In a press release dated 11 August:
Governor Arnold Schwarzenegger today released the first report of California’s free digital textbook initiative... Of the 16 free digital textbooks for high school math and science reviewed, ten meet at least 90 percent of California’s standards. Four meet 100 percent of standards, including the CK-12 Foundation’s CK-12 Single Variable Calculus, CK-12 Trigonometry, CK-12 Chemistry and Dr. H. Jerome Keisler’s Elementary Calculus: An Infinitesimal Approach.
You can find the digital textbooks here
(as well as a report specifying exactly how well they did).
Curiously enough, I can't see that a second step has been planned. I really wonder where they are going to go from here.