New California law extends incentive program for certain vehicles
A new California law will continue a program in the state that is touted to reduce congestion in some of the most heavily traveled areas in the state.
Gov. Gavin Newsom has signed into law a bill extending the sunset on the state’s clean air vehicle program. The program authorizes alternative fuel vehicles to operate in high-occupancy vehicle lanes, regardless of occupancy levels.
The program has a Sept. 30, 2025, sunset date.
Enactment of AB2678 continues the program through 2026, contingent upon extended federal authorization.
Federal and state rules
Existing federal law authorizes states to permit certain alternative fuel, plug-in electric, and plug-in hybrid vehicles with a single occupant to use high-occupancy lanes.
In California, applicable vehicles must display a specified decal issued by the Department of Motor Vehicles. The four-year fee is set at $22 for all new and replacement decals.
In addition to providing single occupancy access to HOV lanes, vehicles displaying a Clean Air Vehicle decal may also benefit from free or reduced tolls on bridges and high-occupancy toll lanes.
Excited to share that Governor Newsom has signed my bill, AB 2678, into law!
This legislation will extend HOV lane access for qualifying zero-emission vehicles (ZEVs) in California if the federal government continues the program.
This is a significant step in encouraging more… pic.twitter.com/0v78AHmY7x
— Assemblymember Greg Wallis (@AsmWallis) September 24, 2024
Anticipated growing need
In 2021, about 81,000 California customers were issued Clean Air Vehicle decals. Another 90,000 customers were issued decals the following year and 100,000 customers are expected to be issued decals in 2024.
The state anticipates the figures to continue to increase.
Assemblymember Greg Wallis, R-Riverside, said it is important to leave the program in place for continued evaluation and to avoid a “major disruption of adoption rates.”
“California’s current program allowing HOV lane access for ZEVs has proven to be an incentive for Californians to make the transition to ZEVs,” Wallis said at a recent hearing.
He added that program guardrails remain in place to make sure affected vehicles do not degrade HOV lanes and contribute to congestion.
“This extension will give us the opportunity to balance ZEV adoption with lane degradation.” LL