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SB-94 • 2026

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

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

Budget Energy Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Strickland
Last action
2026-02-02
Official status
Returned to Secretary of Senate pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

The exact amount of money transferred each year from the Greenhouse Gas Reduction Fund to the Motor Vehicle Fuel Account is not specified.

Transportation Funding Changes

The bill changes how money from the Greenhouse Gas Reduction Fund is used and reduces fuel taxes based on new funding for transportation.

What This Bill Does

  • Removes a requirement to give 25% of the fund's money to the High-Speed Rail Authority after June 30, 2026.
  • Requires that 25% of the Greenhouse Gas Reduction Fund be given to the Motor Vehicle Fuel Account from July 1, 2026, until December 31, 2030.
  • Reduces fuel taxes based on how much money is moved into the Motor Vehicle Fuel Account each year.

Who It Names or Affects

  • People who buy motor vehicle fuel
  • The High-Speed Rail Authority

Terms To Know

Greenhouse Gas Reduction Fund
A fund where money from selling pollution permits goes to help reduce greenhouse gases.
Motor Vehicle Fuel Account
An account that collects taxes on motor vehicle fuel and uses the money for transportation projects.

Limits and Unknowns

  • The bill does not specify how much the fuel tax will be reduced.
  • It is unclear what specific changes are made to bicycle licensing rules.

Bill History

  1. 2026-02-02 California Legislative Information

    Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. 2025-04-23 California Legislative Information

    April 23 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 872.) Reconsideration granted.

  3. 2025-04-17 California Legislative Information

    Set for hearing April 30 in E.Q. pending receipt.

  4. 2025-04-08 California Legislative Information

    Set for hearing April 23.

  5. 2025-04-03 California Legislative Information

    Re-referred to Coms. on REV. & TAX. and E.Q.

  6. 2025-04-03 California Legislative Information

    Withdrawn from committee.

  7. 2025-04-02 California Legislative Information

    Re-referred to Coms. on E.Q. and REV. & TAX.

  8. 2025-03-26 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  9. 2025-02-05 California Legislative Information

    Referred to Com. on RLS.

  10. 2025-01-24 California Legislative Information

    From printer. May be acted upon on or after February 23.

  11. 2025-01-23 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 94, as amended,
Jones
Strickland.
Transportation: bicycles.
Transportation funding: Greenhouse Gas Reduction Fund: Motor Vehicle Fuel Account.
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.
Existing law requires the Department of Motor Vehicles to procure and distribute bicycle license indicia and registration forms to all counties and cities that have adopted a bicycle licensing ordinance or resolution. Existing law prohibits a city or county that adopts a bicycle licensing ordinance or resolution from prohibiting the operation of an unlicensed bicycle. Existing law defines “bicycle” for these purposes.
This bill would make a technical, nonsubstantive change to this provision.

Current Bill Text

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