The stock of plug-in electric vehicles in California is the largest in the United States, and , cumulative plug-in car registrations in the state since 2010 totaled 1.77 million units. Between November 2016 and until 2020, China was the only country market that exceeded California in terms of cumulative plug-in electric car sales.
California's plug-in car market share reached 4.9% in 2017, while the national share was 1.1%. Also in 2017, the state's plug-in segment market share surpassed the take-rate of conventional hybrids (4.6%) for the first time. The plug-in market share rose to 7.6% in 2018, and for the first time sales of all-electric cars outsold conventional hybrids. A total of 132,742 plug-in electric passenger cars (101,628 BEVs and 31,114 PHEVs) and were registered in 2020. Registration figures between 2016 and 2019 were revised, resulting in significantly higher estimates than previously reported thorugh 2019. The plug-in market share remained the same in 2019, rose to 8.1% in 2020, and achieved 12.8% in 2021. The Tesla Model 3 topped plug-in car sales in California for three years running, from 2018 to 2020. The Tesla Model Y was the best selling plug-in car in the state in 2021, and second in the overall car market.
The Government of California has been actively supporting the adoption of plug-in electric vehicles (PEVs), and zero-emission vehicles in general, and has in place several financial and non-financial incentives to increase their market penetration. The Governor of California, Jerry Brown, issued an executive order in March 2012 that established the goal of getting 1.5 million zero-emission vehicles (ZEVs) on California roads by 2025. In January 2018, Governor Brown set a new goal of getting a total of 5 million zero-emission vehicles in California by 2030.
As part of the state's government incentives, in addition to the existing federal tax credit, plug-in electric vehicles (PEVs) and fuel cell electric vehicles (FCV) are eligible for a purchase rebate of up to through the Clean Vehicle Rebate Project (CVRP). Also applicants that purchase or lease battery electric vehicles or a plug-in hybrid meeting California's Enhanced Advanced Technology Partial Zero Emission Vehicle (Enhanced AT PZEV) are entitled to a clean air sticker that allows the vehicle to be operated by a single occupant in California's carpool or high-occupancy vehicle lanes (HOV) up until January 1, 2019.
Government policy
ZEV regulation
California's zero-emission vehicles (ZEVs) regulation was first adopted in 1990 as part of the Low Emission Vehicle Program, and it has been modified several times over the years. The ZEV program is under the responsibility of the California Air Resources Board (CARB). The program goal is to reduce the pervasive air pollution affecting the main metropolitan areas in the state, particularly in Los Angeles, where prolonged pollution episodes are frequent. At the time, California's poor air quality was worse than the other 49 states combined.
The first ruling was the 1990 Low-Emission Vehicle (LEV I) Program. CARB ruled that each of the U.S.'s seven largest carmakers— the largest of which was General Motors —would be required to make 2% of its fleet emission-free by 1998, 5% by 2001, and 10% by 2003, in accordance with consumer demand, to continue to sell cars in California. Other members of what was then the American Automobile Manufacturers Association, along with Toyota, Nissan and Honda, each also developed an electric car in response to the new mandate: the General Motors EV1 (1996–2003), Toyota RAV4 EV (1997–2003), Honda EV Plus (1997–1999), Nissan Altra (1998–2001), Chrysler TEVan (1993–1995), Dodge Caravan EPIC (1999 to 2001), and Ford TH!NK City (1999–2003).
As the carmakers leasing electric cars believed that these vehicles occupied an unprofitable niche of the automobile market, an alliance of the major automakers litigated the CARB regulation in court, resulting in a slackening of the ZEV stipulation, permitting the companies to produce super-low-emissions vehicles, natural gas vehicles, and hybrid cars in place of pure electrics. Production was subsequently discontinued in 2002, and, with the exception of Toyota, all of the cars on the road were repossessed. Lessees were not given the option to purchase their cars.
The ZEV regulation has evolved and been modified several times since 1990, and several new partial or low-emission categories were created. See the box "Zero-Emission Vehicle (ZEV) Mandate Timeline", pp. 23-28 The Low-Emission Vehicle Program was revised in 2008 to define modified ZEV regulations for 2015 models. CARB estimates the ZEV program will result in 15% ZEV sales by 2025.
Government goals
Governor Jerry Brown issued an executive order in March 2012 that established the goal of getting 1.5 million zero-emission vehicles (ZEVs) in California by 2025. In addition, in September 2014, Governor Brown signed into law bill SB 1275 that created the Charge Ahead California Initiative, and set the goal of placing at least 1 million zero-emission vehicles and near-zero-emission vehicles on the road in California by January 1, 2023. He expects the initiative will help the state to reach the initial goal set for 2025.
In January 2018, Governor Brown set a new goal of getting a total of 5 million zero-emission vehicles in California by 2030. , there were 337,483 zero-emission vehicles sold in California.
In August 2022, California passed a provision that would prohibit the sale of new gasoline-powered cars by 2035.
