As Diesel Prices Soar, California Bill aims to Make Electric Trucks More Affordable
As Diesel Prices Soar, California Bill aims to Make Electric Trucks More Affordable
Sacramento, CA — As California diesel prices exceed $7.00 per gallon, Senate Bill (SB) 1213 by Senator Eloise Gómez Reyes has passed a key Senate policy committee with unanimous support. The measure aims to make zero-emission medium- and heavy-duty vehicles more affordable for California’s fleet operators.
The bill addresses a growing disparity in the global marketplace: while electric truck prices in Europe have decreased by 27% in recent years, U.S. prices have climbed by 32%, according to research by the International Council on Clean Transportation. SB1213 aims to bridge this gap by fostering a more transparent, competitive marketplace and providing enhanced financial support to fleets transitioning away from volatile fossil fuel costs.
“In communities like the Inland Empire, where goods movement shapes our air quality and quality of life, we cannot afford to fall behind in the fight for clean air,” said Senator Eloise Gómez Reyes. “SB 1213 is designed to make zero-emission trucks more attainable, while prioritizing the health of the communities most impacted by diesel pollution and ensuring cleaner, more responsible industry practices.”
“Our goal is to make the transition to clean vehicles a smart business move, not a financial burden,” said Guillermo Ortiz, senior clean vehicles advocate at NRDC (Natural Resources Defense Council).” By bringing transparency to the marketplace and enhancing our voucher programs, SB1213 will drive down costs, protect our small businesses from fuel price volatility, and ensure California remains a leader in both environmental and economic innovation.”
A core pillar of SB1213 is its focus on fostering a competitive marketplace through a price transparency initiative. To ensure that state incentive programs–like the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)--are delivering maximum value to taxpayers and fleets, the bill requires participating manufacturers to provide quarterly pricing data, including MSRP and average transaction markups.
Recognizing that the “sticker” price is only one hurdle, SB1213 expands the reach of California’s voucher programs to cover 90% of the total cost of purchase, including taxes and delivery fees. This change will lower the upfront capital required for small businesses to modernize their fleets. California’s HVIP program has allocated $1.7 billion to date.
Additionally, the bill mandates an annual evaluation of voucher caps, with a priority focus on trucks serving disadvantaged communities. This ensures that those most impacted by diesel pollution are the first to benefit from the cost savings of electrification.
To ensure long-term market stability, SB1213 directs the state to explore alternative financing models by 2028. This includes low-cost loans and residual value guarantees–tools specifically designed to scale the market, encourage new manufacturing entrants, and provide the financial confidence to fleets to invest in a zero-emission future.
About SB1213
SB1213 conditions the receipt of state funding on pricing transparency from original equipment manufacturers (OEMs). It aims to enhance the HVIP program and explore innovative financing to scale the deployment of zero-emission trucks while prioritizing public health in the state’s most vulnerable regions.
SB 1213 passed the Senate Committee on Environmental Quality with unanimous support on April 15 and will be heard in the Senate Transportation Committee in the coming days.