The proposed bill establishes a tax framework for surplus zero-emission vehicle (ZEV) credits 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. Manufacturers are required to report their ZEV credit activities annually, detailing the number of surplus credits banked and the prices of credits sold. The bill also specifies that manufacturers with fewer than 25,000 ZEV credits are exempt from the tax and includes provisions for the confidentiality of certain financial information related to ZEV credit transactions.

Additionally, the bill allocates tax proceeds with 30% directed 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 amends existing law, specifically RCW 42.56.270, to protect unaggregated or individual data concerning the sales price of ZEV credits, ensuring this information remains confidential to prevent potential private loss. The legislation includes a severability clause and states that it is necessary for the immediate preservation of public peace, health, or safety, allowing for immediate enactment upon passage. The bill received approval from both the House and Senate in April 2025 and was subsequently signed by the Governor.

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