SB 94: Transportation funding: Greenhouse Gas Reduction Fund: Motor Vehicle Fuel Account.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026Returned to Secretary of Senate pursuant to Joint Rule 56.
2. April 23, 2025April 23 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 872.) Reconsideration granted.
3. April 17, 2025Set for hearing April 30 in E.Q. pending receipt.
4. April 8, 2025Set for hearing April 23.
5. April 3, 2025Re-referred to Coms. on REV. & TAX. and E.Q.
6. April 3, 2025Withdrawn from committee.
7. April 2, 2025Re-referred to Coms. on E.Q. and REV. & TAX.
8. March 26, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
9. February 5, 2025Referred to Com. on RLS.
10. January 24, 2025From printer. May be acted upon on or after February 23.
11. January 23, 2025Introduced. Read first time. To Com. on RLS. for assignment. To print.