By Michael Colvin and Lauren Navarro
Gov. Newsom signed a new law today that will help accelerate the much-needed transition to electric trucks and buses. In addition to transforming the California market and cleaning up the state’s air, this law can serve as a national model for other states interested in accelerating the adoption of clean trucks and buses.
The new law, Senate Bill 372, directs the California Air Resources Board and the state treasurer’s office to offer a suite of financial incentives to help owners of medium- and heavy-duty trucks and buses pay for the costs of replacing their diesel-fueled fleets with cleaner, zero-emission alternatives. Examples include a loan loss reserve, credit enhancements, performance warranties and sale guarantees.
What is particularly innovative about this new law is that it uses the public dollar to attract private capital in ways that traditional rebates do not. Research indicates that this leverage will be critical to getting clean trucks and buses on the road at scale.