As Diesel Prices Soar, A California Bill Aiming to Make Electric Trucks More Affordable Wins Unanimous Support at Committee
SACRAMENTO, CA – California’s Senate Environmental Quality Committee has unanimously approved a bill introduced by Senator Eloise Gómez Reyes designed to make zero-emission medium and heavy-duty vehicles more affordable for California’s fleet operators. The Committee passed the bill by consent, a testament to the commonsense nature of the reform.
The bill SB 1213, which comes as California diesel prices soar past $7 a gallon, 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. 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, according to groups such as NRDC and GreenLatinos.
After approval by the Environmental Quality Committee today, the bill will now go for discussion and a vote at the Transportation Committee on April 21. If it passes that stage it will go for a vote before the Senate and then, if passed, to the Assembly.
“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, SB 1213 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 SB 1213 is its focus on fostering a competitive marketplace through a price transparency initiative. A recent report found that non-component costs added to the final price of electric trucks are roughly twice as high as on non-electric models, limiting their new truck sales to just 24% of the global market between now and 2035. 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.
“This is a giant step forward at a time when the state urgently needs to save drivers and consumers on freight costs,” said Craig Segall, former CARB official. “By setting a course for affordable clean trucks, this bill will help clear the air and drop the cost of living.”
Recognizing that the “sticker” price of electric trucks is only one hurdle, SB 1213 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.
The bill also 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, SB 1213 directs the state to explore alternative financing models by 2028. This includes low-cost loans and residual value, or resale 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.
Jakob Evans Senior Policy Strategist at Sierra Club California wrote to the Chair of the Senate Environmental Quality Committee in support of the bill stating: “By requiring greater disclosure of truck pricing information for vehicles receiving public incentives, SB 1213 would give state agencies the tools they need to hold manufacturers accountable for selling electric trucks in California at the prices they offer abroad, and ensure our state incentive dollars go as far as possible to provide air pollution relief for communities most impacted by diesel pollution… SB 1213 is a commonsense reform that will help ensure every dollar committed to clean trucks delivers maximum public benefit.”
Juan Roberto Madrid, GreenLatinos Sustainable Communities Program Manager said:
“Latino truck drivers are already being crushed by diesel prices that have surged over 40% and well over $7 a gallon because of Trump’s Iran war — the largest oil supply disruption in history. SB 1213 with its core pillar of fostering a competitive market through pricing transparency offers Latino truckers and small businesses owners and fleets a leg up, opens the door for them to look at comparable hybrid and zero-emission trucks”
About SB 1213
SB 1213 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.
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).