Bill Text: CA SB739 | 2025-2026 | Regular Session | Amended

California Senate Bill 739

Bill Title: Transportation network companies: California Clean Miles Standard and Incentive Program.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Engrossed) 2026-07-02 - Read second time and amended. Re-referred to Com. on APPR. [SB739 Detail]

Download: California-2025-SB739-Amended.html

Amended IN Assembly July 02, 2026

Amended IN Assembly June 25, 2026

Amended IN Assembly June 10, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 739

Introduced by Senator Arreguín
(Coauthors: Assembly Members Jackson and Ahrens)

February 21, 2025

An act to amend Section 5450 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

SB 739, as amended, Arreguín. Transportation network companies: California Clean Miles Standard and Incentive Program.

The Passenger Charter-party Carriers’ Act provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission and includes specific requirements applicable to transportation network companies, which are defined as certain organizations that, using an online-enabled application or platform, connect passengers with drivers using a personal vehicle. The act establishes the California Clean Miles Standard and Incentive Program, which requires, by January 1, 2020, that the State Air Resources Board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis, as provided. The act requires, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals, in accordance with specified requirements, starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company. The act makes a violation of the act, or an order or direction of the commission pursuant to the act, a crime.

This bill would require, by January 1, 2028, the state board to adopt, and the commission to implement, updated annual targets and goals starting in 2029 for the reduction under that baseline for emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company in accordance with specified requirements. The bill would prohibit the commission from finding a transportation network company in violation of the program under specified circumstances.

The bill would prohibit the commission from adopting or enforcing any penalties against transportation network companies for the failure to meet the targets or goals adopted under the program by the state board applicable before the 2029 calendar year. However, the bill would require a transportation network company to meet specified targets for passenger miles traveled using a zero-emission vehicle in the 2027 and 2028 calendars years.

The act requires the state board to delay adoption, and the commission to delay implementation, of the targets and goals adopted pursuant to the program if the state board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The act requires the state board and commission to review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every 2 years.

This bill would instead require the state board to adjust the targets and goals, and the commission to delay implementation of those targets and goals, if the state board or the commission makes specified findings, including that barriers exist to expanding the usage of zero-emission vehicles by transportation network companies at the rates established by the state board. The bill would revise the above-described review requirement to instead require the state board and commission, no less often than every 2 years, to review the targets and goals adopted under the program and the available data necessary to make any of those specified findings.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) While California has made significant progress to advance zero-emission vehicle (ZEV) adoption, significant barriers remain that jeopardize the achievement of its long-term climate targets.

(b) In 2025, the federal government ended the clean vehicle credit previously available under Section 30D of the Internal Revenue Code, removing a substantial consumer incentive that was a cornerstone for enabling vehicle affordability for low- and moderate-income Californians and mitigating ZEV adoption barriers.

(c) The electrification targets established under the Clean Miles Standard adopted by the State Air Resources Board (Chapter 11 (commencing with Section 2490) of Division 3 of Title 13 of the California Code of Regulations) on transportation network companies (TNC) ramp up from 2-percent electric vehicle miles traveled in 2023 to 13 percent by 2025, 50 percent by 2027, and 90 percent by 2030.

(d) The Public Utilities Commission established the Drivers Assistance Program to provide ZEV incentives and thereby ensure minimal negative impacts on low- and moderate-income drivers, as required under Senate Bill 1014 (Chapter 369 of the Statutes of 2018). Despite significant contributions from rideshare passengers on the order of millions of dollars to the Clean Miles Standard ~~Driver~~ Drivers Assistance Fund, no incentives have been issued to date to transition TNC drivers to ZEVs.

SEC. 2.

Section 5450 of the Public Utilities Code is amended to read:

5450.

(a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.

(2) For purposes of this section, “board” means the State Air Resources Board.

(3) This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.

(b) (1) By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. For purposes of this section, emissions per passenger mile traveled means the estimated emissions from all vehicles miles traveled in periods 1, 2, and 3, as those terms are used by the commission, including miles driven with no passenger in the vehicles, divided by the total number of passenger miles resulting from transport by those vehicles in period 3, including facilitation of walking, biking, and other modes of active or zero-emission transportation. The board shall use 2018 as the baseline year.

