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CaliforniaSB 3592025-2026 Regular SessionSenateWALLET

Diesel Fuel Tax Law: exempt bus operation.

Sponsored By: Roger Niello (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Bus operators: fuel tax break, 1-cent fee

Beginning the first day of the first calendar quarter that starts more than 90 days after this law takes effect, many bus operations are exempt from state diesel and use fuel taxes. Local transit run by a transit district, transit authority, city, or county qualifies, including service through a wholly owned nonprofit. Passenger stage corporations qualify only on urban or suburban routes or between nearby cities, and only on lines up to 50 miles one way. Single-city common carriers qualify if at least 98% of their route miles are within that city and they are not under passenger stage rules, and school districts, community colleges, and county superintendents qualify when they run school buses. When these exempt buses use state highways or freeways, they pay 1 cent per gallon of exempt fuel; that payment is treated as a tax.

Charter bus operators excluded from break

Charter-party passenger carriers do not qualify for the bus fuel tax exemption. They must keep paying any fuel taxes or other required payments under state law.

Private bus contractors need newer contracts

Private companies can get the bus fuel tax exemption only when using fuel to provide services under contracts with public agencies. For general public transit contracts, the contract must be signed after January 1, 1979. For pupil transportation contracts with a school or community college district or a county superintendent, the contract must be signed after September 30, 1984. The exemption applies only to fuel used while doing the work under those contracts.

Sponsors & Cosponsors

Sponsor

  • Roger Niello

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 194 • No: 0

Senate vote • 9/10/2025

Item 29 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/8/2025

Item 137 — Assembly AFLOOR

Yes: 78 • No: 0

legislature vote • 8/29/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/14/2025

Vote in CX19

Yes: 7 • No: 0

Senate vote • 5/29/2025

Item 313 — Senate SFLOOR

Yes: 38 • No: 0

legislature vote • 5/23/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote • 5/19/2025

Vote in CS61

Yes: 5 • No: 0

legislature vote • 5/14/2025

Vote in CS83

Yes: 5 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 217, Statutes of 2025.

    10/1/2025Senate

  2. Approved by the Governor.

    10/1/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/17/2025legislature

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2818.) Ordered to engrossing and enrolling.

    9/10/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/8/2025Senate

  6. Read third time. Passed. (Ayes 78. Noes 0. Page 2991.) Ordered to the Senate.

    9/8/2025House

  7. Read second time. Ordered to third reading.

    9/2/2025House

  8. From committee: Do pass. (Ayes 15. Noes 0.) (August 29).

    8/29/2025House

  9. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House

  10. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14). Re-referred to Com. on APPR.

    7/15/2025House

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

    6/26/2025House

  12. June 23 set for first hearing. Placed on REV. & TAX. suspense file.

    6/24/2025House

  13. Referred to Com. on REV. & TAX.

    6/5/2025House

  14. In Assembly. Read first time. Held at Desk.

    5/29/2025House

  15. Read third time. Passed. (Ayes 38. Noes 0. Page 1325.) Ordered to the Assembly.

    5/29/2025Senate

  16. Ordered to special consent calendar.

    5/27/2025Senate

  17. Read second time. Ordered to third reading.

    5/23/2025Senate

  18. From committee: Do pass. (Ayes 6. Noes 0. Page 1197.) (May 23).

    5/23/2025Senate

  19. Set for hearing May 23.

    5/20/2025Senate

  20. May 19 hearing: Placed on APPR. suspense file.

    5/19/2025Senate

  21. Set for hearing May 19.

    5/15/2025Senate

  22. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 1082.) (May 14). Re-referred to Com. on APPR.

    5/14/2025Senate

  23. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

    4/8/2025Senate

  24. Set for hearing May 14.

    3/18/2025Senate

  25. Referred to Com. on REV. & TAX.

    2/26/2025Senate

Bill Text

  • Chaptered

    10/1/2025

    HTML

  • Enrolled

    9/12/2025

    HTML

  • Amended Assembly

    6/26/2025

    HTML

  • Amended Senate

    4/8/2025

    HTML

  • Introduced

    2/13/2025

    HTML

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