California Passes Landmark Legislation Using Market Transparency and Competition to Drive Down Electric Truck Costs
California Passes Landmark Legislation Using Market Transparency and Competition to Drive Down Electric Truck Costs
Sacramento, CA — Senate Bill (SB) 1213, authored by Senator Eloise Gómez Reyes (D-Colton), has passed its final legislative votes in the California Legislature and will now head to Governor Gavin Newsom’s desk for consideration. The bill establishes new market transparency requirements for zero-emission medium- and heavy-duty vehicles, helping ensure California’s clean transportation investments deliver greater value for fleet operators, taxpayers, and communities burdened by diesel pollution.
Under SB1213, original equipment manufacturers (OEMs) would be required to submit vehicle pricing data, including manufacturers’ suggested retail prices, to maintain eligibility for state incentive programs such as the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).
The legislation has earned support from clean transportation advocates, business leaders and goods-movement stakeholders. In a letter to the Assembly Transportation Committee, Port of Long Beach Chief Executive Officer Dr. Noel Hacegaba highlighted the bill’s goal of ensuring state incentives deliver value for fleets, communities and taxpayers.
“California is investing billions to build a cleaner transportation future, and we have a responsibility to make sure those investments are actually bringing down costs and accelerating the transition to cleaner trucks,” said Senator Reyes. “For communities like the Inland Empire, this is about more than the price of a vehicle. It is about cleaner air, healthier neighborhoods and making sure small businesses and fleet operators can afford to be part of California’s clean transportation future. SB 1213 brings greater transparency and accountability to the market so our public investments can go further for the people and communities they are intended to serve."
The bill responds to a growing disparity in the global zero-emission truck market. Electric truck prices in Europe decreased by 27% in recent years while U.S. prices increased by 32%, according to research by the International Council on Clean Transportation. SB 1213 seeks to address that gap by increasing pricing transparency and competition while strengthening financial tools available to fleets transitioning away from volatile fossil fuel costs.
“By shedding light on commercial vehicle pricing, SB 1213 ensures that California’s public clean transport incentives deliver maximum value to fleet operators, and the market has a path forward to scale,” said Guillermo Ortiz, Senior Clean Vehicles Advocate at the Natural Resources Defense Council (NRDC). “Passing this bill will be a decisive victory for fleets and frontline communities alike. It lowers the financial barrier for fleets transitioning away from volatile diesel costs while accelerating the essential clean air benefits our neighborhoods urgently need.”
Beyond price reporting, SB 1213 directs the California Air Resources Board (CARB) to annually reevaluate voucher caps to accelerate zero-emission truck deployment, particularly for fleets serving disadvantaged communities. The bill also directs state agencies to explore innovative financing mechanisms by 2028—including low-cost loans and residual value guarantees—to provide fleets with greater financial certainty as they invest in clean transportation.
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