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Updated:   2026-02-04

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Measure
Authors Strickland  
Subject Transportation funding: Greenhouse Gas Reduction Fund: Motor Vehicle Fuel Account.
Relating To relating to transportation.
Title An act to amend Section 39719 of the Health and Safety Code, and to amend Sections 7360, 7362, 7363, and 7364 of, and to add and repeal Section 7374 of, the Revenue and Taxation Code, relating to transportation, and making an appropriation therefor.
Last Action Dt 2025-03-26
State Amended Senate
Status Died
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Two Thirds Yes Yes No None No No Y
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Leginfo Link  
Bill Actions
2026-02-02     Returned to Secretary of Senate pursuant to Joint Rule 56.
2025-04-23     April 23 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 872.) Reconsideration granted.
2025-04-17     Set for hearing April 30 in E.Q. pending receipt.
2025-04-08     Set for hearing April 23.
2025-04-03     Withdrawn from committee.
2025-04-03     Re-referred to Coms. on REV. & TAX. and E.Q.
2025-04-02     Re-referred to Coms. on E.Q. and REV. & TAX.
2025-03-26     From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-02-05     Referred to Com. on RLS.
2025-01-24     From printer. May be acted upon on or after February 23.
2025-01-23     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Versions
Amended Senate     2025-03-26
Introduced     2025-01-23
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

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.