On 14 December 2022, The California Energy Commission (CEC) approved a $2.9 billion clean transportation investment plan, adding 90.000 EV chargers across the state by 2025.119. EVDC / 12-20-2022 / Charging Ahead: California Doubling the Number of EV Chargers
Government incentives
California has been a leader in the adoption of plug-in electric vehicles as the state has in place several financial and non-financial incentives. In addition to the existing federal tax credit, plug-in cars are eligible for a purchase rebate of up to through the Clean Vehicle Rebate Project (CVRP).
HOV access
In 2000, California began issuing Clean Air Vehicle (CAV) decals to vehicles that met specified emissions standards, allowing them to be operated by a single occupant in California's high-occupancy vehicle lanes (HOV), or carpool or diamond lanes. Battery electric vehicles and initially, the first 40,000 applicants that purchased or leased a plug-in hybrid meeting California's Enhanced Advanced Technology Partial Zero Emission Vehicle (Enhanced AT PZEV) or Transitional Zero-Emission Vehicle (TZEV) requirements, were entitled to the CAV stickers. The white access sticker was reserved for zero-emissions vehicles, while plug-in hybrids used the green sticker.
Initially, the green and white clean air sticker were set to expire on January 1, 2015, but in 2013 the expiration date for both stickers was extended to January 1, 2019. All-electric vehicles classified as Federal Inherently Low Emission Vehicles (ILEVs), and as zero emissions vehicles were entitled to an unlimited number of white CAV stickers. The number of green stickers available had been increased several times. In September 2016, the limit imposed to the Green Clean Air Vehicle Decal was removed.
The number of green clean air stickers issued grew from about 10,900 in March 2013 to 28,739 by the end of 2013. As a result, by mid March 2014 the California Department of Motor Vehicles (DMV) suspended the program allowing new car dealers to purchase and install green CAV stickers on eligible vehicles before they are sold. The DMV decided to reserve all remaining green stickers from the original 40,000 limit for individual consumer applications. , the initial 40,000 green stickers were issued.
The San Francisco Bay Area Metropolitan Transportation Commission opposed the 2014 bill to expand the green stickers on the grounds that they "are concerned about further erosion of HOV lane capacity to vehicles that are neither reducing the number of trips on the road nor paying a toll. With congestion levels shooting up again, especially in the prosperous South Bay of the region where the purchase of such vehicles is more likely, we do not believe it is appropriate to give access to the region’s HOV lanes or express lanes away for free."
The green sticker limit was increased by 15,000 beginning July 1, 2014, through the budget trailer bill SB 853. In September 2014 Governor Jerry Brown signed the bill AB 2013 that raised the cap for the green stickers from 55,000 to 70,000 new plug-in hybrids. By June 2015, a total of 68,343 green stickers had been issued by the California Department of Motor Vehicles (DMV). In June 2015, the bill AB 95 was approved by the State Legislature raising the upper limit from 70,000 to 85,000 green stickers. By December 2015, the 85,000 limited was reached. The DMV continued to accept applications without payment to establish a queue for requesters should an additional amount of green decals be authorized. In September 2016, the budget trailer bill SB-838, effective from September 13, 2016, removed the limit imposed to the Green Clean Air Vehicle Decal.
Research performed by the UCLA Luskin Center for Innovation in 2015 found that access to HOV lanes has a significant impact on plug-in car sales. Researchers linked automobile sales to a sample of more than 7,000 of the 8,057 census tracts in California for the study, including Los Angeles, Sacramento, San Diego and San Francisco. They looked at the number of plug-in car sales and the miles of carpool lanes within a radius of each census tract. The study concluded that the ability to use potentially time-saving HOV lanes prompted the purchase of more than 24,000 plug-in electric cars and hybrids in the four urban areas from 2010 to 2013, or about 40% of the total of such vehicles. The UCLA researcher concluded that without the policy giving plug-in vehicles access to HOV lanes, total plug-in sales in the same study areas would have been only 36,692 for the three-year period.
As part of a package of bills signed into law by Governor Brown in September 2014, through SB 1275 the California Air Resources Board was mandated to draft a financial plan to meet California's goal of 1 million vehicles on the road while making sure that disadvantaged communities can participate. For this purpose CARB had to change the Clean Vehicle Rebate program to provide an extra credit for low-income residents who wish to purchase or lease an electric car. CARB also should provide assistance to carsharing programs in low-income neighborhoods and install charging stations in apartment buildings in those communities. Under SB 1275, low-income residents who agree to scrap older, polluting cars will also get a clean vehicle rebate on top of existing payments for junking smog-producing vehicles.
Another bill signed into law in September 2014, AB1721, granted clean air vehicles free or reduced rates in high-occupancy toll lanes (HOT) lanes. Drivers of clean vehicles were already enjoying discounted rates in some facilities, such the toll to cross the San Francisco Bay Area bridges and to use the State Route 91 Express Lanes in Orange and Riverside Counties.
The CAV decal program was contingent on federal law, first enacted by the 1998 Transportation Equity Act for the 21st Century and last amended by the 2015 Fixing America's Surface Transportation Act, that allowed such a program on the HOV lanes of federal and state highways. When the US Congress did not change part of the law that had an end date, September 30, 2025, California stopped the CAV decal program as well.
Clean Vehicle Rebate Project