The proposed bill establishes a tax framework for surplus zero-emission vehicle (ZEV) credits generated under Washington's zero-emission vehicle program, aimed at reducing greenhouse gas emissions. It introduces a new chapter in Title 82 RCW, which outlines definitions and requirements for manufacturers regarding the banking and sale of ZEV credits. An excise tax is imposed at a rate of 2% on sales and 10% on banked credits, with manufacturers required to report their ZEV credit activities annually. The bill also specifies that manufacturers with fewer than 25,000 ZEV credits are exempt from the tax and amends RCW 42.56.270 to protect certain financial information related to ZEV credit transactions from public disclosure.

Furthermore, the bill details the allocation of tax proceeds, directing 30% to the electric vehicle incentive account and 70% to the state general fund until mid-2027, after which the allocation will shift to the carbon emissions reduction account. It introduces new provisions to protect unaggregated or individual data concerning the sales price of ZEV credits, ensuring confidentiality to prevent potential losses for information providers. The act is designed to take effect immediately upon passage, emphasizing its necessity for the preservation of public peace, health, or safety, and includes a clause to maintain enforceability of remaining sections if any part is found invalid.

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