A long-standing policy in California allowing electric vehicles (EVs) to access high-occupancy vehicle (HOV) lanes without additional passengers is set to expire on September 30th, 2025, unless extended. The federal law that enabled the program was originally enacted in 1998 to encourage the adoption of clean vehicles, and has seen a surge of interest in recent years. However, the policy is now under threat amid broader efforts to eliminate electric vehicle incentives.
Per a report from Automotive News, which cites data from the California Department of Motor Vehicles (DMV), 194,486 Clean Air Vehicle (CAV) decals were issued in 2024, a 52-percent increase compared to 2023. While the program has been a useful incentive for EV ownership, the surge in participation has led to congestion in carpool lanes, reducing their original intended use in alleviating traffic.
Republican State Assembly member Greg Wallis has introduced a proposal to extend the program until January 1th, 2027, but it requires federal approval. Supporters argue that carpool lane access remains a valuable incentive for EV adoption, particularly as EV sales growth slows. Organizations like CALSTART, a clean transportation advocacy group, believe extending the policy would help sustain EV momentum in the state.
Meanwhile, critics argue that the program undermines the core purpose of HOV lanes, which is to reduce congestion. One alternative approach would be the implementation of tolls for EVs in carpool lanes.
The potential loss of HOV lane access for California EVs comes amid a politically uncertain landscape for EV incentives in general. The Trump administration has already proposed eliminating the $7,500 federal EV tax credit, while some lawmakers aim to revoke California’s waiver that allows the state to set stricter emissions standards…