Assembly BillPassed first houseHealth and Safety
AB 153: Transportation budget trailer bill.
What AB 153 does, verified December 7, 2025
The bill aims to reduce emissions of air pollutants and improve transportation in California. It authorizes the state air resources board to impose a fee on entities regulated by the board for implementing and enforcing regulations related to transport refrigeration units. The fee will be deposited into the certification and compliance fund and used to cover the board's costs. The bill also extends the application of individual operator ratios for funding low-carbon transit operations programs. Additionally, the bill revises rate requirements for public transportation systems providing charter bus services, allowing them to set rates based on the marginal cost of each charter. It authorizes public transportation providers to offer charter bus services during the 2026 FIFA World Cup, subject to certain conditions. The bill also expands the percentage of licensed drivers allowed to partic…
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Last action: Ordered to inactive file at the request of Senator Grayson. (2025-09-08)Alert me
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| Sep. 13, 2025 | Ordered to inactive file at the request of Senator Grayson. |
| Sep. 11, 2025 | Read second time. Ordered to third reading. |
| Sep. 10, 2025 | From committee: Do pass. (Ayes 13. Noes 0.) (September 10). |
| Sep. 08, 2025 | Senate Rule 29.3(b) suspended. (Ayes 28. Noes 8. Page 2568.) |
| Sep. 08, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R. |
Latest bill textAmended version, September 8, 2025 · 4,140 words
| Amended IN Senate September 08, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 153
| Introduced by |
January 08, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
AB 153, as amended, Committee on Budget. Budget Act of 2025. Transportation budget trailer bill.
(1) Existing law imposes various functions and duties on the State Air Resources Board relating to reducing emissions of air pollutants. Existing law requires the state board to identify toxic air contaminants that are emitted into the ambient air of the state and to adopt airborne toxic control measures to reduce emissions of toxic air contaminants. Pursuant to its authority, the state board has adopted the Transport Refrigeration Unit Regulation to reduce emissions of toxic air contaminants and other pollutants from diesel-fueled transport refrigeration units used to power electrically driven refrigerated shipping containers and trailers that are operated in California. Existing law authorizes the state board under certain circumstances to impose a fee to cover the cost of its regulation of specified activities.
This bill would authorize the state board to impose a fee on any entity regulated by the state board under the Transport Refrigeration Unit Regulation for the state board’s reasonable regulatory costs associated with the implementation, administration, and enforcement of that regulation, as specified. The bill would require the revenues collected from the fee to be deposited into the Certification and Compliance Fund and to be expended, upon appropriation by the Legislature, for those costs.
(2) Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited into the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law continuously appropriates specified portions of the annual proceeds in the fund to various programs, including 5% for the Low Carbon Transit Operations Program, which is administered by the Department of Transportation and provides operating and capital assistance for transit agencies to reduce the emissions of greenhouse gases and improve mobility. Existing law requires the Controller to allocate funding under the program for the 2019–20 to 2022–23, inclusive, fiscal years to recipient transit agencies pursuant to specified individual operator ratios published by the Controller.
This bill would extend the application of those individual operator ratios to the allocation of that funding through the 2025–26 fiscal year.
(3) Under existing law, public transportation systems funded under the Mills-Alquist-Deddeh Act that provide charter bus services are required to establish rates for those services that, among other things, are either at least equal to the average of the 3 lowest current rates charged by private charter bus carriers operating charters in the same service area of the system or at least equal to the fully allocated cost of each charter operated, as specified.
This bill would revise that rate requirement to instead require rates to be established that are either at least equal to the average of the 3 lowest current rates charged by private charter bus carriers operating charters in the same service area of the system or at least equal to the marginal cost of each charter operated, as specified.
(4) Existing law authorizes the Los Angeles County Metropolitan Transportation Authority, as the successor entity to the Southern California Rapid Transit District, to operate charter bus service, subject to certain limitations.
This bill would authorize the authority to provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, in the County of Los Angeles, subject to certain conditions, and would also authorize other public transportation providers, operating under contract with the authority, to provide charter bus services in the County of Los Angeles for the 2026 FIFA World Cup, as specified. The bill would also exempt the operation of these charter bus services from certain requirements applicable to charter bus services performed by public transportation systems receiving funding under the Mills-Alquist-Deddeh Act if the operator establishes rates for those services that meet specified requirements.
(5) Existing law authorizes the Santa Clara Valley Transportation Authority and the San Mateo County Transit District to operate charter bus service, subject to certain limitations.
