TO: AC Transit Board of Directors
FROM: Kathleen Kelly, Interim General Manager/Chief Executive Officer
SUBJECT: Monthly Legislative Report
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Legislative Report and approve legislative positions, if necessary.
Staff Contact:
Claudia Burgos, Interim Executive Director of External Affairs, Marketing & Communications
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
The Monthly Legislative Report helps the District track state, regional and federal legislation to ensure alignment with the District’s Strategic Plan and the specific goal of having strong public and policymaker support. Policy decisions at all levels of government can positively or negatively affect District operations and revenues and, as such, are important to track and influence as needed.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
Federal Update
Earlier this month, the White House nominated former Congressman Marc Molinaro to be Federal Transit Administration (FTA) Administrator. Molinaro, who was elected in 2022, served one term in Congress from New York. In Congress, Molinaro served on the House Committee on Transportation and Infrastructure. Before being elected to Congress in 2022, he served eleven years as County Executive in Dutchess County.
Following his January 28 Senate confirmation, Secretary Duffy took the following actions on his first day as US Department of Transportation (DOT) Secretary:
• Secretary Duffy signed “the “Woke Rescission” Memorandum, directing Secretarial Officers and Heads of Operating Administrations to identify and eliminate all Biden-era programs, policies, activities, rules, and orders that promote climate change activism, Diversity, Equity, and Inclusion (DEI) initiatives, racial equity, gender identity policies, environmental justice, and other partisan objectives.” The DOT memo is included as attachment 5.
• The Secretary signed an order ensuring that all USDOT policies, grants, loans, and actions are based on sound economic principles, positive cost-benefit analyses, and pro-economic growth priorities. This includes prioritizing communities with higher marriage and birth rates than the national average and compliance with federal immigration enforcement. The DOT memo is included as attachment 6.
• The Secretary approved submission of a Notice of Proposed Rulemaking, which has not yet been issued, to rescind the Biden-Harris Administration’s rule requiring state transportation departments to measure and establish declining targets for carbon dioxide emissions on federally supported highways.
State Update
On January 29, 2025, AC Transit's Legislative Affairs and Community Relations staff traveled to the State Capitol to discuss the District’s 2025 state advocacy priorities. During the visit, staff met with the Legislative Directors from the offices of Senators Jesse Arreguin, Tim Grayson, and Aisha Wahab, as well as staff to Assemblymembers Buffy Wicks, Alex Lee, Liz Ortega, and Mia Bonta.
Staff briefed Bay Area legislative staff on the District’s upcoming budget deficit, ridership recovery figures, the essential services provided to their constituents, and ongoing collaboration on the regional transportation revenue measure.
Staff also discussed the two bills the District is seeking to sponsor this legislative session: amendments to Transit District Law and the inclusion of Transit Operator Representation on the Metropolitan Transportation Commission (MTC). Prior to the January 24 deadline to submit bill language to the Office of Legislative Counsel, Assemblymembers Wicks and Lee submitted bill language on behalf of the District; however, they have not agreed to sponsor the bills. Staff is in the process of securing authors to carry the District’s bills this year.
The deadline to introduce legislation is February 21st. At this time, staff is tracking several bills, including Senate Bill 63 introduced by Senators Wiener and Arreguin that includes intent language to place a revenue measure on the ballot to fund Bay Area transit service. Staff anticipates recommending bill positions beginning in March.
On February 6th, the Senate Budget Committee held a hearing on “Transit in California.” This hearing is the start of discussions to provide additional transit funding through the state budget. The goal is to illustrate the importance of transit service in California and underscore that the state needs to do more to maintain transit service. Senator Jesse Arreguin is leading the effort to secure up to $2 billion in additional funding for transit operations and capital.
Regional Revenue Measure
MTC has completed its poll to gauge voter support for a regional revenue measure. As of the writing of this report, polling results were not yet available. Polling results are expected to be presented to the MTC legislation committee on February 14. Staff will provide a verbal summary of the key findings at the Board meeting.
ADVANTAGES/DISADVANTAGES:
Providing monthly updates to the Board ensures the Board is aware of pending legislation and the potential impact it may have on the District. The adoption of favorable legislation by policymakers helps further the District’s goal of having strong public and policymaker support.
ALTERNATIVES ANALYSIS:
No alternatives were considered as this report provides an update of monthly legislative activities.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report No. 24-534a: Adopted 2025 Federal and State Advocacy Programs.
ATTACHMENTS:
1. Federal Update
2. State Update
3. 2025 Federal Advocacy Program
4. 2025 State Advocacy Program
5. EO Addressing Energy Climate Change Diversity and Gender
6. EO Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies Programs and Activities
Prepared by:
Claudia Burgos, Interim Executive Director of External Affairs, Marketing & Communications
In Collaboration with:
Maria Henderson, External Affairs Representative
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer
Aimee L. Steele, General Counsel/Chief Legal Officer