SB-94
Energy & Environment

Transportation funding: Greenhouse Gas Reduction Fund: Motor Vehicle Fuel Account.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Redirects 25% of greenhouse gas reduction funds from high-speed rail to motor vehicle fuel programs starting 2026.
  • Reduces state gas tax rates annually from 2026 to 2030 based on transferred funds.
  • Eliminates continuous funding for high-speed rail projects after June 30, 2026.
  • Requires annual calculations to ensure revenue-neutral tax adjustments through 2030.

Summary

Senator Strickland's transportation funding measure redirects 25% of California's annual Greenhouse Gas Reduction Fund proceeds from high-speed rail projects to the Motor Vehicle Fuel Account starting in fiscal year 2026-27. The legislation terminates the continuous appropriation to the High-Speed Rail Authority on June 30, 2026, and transfers those funds to transportation purposes through December 31, 2030.

To maintain revenue neutrality, the bill establishes an annual mechanism to reduce motor vehicle fuel tax rates proportionally to the amount transferred from the Greenhouse Gas Reduction Fund. The California Department of Tax and Fee Administration must calculate this reduction percentage each June based on the previous year's fuel tax collections and projected fund transfers. This adjustment applies to taxes on fuel removal, entry, and sales within California.

The measure preserves other existing allocations from the Greenhouse Gas Reduction Fund, including dedicated funding for transit programs, affordable housing initiatives, sustainable communities, and forestry projects. The tax rate adjustment provisions expire on April 1, 2031, unless extended by subsequent legislation.

Key Dates

Next Step
Referred to the Senate Standing Committee on Revenue and Taxation
Next Step
Senate Committee
Referred to the Senate Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
Do pass, but first be re-referred to the Committee on [Environmental Quality]
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
[First] hearing set for [04-23-2025]: Failed passage in Committee. Reconsideration granted
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Tony StricklandR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Angelique AshbyD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jerry McNerneyD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Tony StricklandR
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Jerry McNerneyD
Senator
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Tony Strickland
Tony StricklandR
California State Senator
10% progression
Bill has been formally introduced and read for the first time in its house of origin (1/23/2025)

Latest Voting History

April 23, 2025
PASS
Senate Committee
Senate Revenue and Taxation Hearing
AyesNoesNVRTotalResult
5005PASS

Key Takeaways

  • Redirects 25% of greenhouse gas reduction funds from high-speed rail to motor vehicle fuel programs starting 2026.
  • Reduces state gas tax rates annually from 2026 to 2030 based on transferred funds.
  • Eliminates continuous funding for high-speed rail projects after June 30, 2026.
  • Requires annual calculations to ensure revenue-neutral tax adjustments through 2030.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Tony Strickland
Tony StricklandR
California State Senator

Summary

Senator Strickland's transportation funding measure redirects 25% of California's annual Greenhouse Gas Reduction Fund proceeds from high-speed rail projects to the Motor Vehicle Fuel Account starting in fiscal year 2026-27. The legislation terminates the continuous appropriation to the High-Speed Rail Authority on June 30, 2026, and transfers those funds to transportation purposes through December 31, 2030.

To maintain revenue neutrality, the bill establishes an annual mechanism to reduce motor vehicle fuel tax rates proportionally to the amount transferred from the Greenhouse Gas Reduction Fund. The California Department of Tax and Fee Administration must calculate this reduction percentage each June based on the previous year's fuel tax collections and projected fund transfers. This adjustment applies to taxes on fuel removal, entry, and sales within California.

The measure preserves other existing allocations from the Greenhouse Gas Reduction Fund, including dedicated funding for transit programs, affordable housing initiatives, sustainable communities, and forestry projects. The tax rate adjustment provisions expire on April 1, 2031, unless extended by subsequent legislation.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (1/23/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Revenue and Taxation
Next Step
Senate Committee
Referred to the Senate Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
Do pass, but first be re-referred to the Committee on [Environmental Quality]
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
[First] hearing set for [04-23-2025]: Failed passage in Committee. Reconsideration granted
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

April 23, 2025
PASS
Senate Committee
Senate Revenue and Taxation Hearing
AyesNoesNVRTotalResult
5005PASS

Contacts

Profile
Tony StricklandR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Angelique AshbyD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jerry McNerneyD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 6 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Tony StricklandR
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Jerry McNerneyD
Senator
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member