Board Approves CARB Bus Exemptions as $400M Electrification Gap Looms

The SFMTA board voted unanimously to seek five years of exemptions from California's zero-emission bus mandate, acknowledging that even one of North America's greenest transit fleets can't close a $400 million funding gap fast enough to comply. Elsewhere, a plan to connect all 249 San Francisco schools to the bike network drew enthusiastic support from advocates — and pointed questions from board members about whether the city's most vulnerable students would be left waiting.

• Board approves CARB zero-emission bus exemptions through 2031, citing $400M compliance gap and only $79M of $470M in federal grants awarded since 2019
• Plan to connect all 249 schools to bike network launched, but only 15% currently connected and advocates warn a 10-year timeline is far too slow
• Rail ridership up 13% year-over-year as Transit Division saves $20.5M with no service cuts
• Federal surface transportation funding expires this month, putting roughly $180M in annual SFMTA funding at risk
• Board honors departing Director Mike Chen as he transitions to the Planning Commission

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$400M Gap Forces Green Transit Leader to Seek State Waiver

The basics: California's Innovative Clean Transit regulation requires transit agencies to purchase 100% zero-emission buses starting in 2029 and achieve fully zero-emission fleets by 2040. The SFMTA board voted 7-0 to authorize staff to seek annual financial hardship exemptions from the California Air Resources Board for 2027 through 2031.

Why it matters: SFMTA already operates one of the greenest transit fleets in North America, with more than 85 years of trolley bus service and the most zero-emission revenue miles of any U.S. transit agency. But full compliance would add roughly $400 million in costs — $223 million in vehicle purchases and $229 million in facility electrification — over five years.

Where things stand: Pavan Khatri, SFMTA Program Delivery and Support staff, laid out the math: "Since 2019, we've applied for approximately $470 million in federal funding for fleet electrification and facilities improvements. Of that amount, only $79 million has been awarded." The problem isn't just buses — it's buildings. Potrero Yard, the foundational facility that must be completed before other maintenance yards can be electrified, remains the bottleneck. The agency will continue procuring 18 pilot battery electric buses and operating hybrid buses on renewable diesel in the interim.

Chair Janet Tarlov underscored that the core barrier is infrastructure, not ideology: "It's more on the facilities side, to the tune of we've requested $433.5 million in facility funds from various funding programs and we've only been awarded $40 million."

The other side: Board Member Steve Heminger pushed staff to explore expanding the trolley bus network — powered by clean Hetch Hetchy hydroelectric energy — as an alternative compliance pathway. Director Julie Kirschbaum responded that Potrero Yard's completion, with its approximately 45% capacity expansion, will enable the agency to rethink trolley expansion: "As we finish Potrero, which will be a really a centralized trolley hub, that will then allow us to rethink trolley expansion."

Two public commenters urged the board not to lose sight of electrification goals. Alita Dupree cautioned that delaying electric bus purchases will increase costs due to inflation and that hybrid buses carry higher operating costs. Herbert Weiner said financial hardship should not stand in the way of acquiring electric vehicles, citing environmental benefits and protection from fuel cost volatility.

Decisions: The motion passed 7-0 (For: Tarlov, Heminger, Henderson, Hinze, Cajina, Felder, Chen; Against: none; Absent: none). SFMTA will submit annual exemption applications to CARB while continuing to pursue federal electrification grants.

What's next: The exemption requests will be submitted annually. Staff said the agency will continue to apply for federal and state grants and will revisit trolley expansion possibilities once Potrero Yard is complete.

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Schools Plan Sparks Equity Debate: Who Gets Safe Routes First?

Why it matters: Only 37 of San Francisco's 249 schools — just 15% — currently connect directly to the city's all-ages biking and rolling network. At the current pace of 10 walk audits per year with a three-year implementation timeline, advocates warned it could take 16 to 20 years to assess safety needs at every school.

Where things stand: Staff from SFMTA's newly created Schools Coordination Program presented a three-part approach: centralized coordination with school communities (managed by Jenny DeLumo, Schools Coordination Manager, and Krista Highfield), identification of optimal routes through walk audits and school street events, and construction of "School Connector streets" using separated bike lanes, speed humps, and placemaking. An additional 23% of schools would connect through the planned North Star Network buildout. Staff initially proposed focusing first on schools within one block of the existing or planned network.

That prioritization drew sharp concern. Board Member Alfonso Felder warned that the approach could leave the most vulnerable students behind: "In essence, what we're doing is we're prioritizing the schools that are already pretty close over the schools that actually are in the most significant and dramatic need." More than 70 schools sit far from any existing or planned bike infrastructure.

Vice Chair Stephanie Cajina echoed the equity concern, emphasizing that San Francisco's school assignment system means students often travel across town: "Our school system is such where a student could travel across town to get to school. They are likely a multimodal type of student." She urged staff to weight equity priority neighborhoods more heavily.

Chair Tarlov framed the stakes plainly: "I really can't think of another priority that's more important than students getting to and from school."

