SACRAMENTO, Calif. – As Chair of the Senate Budget Subcommittee that oversees California’s tax administering agencies, Senator Melissa Hurtado (D-Bakersfield) today pushed for a fuel tax credit budget proposal that will boost California’s economy and help maintain skilled and trained jobs in the energy sector.

“The California Air Resources Board has bent over backwards to make it as difficult as possible for California oil suppliers to provide the energy we need to power our economy, create jobs and reduce our dependance on out of state oil,” Senator Hurtado said. “Last year I led an effort to move this proposal forward, which will help to prevent the closure of refineries. In the coming months, I will work closely on a bipartisan basis with my colleagues to ensure this proposal becomes law when the budget is signed this summer.”

In September 2025, Senator Hurtado led a group of lawmakers to urge the Governor and legislative leaders to adopt a sustainable aviation fuel (SAF) tax credit. In response, the Governor included the proposal in this year’s budget. The proposal would create a new diesel excise tax credit for producers of SAF, with the goal of encouraging airlines to use more SAF instead of petroleum-based jet fuel. Sustainable aviation fuel is fuel that is made with non-petroleum-based plant or animal products.

The budget proposal was heard today in Senate Budget Subcommittee Number 4, which is chaired by Senator Hurtado. Today’s hearing focused broadly on the budgets and programs of California’s entities that administer and oversee state taxation. Three California state entities will appear before the Senate committee: The Board of Equalization, the Department of Tax and Fee Administration and the Franchise Tax Board.

Senator Melissa Hurtado is Chair of Senate Budget Subcommittee #4 on State Administration and General Government and currently represents the 16th Senate District in the California Legislature, which includes portions of Fresno, Tulare, Kings and Kern Counties.

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