The CAV decal scheme, in place for decades, had granted single-occupant drivers of zero-emission vehicles and plug-in hybrids access to carpool or High Occupancy Vehicle (HOV) lanes. It was seen as a significant incentive to accelerate EV adoption while helping reduce air pollution in some of the most congested regions of the country. Since its inception, California has issued more than one million decals.
The California Department of Motor Vehicles (DMV) stopped processing new applications for the decals on 29 August and notified the public that all existing decals will become invalid at midnight on 30 September. From October, all vehicles must meet posted occupancy requirements to use carpool lanes, regardless of their emissions profile.
Last year, California extended the programme at the state level, but without federal authorisation, the initiative cannot continue. California Governor Gavin Newsom sharply criticised the decision, calling it “a Trump traffic jam on its way to California and other states – all because Republicans in Congress decided to let a wildly successful bipartisan programme expire.”
The end of carpool lane access comes as California’s EV market continues to expand. According to the California Energy Commission, one in five new vehicles sold in the state in the second quarter of 2025 was a ZEV. In Q1/2025, it was even one in four vehicles sold. More than 178,000 public or shared private charging points have been installed, and 56 ZEV manufacturers operate in California, making it the US leader in ZEV-related jobs, the Governor’s office states.
US lawmakers Mark DeSaulnier (California) and Greg Stanton (Arizona) introduced the HOV Lane Exemption Reauthorization Act last month, hoping to keep the exemption alive through 2031. However, it was already unclear at the time whether the Act would pass.
However, since US President Donald Trump took office, he has shown again and again that he aims to eliminate EV incentives – not strengthen them. For instance, lawmakers scrapped the EV tax credit from 30 September, after which EV buyers will no longer receive a financial incentive. Trump also signed a resolution to block California’s plans to ban the sale of new combustion engine vehicles from 2035.
gov.ca.gov
