California Governor Jerry Brown has signed a bill to encourage the production of electric cars and making it more affordable for low-income residents.
The initiative is to have at least one million zero-emission and near-zero-emission vehicles in California by 2023.
Reports suggest that 40% of all electric cars sold in the US belong to California, making it one of the biggest markets of electric vehicle in the US.
The new plans includes grant of free or reduced-rates in high-occupancy toll (HOT) lanes to clean air vehicle, and real estate owners will be granted permission to approve the installation of electric vehicle charging stations, which meets the state requirements.
In a statement Jerry Brown said: "We are carrying on because we know in California that carbon pollution kills, it undermines our environment, and long-term, it's an economic loser."
"We face an existential challenge with the changes in our climate. The time to act is now; the place to look is California. We're not finished, but we sure are setting the pace."