Clean Cars waiver rescission trims zero-emission vehicle credit receipts; ERC cuts estimates by about $35 million

The council’s forecast for revenue tied to zero-emission vehicle (ZEV) credits was reduced by approximately $35 million per year after federal action rescinded California Clean Air Act waivers that Washington had referenced in fiscal notes.

Dave Wright told the council the federal rescission created uncertainty about how state-level ZEV-credit markets would function going forward and said "we have lowered those receipts by about 35,000,000 a year." He added the Department of Ecology has paused certain enforcement expectations pending legal developments and that the Department of Revenue plans to submit invoices to manufacturers in January to establish actual first-year revenues.

Wright said the ERC will watch DOR invoicing and court developments closely and expects to report updated ZEV-credit revenue information in the November or March forecast updates, depending on available data.