Four advocacy organizations testified in support of the program's intent but demanded concrete commitments. Sam Greenberg, Walk San Francisco, urged doubling walk audits to 20 per year and shortening the delivery timeline to 18 months per school. Clara Mobile, San Francisco Bicycle Coalition, warned the program risked becoming "a recipe for inaction" without dedicated funding or time-bound benchmarks, and urged using speed camera revenues to fund the work. Robin Pam, Streets for All San Francisco, called the 10-year timeline too slow and urged committing funding to connect an initial cohort of schools by 2028. Dylan Fabris, San Francisco Transit Riders, noted that 50% of high school students and 27% of all SFUSD students rely on Muni, and urged greater focus on transit infrastructure around schools.

Herbert Weiner offered a counterpoint, cautioning that spending on school safety projects could drain limited funds from public transportation, particularly given the agency's claimed financial hardship.

What's next: Staff committed to incorporating board and public feedback — particularly on equity-based prioritization — before returning with a finalized approach in early 2027. No vote was required; this was an informational presentation.

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Rail Ridership Surges as Transit Division Banks $20.5M in Savings

Why it matters: Muni's rail system is showing its strongest growth in years, and the Transit Division found significant budget savings without touching service — a rare combination that validates recent infrastructure investments while raising questions about whether the agency can sustain momentum amid persistent maintenance vacancies.

Where things stand: Brent Jones, Director of Transit, reported that Muni ridership in 2026 is running 1% to 6% above 2025 levels, with weekday boardings up 1.2% and rail boardings up 13% in July 2026 compared to July 2025. Subway moderate delays remain down 76% from the Fix It Week strategy. "Today the Transit Division has saved $20.5 million in savings with no impacts to our service delivery," Jones said, crediting vacancy reductions, position deletions, and non-labor spending cuts.

Fall 2026 service changes addressed crowding on the N Judah and 1 California (frequency increased to 9 minutes), deployed 60-foot vehicles on the 5R Fulton Rapid, and created a single-seat ride from Visitacion Valley to Francisco Middle School.

On fleet, the 30-foot bus fleet has reached 18 vehicles in daily service, with full hilltop service restoration expected by late September or early October. The midlife overhaul program's Phase 1 is complete (315 hybrid vehicles), Phase 2 is underway (221 vehicles by Q4 2028), and 60-foot trolley overhauls — a first for the agency — will begin in April 2027.

Of 94 new buses being procured, 20 have been delivered. Jones highlighted the upgrades: "All 94 of these vehicles will have a fully enclosed operator barrier, which is huge. It's huge for our operators." The new buses also feature plug-style exit doors, USB chargers, additional stroller parking, and pilot digital side mirrors on 10 vehicles.

Jones also detailed a training modernization initiative with consultant WSP, including digitization of materials through SharePoint and Intellix, biannual refresher courses, and new professional development in public speaking, business writing, and leadership.

Vice Chair Cajina pressed on passenger safety, urging the agency to develop discreet, easy-to-use incident reporting tools for riders: "In those moments where a rider is in a very uncomfortable situation, they have to look for discreet ways to alert someone that something's going on." She cited BART's Watch app as a model. Jones acknowledged the need and said the agency is exploring QR-code-based reporting.

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Federal Transit Funding Faces September Expiration

The basics: The Infrastructure Investment and Jobs Act, which provides approximately $643 billion nationally and roughly $180 million annually to SFMTA, expires at the end of September 2026. The House Transportation Committee has passed its reauthorization proposal, but the Senate has not released one; an extension of the current law is expected.

Monique Webster, Manager of State and Federal Government Affairs, briefed the board on the state and federal legislative landscape. At the state level, the California Transit Association led a coalition that preserved greenhouse gas reduction funding. Key advocacy partners include CACTI, APTA, and NACTO.

Board Member Dominica Henderson asked about public engagement pathways; Webster pointed to advocacy organization calls to action as the primary channel for residents to participate.

What's next: The 2027 legislative program will go to the Citizens Advisory Council before coming to the board in November.

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Minor Items

• Consent calendar approved 7-0, covering routine parking and traffic modifications (Item 10.1). Item 10.2 was continued to a future meeting.
• Director's Report: Director Julie Kirschbaum reported SFMTA has produced a priority map for public-private EV charger placement, the Clipper 2.0 rollout in July transferred all Lifeline Pass users to Clipper and automatically enrolled them in Clipper Start for a 50% regional transit discount, and the agency is phasing out the Muni app for non-cable-car purchases. On the state budget, Kirschbaum reported "mixed results" — greenhouse gas reduction funds appear restored, but LCTOP operational funding is affected.
• Board honored departing Director Mike Chen, who served nearly two years on the SFMTA board and four years on the Citizens Advisory Council. Chen has been appointed to the Planning Commission. Board Member Mike Chen expressed confidence in the board and pride in the agency's work. The board voted 7-0 to enter closed session and subsequently voted 7-0 not to disclose those discussions.
• General public comment: Four speakers addressed the board. Griffin Lee, ConnectedSF, urged transparent disclosure of funding sources for new services. A public commenter who identified as a transit engineer flagged that N-Judah trains did not stop with doors aligned to ADA boarding signs at platforms.
• Next regular board meeting set for Oct. 6; the Sept. 15 meeting has been canceled.