California’s golden ticket for EV drivers expires: Now what?

A major incentive for owning an electric vehicle or a hybrid in California has expired as of Wednesday as solo drivers in those cars can no longer access carpool lanes without risking a ticket or fine.

The incentive, which had been offered for 25 years, is being phased out after Congress voted in July to eliminate the federal EV tax credit. That also expired on Sept. 30.

Previously, the purchase of a new EV came with a $7,500 tax credit, $4,000 for used EVs, and in California, drivers were issued a Clean Air Vehicle decal for carpool lane access even if they did not have passengers.

California’s Legislature attempted to extend the carpool lane incentive through 2027. However, the extension required federal approval, which was not granted.

“California leaders know the value of these programs,” the California Air Resources Board said. “[It] has been a highly successful and cost-effective way to accelerate clean vehicle uptake and raise consumer awareness of their benefits … these efforts have made California the nation’s most successful electric vehicle market.”

The Department of Motor Vehicles stopped accepting applications for new and replacement decals in late August.

There will, however, be a little time for drivers to adjust. The California Highway Patrol told KQED that drivers will have a 60-day grace period before its officers start issuing tickets.

California has set a goal of requiring all new passenger cars and trucks to be zero-emission by 2035. It remains to be seen if the end of the tax credit and the Golden State’s carpool lane incentive will be a significant setback.

Ingrid Malmgren, senior policy director of the nonprofit advocacy group Plug In America, said the elimination of the tax credit will make EVs unaffordable to many lower- and middle-income Americans.

“That’s really disappointing because … they’re just a really great way to reduce transportation energy cost burden,” Malmgren told The Associated Press. She hopes enough drivers will still see the advantages of owning an electric vehicle, even if the sticker price is a little higher than internal combustion engine cars.

“Quickly you’ll end up paying less than a gas car because it costs much less to fuel, and it needs almost nothing for maintenance,” Malmgren said.