This bill would authorize those entities and any other public transportation operator providing public transit services in any portion of the greater San Francisco Bay area, as defined, to provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, subject to certain conditions. The bill would also exempt the operation of these charter bus services from certain requirements applicable to charter bus services performed by public transportation systems receiving funding under the Mills-Alquist-Deddeh Act if the operator establishes rates for those services that meet specified requirements.
(6) Existing law authorizes the Department of Motor Vehicles to establish a pilot program to evaluate the use of optional mobile or digital alternatives to driver’s licenses and identification cards, subject to certain requirements, including, but not limited to, the voluntary participation of persons in the program and a limitation on the percentage of licensed drivers who can participate in the program.
This bill would expand the percentage of licensed drivers who can participate in the program from 5% to 15%.
(7) Existing law authorizes the Department of Transportation, upon adoption of an ordinance or resolution by certain cities, to issue a special permit to the operator of a vehicle, combination of vehicles, or mobile equipment, permitting the operation and movement of the vehicle, combination, or equipment, and its load, on specified portions of state highways, if the vehicle, combination, or equipment, meets specified criteria.
This bill would additionally authorize the department to issue the above-described special permit to operate and move a vehicle, combination of vehicles, or mobile equipment, and its load, on the 1.7-mile portion of State Route 185 that is between High Street and Hegenberger Road, known as International Boulevard in the City of Oakland, if the vehicle, combination, or equipment meets that specified criteria. The bill would authorize the department to issue those permits until December 31, 2031, or until an alternate truck route to San Leandro Street becomes available, as specified. The bill would require the City of Oakland to report certain data to the Legislature and the Department of Transportation on or before January 1, 2031. By increasing the duties of a city, the bill would impose a state-mandated local program.
(8) The Administrative Procedure Act sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
Existing law, for the 2025–26 fiscal year, appropriates $132,175,000 from the Air Pollution Control Fund to the State Air Resources Board when funds are available from the Hino Consent Decree, to be administered through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, as provided.
This bill would exempt from the requirements of the Administrative Procedure Act guidelines or other standards adopted and used in administering those appropriated moneys.
(9) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(10) Existing law establishes the Air Pollution Control Fund for the California Air Resources Board to carry out its duties and functions.
This bill would appropriate, for the 2025–26 fiscal year, $1,000 from the Air Pollution Control Fund to the California Air Resources Board for the Transport Refrigeration Unit Program.
(11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.
The people of the State of California do enact as follows:
SECTION 1.
Section 39611 is added to the Health and Safety Code, to read:39611.
(a) The state board may impose a fee on any entity regulated by the state board under the Transport Refrigeration Unit Regulation (Sections 2477 to 2477.24, inclusive, of Title 13 of the California Code of Regulations).(b) Revenues collected from the imposition of a fee pursuant to this section shall be used to recover the state board’s reasonable regulatory costs, consistent with paragraph (3) of subdivision (b) of Section 3 of Article XIII A of the California Constitution, associated with the implementation, administration, and enforcement of the regulation described in subdivision (a), including, but not limited to, costs related to certification, registration, reporting, auditing, inspections, and compliance assurance.
(c) (1) Subject to paragraph (2), the state board shall set the amounts of the fees imposed pursuant to subdivision (a) to the amounts established by Section 2477.21 of Title 13 of the California Code of Regulations, as that section read on January 1, 2025, and, notwithstanding any other law except paragraph (2), shall increase those fees annually based on the Consumer Price Index as compiled and reported by the Department of Industrial Relations.
(2) The state board shall not set the fees pursuant to paragraph (1) to an amount that is more than necessary to recover its reasonable costs in developing, implementing, and enforcing the regulation described in subdivision (a), including any administrative costs.
(d) The state board may change the fee to recover its costs described in subdivision (a) so long as the fee does not exceed the amounts established under subdivision (c).
(e) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the determination of fees under this section.
(f) All revenues collected pursuant to this section shall be deposited into the Certification and Compliance Fund and shall be available, upon appropriation by the Legislature, for the purposes described in subdivision (b).
SEC. 2.
Section 75230 of the Public Resources Code is amended to read:75230.
(a) The Low Carbon Transit Operations Program is hereby created to provide operating and capital assistance for transit agencies to reduce the emissions of greenhouse gases and improve mobility, with a priority on serving disadvantaged communities.(b) Funding for the program is continuously appropriated pursuant to Section 39719 of the Health and Safety Code from the Greenhouse Gas Reduction Fund established pursuant to Section 16428.8 of the Government Code.
