A popular EV incentive is in trouble
A federal law giving California electric vehicles (EVs) the right to use HOV (High Occupancy Vehicle) lanes without passengers is set to expire on September 30th. One California legislator wrote a bill proposing a January 1st, 2027, extension of the law’s deadline, but D.C. remains stagnant. California has the highest number of EV registrations, at 1.25 million, which is around 35% of all the US registered EVs.
According to Calmatters , “This bill leaves in place program guardrails to make sure that ZEVs do not degrade HOV lanes by contributing to their congestion.”
Currently, lawmakers in Washington D.C. haven’t introduced a bill or granted an extension for California’s HOV exemption for EVs and other clean vehicles. California EV drivers are authorized to use HOV lanes with a Clean Air Vehicle (CAV) decal that you apply for online. Plug-in hybrid vehicles (PHEV) and fuel cell vehicles are also eligible for a CAV decal. However, certain high-earning California EV and PHEV drivers cannot access both the CAV and Clean Vehicle Rebate Project’s (CVRP) benefits, according to the state’s DMV .
The CVRP gives rebates on purchasing or leasing new EVs, PHEVs, and fuel cell vehicles ranging from $1,000 to $7,500. Single filers making $150,000 or more, a head-of-household making $204,000 or more, and joint filers making $300,000 or more are limited to the CAV—and not having access to either incentive program may hurt California’s progress toward a mass zero-emission vehicle (ZEV) transition. Income limits to qualify for the US federal clean vehicle tax credit, which President Trump’s administration is considering eliminating , are similar…