Transportation

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires every electric utility, except as provided, to develop a standard contract or tariff providing for net energy metering, and to make this standard contract or tariff available to eligible customer-generators using renewable electrical generation facilities, as specified. Pursuant to its authority, the commission issued a decision revising net energy metering tariff and subtariffs, commonly known as the net billing tariff. This bill would include the regenerative braking from electric trains as a renewable electrical generation facility for those purposes, as provided. This bill would, upon an electrical corporation and an operator of an electrified commuter railroad that produces electricity through the regenerative braking of electric trains, including the Peninsula Corridor Joint Powers Board, completing certain technical studies, require the electrical corporation to adopt or modify a net billing contract or tariff that is approved by the commission. The bill would require that contract or tariff to, among other things, require the electrical corporation to apply bill credits for the electricity exported to the electrical grid based on its value, as specified. The bill would require the electrical corporation to provide, or install at its cost, if necessary, metering that records and documents electricity imports and exports, as specified. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of a commission action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 25% of the annual proceeds of the fund to the High-Speed Rail Authority for certain purposes, as specified. This bill would eliminate the continuous appropriation of 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to the High-Speed Rail Authority on June 30, 2026. The bill, beginning with the 2026–27 fiscal year, and until December 31, 2030, would require 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to be transferred to the Motor Vehicle Fuel Account. Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing law provides that amounts received pursuant to the Motor Vehicle Fuel Tax Law are deposited into the Motor Vehicle Fuel Account in the Transportation Tax Fund. Existing law transfers the portions of those motor vehicle fuel tax revenues attributable to various off-highway uses of motor vehicle fuel to specified funds and transfers the remaining revenues to the Highway Users Tax Account for allocation to various state and local transportation purposes consistent with the expenditure restrictions imposed by Article XIX of the California Constitution on excise tax revenues from fuels used in motor vehicles on the highway. This bill, beginning July 1, 2026, and before January 1, 2031, would reduce the rate of the tax imposed upon each gallon of fuel by a specified percentage based annually on the amount transferred to the Motor Vehicle Fuel Account from the Greenhouse Gas Reduction Fund. By transferring moneys to a continuously appropriated account, this bill would make an appropriation.

Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including, until January 1, 2026, an exemption from those taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, specified zero-emission technology transit buses sold to specified public agencies that are eligible for specified incentives from the State Air Resources Board. This bill would extend the exemption for specified zero-emission technology transit buses until January 1, 2028. This bill would take effect immediately as a tax levy.

The State Aeronautics Act establishes the Aeronautics Account in the State Transportation Fund, and continuously appropriates the moneys in the account for expenditure for airport purposes by the Division of Aeronautics within the Department of Transportation and the California Transportation Commission. Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, including taxes imposed on the sale, storage, use, or other consumption of jet fuels. Existing law requires revenues from these taxes to be transmitted to the Treasurer and deposited into the Retail Sales Tax Fund. Existing federal law requires that any revenue from sales and use taxes imposed on aviation fuel be used for the operation costs of airports, the local airport system, or other local facilities that are directly and substantially related to the air transportation of passengers or property, except as provided. This bill would require the Controller, on or before September 1 of each year, to transfer an amount calculated to represent the sales and use tax revenues derived with respect to the sale, storage, use, or other consumption of jet fuel, as provided, from the Retail Sales Tax Fund to the account for allocation to airports and aviation-related purposes, as provided. The bill would require all public and private use airports where jet fuel is sold or consumed to report fuel flowage statistics to the Division of Aeronautics, as provided, and would require the division to determine the revenue allocation for each airport that reports fuel flowage statistics. By adding new reporting requirements for county-owned and city-owned airports, the bill would impose a state-mandated local program. From the above-described sales and use tax revenues deposited into the account, this bill would require the division, after deducting its administrative costs, as provided, to allocate 75% of those revenues to public and private use airports based on their reported fuel flowage statistics, as provided, 15% of those revenues for general aviation airports, as provided, 1% to award grants for aviation education, as provided, and 9% for existing grant programs that serve nonhub and small hub airports. From the above-described 75% of revenues deposited into the account, the bill would apportion, until January 1, 2032, $500,000 annually to award grants to rural, nonhub commercial airports and general aviation airports, as provided. By increasing the sources of funding for and expanding the purposes for which money may be used from a continuously appropriated fund, the Aeronautics Account, this bill would make an appropriation. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions to ensure that the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations. This bill would void specified amendments to the Low-Carbon Fuel Standard regulations adopted by the state board on November 8, 2024, or as subsequently adopted, as specified. This bill would declare that it is to take effect immediately as an urgency statute.

The Freeway Service Patrol Act authorizes and provides funding for freeway service patrols, operated pursuant to an agreement between the Department of the California Highway Patrol, the Department of Transportation, and a regional or local governmental entity, to provide emergency roadside assistance on traffic-congested urban freeways throughout the state. The act requires each tow truck participating in a freeway service patrol to bear a specified logo that identifies the Department of the California Highway Patrol and the Department of Transportation, and, at the option of the entity, the participating regional or local entity. This bill would require the Department of Transportation, the Department of the California Highway Patrol, and participating and eligible regional and local entities to, each time the guidelines for program operations are updated after January 1, 2026, consider developing or revising and including in the guidelines operational requirements for sponsorship agreements between a participating regional or local entity and any private third party that allow for the display of the sponsor's name and logo on participating tow trucks, as provided. The bill would authorize a participating regional or local entity to generate additional revenue for its freeway service patrol by entering into a sponsorship agreement, subject to those operational requirements, that allows for the display of a sponsor's name and logo on participating tow trucks, as specified, that are in addition to the above-described required logo.

