Zero-Emission Vehicles Act of 2022 or the ZEVs Act of 2022
This bill requires the Environmental Protection Agency (EPA) to establish a zero-emission passenger vehicle standard. Specifically, the bill sets a schedule for increasing the percentage of zero-emission vehicles a vehicle manufacturer delivers for sale, culminating in a requirement to sell only zero-emission vehicles from 2035 on. The bill also requires the EPA to establish a zero-emission vehicle credit program that approves one zero-emission vehicle credit for each zero-emission vehicle delivered for sale in the United States and partial credits for qualified electric vehicles based on the estimated proportion of the mileage driven on the battery.
Manufacturers that fail to meet the minimum required percentage of zero-emission vehicle sales must submit to the EPA a quantity of zero-emission vehicle credits sufficient to offset the excess.
Credits may also be sold, transferred, exchanged, or retired in certain circumstances.
The bill imposes civil penalties for the failure to comply with zero-emission vehicle credit standards, with collected penalties being deposited into the Highway Trust Fund. After 2035, the EPA must issue injunctions on the manufacture of passenger vehicles other than zero-emission vehicles.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9555 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9555
To amend the Clean Air Act to create a national zero-emission vehicle
standard, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 14, 2022
Mr. Levin of California (for himself, Ms. Barragan, Ms. Bonamici, Ms.
Brownley, Ms. Chu, Mr. Espaillat, Mr. Grijalva, Mr. Huffman, Ms.
Jayapal, Mr. Khanna, Mr. Lieu, Mr. Lowenthal, Ms. Norton, Ms. Porter,
Mr. Case, and Mr. DeSaulnier) introduced the following bill; which was
referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Clean Air Act to create a national zero-emission vehicle
standard, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Zero-Emission Vehicles Act of 2022''
or the ``ZEVs Act of 2022''.
SEC. 2. NATIONAL ZERO-EMISSION VEHICLE STANDARD.
Part A of title II of the Clean Air Act (42 U.S.C. 7521 et seq.) is
amended by adding at the end the following:
``SEC. 220. NATIONAL ZERO-EMISSION VEHICLE STANDARD.
``(a) Definitions.--In this section:
``(1) Base quantity of new passenger vehicles.--The term
`base quantity of new passenger vehicles' means the total
quantity of new passenger vehicles delivered for sale by a
vehicle manufacturer during the most recent model year.
``(2) Passenger vehicle.--The term `passenger vehicle' has
the meaning given the term `passenger motor vehicle' in section
32101 of title 49, United States Code.
``(3) Qualified electric vehicle.--The term `qualified
electric vehicle' means a passenger vehicle that is--
``(A) a new clean vehicle (as defined in section
30D(d) of the Internal Revenue Code of 1986); or
``(B) a new qualified fuel cell motor vehicle (as
defined in section 30B(b)(3) of the Internal Revenue
Code of 1986).
``(4) Retire.--The term `retire', with respect to a zero-
emission vehicle credit, means to disqualify the zero-emission
vehicle credit for any subsequent use under this section,
including sale, transfer, exchange, or submission in
satisfaction of a compliance obligation.
``(5) Vehicle manufacturer.--
``(A) In general.--The term `vehicle manufacturer'
means an entity that--
``(i) engaged in the manufacturing of new
passenger vehicles; and
``(ii) sold not fewer than 100 new
passenger vehicles to ultimate purchasers in
the United States within the current or
previous calendar year, either directly or
through an affiliate, such as a dealer.
``(B) Exclusions.--The term `vehicle manufacturer'
does not include--
``(i) a motor vehicle parts supplier; or
``(ii) a dealer.
``(6) Zero-emission vehicle.--The term `zero-emission
vehicle' means a passenger vehicle that produces zero exhaust
emissions of any criteria pollutant, precursor pollutant, or
greenhouse gas, other than water vapor, in any mode of
operation or condition, as determined by the Administrator.
``(b) Compliance.--For model year 2026 and each model year
thereafter, each vehicle manufacturer shall meet the requirements of
subsections (c) and (d) by submitting to the Administrator, not later
than April 1 of the following calendar year, as applicable--
``(1) for a vehicle manufacturer that fails to meet the
minimum required percentage of zero-emission vehicle sales for
the applicable model year, as determined under subsection (c),
a quantity of zero-emission vehicle credits sufficient to
offset that excess, as determined by the Administrator; or
``(2) for a vehicle manufacturer that meets or exceeds the
minimum required percentage of zero-emission vehicle sales for
the applicable model year, as determined under subsection (c),
a certification of that compliance, as the Administrator
determines to be appropriate.
