California Leaders Reach Deadline for $52.4 Billion Transportation Bill
This story appears in the April 10 print edition of Transport Topics. The story was updated with a clarification on the diesel rate in the fifth paragraph on April 12.
Democratic Gov. Jerry Brown and state Democratic legislative leaders last week were racing to meet a self-imposed deadline to approve a $52.4 billion, 10-year transportation bill to fix California’s crumbling infrastructure with revenue from hefty gasoline and diesel tax increases.
The bill, which has gained strong support from truckers, business and union leaders, and California environmental regulators, calls for a diesel fuel-tax increase of 20 cents per gallon and a gasoline tax increase of 12 cents per gallon, effective July 1.
“We can’t afford to keep kicking the can down the road. Californians are tired of the constant traffic jams and crumbling roads, and they expect us to find solutions,” said Senate President pro Tempore Kevin de León, a Democrat. “These critical investments will keep our state moving and economy growing.”
California Senate Bill 1, if approved by a two-thirds margin of the Senate and Assembly, also would include a 4% hike in the sales and use surtax on diesel fuel.
The 20-cent jump in diesel taxes would set the new rate at 36 cents, up from the current rate of 16 cents. In addition a 9% sales tax will be added to the 16-cent rate, increasing to 13% beginning Nov. 1. The gasoline tax increase will be spread over three years — 6 cents the first year and 3 cents each of the next two years.
At press time, the bill was expected to be voted on in both legislative chambers on April 6, the last day before the Legislature began its spring recess.
The bill includes two controversial trucking-related provisions that were pushed by the California Trucking Association and drew quick opposition from environmentalists and some public nonprofits.
One provision would give the California Air Resources Board the authority to deny registration of heavy trucks that are not in compliance with the state’s environmental regulations.
A second provision would allow carriers to keep their trucks on the road for up to 13 years after the most recent model year certification for the engine and emissions control system.
Shawn Yadon, CEO of the California Trucking Association, said the bill would force the estimated 30% of trucks not in compliance with CARB emissions-reduction regulations to meet the standards and at the same time would give fleets “predictability and certainty” of a return on their investments.
“When you look at this full package, SB 1 overall in balance has elements we feel very good about,” Yadon told Transport Topics.
However, environmental groups lined up in large numbers at a recent hearing on the bill to express opposition to the measure because they said the 13-year “useful life” amendment would give the trucking industry a significant break from future environmental regulations.
“This is a bitter poison pill from the trucking industry to commuters who are choking on diesel exhaust from trucks,” said Adrian Martinez, a staff attorney for Earthjustice.
Brown said the roads investment increase would cost most drivers less than $10 a month extra at the pump and includes accountability provisions to ensure funds can be spent only on transportation.
“California has a massive backlog of broken infrastructure that has been neglected far too long,” Brown said recently. “Fixing the roads will not get cheaper by waiting — or ignoring the problem. This is a smart plan that will improve the quality of life in California.”
Some Republicans, significantly outnumbered in both chambers, have expressed concerns that the tax increases will have a negative effect on the state’s affordability, particularly for the state’s low- income residents.
Stanley Young, a CARB spokesman, said the bill would result in large reductions in diesel soot and oxides of nitrogen emissions.
“This bill will deliver a powerful enforcement tool that will help clean up these trucks,” Young told Transport Topics. “It would provide truck fleet owners that had invested in complying with the current regulation to amortize that investment over 13 years.”
Supporters said that California has not increased the gasoline tax in 23 years, during which time the state’s population has grown by 8 million. Californians also drive more than 350 billion miles a year — more than any other state — yet road and transit investments have not kept pace with the growth.
