H-2255.1
SUBSTITUTE HOUSE BILL 2077
State of Washington
69th Legislature
2025 Regular Session
By House Finance (originally sponsored by Representatives Fitzgibbon and Macri)
READ FIRST TIME 04/19/25.
AN ACT Relating to establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program; amending RCW 42.56.270 ; adding a new chapter to Title 82 RCW; creating new sections; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the zero-emission vehicle program is a key policy supporting state efforts to achieve greenhouse gas emissions reductions required in RCW 70A.45.020 . The advanced clean cars and advanced clean cars II components of the zero-emission vehicle program require manufacturers of passenger cars and light duty trucks to achieve an escalating minimum percentage of zero-emission vehicles for sale or lease in Washington, or to obtain surplus credits from an auto manufacturer that has exceeded this minimum compliance obligation. By providing for the creation of these tradeable and bankable credits, the program creates an incentive for vehicle manufacturers to maximize their investments in developing and selling cleaner cars. The legislature also finds that the creation of these tradeable and bankable credits creates the opportunity for a financial windfall accruing to firms that are not burdened by the legacy production of internal combustion engine vehicles that make a compliance obligation more difficult under the program. Therefore, it is the intent of the legislature to address this unintended outcome by taxing the windfall profits from the generation of surplus zero-emission vehicle credits and reinvesting those funds in other programs and incentives that promote cleaner vehicles that further state climate goals.
NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.