City Council
Report
City Council Meeting: September 9, 2025
Agenda Item: 4.F
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Office of Sustainability & the Environment
Subject: Introduction and First Reading of an Ordinance to Amend Santa Monica Municipal Code Section 3.16.120(c) to Clarify That the Expiration of the Free Metered Parking Benefit Applies to All Clean Air Vehicle Decals Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Introduce for first reading the attached ordinance that modifies Santa Monica Municipal Code (SMMC) 3.16.120(c) to clarify that the expiration of the free metered parking benefit for zero emission vehicles applies to all Clean Air Vehicle decals.
Summary
On February 12, 2019, Council adopted Ordinance Number 2403 (CCS) to exempt additional zero-emission vehicles from parking meter payment requirements. These exemptions are scheduled to expire on September 30, 2025, aligning with the expiration of the state Clean Air Vehicle (CAV) decal program. One subset of CAV decals (specifically, purple decals) was unintentionally omitted from the original expiration code language. This ordinance clarifies that all CAV decal holders would no longer be permitted to park for free at Santa Monica parking meters beginning October 1, 2025.
Background
In 2002, Council adopted the parking payment exemption for zero-emissions vehicle 2 of 5
(ZEV) drivers displaying Clean Air Vehicle decals as a strategy to incentivize electric vehicle adoption when the technology was still relatively nascent. The ZEV market, particularly that of electric vehicles, has changed dramatically since 2002, with most vehicle manufacturers offering EV models today.
The City remains committed to transportation electrification and continues to expand charging infrastructure throughout the city. The number of registered zero-emission vehicles (including fully electric and hydrogen vehicles and excluding plug-in hybrids) in the City increased from 1,003 in 2015 to 6,495 in 2023. This represented 1.4% of all registered vehicles in 2015 compared to 10% in 2023, and ZEVs likely account for an even higher percentage today.
The Clean Air Vehicle (CAV) decal program, administered by the California Department of Motor Vehicles (DMV), issued decals to vehicles that met specified low-emissions standards. The program authorized solo drivers in CAVs (typically electric, hybrid, natural gas, or hydrogen vehicles) to drive in High Occupancy Vehicle (HOV) or carpool lanes as a strategy to incentivize cleaner vehicles. Various CAV decals have been issued since 2000, each in different colors to reflect the year issued and emission standards. Beginning October 1, 2025, CAV decals will no longer be valid in California.
Vehicles must meet the posted occupancy requirements for traveling in a carpool (HOV) lane.
Discussion
Under Santa Monica Municipal Code (SMMC) 3.16.120, the City of Santa Monica has allowed operators of electric vehicles displaying CAV decals to park for free at parking meters for the posted time period since 2002. The code language was modified in 2010 under SMMC 3.16.120 (c)(1) to clarify that only “valid and current” decal holders could park for free. In 2013, Neighborhood Electric Vehicles were also included in the payment exemption under SMMC 3.16.120 (c)(2).
On January 1, 2019, the White and Green CAV decals expired for those who purchased 3 of 5
their clean vehicles prior to January 1, 2017, thus preventing early adopters from accessing HOV lanes – as well as the free-metered-parking privilege in Santa Monica.
In response, City Council exempted White, Green, and all other CAV decal holders from paying for parking at City meters from February 2019 through September 30, 2025 when the state CAV program expires.
The language in SMMC 3.16.120, Subsection (c), states that the following are not required to pay for parking meters if they display one of the following decals:
(1) A current and valid Clean Air Vehicle (CAV) decal; or (2) A Neighborhood Electric Vehicle (NEV) decal issued prior to 2011; or (3) A Green CAV decal issued prior to 2019; or
(4) A White CAV decal issued prior to 2019; or
(5) A Red CAV decal issued prior to 2022; or
(6) A Purple CAV decal issued prior to 2023; or
(7) Any special recognition plate.
The exemptions for zero-emission vehicle decals set forth in subsections (c)(2), (c)(3), (c)(4), and (c)(5) above shall automatically expire on September 30, 2025.
The last statement unintentionally omitted subsection (c)(6) Purple CAV decals, which if left uncorrected, would allow only those displaying purple CAV decals to continue parking for free at meters after September 30, 2025.
Santa Monica used to be one of a handful of cities that offered this parking benefit for clean air vehicles, including San Jose, Sacramento, and Hermosa Beach. However, these other cities have since phased out this benefit.
Environmental Review
The proposed addition of Chapter 4.58 to the Santa Monica Municipal Code is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to 4 of 5
Section 15061(b)(3) of the CEQA guidelines which states that CEQA does not apply where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed change provides a programmatic change to the regulation of parking and would not result in a physical impact on the environment.
Past Council Actions
Meeting Date Description
02/12/02 (attachment A) Staff report to amend SMMC Section 3.16.120 to establish parking regulations relating to electric vehicles.
10/22/02 (attachment B) Staff report to amend SMMC Section 3.16.120 to waive parking fees for all alternative fuel vehicles displaying Clean Air Vehicle Decals.
7/27/10 (attachment C) Council adopted a modification to SMMC Section 3.16.120 that added the words “valid and current” to license plates, placards and decals that are exempted from payment at
parking meters.
10/08/13 (attachment D) Staff report to remove “valid and current” from SMMC
3.16.120. Council adopted alternative two, which kept “valid and current” in the code, and modified the ordinance to also exempt the expired Neighborhood Electric Vehicle (NEV)
decals from payment at parking meters.
11/14/17 (attachment E) Council adopted the Electric Vehicle Action Plan, which aims to increase EV adoption in Santa Monica by expanding
charging infrastructure and implementing supportive
programs and policies for EV drivers.
02/26/19 (attachment F) Council adopted Ordinance 2403 amending Section
3.16.120 to exempt additional zero emission vehicles from parking meter payment requirements.
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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Ariana Vito, Sustainability Analyst
Approved Forwarded to Council
Attachments:
A. February 12, 2002 Staff Report (Web Link)
B. October 22, 2002 Staff Report (Web Link)
C. July 13, 2010 Ordinance (Web Link)
D. October 8, 2013 Staff Report (Web Link)
E. November 14, 2017 Staff Report (Web Link)
F. February 26, 2019 Staff Report (Web Link)
G. 2025 CAV Decal Ordinance