innovation, reflecting a state government reorganization.

The CEQA exemption for transit projects now covers microtransit and paratransit services in addition to bus rapid transit, shuttle, bus, ferry, and light rail service. The definition of 'public transit operator' was expanded to include a public entity that provides contracted paratransit services.

The exemption now covers 'operation' in addition to maintenance, construction, or rehabilitation of stops, stations, terminals, and operations facilities. Covered vehicle types were expanded to include rail or cable cars, rolling stock, or vessels (in addition to buses, shuttles, ferries, and light rail vehicles).

A new exclusion was added: the exemption does not apply to a public project for the construction or rehabilitation of a ferry terminal if the lead agency submitted a notice of preparation for an environmental impact report before January 1, 2026.

Assembly Member Ward was added as a coauthor alongside Chen and Lee.

The sunset provision that would have repealed the section on January 1, 2030 was removed, making the transit CEQA exemption indefinite.

A new location criterion (subdivision (c)(4)) requires that projects subject to paragraphs (5) through (7) of subdivision (b) be located within existing public or highway right-of-way, an existing rail right-of-way, on property owned/leased/operated by the local agency, or on property owned by a public or private utility.

The skilled and trained workforce certification must now be made as part of the lead agency's governing board action granting the exemption, rather than after the exemption is granted. This moves the certification earlier in the process.

A new provision allows a lead agency with an alternative project approval process to follow that process instead of requiring action at a public meeting of the governing board, providing flexibility for agencies with different governance structures.

The definition of transit stop access and safety improvements was expanded from 'transit boarding islands' to 'transit boarding landings and islands.'

A new CEQA exemption is created for public projects located wholly within Census-designated urbanized areas or urban clusters for the improvement, institution, or increase of microtransit, paratransit, shuttle, bus, ferry, bus rapid transit, or light rail service (including stops, stations, terminals, and operations facilities), if used primarily by near-zero-emission, low NOx, compressed natural gas, fuel cell, or hybrid powertrain vehicles. This exemption sunsets on January 1, 2032.

A new exclusion is added: public projects for transit services operated by a transportation network company (as defined in Section 5431 of the Public Utilities Code) are not eligible for the CEQA exemption under paragraph (5).

The geographic restriction requiring passenger rail projects (paragraph 6) to be located entirely within an existing rail right-of-way or existing highway right-of-way is removed, broadening where such projects can qualify for the CEQA exemption.

The geographic restriction requiring zero-emission charging and refueling infrastructure (paragraph 7) to be located on property owned by the local agency, within an existing public right-of-way, or on property owned by a public or private utility is removed.

The existing transit exemption in paragraph (5) is restructured. Subparagraph (B) now provides that after January 1, 2032, projects used primarily by near-zero-emission, low NOx, compressed natural gas fuel, or hybrid powertrain vehicles will no longer qualify for the exemption, with an exception for articulated buses.

Assembly Member Ward is added as a coauthor alongside Chen and Lee.