The proposed bill introduces a tax on specific business activities related to surplus zero-emission vehicle (ZEV) credits under Washington's zero-emission vehicle program. It aims to mitigate the financial benefits for manufacturers who exceed compliance obligations by imposing a two percent tax on the sale of ZEV credits, a ten percent tax on banked credits, and a fifty percent tax on pooled credits starting in model year 2025. Manufacturers with fewer than 25,000 credits will be exempt from these taxes. The revenue generated will be allocated to the electric vehicle incentive account and the state general fund, transitioning to the carbon emissions reduction account after June 30, 2027.

Furthermore, the bill establishes new definitions and reporting requirements for manufacturers regarding their ZEV credit activities, including tracking surplus credits and transactions. It mandates that manufacturers report specific details about credit sales and banking to the Department of Ecology, which will calculate the average ZEV credit price for tax purposes. The legislation also amends existing law to protect certain financial information related to ZEV credits from public disclosure, ensuring confidentiality for sensitive data. The bill applies to ZEV credits that are banked, sold, or pooled after its effective date and includes a severability clause to maintain the validity of remaining provisions if any part is found invalid. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately upon passage.

Statutes affected:
Original Bill: 42.56.270