To: BOARD OF SUPERVISORS
From: Executive Office
Meeting Date: July 7, 2026
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Department Contact: |
Xuyen Mallela |
Phone: |
707-463-4441 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Ratification of Letters of Opposition to the Proposed Sustainable Aviation Fuel (SAF) Tax in the Governor’s Budget Proposal
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Recommended Action/Motion:
recommendation
Ratify letters of opposition to the proposed Sustainable Aviation Fuel (SAF) Tax in the Governor’s budget proposal.
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Previous Board/Board Committee Actions:
The Board of Supervisors regularly issues support or opposition letters that align with the 2026 Legislative Platform.
Summary of Request:
These letters are to oppose the proposed Sustainable Aviation Fuel (SAF) tax credit included in the Governor’s budget proposal. As drafted, this proposal would divert critical transportation dollars to a new SAF subsidy with uncertain additional benefits, no clear limitation to in-state production, and no adequate showing that the credit is necessary given recent changes in federal credits and market conditions.
This proposal would divert diesel excise tax revenues away from the roads, bridges, freight corridors, and local streets they are intended to support. The proposal is estimated to reduce diesel excise tax revenues by as much as $165 million per year initially, growing to $300 million annually over time, with potentially even larger impacts depending on credit claims. That means less funding for local streets, roads, and bridges. In our county alone this could lead to a reduction of between $162,000 to $583,000 annually, funds which are critically needed to address our existing road and bridge maintenance backlog.
Alternative Action/Motion:
Return to staff for alternative handling
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: N/A |
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current f/y cost: N/A |
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budget clarification: N/A |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: N/A
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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