SB153 - Transportation budget trailer bill.

Senate Bill No. 153 CHAPTER 109 An act to add Section 39611 to the Health and Safety Code, to amend Section 75230 of the Public Resources Code, to amend Sections 30005, 30630.5, and 99250 of, and to add and repeal Section 100160.6 of, the Public Utilities Code, to amend Section 13020 of, and to add and repeal Section 35700.6 of, the Vehicle Code, and to amend Section 10 of Chapter 15 of the Statutes of 2025, relating to transportation, and making an appropriation therefor, to take effect immediately, bill related to the budget. [ Approved by Governor September 17, 2025. Filed with Secretary of State September 17, 2025. ] LEGISLATIVE COUNSEL'S DIGEST SB 153, Committee on Budget and Fiscal Review. Transportation budget trailer bill. (1) Existing law imposes various functions and duties on the State Air Resources Board relating to reducing emissions of air pollutants. Existing law requires the state board to identify toxic air contaminants that are emitted into the ambient air of the state and to adopt airborne toxic control measures to reduce emissions of toxic air contaminants. Pursuant to its authority, the state board has adopted the Transport Refrigeration Unit Regulation to reduce emissions of toxic air contaminants and other pollutants from diesel-fueled transport refrigeration units used to power electrically driven refrigerated shipping containers and trailers that are operated in California. Existing law authorizes the state board under certain circumstances to impose a fee to cover the cost of its regulation of specified activities. This bill would authorize the state board to impose a fee on any entity regulated by the state board under the Transport Refrigeration Unit Regulation for the state board’s reasonable regulatory costs associated with the implementation, administration, and enforcement of that regulation, as specified. The bill would require the revenues collected from the fee to be deposited into the Certification and Compliance Fund and to be expended, upon appropriation by the Legislature, for those costs. (2) Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited into the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law continuously appropriates specified portions of the annual proceeds in the fund to various programs, including 5% for the Low Carbon Transit Operations Program, which is administered by the Department of Transportation and provides operating and capital assistance for transit agencies to reduce the emissions of greenhouse gases and improve mobility. Existing law requires the Controller to allocate funding under the program for the 2019–20 to 2022–23, inclusive, fiscal years to recipient transit agencies pursuant to specified individual operator ratios published by the Controller. This bill would extend the application of those individual operator ratios to the allocation of that funding through the 2025–26 fiscal year. (3) Under existing law, public transportation systems funded under the Mills-Alquist-Deddeh Act that provide charter bus services are required to establish rates for those services that, among other things, are either at least equal to the average of the 3 lowest current rates charged by private charter bus carriers operating charters in the same service area of the system or at least equal to the fully allocated cost of each charter operated, as specified. This bill would revise that rate requirement to instead require rates to be established that are either at least equal to the average of the 3 lowest current rates charged by private charter bus carriers operating charters in the same service area of the system or at least equal to the marginal cost of each charter operated, as specified. (4) Existing law authorizes the Los Angeles County Metropolitan Transportation Authority, as the successor entity to the Southern California Rapid Transit District, to operate charter bus service, subject to certain limitations. This bill would authorize the authority to provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, in the County of Los Angeles, subject to certain conditions, and would also authorize other public transportation providers, operating under contract with the authority, to provide charter bus services in the County of Los Angeles for the 2026 FIFA World Cup, as specified. The bill would also exempt the operation of these charter bus services from certain requirements applicable to charter bus services performed by public transportation systems receiving funding under the Mills-Alquist-Deddeh Act if the operator establishes rates for those services that meet specified requirements. (5) Existing law authorizes the Santa Clara Valley Transportation Authority and the San Mateo County Transit District to operate charter bus service, subject to certain limitations. This bill would authorize those entities and any other public transportation operator providing public transit services in any portion of the greater San Francisco Bay area, as defined, to provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, subject to certain conditions. The bill would also exempt the operation of these charter bus services from certain requirements applicable to charter bus services performed by public transportation systems receiving funding under the Mills-Alquist-Deddeh Act if the operator establishes rates for those services that meet specified requirements. (6) Existing law authorizes the Department of Motor Vehicles to establish a pilot program to evaluate the use of optional mobile or digital alternatives to driver’s licenses and identification cards, subject to certain requirements, including, but not limited to, the voluntary participation of persons in the program and a limitation on the percentage of licensed drivers who can participate in the program. This bill would expand the percentage of licensed drivers who can participate in the program from 5% to 15%. (7) Existing law authorizes the Department of Transportation, upon adoption of an ordinance or resolution by certain cities, to issue a special permit to the operator of a vehicle, combination of vehicles, or mobile equipment, permitting the operation and movement of the vehicle, combination, or equipment, and its load, on specified portions of state highways, if the vehicle, combination, or equipment, meets specified criteria. This bill would additionally authorize the department to issue the above-described special permit to operate and move a vehicle, combination of vehicles, or mobile equipment, and its load, on the 1.7-mile portion of State Route 185 that is between High Street and Hegenberger Road, known as International Boulevard in the City of Oakland, if the vehicle, combination, or equipment meets that specified criteria. The bill would authorize the department to