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