(2) The board shall adopt, and the commission shall implement, annual targets and goals as follows:

(A) (i) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero-Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order No. B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.

(ii) The commission shall not adopt or enforce any penalties against transportation network companies for the failure to meet any targets or goals adopted pursuant to clause (i).

(B) By January 1, 2028, the board shall adopt, and the commission shall implement, updated annual targets and goals, beginning in 2029, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company. These targets and goals shall do all of the following:

(i) Include annual goals for increasing passenger miles traveled using zero-emission vehicles.

(ii) Be technically and economically feasible based on the most recent information available, including, but not limited to, current market conditions, rates of zero-emission vehicle adoption, and the affordability and availability of zero-emission vehicles and charging infrastructure.

(iii) Be based upon the most recent data reported by the transportation network companies to the commission.

(iv) Be consistent with adopted programs and goals of the state for transitioning to zero-emission vehicles.

(I) Seventeen percent of passenger miles traveled shall be provided by zero-emission vehicles by December 31, 2027.

(II) Nineteen percent of passenger miles traveled shall be provided by zero-emission vehicles by December 31, 2028.

(ii) In bringing, or considering whether to bring, an enforcement action for failure to meet a target set forth in this subparagraph, the commission shall consider any moneys invested by a transportation network company to transition its fleet to zero-emission vehicles in the state within the same year the enforcement action is first considered.

(3) The data required of transportation network companies to determine average emissions of greenhouse gases per passenger mile to be calculated by the board and commission shall include, but is not limited to, all of the following:

(A) The total miles completed by drivers.

(B) The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.

(C) Miles-weighted average networkwide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.

(D) Total passenger miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.

(4) The board shall adjust the targets and goals adopted pursuant to paragraph (2), and the commission shall delay implementation of those targets or goals, including any enforcement of those targets or goals against a transportation network company, if the board or commission finds any of the following:

(A) Barriers exist to expanding the usage of zero-emission vehicles by transportation network companies at the rates established pursuant to paragraph (2).

(B) A target or goal is technically or economically infeasible.

(D) A target or goal is no longer consistent with the criteria described in paragraph (2).

(5) The board and commission shall review the targets and goals adopted pursuant to paragraph (2), and the available data necessary to make any of the findings pursuant to paragraph (4), no less often than every two years, beginning no later than two years after annual targets and goals are adopted pursuant to paragraph (2). This review shall include, but is not limited to, a review of any changes to state zero-emission vehicle goals, data relative to current and future electric transportation adoption rates for the general public and participating drivers, and charging infrastructure utilization rates.

(6) The commission shall not find a transportation network company in violation of this section under either of the following circumstances:

(A) ~~The~~ Beginning January 1, 2029, the transportation network company reports on, and either meets or exceeds, at least one of the two most recent annual targets or goals adopted pursuant to ~~this subdivision.~~ subparagraph (B) of paragraph (2).

(B) More than two years have elapsed between the date that the last review was performed pursuant to paragraph (5) and the date of the alleged violation.

(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:

(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.

(2) Increased proportion of vehicle miles completed by zero-emission vehicles relative to all vehicle miles.

(3) Decreased gram-per-mile greenhouse gas emissions rates.

(4) Increased passenger miles in proportion to overall vehicle miles.

(d) In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:

(1) Ensure minimal negative impact on low-income and moderate-income drivers.

(2) Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.

(3) Support the goals of clean mobility for low- and moderate-income individuals.

(4) Advance the goals of the California Clean Miles Standard and Incentive Program in reviewing utility transportation electrification applications filed pursuant to subdivision (b) of Section 740.12 and encourage collaboration between electric vehicle charging companies, investor-owned utilities, fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms, entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms, and transportation network companies on investments that would support the California Clean Miles Standard and Incentive Program, consistent with subdivision (b) of Section 740.12 and Executive Order No. B-48-18.

(e) By January 1, 2027, the commission shall commence issuing grant payments and incentives to drivers from the Drivers Assistance Fund under the Drivers Assistance Program.