issue those permits until December 31, 2031, or until an alternate truck route to San Leandro Street becomes available, as specified. The bill would require the City of Oakland to report certain data to the Legislature and the Department of Transportation on or before January 1, 2031. By increasing the duties of a city, the bill would impose a state-mandated local program. (8) The Administrative Procedure Act sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies. Existing law, for the 2025–26 fiscal year, appropriates $132,175,000 from the Air Pollution Control Fund to the State Air Resources Board when funds are available from the Hino Consent Decree, to be administered through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, as provided. This bill would exempt from the requirements of the Administrative Procedure Act guidelines or other standards adopted and used in administering those appropriated moneys. (9) 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. (10) Existing law establishes the Air Pollution Control Fund for the California Air Resources Board to carry out its duties and functions. This bill would appropriate, for the 2025–26 fiscal year, $1,000 from the Air Pollution Control Fund to the California Air Resources Board for the Transport Refrigeration Unit Program. (11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill. Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 39611 is added to the Health and Safety Code, to read: 39611. (a) The state board may impose a fee on any entity regulated by the state board under the Transport Refrigeration Unit Regulation (Sections 2477 to 2477.24, inclusive, of Title 13 of the California Code of Regulations). (b) Revenues collected from the imposition of a fee pursuant to this section shall be used to recover the state board’s reasonable regulatory costs, consistent with paragraph (3) of subdivision (b) of Section 3 of Article XIII A of the California Constitution, associated with the implementation, administration, and enforcement of the regulation described in subdivision (a), including, but not limited to, costs related to certification, registration, reporting, auditing, inspections, and compliance assurance. (c) (1) Subject to paragraph (2), the state board shall set the amounts of the fees imposed pursuant to subdivision (a) to the amounts established by Section 2477.21 of Title 13 of the California Code of Regulations, as that section read on January 1, 2025, and, notwithstanding any other law except paragraph (2), shall increase those fees annually based on the Consumer Price Index as compiled and reported by the Department of Industrial Relations. (2) The state board shall not set the fees pursuant to paragraph (1) to an amount that is more than necessary to recover its reasonable costs in developing, implementing, and enforcing the regulation described in subdivision (a), including any administrative costs. (d) The state board may change the fee to recover its costs described in subdivision (a) so long as the fee does not exceed the amounts established under subdivision (c). (e) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the determination of fees under this section. (f) All revenues collected pursuant to this section shall be deposited into the Certification and Compliance Fund and shall be available, upon appropriation by the Legislature, for the purposes described in subdivision (b). SEC. 2. Section 75230 of the Public Resources Code is amended to read: 75230. (a) The Low Carbon Transit Operations Program is hereby created to provide operating and capital assistance for transit agencies to reduce the emissions of greenhouse gases and improve mobility, with a priority on serving disadvantaged communities. (b) Funding for the program is continuously appropriated pursuant to Section 39719 of the Health and Safety Code from the Greenhouse Gas Reduction Fund established pursuant to Section 16428.8 of the Government Code. (c) (1) Except as provided in paragraph (2), funding shall be allocated by the Controller on a formula basis consistent with the requirements of this part and with Section 39719 of the Health and Safety Code, upon a determination by the Department of Transportation that the expenditures proposed by a recipient transit agency meet the requirements of this part and guidelines developed pursuant to this section, and that the amount of funding requested is currently available. (2) For the portion of funding allocated pursuant to paragraph (1) under the formula set forth in Section 99314 of the Public Utilities Code, the Controller shall allocate that funding for the 2019–20 to 2025–26, inclusive, fiscal years based on the individual operator ratios described in Section 99314.10 of the Public Utilities Code. (d) A recipient transit agency shall demonstrate that each expenditure of program moneys allocated to the agency reduces the emissions of greenhouse gases. (e) A recipient transit agency shall demonstrate that each expenditure of program moneys does not supplant another source of funds. (f) Moneys for the program shall be expended to provide transit operating or capital assistance that meets any of the following: (1) Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded waterborne transit, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities. (2) Operational expenditures that increase transit mode share. (3) Expenditures related to the purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support these zero-emission buses. (g) (1) For a recipient transit agency whose service area includes disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, at least 50 percent of the total moneys received pursuant to this part shall be expended on projects or services that meet the requirements of subdivisions (d), (e), and (f) and benefit the disadvantaged communities, as identified consistent with the guidance developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code. (2) The requirement of paragraph (1) is waived if the recipient transit agency expends the funding provided pursuant to this section on any of the following: (A) New or expanded transit service that connects with transit service serving disadvantaged communities, as identified pursuant to Section 39711 of, or in low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of, the Health and Safety Code. (B) Transit fare subsidies and network and fare integration technology improvements, including, but not limited to, discounted or free student transit passes. (C) The purchase of zero-emission transit buses and supporting infrastructure. (3) Expenditures made pursuant to paragraph (2) shall be deemed to have met all applicable requirements established pursuant to Section 39713 of the Health and Safety Code [Text truncated for display. Full text available on Congress.gov.]