Federal Government Ends Clean Air Vehicle Decal Program: California DMV Halts Issuance

On Sept. 9, 2025, the California Department of Motor Vehicles (DMV) announced that the federal government has decided to end the Clean Air Vehicle (CAV) decal program. Under the program, certain fuel‑efficient and low‑emission vehicles could travel in the state’s high‑occupancy vehicle lanes even if only one person was in the car. The DMV’s news release states that the U.S. Department of Transportation will no longer allow states to issue CAV decals or honor existing decals after Oct. 1, 2025【252949174256400†L278-L336】. California stopped accepting new CAV decal applications on Aug. 29 and has halted issuance of new decals in compliance with the directive.
California’s CAV decal program began in 1992 and helped encourage early adoption of electric and hybrid cars by offering single‑occupant access to carpool lanes. The DMV estimates about 468,000 vehicles currently display active CAV decals. The federal directive means that after Oct. 1, drivers must meet posted high‑occupancy vehicle lane requirements, typically two or more occupants during restricted hours, regardless of whether their car is electric, hydrogen‑powered or plug‑in hybrid. Drivers who ignore the new rule risk being ticketed for improper carpool lane use.
The DMV said it is working with the Federal Highway Administration and Caltrans to notify drivers and to minimize confusion. In its release, the department explained that it will email CAV decal holders and post information on social media and on its website. Caltrans plans to use electronic freeway signs to remind motorists that CAV decals will no longer grant access to HOV lanes after the deadline【252949174256400†L278-L336】. The DMV also urged drivers to be patient: "We know this is disappointing for many drivers, but this decision was made at the federal level and must be implemented across the country," the release noted.
Although the CAV program is ending, low‑emission vehicles will continue to qualify for other incentives, such as federal and state tax credits, utility rebates and discounted tolls where available. The DMV recommends that current decal holders check its website for detailed guidance and look out for direct communications with important deadlines. For now, drivers can continue using CAV decals through Sept. 30. Beginning Oct. 1, they must obey posted occupancy requirements in HOV lanes. By staying informed and following updated rules, Californians can avoid fines and do their part to keep traffic flowing smoothly.