Legis
Transportation
SB 741, Chapter 247, Statutes of 2026 · Friday 18 September 2026

Low Carbon Transit Operations Program

SB 741 streamlines Low Carbon Transit Operations Program funding for transit service, fare subsidies, and rider-payment integration.

The law directs Greenhouse Gas Reduction Fund money toward maintaining and expanding public transit, with priority benefits for disadvantaged communities.

What the law does

  • Limits eligible spending to bus, rail, and ferry service; transit fare subsidies; and network and fare-integration technology.
  • Treats eligible spending as reducing greenhouse gas emissions.
  • Requires transit agencies to submit proposed funded services or programs to the Department of Transportation before receiving annual allocations.
  • Requires the Department of Transportation to notify the Controller of eligible agencies, and requires post-spending documentation from recipients.
  • Allows agencies to carry funding forward for up to four fiscal years, transfer shares within their region, and seek approval to redirect surplus or deprioritized funds.
  • Expands required transit-finance audits to verify receipt and proper use of program money.

Who it affects

  • Transit agencies receiving Low Carbon Transit Operations Program funding.
  • Riders of bus, rail, and ferry services, including students receiving discounted or free passes.
  • Disadvantaged and low-income communities served or connected by funded transit.