California lawmakers are moving to pull back the curtain on the pricing of zero-emission trucks and buses, advancing legislation that would require manufacturers to disclose retail prices as a condition for receiving state subsidies.
Senate Bill 1213, authored by Senator Reyes, aims to increase market transparency and competition in the heavy-duty electric vehicle sector by targeting several of California’s flagship climate initiatives, including the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and the Clean Transportation Program.
"Robust competition and fair pricing are essential to the successful deployment of zero-emission heavy-duty vehicles," the bill’s text reads, arguing that state funding must be contingent on "full pricing transparency".
New transparency mandates
Beginning Jan. 1, 2027, original equipment manufacturers (OEMs) would be required to provide the manufacturer’s suggested retail price (MSRP) quarterly for all zero-emission models offered in California. To maintain eligibility for state incentives, agencies would also require final itemized purchase orders that clearly list the final base unit price of the vehicle, excluding incentives; itemized charges for warranties, taxes, fees, and service agreements; and technical data, including gross vehicle weight and nominal battery capacity.
Failure to comply with these reporting requirements would result in the immediate suspension of a vehicle model’s eligibility for state incentives, and the state's Air Resources Board would be authorized to recover funds disbursed based on false data or "anticompetitive pricing".
Expanded consumer support
The legislation also seeks to lower the barrier to entry for fleet operators. It would allow state vouchers to cover up to 90% of the total cost of a vehicle purchase, including taxes and delivery fees. Additionally, the bill mandates an annual reevaluation of the cap on unredeemed vouchers, specifically looking to increase limits for electric vehicles that provide "direct and meaningful" benefits to disadvantaged communities.
The bill also directs the state board to coordinate with the Governor’s Office of Business and Economic Development to explore alternative financing by Jan. 1, 2028. The resulting report to the Legislature must evaluate ways to de-risk private investment, provide low-cost loans, and develop "residual value guarantees" to help stabilize the market for used zero-emission trucks.
