California Air Resources Board

Would have authorized two or more specified local governments to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) district to use tax increment financing and other revenue options to finance infill supportive infrastructure and affordable housing, among other things, near major transit stops, as specified. The bill would also have required the Governor’s Office of Planning and Research to develop guidelines for the formation of RISE districts, and require the Infrastructure and Economic development Bank to establish a RISE District Revolving Loan Program, upon appropriation by the Legislature, to provide RISE districts with initial startup funding for eligible projects, as specified. Held on suspense in the Senate Appropriations Committee.

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Would have transferred Greenhouse Gas Reduction Funds currently provided to the High-Speed Rail Authority to the State’s General Fund and made the funding available for rural road safety. Failed passage in the SenateTransportation Committee.

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Summary

Would have authorized the Bay Area Air Quality Management District (BAAQMD) and the Metropolitan Transportation Commission (MTC) to jointly adopt a commute benefit ordinance that requires covered employers operating within the common area of the BAAQMD and MTC respective jurisdictions to offer all covered employees one of the following choices: (1) A pretax option, (2) Employer-paid benefit, (3) Employer-provided transit, or (4) Employer-provided regional transit pass. The bill would have authorized MTC to propose new taxes, allocate new revenue, and issue bonds for specified transportation projects, among other things. Remains at the Assembly Desk.

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Summary

Requires the Secretary of Transportation to coordinate between stakeholders and provide guidance and recommendations to ensure the performance of the LOSSAN Rail Corridor, the 351-mile rail line running between San Luis Obispo and San Diego. Additionally, the Transportation Secretary must: 1) develop a report  with assistance from the Secretary of Environmental Protection and Secretary for  Natural Resources and submit a report to the Legislature, no later than two years after appropriation by the Legislature for purposes of the report, about capital improvement projects, resiliency improvement projects, zero-emission infrastructure, and other recommendations, 2) convene a working group of stakeholders to submit consensus recommendations and feedback on or before February 1, 2026, on various topics relating to rail service in the corridor and 3) work with rail operations stakeholders to submit a report to the Legislature on the performance of the corridor no later than three years after an appropriation by the Legislature and biennially thereafter.

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Summary 

Would have required CARB to provide exemptions to "local ferries" from any air pollution standard or regulation that requires the retirement, replacement, or retrofit of the vessel. This bill would provide this exemption for vessels for up to 15 years, or until the cost to replace the marine vessel's internal combustion engine with a new electric motor does not exceed the cost by more than 20%. The proposed definition of local ferry was specific to the Balboa Island Ferry, which is a small vessel that makes extremely short trips. Failed passage in the Assembly Transportation Committee and was granted reconsideration.

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Summary 

Would have partially exempted from sales and use taxes (3.9375%) the sale or purchase of specified zero-emission transportation ferries to a public agency, from January 1, 2025, to January 1, 2030. This bill would have required the Legislative Analyst's Office to review the effectiveness of the tax exemption, and to submit a report by May 1, 2028, to the Legislature.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 2061 without my signature.

This bill would enact a state sales and use tax exemption from July 1, 2025, until January 1, 2030, for a zero-emission public transportation ferry sold to a local public agency that provides transit services to the public.

I share the author's commitment to accelerating the adoption of zero-emission technologies within the public transit system by reducing upfront costs. The state has made unprecedented investments to support the clean transportation transition, dedicating billions of dollars to deliver cleaner mobility options for all Californians. Recent achievements include the electrification of Coltrain, the launch of the nation's first hydrogen hub, and the mobilization of a $1 .9 billion investment plan to create the country's most extensive zero-emission charging network. This bill, while laudable, should be considered in the context of the annual budget process given the general fund implications of a tax exemption.

In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure. For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Summary 

Would have established a Transit Task force lead by CalSTA, which would have been required to submit a report by Jan 1, 2025, that includes, among other things, the costs and operational impacts associated the CARB’s Innovative Clean Transit regulations. Remains in the Assembly Rules Committee.

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Summary

Would have created the Joint Legislative High-Speed Rail Oversight Committee consisting of three members of the Senate and three members of the Assembly to provide ongoing and independent oversight of the high-speed rail project by performing specified duties. The bill would have required the committee to make recommendations to the appropriate standing policy and budget committees of both houses of the Legislature to guide decisions concerning the State’s programs, policies, and investments related to high-speed rail. Was not heard in the Assembly Transportation Committee.

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Summary

Would have prohibited the California High Speed Rail Authority from directly or indirectly using local, State, federal, or any other public or private funding to purchase, lease, operate, or maintain a passenger or freight train powered by a diesel engine or other type of fossil fuel combustion engine, and from enabling such a train to operate on authority-owned rail infrastructure designed for speeds in excess of 125 miles per hour, except as specified. Was not heard in the Assembly Transportation Committee. 

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Summary

Would create the Joint Legislative High-Speed Rail Oversight Committee consisting of three members of the Senate and three members of the Assembly to provide ongoing and independent oversight of the high-speed rail project by performing specified duties, and requires the committee to make recommendations to the appropriate standing policy and budget committees of both houses of the Legislature to guide decisions concerning the State’s programs, policies, and investments related to high-speed rail. Was not heard in the Assembly Transportation Committee.

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