SB 1213

SB1213:v96#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 1213

An act to amend Section 39719.2 of, and to add Sections 43215, 43216, and 44274.16 to, the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL'S DIGEST

SB 1213, as amended, Reyes. Zero- and near-zero-emission medium- and heavy-duty vehicles: incentives: transparency.

(1) Existing law establishes the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, to be administered by the State Air Resources Board in conjunction with the State Energy Resources Conservation and Development Commission (Energy Commission). The program funds eligible projects, including, among others, projects for technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods movement corridors. Existing law establishes the Clean Transportation Program, administered by the Energy Commission, to provide, among other things, competitive grants and revolving loans to specified entities for those entities to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.

This bill would require, within the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, the state board and the Energy Commission, beginning January 1, 2027, to condition the inclusion of any medium- or heavy-duty vehicle model in specified incentive programs, including the Clean Transportation Program, on the receipt of the pricing data specified below.

(2) Existing law establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The state board, in this capacity, administers the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (project) under which the agency issues a limited number of vouchers to incentivize the purchase and use of zero-emission commercial vehicles.

This bill would require the state board, in order to support the deployment of zero-emission heavy-duty vehicles through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, project, to annually reevaluate the cap on the purchase of unredeemed state vouchers issued through the project, as specified. The bill would also require the state board to periodically reevaluate whether or not taxes should be included when determining the maximum share of vehicle cost incentivized through the project.

This bill, beginning January 1, 2027, would require a state agency administering any medium- or heavy-duty vehicle incentive program that receives funding from the Greenhouse Gas Reduction Fund, including, but not limited to, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, project, and any program that receives funding through the California Clean Fuel Reward administered by the state board through the Low-Carbon Fuel Standard regulations, or through the Clean Transportation Program, to condition the inclusion of any medium- or heavy-duty vehicle model in that program upon certain transparency requirements. The bill would require these transparency requirements to include, among other things, the original equipment manufacturer providing the manufacturer suggested retail price for all zero-emission vehicle models offered for sale in California that may be funded by the above-described incentive programs and receipt by the administering agency of a final itemized purchase order, as provided.

This bill would require the state board, in coordination with the Energy Commission, to compile and make publicly available on its internet website in a format that anonymizes and protects the confidentiality of specified information, the data provided pursuant to these requirements. The bill would also authorize the state board to recover previously dispersed incentive funds that are found to be dispersed based on false data that was knowingly provided or through anticompetitive pricing or sales behavior, as provided. The bill would require immediate suspension of a vehicle model’s eligibility for the above-described incentive programs for failure to comply with the reporting requirements.

(3) Existing law establishes the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program within the Air Quality Improvement Program to make financing tools and nonfinancial supports available to operators of medium- and heavy-duty vehicle fleets to enable those operators to transition their fleets to zero-emission vehicles.

The bill would require the state board, on or before January 1, 2028, and in coordination with the Governor’s Office of Business and Economic Development and the California Infrastructure and Economic Development Bank, to explore alternative financing opportunities to encourage the deployment of zero-emission medium- and heavy-duty vehicles and report its findings regarding these alternative financing opportunities to the Legislature. The bill would require this report to include, but not be limited to, incentives with a specific focus on encouraging new entries into the market, spurring market competition, and prioritizing manufacturing within the state, and an evaluation of ways to de-risk and scale up the participation of private investors in the market for affordable zero-emission medium- and heavy-duty vehicles, including used vehicles. vehicles, and an exploration of increasing deployment and decreasing costs by retrofitting internal combustion trucks to zero-emission.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares both of the following:

(a) Robust competition and fair pricing are essential to the successful deployment of zero-emission heavy-duty vehicles that are necessary to achieve California’s climate and public health goals.

(b) To ensure the integrity of the state’s climate programs, the receipt of state funding should be conditioned upon full pricing transparency.

SEC. 2.

Section 39719.2 of the Health and Safety Code is amended to read:

39719.2.

(a) The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.

(b) Projects eligible for funding pursuant to this section include, but are not limited to, the following:

(1) Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods movement corridors. This includes peer-to-peer truck sharing platform demonstration. Until December 31, 2021, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.

(2) Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.

(3) Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.

(4) Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.

(5) Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, grid integration and integrated storage solutions, charging management demonstration and analytics, and other freight information and operations technologies.

(c) The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.

(d) The guidance developed pursuant to subdivision (c) shall do all of the following:

(1) Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.

(2) (A) Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).

(B) The State Energy Resources Conservation and Development Commission shall advise the state board on how to allocate money for vehicle charging infrastructure consistent with the commission’s investment plan strategies on charging infrastructure.

(3) Promote projects that assist the state in reaching its climate goals beyond 2030, consistent with Section 38566.

(4) Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.

(5) Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.

(6) Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.

(7) Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.

(8) Leverage, to the maximum extent feasible, federal or private funding.

(9) Ensure that the results of emissions reductions or benefits can be measured or quantified.

(10) Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.

(e) In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:

(1) Benefit disadvantaged communities pursuant to Sections 39711 and 39713 or communities with a community emissions reduction program implemented pursuant to Section 44391.2.

(2) The ability to leverage additional public and private funding.

(3) The potential for cobenefits or multiple-benefit attributes.

(4) The potential for the project to be replicated.

(5) Regional benefit, with focus on collaboration between multiple entities.

(6) Support for technologies with broad market and emissions reduction potential.