Existing law regulates vehicles, including autonomous vehicles and autonomous technology in vehicles. Under existing federal statute and regulation, the National Highway Traffic Safety Administration (NHTSA) issued the Third Amended Standing General Order 2021-01, effective June 16, 2025, that requires specified vehicle and equipment manufacturers and operators of autonomous driving systems and Level 2 advanced driver assistance system (ADAS) vehicles to report crashes to NHTSA, as specified. A violation of the Vehicle Code is an infraction. This bill would require a manufacturer of a Level 2 ADAS vehicle to report a crash involving its Level 2 ADAS vehicle to the Department of Motor Vehicles, including reporting the crash, as defined, within 5 days of the crash, as specified, if specified conditions pertaining to the crash are met. The bill would require the department to post this crash data on its internet website, as specified, and to transmit this data to the National Highway Traffic Safety Administration and the National Transportation Safety Board, as specified. The bill would prohibit the department from publishing any proprietary business information, including any personally identifiable information, when posting crash data on its internet website and would make this information confidential and not subject to disclosure under certain public records provisions. The bill would impose a civil penalty of $27,874 per violation per day on a manufacturer that fails to report a crash pursuant to these provisions. The bill would be operative only if the Third Amended Standing General Order 2021-01 is repealed and not replaced with another general order, a federal statute, or a federal regulation that is consistent with the repealed General Order, as determined by the Director of Motor Vehicles. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. By expanding the application of a crime, this bill would create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes the Governor's Office of Business and Economic Development as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law creates the High-Speed Rail Authority, with specified powers and duties related to the development and implementation of a high-speed train system. This bill would require the Governor's Office of Business and Economic Development, on or before January 1, 2027, to commission a study on economic opportunities along the corridor of the California high-speed rail project, as defined, and other high-speed rail projects in California that are planned to directly connect to the California high-speed rail project, as provided, and to submit a progress report to the chairpersons of the Senate Committee on Transportation and the Assembly Committee on Transportation for input. The bill would require, on or before January 1, 2028, the study to be completed and a report on the study's findings and recommendations to be submitted to the appropriate policy and fiscal committees of the Legislature. The bill would require an infrastructure district, as defined, that uses its revenue to finance the construction of the high-speed rail project to dedicate a majority of its revenue to infrastructure projects within the jurisdiction of the local agencies that establish the district.

Existing law establishes the Office of Land Use and Climate Innovation in the Governor's office for the purpose of serving the Governor and the Governor's cabinet as staff for long-range planning and research and constituting the comprehensive state planning agency. Existing law authorizes a local agency to finance infrastructure projects through various means, including by authorizing a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. This bill would require the office, upon appropriation by the Legislature, to establish the Infrastructure Gap-Fund Program to provide grants to local agencies for the development and construction of infrastructure projects, as defined, facing unforeseen costs after starting construction. The bill would authorize the office to provide funding for up to 20% of a project's additional projected cost, as defined, after the project has started construction, subject to specified conditions, including, among other things, that the local agency has allocated existing local tax revenue for at least 45% of the initially budgeted total cost of the infrastructure project. When applying to the program, the bill would require the local agency to demonstrate challenges with completing the project on time and on budget and how the infrastructure project helps meet state and local goals, as specified. The bill would require the office to develop guidelines to implement the program that establish the criteria by which grant applications will be evaluated and funded. The bill would make these provisions operative on January 1, 2030.

The Otay Mesa East Toll Facility Act authorizes the San Diego Association of Governments (SANDAG) to carry out a construction project for the State Highway Route 11 corridor, including, among other things, highway improvements and international border crossing facilities, to be operated as a toll facility. Existing law authorizes SANDAG to fix and revise from time to time and charge and collect tolls and other charges only for entrance to or the use of the corridor, as provided. Existing law authorizes SANDAG to use specified alternative project delivery methods under certain conditions. Existing law requires toll revenues to be used for specified costs, as provided. Existing law defines "project" for purposes of the act to include facilities, whether or not now in existence, acquired or constructed to facilitate the movement of goods and people along the corridor or at the Otay Mesa East Port of Entry. This bill would revise and recast the act by, among other things, (1) revising the definition of "project" for purposes of the act to include facilities, whether or not now in existence, acquired or constructed to facilitate the movement of goods and people adjacent to the Otay Mesa East Port of Entry or to facilitate the generation of revenue for, or related to, the Otay Mesa East Port of Entry, (2) authorizing public-private partnerships, as specified, as an alternative project delivery method, (3) authorizing SANDAG to also impose tolls and other charges for the use of a project or property covered by the act, and (4) adding payments to a private partner under a public-private partnership agreement to the categories of costs for which toll revenues are used under the act, as provided. The bill would also make conforming changes.