(c) (1) Except as provided in subdivision (w), paragraph (2), funding shall be allocated by the Controller on a formula basis consistent with the requirements of this part and with Section 39719 of the Health and Safety Code, upon a determination by the Department of Transportation that the expenditures proposed by a recipient transit agency meet the requirements of this part and guidelines developed pursuant to this section, and that the amount of funding requested is currently available.
(2) For the portion of funding allocated pursuant to paragraph (1) under the formula set forth in Section 99314 of the Public Utilities Code, the Controller shall allocate that funding for the 2019–20 to 2025–26, inclusive, fiscal years based on the individual operator ratios described in Section 99314.10 of the Public Utilities Code.
(d) A recipient transit agency shall demonstrate that each expenditure of program moneys allocated to the agency reduces the emissions of greenhouse gases.
(e) A recipient transit agency shall demonstrate that each expenditure of program moneys does not supplant another source of funds.
(f) Moneys for the program shall be expended to provide transit operating or capital assistance that meets any of the following:
(1) Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded waterborne transit, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities.
(2) Operational expenditures that increase transit mode share.
(3) Expenditures related to the purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support these zero-emission buses.
(g) (1) For a recipient transit agency whose service area includes disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, at least 50 percent of the total moneys received pursuant to this chapter part shall be expended on projects or services that meet the requirements of subdivisions (d), (e), and (f) and benefit the disadvantaged communities, as identified consistent with the guidance developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code.
(2) The requirement of paragraph (1) is waived if the recipient transit agency expends the funding provided pursuant to this section on any of the following:
(A) New or expanded transit service that connects with transit service serving disadvantaged communities, as identified pursuant to Section 39711 of, or in low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of, the Health and Safety Code.
(B) Transit fare subsidies and network and fare integration technology improvements, including, but not limited to, discounted or free student transit passes.
(C) The purchase of zero-emission transit buses and supporting infrastructure.
(3) Expenditures made pursuant to paragraph (2) shall be deemed to have met all applicable requirements established pursuant to Section 39713 of the Health and Safety Code.
(4) This section does not require a recipient transit agency to provide individual rider data to the Department of Transportation or to the State Air Resources Board.
(h) The Department of Transportation, in coordination with the State Air Resources Board, shall develop guidelines that describe the methodologies that a recipient transit agency shall use to demonstrate that proposed expenditures will meet the criteria in subdivisions (d), (e), (f), and (g) and establish the reporting requirements for documenting ongoing compliance with those criteria.
(i) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development of guidelines for the program pursuant to this section.
(j) A recipient transit agency shall submit the following information to the Department of Transportation before seeking a disbursement of funds pursuant to this part:
(1) A list of proposed expense types for anticipated funding levels.
(2) The documentation required by the guidelines developed pursuant to this section to demonstrate compliance with subdivisions (d), (e), (f), and (g).
(k) For capital projects, a recipient transit agency shall also do all of the following:
(1) Specify the phases of work for which the recipient transit agency is seeking an allocation of moneys from the program.
(2) Identify the sources and timing of all moneys required to undertake and complete any phase of a project for which the recipient transit agency is seeking an allocation of moneys from the program.
(3) Describe intended sources and timing of funding to complete any subsequent phases of the project, through construction or procurement.
(l) Except as specified in subdivision (m), a recipient transit agency that has used program moneys for any type of operational assistance allowed by subdivision (f) in a previous fiscal year may use program moneys to continue the same service or program in any subsequent fiscal year if the agency can demonstrate that reductions in the emissions of greenhouse gases can be realized.
(m) A recipient transit agency using program moneys for the continuation of a free or reduced fare transit program shall not be subject to subdivision (l) and may continue to use program moneys for that purpose without any restriction to length of time. The recipient transit agency shall submit an initial allocation request to the department and meet all requirements of this section, except subdivision (l). After the initial allocation for a recipient transit agency’s free or reduced fare transit program is funded pursuant to this subdivision, the recipient transit agency shall not be required to submit an additional allocation request for the next three fiscal years, but instead shall provide documentation necessary to meet the requirements of subdivision (s) and for the free or reduced fare transit program to maintain compliance with this section as detailed in the initial allocation request submitted to the department. A recipient transit agency using funds for a free or reduced fare transit program funded pursuant to this subdivision shall submit the reports required by subdivision (s).
(n) Before authorizing the disbursement of funds, the Department of Transportation, in coordination with the State Air Resources Board, shall determine the eligibility, in whole or in part, of the proposed list of expense types, based on the documentation provided by a recipient transit agency to ensure ongoing compliance with the guidelines developed pursuant to this section.