(7) Support for projects addressing technology and market barriers not addressed by other programs.

(8) Support for enabling technologies that benefit multiple technology pathways.

(f) In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may use existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:

(1) Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.

(2) Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.

(3) Describe the roles of the relevant agencies and the process for coordination.

(g) For purposes of this section, “zero- and near-zero-emission” means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. “Zero- and near-zero-emission” may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.

(h) (1) In addition to the requirements of Section 44258.4, commencing with the funding plan for the 2019–20 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.

(2) The three-year investment strategy shall do all of the following:

(A) Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.

(B) Provide an assessment of available funding and the investment needed.

(C) Provide a description of the state board’s portfolio of investments.

(3) The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the state’s schoolbus incentive programs and the projected need for funding taking into consideration the state’s schoolbus inventory, turnover, and useful life.

(i) Beginning January 1, 2027, the state board and the State Energy Resources Conservation and Development Commission shall condition the inclusion of any medium- or heavy-duty vehicle model in any incentive program that receives funding from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, including, but not limited to, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and in any program that receives funding through the California Clean Fuel Reward administered by the state board through the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations) or through the Clean Transportation Program (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5) on receipt of the pricing data specified in Section 43216.

SEC. 3.

Section 43215 is added to the Health and Safety Code, to read:

43215.

(a) The state board, in order to support the deployment of zero-emission heavy-duty vehicles through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, shall annually reevaluate the cap on the purchase of unredeemed state vouchers issued through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project with the goal of increasing the cap to the extent feasible to maximize the benefits of zero-emission vehicles deployed.

(b) An increase to the voucher cap shall be provided on the purchase of electric medium- and heavy-duty vehicles that provide a direct and meaningful benefit to disadvantaged communities, as identified pursuant to Section 39711. The state board shall establish criteria for determining the eligibility of an applicant and the required nexus between vehicle operation and community benefit.

(c) The state board shall periodically reevaluate whether or not taxes should be included when determining the maximum share of vehicle cost incentivized through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.

SEC. 4.

Section 43216 is added to the Health and Safety Code, to read:

43216.

(a) Beginning January 1, 2027, the state agency administering any medium- or heavy-duty vehicle incentive program that receives funding from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, including, but not limited to, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and any program that receives funding through the California Clean Fuel Reward administered by the state board through the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations) or through the Clean Transportation Program (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5), shall condition the inclusion of any medium- or heavy-duty vehicle model in that program upon the following transparency requirements:

(1) The original equipment manufacturer shall provide the manufacturer’s suggested retail price for all zero-emission vehicle models offered for sale in California that may be funded by any incentive program described in this subdivision to the administering agency quarterly.

(2) Receipt by the administering agency of a final purchase order for each vehicle for which an incentive is sought that clearly lists the final base unit price of the vehicle, not including incentives, and itemizes any charges for warranty, taxes, fees, service agreements, or additional components not original to the vehicle.

(3) Receipt by the administering agency of any additional data needed to effectively track vehicle pricing behavior in the covered incentive programs, including, but not limited to, vehicle make and model, model year, gross vehicle weight rating, body type, vehicle identification number, and nominal battery capacity of any vehicle for which an incentive is sought.

(b) The state board, in coordination with the State Energy Resources Conservation and Development Commission, shall, every six months, compile and make the data provided pursuant to subdivision (a) publicly available on its internet website in an aggregated format that anonymizes buyers buyers, protects the confidentiality of manufacturer and dealer transaction information, and includes pricing data shown by vehicle model for each model year in order to provide market certainty and facilitate oversight.

(c) (1) Failure to comply with the reporting requirements set forth in subdivision (a) shall result in the immediate suspension of a vehicle model’s eligibility for state incentive programs.

(2) The state board may recover previously dispersed incentive funds that are found to be dispersed based on false data that was knowingly provided or through anticompetitive pricing or sales behavior.

(3) The state board may coordinate with the Attorney General to investigate any violations of this section.

SEC. 5.

Section 44274.16 is added to the Health and Safety Code, immediately following Section 44274.15, to read:

44274.16.

On or before January 1, 2028, the state board, in coordination with the Governor’s Office of Business and Economic Development and the California Infrastructure and Economic Development Bank, shall explore alternative financing opportunities to encourage the deployment of zero-emission medium- and heavy-duty vehicles and report, consistent with Section 9795 of the Government Code, its findings regarding these alternative financing opportunities to the Legislature. This report shall include, but not be limited to, all of the following:

(a) Incentives with a specific focus on encouraging new entries into the market, spurring market competition, and prioritizing manufacturing within the state.

(b) An evaluation of ways to de-risk and scale up the participation of private investors in the market for affordable zero-emission medium- and heavy-duty vehicles, including used vehicles.

(c) An evaluation of providing low-cost loans for zero-emission trucks.

(d) An exploration of increasing deployment and decreasing costs by retrofitting internal combustion trucks to zero-emission.

(d)

(e) An exploration of the development of residual value guarantees for zero-emission trucks.

(e)

(f) Recommendations on improving market function to increase deployment and decrease costs.

(f)

(g) Other data sources, reporting mechanisms, and disclosures that could be used, including, but not limited to, of data that may be held or generated by the Department of Motor Vehicles, that would further achieve these goals and promote well-functioning markets and capital access for medium- and heavy-duty vehicles.

SEC. 6.

The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.