Legis
Transportation
SB 1087, Chapter 1005, Statutes of 2026 · Wednesday 30 September 2026

Transportation planning: sustainable communities strategies: transportation funding programs

California shifts regional climate-transport planning to an eight-year cycle and ties key transportation funding to approved emissions-reduction strategies.

The law reshapes how metropolitan regions plan housing, land use, and transportation to meet vehicle-emissions targets through 2045. It also steers state planning and corridor-program funds toward projects aligned with those strategies.

What the law does ​

  • Requires metropolitan planning organizations to adopt comprehensive sustainable communities strategies every eight years, with four-year implementation progress reports and interim transportation-plan updates.
  • Requires the State Air Resources Board to set regional automobile and light-truck emissions targets for 2035 and 2045 by December 31, 2028, following technical workshops, consultation, and public input.
  • Requires strategies to identify housing capacity, development patterns, transportation networks, resource and farmland considerations, and measures to meet regional emissions targets where feasible.
  • Establishes review rules, deadlines, technical guidelines, and correction processes for State Air Resources Board determinations on regional strategies.
  • Requires the Department of Transportation’s long-range state plan to use performance measures for capital-project delivery and, beginning with its third update, report district-level actions, measures, technology forecasts, and priorities through 2045.
  • Limits certain Department of Transportation funding and local planning grants in metropolitan regions to activities that align with an accepted sustainable communities strategy or qualifying alternative strategy.
  • Conditions Trade Corridor Enhancement and Solutions for Congested Corridors funding on regional-plan alignment; projects under an alternative strategy must principally implement a listed emissions-reduction measure or overcome an identified barrier.

Who it affects ​

  • Metropolitan planning organizations, regional transportation planning agencies, and local governments participating in regional transportation and land-use planning.
  • The Department of Transportation, the California Transportation Commission, and the State Air Resources Board.
  • Transit, freight, highway, bicycle, pedestrian, housing, and other transportation-project sponsors seeking specified state funding.

Context ​

The law preserves cities’ and counties’ land-use authority; regional strategies do not themselves regulate land use or require local general plans to conform.

Breakdown ​

Sustainable Communities Strategy Updates ​

SB 1087 changes the schedule and process for regional sustainable communities strategies. Regions would prepare these strategies every eight years and issue a progress report after four years, rather than updating the strategy every four years. The State Air Resources Board would set targets for 2035 and 2045, hold technical workshops before setting them, and use a revised process to review regional strategies and alternative plans.

Key takeaways

  • Regional sustainable communities strategies would be prepared every eight years instead of every four years.
  • Each region would submit a progress report four years after adopting its sustainable communities strategy.
  • The State Air Resources Board would provide regional greenhouse-gas reduction targets for 2035 and 2045.
  • The State Air Resources Board would be required to hold technical workshops before providing the regional targets.
  • The bill changes the State Air Resources Board’s process for reviewing sustainable communities strategies and alternative planning strategies.
  • The bill creates additional duties for local agencies, resulting in a state-mandated local program.

Repeal of Strategy Reporting Requirements ​

The bill eliminates separate requirements for the San Diego Association of Governments and the Sacramento Area Council of Governments to report on implementation of their most recently adopted sustainable communities strategies. San Diego will no longer have to develop its implementation tracking report, and Sacramento will no longer have to report on regional implementation.

Key takeaways

  • The bill repeals the San Diego Association of Governments’ requirement to develop an implementation report for its most recently adopted sustainable communities strategy.
  • The bill repeals the Sacramento Area Council of Governments’ requirement to report on regional implementation of its most recently adopted sustainable communities strategy.
  • These agencies will no longer be subject to the specific sustainable communities strategy reporting requirements described in existing law.

Transportation Plan Performance Measures ​

SB 1087 requires the California Transportation Plan to use performance measures in planning for transportation capital projects so project delivery helps meet the plan's goals. Starting with the plan's third update, the Department of Transportation must include relevant performance measures for each of its districts.

Key takeaways

  • The statewide transportation plan must incorporate performance measures into its planning process for transportation capital projects.
  • These measures are intended to help ensure that project delivery supports the goals of the California Transportation Plan.
  • Beginning with the plan's third update, the Department of Transportation must report relevant performance measures for each department district.
  • The change adds project-performance information to a long-range plan that already addresses statewide transportation, greenhouse gas reduction, and air-quality needs.

Transit Planning Funding Limits ​

SB 1087 limits how the department may use certain Public Transportation Account funding for activities within a metropolitan planning organization’s region. The department may fund only activities that align with the region’s applicable sustainable communities strategy or alternative planning strategy.

Key takeaways

  • The bill applies to department activities within the region covered by a metropolitan planning organization.
  • For those activities, the department must limit funding to work consistent with the applicable sustainable communities strategy or alternative planning strategy.
  • The restriction affects certain Public Transportation Account funds used for department planning, transit responsibilities, and regional transportation planning assistance.

Planning Grants and Sustainable Communities ​

SB 1087 requires the state’s local planning grant guide to promote certain planning in areas served by a metropolitan planning organization. The guide must encourage planning that advances the goals of that region’s sustainable communities strategy or alternative planning strategy.

Key takeaways

  • The change applies to local planning grants funded through the Road Maintenance and Rehabilitation Program.
  • For areas within a metropolitan planning organization, the grant guide must encourage planning that supports a sustainable communities strategy or alternative planning strategy.
  • The bill changes the department’s grant guidance rather than creating a new grant program or funding source.

Corridor Program Project Standards ​

SB 1087 changes the project-eligibility rules for the Trade Corridor Enhancement Program and the Solutions for Congested Corridors Program when a metropolitan planning organization uses an alternative planning strategy. Instead of requiring projects to be in a regional transportation plan with a sustainable communities strategy, qualifying projects must meet specified alternative-planning requirements. These include having a main purpose of carrying out a greenhouse-gas reduction strategy or removing a barrier to meeting the region’s applicable emissions-reduction target.

Key takeaways

  • The bill applies to projects in the Trade Corridor Enhancement Program and the Solutions for Congested Corridors Program.
  • The change applies when a metropolitan planning organization has adopted an alternative planning strategy.
  • In those circumstances, a project no longer must be included in a regional transportation plan containing a sustainable communities strategy.
  • A qualifying project must meet specified requirements tied to the alternative planning strategy.
  • The project’s main purpose must be to carry out a particular greenhouse-gas reduction strategy or address a barrier to meeting the applicable greenhouse-gas reduction target.

Congested Corridors Program Funding ​

SB 1087 changes the Solutions for Congested Corridors Program so eligible projects must support carrying out a regional transportation plan, in addition to making required performance improvements. It also updates the rules for nominating projects and requires the commission to fund projects included in an adopted regional transportation plan, subject to the bill’s requirements.

Key takeaways

  • Projects funded through the Solutions for Congested Corridors Program must support implementation of a regional transportation plan.
  • The bill revises the requirements for nominating projects to the program.
  • The commission must allocate program funds to qualifying projects that are included in an adopted regional transportation plan.
  • Projects must still make the specified performance improvements required by the program.