SB 741 California Senate · 2025-2026 Regular Session

Low Carbon Transit Operations Program.

Summary
Existing law creates the Low Carbon Transit Operations Program to provide operating and capital assistance for transit agencies to reduce the emissions of greenhouse gases and improve mobility. Existing law requires the Department of Transportation to administer the program and to adopt guidelines, in coordination with the State Air Resources Board, that describe the methodologies to be used by a recipient transit agency to demonstrate that proposed expenditures will meet specified program expenditure requirements and establish the reporting requirements for documenting ongoing compliance with those expenditure requirements. This bill would repeal the requirement for the department to adopt guidelines. Existing law continuously appropriates a specified amount of money from the Greenhouse Gas Reduction Fund for the program and requires the Controller to allocate those moneys according to the requirements of the program. Existing law requires a recipient transit agency to demonstrate that expenditures of program moneys allocated to the agency reduce the emission of greenhouse gases and do not supplant other sources of funds. Existing law requires moneys for the program to be expended to provide transit operating or capital assistance that directly enhances or expands transit services, increases transit mode share, or is related to the purchase of zero-emission buses, as specified. Before seeking a disbursement of funds pursuant to the program, existing law requires a recipient transit agency to submit to the department a list of proposed expense types and documentation required by the guidelines that demonstrates compliance with the above-described expenditure requirements. For capital projects funded by the program, existing law requires a transit agency to specify the phases of work for which an allocation of program moneys is sought, identify sources and timing of all moneys required for those phases of work, and describe intended sources and timing of funding for subsequent phases of work, as provided. Existing law requires a recipient transit agency to provide an annual report to the department, as provided. Existing law requires the department and a recipient transit agency to comply with guidelines developed by the State Air Resources Board to ensure that the requirements of a certain investment plan are met to maximize the benefits to disadvantaged communities, as provided. This bill would revise and recast the program to, among other things, require program funds to be expended only on maintenance or expansion of bus, rail, or ferry services, transit fare subsidies, and network and fare integration technology improvements. By altering the permissible uses for which continuously appropriated funds may be used, the bill would make an appropriation. Before receiving program funds, the bill would require a recipient transit agency to submit to the department a list of services or programs to be funded by those funds, as specified. The bill would require the department to report to the Controller the recipient transit agencies that have submitted the list, and would, upon receipt of the report from the department, require the Controller to allocate program funds. The bill would require a recipient transit agency to report to the department on the expenditure of program funds, as specified.
Bill status passed both 4 of 5 stages cleared
Introduction
Feb 2025
Committee Review
Aug 2026
Senate Passage
May 2025
Assembly Passage
Aug 2026
Governor
Introduced Feb 21, 2025 Last action Aug 30, 2026
Maddy AI version diff · 4 comparisons

What changed between versions

06/08/26 - Amended Assembly 07/01/26 - Amended Assembly · 11 edits · Jul 1, 2026
MAJOR
The July 1 amendment removes the entire coastal development permit exemption for the Los Angeles-San Diego-San Luis Obispo Rail Corridor, narrowing the bill to solely address the Low Carbon Transit Operations Program. The transit program provisions are significantly streamlined: the requirement for Caltrans to develop guidelines is repealed, the anti-supplanting demonstration is removed, permissible uses are narrowed to a closed list (bus/rail/ferry operations, fare subsidies, and network/fare integration technology), and a new requirement that bus expenditures comply with the State Air Resources Board's Innovative Clean Transit Regulations is added. The bill also adds legislative findings declaring an intent to provide streamlined access to Greenhouse Gas Reduction Fund funding for these transit services.
SCOPE

The entire amendment to Section 30600 of the Public Resources Code is removed, eliminating the expanded coastal development permit exemption for emergency railroad track maintenance along the Los Angeles-San Diego-San Luis Obispo Rail Corridor and the associated legislative findings declaring a special statute necessary.

Permissible uses of program funds are narrowed to a closed list: maintenance or expansion of bus, rail, or ferry services; transit fare subsidies (including discounted and free student passes); and network and fare integration technology improvements. The broader prior categories (such as 'operational expenditures that increase transit mode share' and standalone zero-emission bus purchases) are removed as independent categories.

