CA AB2535

Requires the California Transportation Commission, Department of Housing and Community Development, and State Air Resources Board to create guidance by January 1, 2025 for projects that expand highway physical footprints in the highest 10% of CalEnviroScreen communities, with guidance incorporated into programming by January 1, 2028.

Mandates applicant agencies complete California Environmental Quality Act and federal National Environmental Policy Act requirements within 6 months of the commission adopting a program of projects as a condition for receiving design, right-of-way, and construction funding.

Establishes a zero-emission freight infrastructure funding target starting at 15% in the next programming cycle beginning January 1, 2025, increasing by 5% each cycle until reaching 50%.

Requires commission to evaluate programs for total economic and noneconomic benefits to California's economy, environment, and public health, with specific assessment of localized impacts in disadvantaged communities.