(June 24, 2008) Strong opposition from the California Chamber of Commerce, local chambers and the California business community has helped to stop a CalChamber-opposed “job killer” bill that would have increased transportation costs by creating a new fuel tax or increased the vehicle registration fee

SB 445 (Torlakson; D-Antioch) would have assessed an unfair tax on businesses and consumers by authorizing specified regional transportation agencies to impose a tax on either motor vehicles or vehicle fuel.

The bill was scheduled to be heard for the second time in the Assembly Transportation Committee; however, the hearing was cancelled due to the heavy opposition to the bill.

California’s energy prices are already among the highest in the nation. SB 445 proposed a tax of up to an additional 10 cents per gallon. This proposed tax plus the rising energy prices due to existing environmental initiatives would have made it more and more difficult for California’s small businesses to remain in the state.

The state Air Resources Board (ARB) is already working on the scoping plan for AB 32, the landmark emissions reduction legislation passed in 2006. This plan will be the guidebook for putting AB 32 into motion and developing the regulations.

Because AB 32 gives the ARB the ultimate authority to regulate the state’s greenhouse gas emissions, it is important that local and regional entities refrain from setting up duplicative requirements. SB 445 disregarded the multiple levels of work being done at the ARB to reduce the state’s greenhouse gas emissions.

Instead of working on a comprehensive, state approach to combating climate change, this bill would have set up a separate tax to fund transit programs within specified regions.

In addition, SB 445 proposed a special tax for a specific purpose and thus should have been subject to a two-thirds vote for approval.

Staff Contact: Amisha Patel

Additional Materials

Climate Change

Transportation