SB 922: Signed Into Law

Senate Bill (SB) 922, Effective January 1, 2027

On August 27, 2026, Governor Newsom signed SB 922, providing important new clarity regarding the ability of California agencies to recover street maintenance and repair costs associated with the provision of public services, including solid waste collection.

What SB 922 Does

Provides clarification that a fee imposed to recover the cost of street maintenance and repair is not prohibited by Vehicle Code Section 9400.8. This clarification is particularly significant for solid waste collection. Collection vehicles make frequent trips throughout every public street in a community and can contribute disproportionately to pavement wear compared with ordinary passenger vehicles.

Two questions for your consideration:

1. Does your agency currently collect a solid waste fee, franchise fee, or other charge that includes funding for pavement maintenance or street repair?
   Agencies with existing fees should review their current fee methodology and supporting documentation in light of SB 922 to determine whether the existing methodology remains appropriate.
   
   
2. Could your agency establish or modify a fee to recover solid waste collection’s share of street maintenance and repair costs?
   If you do not presently recover these costs, SB 922 provides an opportunity to evaluate whether an appropriately supported fee or charge could provide an additional source of funding for pavement maintenance and repair.

Key: In either case, a defensible methodology should be established.

R3 is available to review existing fee programs or conduct an initial assessment of the potential applicability of SB 922 at no cost to our existing clients.

R3’s Experience and Service Offerings:

Our team has completed 75+ solid waste fee studies for California local agencies, providing assistance with:

• Reviewing existing fee studies to determine the implications of SB 922 and whether changes or updates are appropriate.
• Evaluating existing solid waste and franchise fee structures for consistency with the new law and other applicable requirements.
• Quantifying pavement impacts associated with solid waste collection vehicles.
• Allocating roadway maintenance and repair costs attributable to solid waste collection using defensible engineering, operational, and financial methodologies.
• Developing new or updated fee methodologies and supporting documentation.
• Evaluating implementation alternatives, including charges imposed through franchise agreements, solid waste rates, or other appropriate mechanisms.
• Coordinating with agency legal counsel regarding Proposition 26, Proposition 218, franchise authority, and other legal requirements applicable to the particular fee structure.
• Supporting implementation, including staff reports, hauler negotiations, rate impacts, and presentations to governing bodies.

An Opportunity to Revisit Solid Waste-Related Road Funding

SB 922 resolves an important area of uncertainty created by Rogers v. City of Redlands, and provides California agencies an opportunity to take a fresh look at the relationship between solid waste collection and the cost of maintaining local streets. 

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We look forward to serving as your partner as we navigate this latest evolution in solid waste-related fees.