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, introduced by Senator Gómez Reyes, received unanimous support throughout the legislative process, passing each committee and both the Senate and Assembly floor without a single no vote before reaching Governor Newsom’s desk. The bill received the backing of the Port of Long Beach and business groups.
Clean freight advocates hailed the Governor’s approval as an important win for affordability and California’s trucking industry. By bringing greater transparency to the zero-emission truck market, the law will help ensure public incentive dollars translate into lower vehicle costs for fleets, while supporting California’s transition to cleaner freight and delivering benefits to communities disproportionately affected by harmful air pollution.
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.
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.
QUOTES
Craig Segall, former CARB official: “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. This is a victory for our state and should serve as a national model to get innovative clean shipping moving across the country.”
Guillermo Ortiz, senior clean vehicles advocate at NRDC (Natural Resources Defense Council: “Scale requires capital, and capital requires clarity. 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.”
Juan Roberto Madrid, GreenLatinos Sustainable Communities Program Manager said:
“We applaud Governor Newsom for signing this crucial legislation. 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.”
Jakob Evans, Senior Policy Strategist, Sierra Club California: “Electric trucks are the future of American trucking, and Governor Newsom signing SB 1213 ensures California leads that transition. 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.”
Abigail Medina, Director, Peoples Collective for Environmental Justice Action:
“Our drivers and neighborhoods shouldn’t have to choose between their livelihoods and breathing clean air. In truck-heavy corridors like the Inland Empire, the sheer upfront cost of electric vehicles has been a wall holding drivers back. Governor Newsom’s signature on this bill delivers the market transparency our truckers need to make a realistic, equitable leap into the future.”
Mary Peveto, Executive Director at Neighbors for Clean Air: “Governor Newsom’s signature is a huge win for businesses and communities alike. By tackling inflated electric vehicle prices head-on, this policy helps ensure public incentive dollars deliver real market relief. We would love to see the same enthusiasm in Oregon, where businesses have been dealing with spiking diesel costs and need actionable pathways to adopt cleaner, affordable freight options and we encourage Oregon policy makers to follow suit,”
Sue Gander, Director of U.S. Transportation at the World Resources Institute (WRI): “Price transparency is crucial to making electric trucks and buses more affordable. 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.”
