California’s EV HOV Lane Access at Risk
California’s program granting electric vehicles (EVs) access to High Occupancy Vehicle (HOV) lanes, a key incentive for EV adoption, may soon expire. The federal law allowing this privilege is set to sunset on September 30th.
A bill proposing a January 1st, 2027, extension of the deadline was introduced by a California legislator, but federal action remains stagnant. California leads the nation in EV registrations, with 1.25 million vehicles, accounting for approximately 35% of all registered EVs in the US.
According to Calmatters, the proposed bill includes safeguards “to make sure that ZEVs do not degrade HOV lanes by contributing to their congestion.”
Currently, Washington D.C. has neither introduced legislation nor granted an extension. California EV drivers gain HOV lane access via a Clean Air Vehicle (CAV) decal, obtainable online. Plug-in hybrid vehicles (PHEVs) and fuel cell vehicles are similarly eligible for a CAV decal.
However, some high-earning Californians face a restriction. According to the California DMV, drivers of EVs and PHEVs with high incomes cannot access both CAV privileges and the Clean Vehicle Rebate Project (CVRP) benefits. The CVRP provides rebates, ranging from $1,000 to $7,500, for the purchase or lease of new EVs, PHEVs, and fuel cell vehicles. Individuals with a single filing status who earn $150,000 or more, heads of households making $204,000 or more, and joint filers making $300,000 or more are limited to the CAV program. Such limitations in access to incentives may hinder California’s progress toward a mass zero-emission vehicle (ZEV) transition.
Similar income restrictions apply to the US federal clean vehicle tax credit, which may face elimination under the Trump administration.
California’s CAV decal program has grown significantly since 2019. Automotive News reports that the state issued 98,634 decals in 2019, compared to 194,486 in 2024. Between 2019 and 2024, California issued a total of 683,658 CAV decals.
Governor Gavin Newsom signed a bill in September extending the CAV program through 2026, but its implementation relies on federal approval.
Concerns Over Slowing EV Growth
A slower rate of EV growth is raising worries about potentially eliminating the CAV decal program. Greg Wallis, a California State Representative driving the effort to extend the CAV program, stated, “Allowing ZEVs in HOV lanes has proven to be an incentive for Californians to make the transition to ZEVs. While California leads the country in ZEV adoption, recent reports have indicated a slower growth rate for sales, making it prudent to leave the program in place for an additional year for continued evaluation and to avoid a major disruption of adoption rates.”
During the April Assembly Transportation Committee discussion, Wallis added, “This extension will give us the opportunity to balance ZEV adoption with lane degradation. If access to HOV lanes is one of the most important incentives for ZEV adoption, we shouldn’t risk an abrupt end of this program.” The committee subsequently approved the action with unanimous support.
Balancing Incentives and Lane Congestion
Despite backing from key legislators like Governor Gavin Newsom, there’s growing concern that the CAV program may contribute to HOV lane congestion. This in turn reduces the incentive for carpoolers and CAV drivers alike.
According to Automotive News, John Swanton, an air pollution specialist with the California Air Resource Board, stated, “You’re going to reach some point where you’ve exhausted that excess capacity. We’re not at the point where, no matter what we do, it’s totally exhausted, but the challenge to our legislature is how to keep this a meaningful incentive.”