New legislative findings and declarations are added (new Section 1), stating that the transportation sector is California's largest source of GHG emissions, that public transportation investments advance multiple state goals, and expressing intent to provide streamlined access to Greenhouse Gas Reduction Fund funding for the listed transit services.

REQUIREMENT

The requirement that Caltrans, in coordination with the State Air Resources Board, develop guidelines describing methodologies for demonstrating compliance is repealed. The bill no longer mandates guideline development, though subdivision (c)(1) still references 'guidelines developed pursuant to this section.'

The anti-supplanting requirement is eliminated. Previously, a recipient transit agency had to demonstrate that each expenditure did not supplant another source of funds.

A new requirement is added that expenditure of program funds on buses must be in accordance with the State Air Resources Board's Innovative Clean Transit Regulations (Article 4.3, commencing with Section 2023, of Chapter 1, Division 3, Title 13 of the California Code of Regulations).

The requirement that a recipient transit agency demonstrate each expenditure reduces greenhouse gas emissions is replaced by a deemed-compliance provision: any expenditure on the listed services is automatically deemed to reduce greenhouse gas emissions.

The continuation provision is simplified. Previously, an agency had to demonstrate that GHG reductions could be realized to continue a service in a subsequent fiscal year. The new version allows continuation without that demonstration.

The special provision for free or reduced fare transit programs is removed. Previously, such programs could continue indefinitely without time restriction and were exempt from resubmitting allocation requests for three fiscal years after the initial funding.

Capital project specific requirements are removed, including the obligation to specify phases of work and identify sources and timing of all moneys required to complete each phase.

ENFORCEMENT

The pre-disbursement eligibility determination by Caltrans in coordination with the State Air Resources Board is removed, along with the requirement for Caltrans to notify the Controller of approved expenditures and allocation amounts.

Floor votes · Senate May 27, 2025 · Assembly Aug 25, 2026

How they voted

390
Passed · 1 other
Total votes 40
May 27, 2025
D Democratic30
29 Yea 1
96% Yea
R Republican10
10 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
29
Key actions
12
Committee
9
Amendments
6
Aug 30, 2026
Upper · Passed
Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling.
upper
Aug 27, 2026
Upper · Passed
From committee: That the Assembly amendments be concurred in. (Ayes 12. Noes 0.)
upper
Aug 26, 2026
Upper · Passed
From committee: Be re-referred to Com. on TRANS. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0.) Re-referred to Com. on TRANS.
upper
Aug 26, 2026
Committee
Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d).
upper
Aug 25, 2026
Introduced
In Senate. Concurrence in Assembly amendments pending.
upper
Aug 25, 2026
Lower · Passed
Read third time. Passed. Ordered to the Senate.
lower
Aug 13, 2026
Lower · Passed
From committee: Do pass. (Ayes 15. Noes 0.) (August 13).
lower
Jul 1, 2026
Lower · Passed
Read second time and amended. Re-referred to Com. on APPR.
lower
Jun 30, 2026
Lower · Passed
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (June 29).
lower
Jun 11, 2026
Committee
Re-referred to Com. on TRANS. pursuant to Assembly Rule 96.
lower
Jun 8, 2026
Lower · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES.
lower
Jun 5, 2025
Committee
Referred to Com. on NAT. RES.
lower
May 27, 2025
Upper · Passed
Read third time. Passed. (Ayes 39. Noes 0. Page 1240.) Ordered to the Assembly.
upper
May 5, 2025
Upper · Passed
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
upper
Apr 23, 2025
Upper · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 839.) (April 22). Re-referred to Com. on APPR.
upper
Apr 21, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on N.R. & W.
upper
Mar 12, 2025
Committee
Referred to Com. on N.R. & W.
upper
Feb 21, 2025
Introduced
Introduced. To Com. on RLS. for assignment. To print.
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Catherine Blakespear
Catherine Blakespear
DDemocratic
CA
38