Zero- and near-zero-emission medium- and heavy-duty vehicles: incentives: transparency

The law requires manufacturers and buyers to supply pricing and purchase-order data before vehicle models can receive major state-backed incentives. It also directs the state to publish anonymized pricing information and examine new financing options for zero-emission trucks and buses.

What the law does ​

• Requires manufacturers to report quarterly suggested retail prices for eligible zero-emission vehicle models.
• Requires final itemized purchase orders, vehicle specifications, and battery-capacity data for each incentivized vehicle.
• Makes eligibility for covered incentive programs conditional on providing the required data beginning January 1, 2027.
• Requires the State Air Resources Board to publish aggregated, anonymized pricing data every six months.
• Suspends noncompliant vehicle models from incentive programs after notice and a reasonable chance to comply.
• Allows the State Air Resources Board to recover incentive funds obtained through knowingly intentional misrepresentation.
• Requires annual review of the unredeemed-voucher purchase cap under the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, with a goal of increasing it where feasible.
• Requires a report by January 1, 2028, on financing tools, low-cost loans, private investment, retrofits, residual-value guarantees, and other ways to lower costs and expand zero-emission vehicle deployment.

Who it affects ​

• Manufacturers of zero-emission medium- and heavy-duty vehicles sold in California.
• Dealers and buyers seeking state incentives for eligible medium- and heavy-duty vehicles.
• Fleet operators using the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project and other covered incentive programs.
• State agencies administering vehicle incentive programs funded through specified climate, clean-fuel, or clean-transportation sources.

Context ​

The law covers programs funded by the Greenhouse Gas Reduction Fund, the California Clean Fuel Reward, or the Clean Transportation Program.

Breakdown ​

Pricing Data for Truck Incentives ​

Starting January 1, 2027, the State Air Resources Board and the Energy Commission must require specified pricing data before a medium- or heavy-duty vehicle model can be included in certain incentive programs. This condition applies within the clean truck technology program and includes the Clean Transportation Program.

Key takeaways

• The new requirement applies to medium- and heavy-duty vehicle models seeking inclusion in specified incentive programs.
• Beginning January 1, 2027, the agencies must receive the required pricing data before including an eligible vehicle model.
• The requirement covers specified programs, including the Clean Transportation Program.
• The State Air Resources Board and the Energy Commission are responsible for applying this condition within the clean truck technology program.

Truck Incentive Transparency ​

SB 1213 requires annual and periodic reviews of certain voucher limits and cost calculations in the state’s zero-emission truck and bus incentive project. Beginning January 1, 2027, it also ties eligibility for covered medium- and heavy-duty vehicle incentive programs to pricing and purchase-order transparency requirements. The state board must publish anonymized aggregate data, may recover incentives obtained through intentional misrepresentation, and must suspend noncompliant vehicle models after notice and an opportunity to fix the problem.

Key takeaways

• The state board must annually reevaluate the cap on purchases of unredeemed state vouchers in the truck and bus voucher project to support zero-emission heavy-duty vehicle deployment.
• The state board must periodically reconsider whether taxes should count when calculating the maximum share of a vehicle’s cost that the project can subsidize.
• Starting January 1, 2027, covered medium- and heavy-duty vehicle incentive programs must require specified transparency information before including a vehicle model.
• The transparency requirements include manufacturer suggested retail prices for eligible zero-emission models sold in California and final itemized purchase orders provided to the administering agency.
• The state board, working with the Energy Commission, must publicly post aggregated data while protecting confidential information.
• The state board may recover incentive money paid based on knowingly and intentionally misrepresented data, and vehicle models that fail reporting requirements must be suspended after notice and a reasonable chance to comply.

Alternative Financing for Clean Trucks ​

The bill requires the state board to examine other financing options that could help put more zero-emission medium- and heavy-duty vehicles on the road. Working with two state economic-development entities, the board must report its findings to the Legislature by January 1, 2028.

Key takeaways

• The review must consider incentives that encourage new companies to enter the market, increase competition, and prioritize manufacturing in California.
• The report must evaluate ways to reduce risk and expand private investment in affordable zero-emission medium- and heavy-duty vehicles, including used vehicles.
• The board must explore whether converting internal-combustion medium- and heavy-duty vehicles to zero-emission vehicles could increase deployment and lower costs.
• The state board must coordinate this work with the Governor’s Office of Business and Economic Development and the California Infrastructure and Economic Development Bank.