As diesel prices remain elevated in California, a bill aimed at lowering the cost of zero-emission medium- and heavy-duty vehicles is moving forward with a focus on pricing transparency, expanded voucher coverage, and longer-term financing options.
Senate Bill 1213, authored by Sen. Eloise Gómez Reyes, recently passed a key Senate policy committee with unanimous support. The bill is positioned as a response to the high upfront cost of zero-emission trucks and buses, which supporters argue is making it harder for fleet operators to move away from diesel despite mounting fuel-cost pressure.
“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 Gómez Reyes in a recent statement. “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.”
Beginning Jan. 1, 2027, the bill would require state agencies administering medium- and heavy-duty vehicle incentive programs funded through the Greenhouse Gas Reduction Fund, the California Clean Fuel Reward, or the Clean Transportation Program to condition vehicle eligibility on new transparency requirements. Those requirements include quarterly MSRP reporting from original equipment manufacturers and submission of final purchase orders that clearly list the base vehicle price and itemize charges such as taxes, fees, warranties, service agreements, and additional components.
The bill also would require the state to publish that data every six months in an aggregated format organized by vehicle model and model year. The stated goal is to provide market certainty and facilitate oversight, while anonymizing buyers. If manufacturers do not comply, a vehicle model could be suspended from eligibility for state incentive programs. The bill also allows the state to recover previously dispersed incentive funds if false data was knowingly provided or if funds were dispersed through anticompetitive pricing or sales behavior.
For fleets, the measure goes beyond transparency. SB 1213 would direct the state board to annually reevaluate the cap on unredeemed Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) vouchers with the goal of increasing that cap where feasible. It also says higher voucher caps should be prioritized for electric medium- and heavy-duty vehicles that directly benefit disadvantaged communities, with the state board responsible for defining the eligibility rules and standards for demonstrating that benefit.
One of the bill’s most consequential provisions for buyers is its treatment of total purchase cost. SB 1213 would allow vouchers to cover up to 90% of the total cost of a vehicle purchased through HVIP, including taxes and delivery fees. That change is intended to reduce the amount of upfront capital fleets need to bring to a deal even when incentive support is available.
“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 the 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.”
The bill also looks beyond point-of-sale incentives. On or before January 1, 2028, SB 1213 would require the state board, in coordination with the Governor’s Office of Business and Economic Development and the Infrastructure and Economic Development Bank, to explore alternative financing opportunities for zero-emission medium- and heavy-duty vehicles and report its findings to the legislature. That report would include incentives aimed at encouraging new market entrants, spurring competition, and prioritizing manufacturing within the state, along with evaluations of low-cost loans, residual value guarantees, private investment participation, and ways to improve market function and reduce costs.
Taken together, the bill frames affordability as more than a voucher issue. It treats vehicle pricing, transaction transparency, community-focused incentive design, and long-term access to capital as connected pieces of the same challenge. For fleets trying to navigate diesel price volatility while assessing when and how to invest in zero-emission equipment, SB 1213 is aimed squarely at the economics of the transition.
