SB 739 California Senate · 2025-2026 Regular Session

Transportation network companies: California Clean Miles Standard and Incentive Program.

Summary

The Passenger Charter-party Carriers' Act provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission and includes specific requirements applicable to transportation network companies, which are defined as certain organizations that, using an online-enabled application or platform, connect passengers with drivers using a personal vehicle. The act establishes the California Clean Miles Standard and Incentive Program, which requires, by January 1, 2020, that the State Air Resources Board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis, as provided. The act requires, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals, in accordance with specified requirements, starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company. The act makes a violation of the act, or an order or direction of the commission pursuant to the act, a crime. This bill would require, by January 1, 2028, the state board to adopt, and the commission to implement, updated annual targets and goals starting in 2029 for the reduction under that baseline for emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company in accordance with specified requirements. The bill would prohibit the commission from finding a transportation network company in violation of the program under specified circumstances. The bill would prohibit the commission from adopting or enforcing any penalties against transportation network companies for the failure to meet the targets or goals adopted under the program by the state board applicable before the 2029 calendar year. However, the bill would require a transportation network company to meet specified targets for passenger miles traveled using a zero-emission vehicle in the 2027 and 2028 calendars years. The act requires the state board to delay adoption, and the commission to delay implementation, of the targets and goals adopted pursuant to the program if the state board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The act requires the state board and commission to review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every 2 years. This bill would instead require the state board to adjust the targets and goals, and the commission to delay implementation of those targets and goals, if the state board or the commission makes specified findings, including that barriers exist to expanding the usage of zero-emission vehicles by transportation network companies at the rates established by the state board. The bill would revise the above-described review requirement to instead require the state board and commission, no less often than every 2 years, to review the targets and goals adopted under the program and the available data necessary to make any of those specified findings.

Issues: ✓ Environment

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Aug 2026

Senate Passage

May 2025

Assembly Passage

Governor

Introduced Feb 21, 2025 Last action Aug 30, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

06/25/26 - Amended Assembly → 07/02/26 - Amended Assembly · 7 edits · Jul 2, 2026

MODERATE

The July 2 amendment to SB 739 makes several substantive changes: it removes the creation of a new Transportation Network Company Zero-Emission Fund and instead requires the commission to begin issuing grant payments and incentives to drivers from the existing Drivers Assistance Fund by January 1, 2027. It also removes the explicit statutory prohibition on penalties until January 1, 2035, removes the requirement that post-2028 targets not exceed general public ZEV adoption rates, narrows the safe harbor provision to apply only from January 1, 2029 and only to the updated targets, and significantly trims the legislative findings by removing references to the EPA waiver revocation, specific EV sales data, and language about disproportionate burden on TNCs and drivers.

FISCAL

The creation of the Transportation Network Company Zero-Emission Fund in the State Treasury is eliminated. Previously, penalty moneys collected from TNCs would be deposited into this new fund and made available to the commission upon legislative appropriation to support electrification programs.

REQUIREMENT

A new requirement mandates that by January 1, 2027, the commission must commence issuing grant payments and incentives to drivers from the existing Drivers Assistance Fund under the Drivers Assistance Program. This replaces the new fund mechanism with a directive to activate the already-existing driver assistance program.

The requirement that updated targets and goals (beginning in 2029) 'shall not be on a trajectory to significantly exceed the current rate of adoption of zero-emission vehicles by the general public' is removed, giving the board more flexibility in setting future targets.

One of the five triggers for adjusting or delaying targets is removed: the trigger that applied when 'a target or goal significantly exceeds the rate of adoption of zero-emission vehicles by the general public.' The remaining four triggers (barriers to ZEV usage, technical/economic infeasibility, state goal modifications, and inconsistency with criteria) are retained.

ENFORCEMENT

The explicit statutory provision prohibiting the commission from adopting or enforcing penalties against TNCs for failure to meet post-2028 targets until January 1, 2035 is removed from the bill text. The digest still references a penalty prohibition for pre-2029 targets, but the 2035 date no longer appears in the operative statutory language.

The safe harbor provision (b)(6)(A) is narrowed: it now applies only beginning January 1, 2029, and only references the updated targets under subparagraph (B) of paragraph (2), rather than any targets adopted under the entire subdivision. This means TNCs cannot use compliance with earlier targets as a defense against violation findings.

SCOPE

The legislative findings section is substantially shortened from 8 subsections to 4. Removed findings include: the dual-target framework's compliance flexibility problems, the EPA revocation of California's ACC II waiver, specific EV sales percentage data showing a drop from 25.3% to 22.9%, language about target assumptions that 'have not materialized as projected,' and the finding about disproportionate burden on TNCs and low- and moderate-income drivers.

06/10/26 - Amended Assembly → 06/25/26 - Amended Assembly · 6 edits · Jun 25, 2026

MODERATE

The June 25 amendment removes all Disaster CalFresh provisions (Section 18917 of the Welfare and Institutions Code) from the bill, narrowing it to focus exclusively on transportation network company emissions. It adds binding interim zero-emission vehicle targets for 2027 (17 percent) and 2028 (19 percent of passenger miles), with a requirement that the commission consider TNC fleet investment when enforcing those targets. It also adds a new trigger allowing target adjustment if the state modifies its ZEV transition goals.

SCOPE

All Disaster CalFresh provisions were removed, including the requirement for the department to inquire about county facility capacity during disasters, the state-mandated local program designation, and the reimbursement clause. The bill now addresses only transportation network company emissions.

