SACRAMENTO, Calif. — California Governor Gavin Newsom has signed legislation designed to bring greater price transparency and accountability to California’s growing zero-emission medium- and heavy-duty vehicle market.
According to a press release from Senator Eloise Gómez Reyes (D-Colton) California has invested significantly in incentives to help businesses and fleet operators transition to cleaner trucks. SB 1213 will provide the state with better information about vehicle pricing to help ensure those public investments are effectively reducing costs and supporting the deployment of zero-emission trucks.
“California is making significant investments in our clean transportation future, and taxpayers and fleet operators deserve to know those investments are delivering real value,” Reyes said. “SB 1213 brings greater transparency and accountability to the clean truck market so we can better understand what these vehicles actually cost and help drive those costs down over time. For communities like the Inland Empire, where families have carried the health impacts of goods movement for generations, making cleaner trucks more affordable means cleaner air and healthier neighborhoods. I am grateful to Governor Newsom for signing SB 1213 and helping ensure California’s transition to clean transportation works for our businesses, our taxpayers, and our communities.”
Legislation Details
Under SB 1213, original equipment manufacturers participating in state incentive programs will be required to submit vehicle pricing information, including manufacturer suggested retail prices. The new requirements are intended to give California greater visibility into the cost of zero-emission trucks and how state incentives affect prices paid by fleet operators.
The legislation comes as the cost of zero-emission trucks remains a significant barrier for fleets looking to transition away from diesel. Research cited by supporters of the legislation found that electric truck prices in Europe declined by 27 percent in recent years while U.S. prices increased by 32 percent, underscoring the need for greater transparency in the domestic market.
SB 1213 will become law on Jan. 1, 2027.
Natural Resources Defense Council (NRDC)
“Scale requires capital, and capital requires clarity,” said Guillermo Ortiz, senior clean vehicles advocate at NRDC. “By establishing robust market transparency, SB 1213 will help maximize state incentives and unlock the private investment needed to power a thriving clean truck market—giving fleet operators a reliable path away from volatile diesel costs while delivering a decisive win for community health and our climate goals.”
California Air Resources Board (CARB)
SB 1213 also directs CARB to annually reevaluate voucher caps for zero-emission trucks, with particular attention to fleets serving disadvantaged communities. The legislation further directs state agencies to explore additional financing tools by 2028, including low-cost loans and residual-value guarantees, to help reduce financial barriers to zero-emission truck adoption.
“Governor Newsom’s signature on this bill is a win for everyone in California- delivering cleaner air, affordable goods, a fairer market, and lower costs for drivers,” said Craig Segall, former CARB official. “This is a victory for our state and should serve as a national model to get innovative clean shipping moving across the country.”
Key Features
The new law establishes key market transparency requirements for zero-emission medium- and heavy-duty vehicles, helping ensure state clean transportation incentives directly lower costs for fleet operators at a time when US diesel prices have soared above $6 for the first time and over $8 a gallon in California. The bill also helped secure $135 million in critical funding for California’s zero-emission truck voucher program by creating safeguards for the responsible and effective use of state funds.
SB 1213 requires manufacturers to provide information on the price of vehicles as a condition of receiving state subsidies through California’s Clean Truck and Bus Voucher Incentive Project (HVIP) and other state incentive programs. This will bring long-overdue transparency to California’s clean truck market and address pricing disparity which sees U.S. trucking paying more for electric trucks: The bill follows evidence which shows that electric truck prices remain high in the U.S. and have increased, despite falling prices in Europe.
Long Term Look
To ensure long-term market stability, SB 1213 also 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.
This bill also provides a template for other states with constrained budgets to ensure their truck incentive programs are translating to affordable trucks for fleets. Already, seven states including California have released guidelines for electric truck price data reporting in order to improve the effectiveness of state incentive programs.
GreenLatinos Sustainable Communities
“We applaud Governor Newsom for signing this crucial legislation,” said Juan Roberto Madrid, GreenLatinos program manager. “Latino truck drivers have been crushed by surging diesel costs, and by centering market competition and pricing transparency, SB 1213 gives Latino truckers, small business owners, and fleets the leg up they need to transition to clean, affordable zero-emission and hybrid trucks.”
Sierra Club California
“Electric trucks are the future of American trucking, and Governor Newsom signing SB 1213 ensures California leads that transition,” said Jakob Evans, senior policy strategist, Sierra. “By bringing long-overdue transparency and competition to the market, this bill helps lower costs so that businesses, workers, and communities overburdened by diesel pollution can finally reap the public health and environmental benefits of cleaner transportation.”
U.S. Transportation at the World Resources Institute (WRI)
“Price transparency is crucial to making electric trucks and buses more affordable,” said Sue Gander, director of U.S. transportation, WRI. “With this new law, California has demonstrated its leadership in price transparency and set out a model for other states to follow. From freight trucks carrying cargo to school buses transporting students, heavy-duty vehicles are among the most polluting vehicles on our roads. But the upfront cost to purchase clean electric options remains too high for many buyers, leaving communities exposed to dangerous air pollution. Thanks to leaders in California—including Senator Reyes and Governor Newsom—the state now has an important new tool to lower the cost of electrification and bring clean air to more communities.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
