How Does the Rejection of Prop 30 Impact the EV Market in California

The defeat of Prop 30 was a surprise to many EV enthusiasts. 

This bill would have seen an extra 1.75% tax levied on the roughly 40,000 households in California whose annual income is above $2 million. All that extra revenue would have been channeled into EV charging infrastructure and EV subsidies. 

California is the most EV-friendly state in the USA, and taxes on the richest members of society typically perform well in polling. Nonetheless, Prop 30 was defeated 59% to 41% during the recent midterm elections. 

Does This Represent a Hurdle in California’s Goal to Be Fully Electric by 2030? 

The loss of up to $5 billion in possible annual revenue will impact the state’s ability to rapidly expand charging infrastructure to make EVs more practical. California is, after all, a large state where many rely on cars for medium and long-distance travel. 

That is likely the biggest impact of the defeat of Prop 30. The reduction of available subsidies will also slow the tide of electric vehicle converts. Although, in California, that’s less of a concern than the lack of charging infrastructure. 

What Is the Possible Reasoning Behind So Many People Voting Against This Bill in America’s Most EV-Friendly State? 

Early polling showed widespread support for Prop 30 among Californians, and the bill was supported heavily by an advertising campaign from the rideshare company Lyft. That support may have backfired, as California governor Gavin Newsom slammed Prop 30 as a cynical pocket-lining exercise for Lyft in his election ads. 

That pushback was given weight by urban planning advocates, too, who point out that while EVs are cleaner than gas-powered cars, they don’t change the lack of public transport infrastructure and car-reliant city design. 

Where to Now? 

California has long led the way in cleaning up our roadways. While this push is a setback for some of the infrastructure plans and transitional projects that make EV adoption easier and more affordable for drivers, the growth of EVs continues. The push to reduce emissions and make personal transportation cleaner continues to be led by EV adopters, with or without the support of Prop 30. 

What are your thoughts on the rejection of Prop 30? How do you predict this will affect California’s goal to be fully electric by 2030? Let us know what you think in the comments below.