Zero emission truck insurance clears california headquarters
One bill headed to the California Governor’s Office has been promoted to address existing gaps in insurance data for zero-emission trucks and truck fleets that use advanced fuels and related technologies.
Governor Gavin Newsom previously announced that the California Air Resources Board has reached a clean truck partnership with leading truck manufacturers. The partnership aims to help meet the nation’s first zero-emission vehicle truck standards.
The measure stems from a CARB regulation approved this spring that mandates no new fossil fuel-powered medium- and heavy-duty trucks be sold in the state starting in 2036.
Data gap concerns
Assembly lawmakers approved changes in the Senate to a bill that would require the California Department of Insurance to collect data on the availability and affordability of insurance for battery-powered, hydrogen-powered or other zero-emission trucks.
Additionally, CDI will work with CARB to create an “Online Insurance Information Resource Tool” for the public to find information and insurance options for affected vehicles. The process must be completed by January 1, 2025.
State House approval paves the way for the bill, AB844, to move to Newsom’s desk.
Assemblyman Mike Gibson, D-Carson, is the author of the bill. Insurance Commissioner Ricardo Lara is the bill’s sponsor.
“New technologies, without a long history of actuarial information, can face challenges finding insurance,” the pair wrote regarding zero-emission trucks.
Fleets adopting zero-emission technologies may face a limited insurance market, which could slow the deployment of zero-emission heavy trucks, Gibson added.
Additionally, Gibson said slow rollout will hamper the state’s ability to meet upcoming deadlines for fleets to transition to new zero-emission technologies.
“This bill addresses existing data gaps by directing CDI to collect specific data,” the analysis of the bill said.
The State Trucking Association is behind the effort
The California Trucking Association provided supporting testimony.
“Early adopters of zero-emission trucks indicated that insurance companies were initially reluctant to underwrite them and, in some cases, only agreed to insure the partial value of the truck,” the group reported. Additionally, the American Trucking Associations said the cost of insuring damaged trucks is expected to “increase significantly.” LL
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