The proposed bill establishes a tax framework for surplus zero-emission vehicle (ZEV) credits under Washington's zero-emission vehicle program, targeting financial advantages for manufacturers not involved in internal combustion engine production. It introduces a new chapter in Title 82 RCW, defining key terms related to ZEV credits, banking, and sales. Manufacturers are required to report their ZEV credit activities annually, detailing surplus credits banked and transactions involving sales. The bill also ensures that unaggregated financial information from individual transactions remains exempt from public disclosure.

The tax structure includes a two percent excise tax on the sale of surplus ZEV credits and a ten percent tax on banked credits, with special provisions for manufacturers banking or selling fewer than 25,000 credits in a model year. Tax proceeds will be directed to the electric vehicle incentive account and the state general fund, later transitioning to the carbon emissions reduction account. Additionally, the bill amends existing law to protect sensitive financial information related to ZEV credit transactions, designating unaggregated data as confidential. It includes a severability clause and states the act's immediate necessity for public peace, health, or safety, allowing for immediate implementation upon approval.

Statutes affected:
Original Bill: 42.56.270
Substitute Bill: 42.56.270
Bill as Passed Legislature: 42.56.270
Session Law: 42.56.270