Assembly Member Ahrens was added as a coauthor alongside Assembly Member Jackson.

REQUIREMENT

New interim targets require TNCs to achieve 17 percent of passenger miles by zero-emission vehicles by December 31, 2027, and 19 percent by December 31, 2028. The commission must consider any moneys a TNC invested in fleet transition during the same year when deciding whether to bring an enforcement action for missing these targets.

A new finding triggers target adjustment if 'the state has modified its goals for transitioning to zero-emission vehicles,' giving the board a mechanism to recalibrate targets in response to policy changes at the state level.

The 2029 and later targets must now also be 'consistent with adopted programs and goals of the state for transitioning to zero-emission vehicles,' adding an additional constraint beyond technical feasibility and public adoption rates.

ENFORCEMENT

The biennial review scope was expanded to include 'any changes to state zero-emission vehicle goals' and to cover adoption rates for both the general public and participating drivers, not just general electric transportation adoption rates.

02/21/25 - Introduced → 06/10/26 - Amended Assembly · 8 edits · Jun 10, 2026

MODERATE

SB 739 was dramatically expanded from a narrow CalFresh disaster preparedness bill into a dual-purpose bill that also overhauls the California Clean Miles Standard and Incentive Program for transportation network companies (TNCs). The new provisions require updated emissions targets by 2028 that must track actual public EV adoption rates, prohibit penalty enforcement against TNCs until 2035, create a new state fund to recycle TNC penalties back into electrification programs, and add multiple safety valves allowing targets to be adjusted or delayed when barriers arise. The CalFresh provisions remain substantively unchanged.

SCOPE

The bill now amends Section 5450 of the Public Utilities Code in addition to Section 18917 of the Welfare and Institutions Code, adding an entirely new policy area covering TNC greenhouse gas emissions targets under the Clean Miles Standard.

REQUIREMENT

Requires ARB to adopt updated annual TNC emissions targets by January 1, 2028 (beginning in 2029) that must not be on a trajectory to significantly exceed the current rate of ZEV adoption by the general public, must be consistent with manufacturer ZEV sales requirements under Section 1962.4, and must be technically and economically feasible based on current market conditions.

Changes the existing delay mechanism from a simple 'delay adoption and implementation' when unanticipated barriers exist to a broader requirement that ARB must adjust targets and PUC must delay implementation if any of four findings are made: barriers to ZEV expansion, technical or economic infeasibility, target exceeds public adoption rate, or target no longer consistent with stated criteria.

ENFORCEMENT

Prohibits the Public Utilities Commission from adopting or enforcing any penalties against TNCs for failure to meet the new targets until January 1, 2035 - a seven-year enforcement moratorium.

Adds a safe harbor provision: PUC cannot find a TNC in violation if the company meets or exceeds at least one of the two most recent annual targets, or if more than two years have elapsed since the last required review.

FISCAL

Creates the Transportation Network Company Zero-Emission Fund in the State Treasury. All penalties imposed on TNCs under the program are deposited into this fund (replacing the prior rule that such moneys go to the General Fund). Fund moneys are available to PUC, upon legislative appropriation, to support programs or partnerships that catalyze continued electrification of personal vehicles on TNC platforms.

DEFINITION

Adds a legislative findings section documenting that EPA revoked California's ACC II waiver (eliminating the 100% ZEV sales mandate by 2035), the federal clean vehicle tax credit was ended in 2025, and EV market share dropped from 25.3% in 2024 to 22.9% in 2025.

TIMELINE

Changes the biennial review requirement from reviewing 'available data related to barriers' to reviewing both the targets/goals and the available data necessary to make any of the specified findings, beginning no later than two years after annual targets are adopted.

Floor votes · Senate May 29, 2025

How they voted

38–0

Passed · 2 other

Total votes 40

May 29, 2025

D Democratic30

28 Yea 2

93% Yea

R Republican10

10 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 13, 2026

Lower · Passed

From committee: Do pass. (Ayes 15. Noes 0.) (August 13).

lower

Jul 2, 2026

Lower · Passed

Read second time and amended. Re-referred to Com. on APPR.

lower

Jul 2, 2026

Lower · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 1).

lower

Jun 30, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on C. & C. (Ayes 15. Noes 0.) (June 29). Re-referred to Com. on C. & C.

lower

Jun 25, 2026

Lower · Passed

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

lower

Jun 11, 2026

Committee

Re-referred to Coms. on TRANS., C. & C., and APPR. pursuant to Assembly Rule 77.2.

lower

Jun 10, 2026

Lower · Passed

Read third time and amended.

lower

Jul 16, 2025

Lower · Passed

From committee: Do pass. (Ayes 13. Noes 0.) (July 16).

lower

Jul 2, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 1). Re-referred to Com. on APPR.

lower

Jun 5, 2025

Committee

Referred to Com. on HUM. S.

lower

May 29, 2025

Upper · Passed

Read third time. Passed. (Ayes 38. Noes 0. Page 1329.) Ordered to the Assembly.

upper

May 23, 2025

Upper · Passed

From committee: Do pass. (Ayes 6. Noes 0. Page 1211.) (May 23).

upper

Apr 8, 2025

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 682.) (April 7). Re-referred to Com. on APPR.

upper

Mar 12, 2025

Committee

Referred to Com. on HUMAN S.

upper

Feb 21, 2025

Introduced

Introduced. To Com. on RLS. for assignment. To print.

upper

1 primary · 2 co-sponsors