SB-1 Set to Kick In, Californians to See 12-Cents Per Gallon Price Increase at the Pump

On November 1, Californian’s will see an increase of 12-cents per gallon at the pumps after the Governor signed Senate Bill 1 in May.

Also set to increase on November 1 are vehicle registration fees which will see an increase ranging from $25 to $175 depending on value of their vehicles. In total, the bill raises $5 billion per year aimed to fix California roads.

SB 1, the Road Repair and Accountability Act of 2017, co-authored by Senator Jim Beall (D-San Jose) and Assemblymember Jim L. Frazier Jr. (D-Discovery Bay), was backed by a broad coalition of supporters and invests $52.4 billion over the next decade to fix roads, freeways and bridges in communities across California and put more dollars toward transit and safety.

On Monday, AAA reported that the national gas price average was $2.47 which is one cent more than a week ago. Meanwhile, California, on average, was paying $3.04 per gallon.

The following funds will be split equally between state and local investments over a ten-year horizon:

Fix Local Streets and Transportation Infrastructure (50 percent):

– $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.

Ensure Taxpayer Dollars Are Spent Properly with Strong Accountability Measures:

– Constitutional amendment, ACA 5 for voter approval on the June 2018 ballot, to prohibit spending the funds on anything but transportation
– Inspector General to ensure Caltrans and any entities receiving state transportation funds spend taxpayer dollars efficiently, effectively and in compliance with state and federal requirements
– Provision that empowers the California Transportation Commission to hold state and local government accountable for making the transportation improvements they commit to delivering
– Authorization for the California Transportation Commission to review and allocate Caltrans funding and staffing for highway maintenance to ensure those levels are reasonable and responsible
– Authorization for Caltrans to complete earlier mitigation of environmental impacts from construction, a policy that will reduce costs and delays while protecting natural resources.

Guided by the principles set forth by President Ronald Reagan when he signed bipartisan legislation to increase the federal gas tax in 1982, today’s transportation investment package is funded – over a ten-year horizon – by everyone who uses our roads and highways, in the following ways:

– $7.3 billion by increasing diesel excise tax 20 cents on November 1, 2017
– $3.5 billion by increasing diesel sales tax to 5.75 percent on November 1, 2017
– $24.4 billion by increasing gasoline excise tax 12 cents on November 1, 2017
– $16.3 billion from an annual transportation improvement fee based on a vehicle’s value starting January 1, 2018
– $200 million from an annual $100 Zero Emission Vehicle fee starting July 1, 2020
– $706 million in General Fund loan repayments.

The Governor has also signed the following bills:

– SB 131 by the Committee on Budget and Fiscal Review – State public employment: memorandum of understanding: approval
– SB 132 by the Committee on Budget and Fiscal Review – Budget Act of 2016
– SB 496 by Senator Anthony Cannella (R-Ceres) – Indemnity: design professionals

For full text of the bills, visit: http://leginfo.legislature.ca.gov