The California State Legislature last night passed SB 1 (Beall) and the companion revenue protections act, ACA 5. SB 1 enacts a number of new taxes and fees to generate revenue for transportation projects. SB 1 is the largest infusion of transportation funding for California since the 2006 Proposition 1B bond act.
ACA 5 places a measure before California voters in November 2018 to constitutionally protect all revenues from SB 1 from diversion or borrowing for other purposes.
SB 1 Revenue Sources –
- 12 cent gasoline excise tax increase and annual adjustment for inflation (starting Nov. 2017)
- Resets price-based excise tax on gasoline and annual adjustment for inflation (starting July 2019)
- Transportation improvement fee on registered vehicles (ranges from $25 – $175 depending on vehicle value) (starting Spring 2018)
- 20 cent diesel excise tax increase and annual adjustment for inflation (starting November 2017)
- 4 percent increase on diesel excise tax (starting November 2017)
- 100 vehicle registration fee on zero emission vehicles (starting July 2020)
- $706 million Transportation Congestion Relief Program (TCRP) loan repayments
SB 1 Reforms –
- Creates a Transportation Inspector General within a new Caltrans Office of Audits and Investigations to provide greater oversight and accountability.
- Provides for $100 million in efficiencies at Caltrans.
- Gives the California Transportation Commission (CTC) additional oversight of the state highway maintenance program.
- Creates an Advance Mitigation Program at Caltrans to mitigate the impacts of transportation projects on habitat and the environment.