California Governor signs $52B fuel tax and vehicle fee bill for transportation infrastructure; $100 ZEV fee
California Governor Edmund G. Brown Jr. signed into law SB1, the Road Repair and Accountability Act of 2017. The bill will raise $52.4 billion over the next decade through an increase in fuel taxes and vehicle fees—including on zero emission vehicles (ZEVs)—to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety.
The package is funded in the following ways:
$7.3 billion by increasing diesel excise tax 20 cents (currently $0.13) on 1 November 2017.
$3.5 billion by increasing diesel sales tax to 5.75% on 1 November 2017.
$24.4 billion by increasing gasoline excise tax 12 cents (currently $0.30) on 1 November 2017.
$16.3 billion from an annual transportation improvement fee based on a vehicle’s value starting 1 January 2018
$200 million from an annual $100 Zero Emission Vehicle fee starting 1 July 2020.
$706 million in General Fund loan repayments.
Accountability provisions direct the funds to transportation only. The new funding will allow Caltrans to make major repairs to California's transportation infrastructure including 17,000 miles of pavement, 500 bridges and 55,000 culverts over the next ten years. The package will also fund investments in repairing local streets and roads. The package also provides historic levels of public transportation funding—roughly double what was provided by Proposition 1B in 2006.
The following funds will be split equally between state and local investments over a ten-year horizon:
Fix Local Streets and Transportation Infrastructure (50%):
$15 billion in “Fix-It-First” local road repairs, including fixing potholes.
$7.5 billion to improve local public transportation.
$2 billion to support local “self-help” communities that are making their own investments in transportation improvements.
$1 billion to improve infrastructure that promotes walking and bicycling--double the existing funding levels.
$825 million for the State Transportation Improvement Program local contribution.
$250 million in local transportation planning grants.
Fix State Highways and Transportation Infrastructure (50 percent):
$15 billion in “Fix-it-First” highway repairs, including smoother pavement.
$4 billion in bridge and culvert repairs.
$3 billion to improve trade corridors.
$2.5 billion to reduce congestion on major commute corridors.
$1.4 billion in other transportation investments, including $275 million for highway and intercity-transit improvements.