By Sacramento Daily Press Staff

Are the wheels starting to come off California’s push toward a fully electric vehicle (EV) fleet by 2035?

The state’s Clean Air Vehicle (CAV) Decal program, which allowed drivers of electric and hybrid vehicles to use the carpool lane even when traveling solo, officially ended this month. Though the program had been extended by California regulators, federal inaction ultimately brought it to a halt, pulling the plug on a benefit that had been in place since 2001.

For drivers who made the switch to EVs partly for the lane access, it’s a noticeable downgrade — and possibly a sign of more changes to come.

Adding another jolt of bad news to Sacramento’s green dreams, the federal government’s $7,500 tax credit for new EV purchases also expired on October 1. With electric vehicle sales already falling far short of official targets, the loss of the federal subsidy is likely to only further reduce demand. Automakers may respond by offering price cuts or incentives to keep demand steady, but without the federal subsidy, EVs may look a lot less affordable to the average consumer.

While 2024 saw modest growth in EV sales, purchases through the first half of 2025 were nearly flat, suggesting waning enthusiasm among drivers already concerned about price, performance, and charging infrastructure.

Taken together, the loss of carpool access and the rollback of tax incentives may mark a turning point in California’s electrification goals. For now, it seems electric car drivers are facing more hurdles than high-occupancy lanes, and Sacramento’s ambitious plans may be colliding with economic reality.