TO: AC Transit Board of Directors
FROM: Salvador Llamas, 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 approval of legislative positions, if necessary.
Staff Contact:
Claudia Burgos, Executive Director of External Affairs and Customer Experience
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
The federal government was in a shutdown at the time this report was submitted. Federal Transit Administration (FTA) operations will continue because the personnel are financed by the Highway Trust Fund or advance appropriations under the Infrastructure Investment & Jobs Act (IIJA). Therefore, none of FTA’s 517 employees are furloughed.
The impact on FTA activities is less clear. FTA has sufficient liquidating cash to support several months of reimbursements for previously approved projects. In addition, activities funded by IIJA advance appropriations will continue during a lapse in annual appropriations. However, it is unlikely that FTA will be able to approve new grants during the shutdown. To the extent that FTA activities involve other agencies, the personnel of those agencies (e.g., the U.S. Environmental Protection Agency, Department of Labor, Department of the Interior) may be furloughed, which could impede, or stop altogether, progress on projects.
District staff was informed that, as of October 1, the Department of Energy has cancelled the federal funding for the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) project. While federal funds are part of the ARCHES program, the state has always planned significant investment, along with investments from private partners, and will keep the ARCHES program going. District staff were aware that federal funding could be rescinded and adjusted funding plans so that near-term bus procurements did not depend on ARCHES funding. State funding for the ARCHES program is expected to be authorized through the legislature and available to the District by late 2026 or in 2027.
State Update
The legislature adjourned on September 13th and Governor Newsom now has until Monday, October 13th at midnight to sign or veto all measures sent to his office. The status of all bills on which the Board adopted a position is provided in Attachment 3 - Matrix of State Legislation. The matrix is current as of 10/01/2025. Notably, the Governor signed AB 396 (Wilson) into law, which expands the penal code to protect all transit employees against battery. AB 394 further permits a judge to issue a temporary restraining order (TRO) prohibiting violent offenders from the entirety of the public transit system.
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. Matrix of State Legislative Positions
4. 2025 Federal Advocacy Program
5. 2025 State Advocacy Program
Prepared by:
Steven C. Jones, External Affairs Representative
Approved/Reviewed by:
Claudia Burgos, Executive Director of External Affairs and Customer Experience