Bill
AB 103
The bill allocates $802 million to adjust air quality, climate, and transportation programs, prioritizing zero-emission vehicles, community air protection, and agricultural diesel
Status & procedural history
- Introduced: January 8, 2025. Declares it takes effect immediately as a Budget Bill.
- Assembly passed (3/20/2025; Ayes 53, Noes 17). Referred to Senate; amended in committee and most recently re‑referred to the Senate Committee on Budget and Fiscal Review (7/02/2025). Committee actions occurred June 24–25, 2025.
Purpose / intent
- To amend, add, and repeal specific items and provisions in the Budget Acts of 2022, 2023, and 2024 — primarily to revise appropriations and program directions tied to air quality, climate, and transportation programs administered by the California Air Resources Board (CARB) and related entities. The bill also expresses legislative intent to adopt statutory changes related to the Budget Act of 2025.
Key provisions & changes (major highlights)
- Revises Item 3900-101-0001 (State Air Resources Board) to authorize total appropriations of $802,000,000, divided into three schedules:
- Schedule 1 — Mobile Source: $150,000,000
- Schedule 2 — Climate Change: $612,000,000
- Schedule 3 — Community Air Protection: $40,000,000
- Schedule/Program-specific allocations and rules (selected):
- Agriculture: Schedule 1 funds to reduce agricultural diesel emissions via grants/rebates for harvest equipment, heavy-duty trucks, pump engines, tractors, etc.; prioritization based on district diesel particulate exposures and NOx/PM2.5 status.
- Zero-emission drayage trucks: $75,000,000 via the Hybrid & Zero Emission Truck and Bus Voucher Incentive Project; eligibility and award levels to be limited by fleet size; set-aside for fleets under 100 vehicles and pilot support for small fleets/owner‑operators.
- Zero-emission transit buses: $70,000,000 (same Voucher Project).
- Equity transportation / Charge Ahead California: $255,000,000 total; at least $125,000,000 to establish Clean Cars 4 All statewide; at least $80,000,000 allocated among five specified air districts (South Coast, San Joaquin, Bay Area, Sacramento, San Diego); $10,000,000 for battery replacement assistance for low-income Californians per Health & Safety Code section 44274.9; phased removal of conventional hybrids from Clean Cars 4 All eligibility by November 2024.
- Fluorinated gases program: $15,000,000 (SB 1013 program).
- Commercial harbor craft emissions: $40,000,000, with prioritization guidance (private ferry operators, public ferries, licensed passenger fishing vessels, research/excursion vessels).
- Ultra‑low‑GWP refrigerants: $20,000,000 through Equitable Building Decarbonization Program — guidelines/standards for administering these funds are exempt from the Administrative Procedure Act.
- Prescribed fire permitting: $2,000,000 for enhanced permitting.
- Zero-emission school buses: $135,000,000 (from Schedule 2) via the Voucher Incentive Project; up to $10,000,000 available for administrative costs funded by Proposition 98 General Funds; encumbrance deadline June 30, 2027; liquidation deadline June 30, 2029.
- Administrative limits and timing:
- Except for the school-bus provision, no more than 5% of the item may be used for administrative costs.
- Except for school buses, funds are available for encumbrance/expenditure until June 30, 2025, and for liquidation until June 30, 2027.
- Amendments to Section 19.56 (Budget Act of 2022):
- Clarifies allocations reflect legislative priorities; designated state entities allocate funds to identified recipients and may determine allocation methods (self-attestation acceptable where appropriate).
- Makes allocations under this section exempt from specified personal services contracting requirements, parts of the Public Contract Code, and Department of General Services approval. Authorizes the Department of Finance to create item numbers if needed.
- (Text truncated in record; amendments generally increase flexibility and procurement exemptions for designated allocations.)
Who is affected
- State agencies: CARB (primary administrator), Department of Finance (item creation), designated state entities named in allocations.
- Local entities and programs: specified air districts, transit agencies, school districts, ferry operators, port/commercial harbor craft operators.
- Target populations: disadvantaged communities, low-income Californians, small businesses, small/owner‑operator fleets, persons with disabilities (adaptive equipment considerations).
- Vendors and manufacturers of zero‑emission vehicles, electric school buses, refrigerant alternatives, and related infrastructure.
Potential impacts
- Accelerates funding and deployment of zero‑emission medium/heavy-duty vehicles, transit buses, school buses, and equity-focused vehicle replacement programs.
- Directs substantial funding toward community air protection and agricultural diesel replacement, prioritizing emission reductions where exposure and attainment concerns are greatest.
- Provides programmatic and procurement flexibility to state entities (exemptions from certain contracting and APA requirements), which may shorten administrative timelines but also reduces some standard oversight mechanisms.
- Establishes specific deadlines for encumbrance and liquidation (notably longer for school bus funds), and includes explicit set‑asides to benefit small fleets, disadvantaged communities, and specified regional programs.
Fiscal note
- Itemizes $802,000,000 in appropriations for the listed purposes. The bill amends prior Budget Acts to allocate or reallocate these amounts; final net fiscal impact depends on enactment and how funds are drawn from previously authorized sources.
Limitations / caveats
- Some sections of the amended Section 19.56 are truncated in the available text; the summary reflects the published excerpts and prominent program allocations in Item 3900‑101‑0001.
Compiled from official sources — confirm details with the bill’s official record.
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