(o) The Department of Transportation shall notify the Controller of approved expenditures for each recipient transit agency, and the amount of the allocation for each agency determined to be available at that time of approval.
(p) A recipient transit agency that does not submit an expenditure for funding in a particular fiscal year may retain its funding share, and may accumulate and use that funding share in a subsequent fiscal year for a larger expenditure, including operating assistance. The recipient transit agency must shall first specify the number of fiscal years that it intends to retain its funding share and the expenditure for which the agency intends to use these moneys. A recipient transit agency may only retain its funding share for a maximum of four fiscal years.
(q) A recipient transit agency may, in any particular fiscal year, loan or transfer its funding share to another recipient transit agency within the same region for any identified eligible expenditure under the program, including operating assistance, in accordance with procedures incorporated by the Department of Transportation in the guidelines developed pursuant to this section, which procedures shall be consistent with the requirement in subdivision (g).
(r) A recipient transit agency may apply to the Department of Transportation to reassign any savings of surplus moneys allocated under this section to the agency for an expenditure that has been completed to another eligible expenditure under the program, including operating assistance. A recipient transit agency may also apply to the Department of Transportation to reassign to another eligible expenditure any moneys from the program previously allocated to the agency for an expenditure that the agency has determined is no longer a priority for the use of those moneys.
(s) A recipient transit agency shall provide annual reports to the Department of Transportation, in the format and manner prescribed by the department, consistent with the internal administrative procedures for the use of the fund proceeds developed by the State Air Resources Board.
(t) The Department of Transportation and recipient transit agencies shall comply with the guidelines developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code to ensure that the requirements of Section 39713 of the Health and Safety Code are met to maximize the benefits to disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code.
(u) A recipient transit agency shall comply with all applicable legal requirements, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), and civil rights and environmental justice obligations under state and federal law. This section does not expand or extend the applicability of those laws to recipient transit agencies.
(v) The audit of public transportation operator finances already required under the Mills-Alquist-Deddeh Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) pursuant to Section 99245 of the Public Utilities Code shall be expanded to include verification of receipt and appropriate expenditure of moneys from the program. Each recipient transit agency receiving moneys from the program in a fiscal year for which an audit is conducted shall transmit a copy of the audit to the Department of Transportation, and the department shall make the audits available to the Legislature and the Controller for review on request.
(w)Notwithstanding subdivision (c), the Controller shall allocate funding pursuant to this section for the 2019–20 to 2022–23, inclusive, fiscal years to recipient transit agencies pursuant to the individual operator ratios described in Section 99314.10 of the Public Utilities Code.
SEC. 3.
Section 30005 of the Public Utilities Code is amended to read:30005.
(a) “Rapid transit,” as used in this part, means the transportation of passengers only and their incidental baggage by means other than by chartered bus, sightseeing bus, taxi, or any other motor vehicle not on an individual passenger fare paying basis, except as otherwise provided in subdivision (b).(b) Nothing in this This section shall be construed to does not prohibit the district from doing any of the following:
(1) Leasing its buses to private certified public carriers.
(2) Providing school bus service for the transportation of pupils between their homes and schools.
(3) Providing charter bus services to governmental agencies, if comparable service is unavailable through privately operated bus companies, and to special events, other than regular and preseason scheduled professional and amateur sporting events.
(c) Notwithstanding subdivision (a) or paragraph (3) of subdivision (b), nothing in this this section shall be construed to does not prohibit the district from providing charter bus services, which are incidental to the holding of the Olympic Games 2026 FIFA World Cup in the County of Los Angeles, to any party or to any event during the period from May 1, 1984, to September 30, 1984, June 1, 2026, to July 31, 2026, inclusive, if the district does not curtail existing, regularly scheduled services. complies with all of the requirements set forth in subdivision (b) of Section 30630.5.
SEC. 4.
Section 30630.5 of the Public Utilities Code is amended to read:30630.5.
(a)No bus
(1) Bus
equipment that is designed solely for charter service shall not be purchased. A bus equipped with a toilet or underfloor baggage compartment shall be deemed to be bus equipment that is designed solely for charter service.(b)Except as provided in subdivisions (d) and (e), the
(2) The
board shall hold a public hearing(c)
(3)
Charter service operations by the district shall originate and terminate within the area served by the district, unless a private charter-party carrier requests the district to provide service beyond that area.(b) (1) The district may provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, in the County of Los Angeles if all of the following conditions are met:
(d)
(A)
The district(i) The
rates for charter-party bus services established under this(ii) The
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