THE federal Clean Air Vehicle Decal program is set to officially expire today without renewal, also ending a number of notable benefits EV owners received.
One major United States city is set to lose a particularly attractive perk of electric ownership, which may make running errands more costly.
Santa Monica’s most significant local EV adoption benefit is set to end[/caption]
Parked cars will need to pay regardless of their emissions status come October 1[/caption]
The City of Santa Monica is set to end its longtime policy of letting cars with Clean Air Vehicle Decal stickers park for free at city-operated meters for specific time limits.
Today, September 30, will be the final day vehicles which have the sticker can take advantage of the incentive.
From October 1 onward, all drivers will need to pay the posted rates at metered spaces across the city regardless of the car they drive and any decals it may have.
Despite the context of its discontinuation, the program was largely successful in its goal of encouraging locals to purchase low- and zero-emission vehicles.
In 2015, the total number of EVs in the city was just over 1,000, and had risen to nearly 6,500 in 2023 per a recent staff report.
These figures accounted for 1.4% and 10% of all vehicles in the city, respectively, with officials believing that number to be even higher contemporarily per Palisades News.
Initial discussions on the program’s end caused confusion for suggesting certain decals would still be able to park for free after the its expiration, but this was later clarified to not be the case.
Santa Monica is one of the last California cities to offer this benefit, with comparable areas like San Jose, Sacramento, and Hermosa Beach having already phased out similar programs.
It was thought the program could be extended under the California Environmental Quality Act, but city staff determined its end didn’t have a potential for significant environmental impact sufficient enough to justify an extension.
Although the city is continuing to support EV adoption via charging infrastructure and other active policies, the most impactful incentives for EV adoption are set to or have already ended.
One of the most notable is the $7,500 tax credit EV purchasers would receive. President Donald Trump’s “One Big Beautiful Bill Act,” signed into law on July 4, included a clause which gave the tax credits an expiration date.
EV owners are also losing their privilege to drive in high-occupancy vehicle (HOV) lanes when riding solo.
They, and all other Clean Pass Vehicle Decal cars which had this privilege, must now return to the main lanes if they don’t have the number of passengers necessary to use HOV lanes.
Those who are caught violating this change in road rules could be hit with fines of $400 or more depending on the exact state in question.
Why aren’t people buying EVs?
In January, many EV makers reported slow demand. Reuters said there are a few valid reasons for a slow in demand:
- High initial costs. Many automakers, like Tesla, Hyundai, and Ford have conducted “price slashes” on their flagship EVs to attract new buyers, though demand remains slow.
- Higher insurance costs. Some insurance companies cite fire risks, high costs of battery replacement, and higher vehicle weight as reasons for higher premiums.
- Charging anxiety. A large percentage of people remain fearful of being in a situation where they won’t be able to charge if they run out of battery due to a lack of infrastructure.
- Range anxiety. In many instances, EVs still don’t have the range and infrastructure of gas-powered vehicles.
- Poor performance in extreme temperatures. Reduced range in extremely hot or cold weather makes potential buyers wary.
Source: Reuters
The expiry of the Clean Pass Vehicle Decal program which multiple states participate in is due to the federal government not renewing the program from above.
Despite these programs being mostly state-run, they still require federal authorization from the Environmental Protection Agency.
While some states are fighting to keep their programs active with bipartisan support, doing so would ultimately require federal approval that the Trump administration is not expected to provide.
EVs EXITING THE INDUSTRY?
As the federal government moves away from a green automotive future, so too do manufacturers themselves, as General Motors’ latest money moves highlight.
Other manufacturers are instead getting creative with attracting customers to EVs, such as Ford’s leaked plans to revive the Ranchero platform as an EV.
The Yangwang U9 Xtreme becoming the fastest production car in history could also lead to renewed interest in alternative-fuel vehicles from the public, especially considering it beat an internal combustion engine vehicle for the title.
The city of Santa Monica was one of California’s last to offer parking incentives for Clean Air Vehicle Decal cars[/caption]
A green Clean Air Vehicle Decal sticker seen on a low- or no-emissions car[/caption]
