Upset the California fuel tax got higher? Here are the road, rail and bike projects it funds

John Holland
·2 min read
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California’s main fuel tax rose by 4 cents per gallon on July 1, unwelcome news to drivers who feel they are overburdened.

But the money goes entirely to making transportation better — maintaining and expanding roads, as well as rail and other alternatives to driving.

The increase was in the excise tax, governed by Senate Bill 1 of 2017. It was at 18 cents from 1994 till the 2017 bill, and has now reached 58 cents to cover inflation over three decades.

The hikes already have raised about $18 billion for projects, said the July 5 edition of Streetsblog.org. The website advocates for rail, bicycle and pedestrian spending and against expanding roads.

Streetsblog.org pointed readers to California’s searchable list of all transportation projects, including federal and other state sources. Some examples:

  • SB1 has covered most of the $1.8 billion cost of expanding the Altamont Corridor Express. It mainly serves commuters to the Bay Area on its route between Stockton and San Jose. The branches will reach into Stanislaus and Sacramento counties by late 2026 and Merced County by 2029.

  • The newly rerouted Highway 132 west of Modesto got $20 million from SB1 toward its $92 million construction cost The tax could help with upcoming phases that result in a total of eight miles of four-lane expressway from Highway 99 to Gates Road.

  • SB1 has helped make some streets easier on people who walk and bicycle. For example, a $2.1 million grant will build sidewalks and bike lanes by October on 12 blocks near two south Modesto schools.

Stanislaus is among the counties where voters have enacted sales tax increases for transportation. This makes them eligible for an extra dose of state funding.

California drivers also pay a federal excise tax of 18.4 cents per gallon and a total of 43 cents per gallon for state environmental programs.

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