``(c) Minimum Required Annual Percentage of Zero-Emission Vehicle
Credits.--For model years 2026 through 2035, in annual increments, the
minimum annual percentage of the base quantity of new passenger
vehicles of a vehicle manufacturer delivered for sale that are
equivalent to zero-emission vehicles, based on the issuance of zero-
emission vehicle credits, shall be the applicable percentage specified
in the following table:
``Minimum Required Annual Percentage of Zero-Emission Vehicle Credits
------------------------------------------------------------------------
Model Year Percentage
------------------------------------------------------------------------
2026....................................................... 35.0
2027....................................................... 43.0
2028....................................................... 51.0
2029....................................................... 59.0
2030....................................................... 68.0
2031....................................................... 76.0
2032....................................................... 82.0
2033....................................................... 88.0
2034....................................................... 94.0
2035....................................................... 100.0.
------------------------------------------------------------------------
``(d) Requirement for 2035 and Thereafter.--For model year 2035 and
each model year thereafter, a vehicle manufacturer shall sell only
zero-emission vehicles.
``(e) Zero-Emission Vehicle Credits.--
``(1) In general.--A vehicle manufacturer may satisfy the
requirements of subsection (b) through the submission of zero-
emission vehicle credits--
``(A) issued to the vehicle manufacturer under
subsection (f); or
``(B) obtained by purchase, transfer, or exchange
under subsection (g).
``(2) Limitation.--A zero-emission vehicle credit may be
counted toward compliance with subsection (b) only once.
``(f) Issuance of Zero-Emission Vehicle Credits.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, the Administrator shall establish by
rule a program--
``(A) to verify and issue zero-emission vehicle
credits to vehicle manufacturers;
``(B) to track the sale, transfer, exchange, carry
over, and retirement of zero-emission vehicle credits;
and
``(C) to enforce the requirements of this section.
``(2) Application.--
``(A) In general.--A vehicle manufacturer that
delivered for sale, either directly or through an
affiliate, such as a dealer, a new zero-emission
vehicle or a qualified electric vehicle in the United
States may apply to the Administrator for the issuance
of a zero-emission vehicle credit.
``(B) Eligibility.--To be eligible for the issuance
of a zero-emission vehicle credit, a vehicle
manufacturer shall demonstrate to the Administrator
that the vehicle manufacturer delivered for sale 1 or
more zero-emission vehicles or qualified electric
vehicles in the previous model year.
``(C) Contents.--The application shall indicate--
``(i) the type of zero-emission vehicle or
qualified electric vehicle that was delivered
for sale;
``(ii) the State in which the zero-emission
vehicle or qualified electric vehicle was
delivered for sale; and
``(iii) any other information determined to
be appropriate by the Administrator.
``(D) Aggregation.--An application for a zero-
emission vehicle credit under subparagraph (A) may
aggregate information on all zero-emission vehicles and
qualified electric vehicles delivered for sale by the
vehicle manufacturer in the applicable model year.
``(3) Quantity of zero-emission vehicle credits.--
``(A) Zero-emission vehicles.--The Administrator
shall issue to a vehicle manufacturer the application
under paragraph (2) of which is approved 1 zero-
emission vehicle credit for each zero-emission vehicle
delivered for sale in the United States.
``(B) Qualified electric vehicles.--For a qualified
electric vehicle delivered for sale by a vehicle
manufacturer the application under paragraph (2) of
which is approved, the Administrator shall issue a
partial zero-emission vehicle credit based on the
estimated proportion of the mileage driven--
``(i) with respect to a qualified electric
vehicle described in subsection (a)(3)(A), on
the battery of the qualified electric vehicle,
as determined by the Administrator; and
``(ii) with respect to a qualified electric
vehicle described in subsection (a)(3)(B), on
hydrogen that is produced through a process
that results in a lifecycle greenhouse gas
emissions (as defined in section 45V(c) of the
Internal Revenue Code of 1986) rate of less
than 0.45 kilograms of carbon dioxide-
equivalent per kilogram of hydrogen, as
determined by the Administrator.
``(C) Credit banking.--A zero-emission vehicle
credit issued for any model year that is not submitted
to comply with the minimum annual percentage of zero-
emission vehicles under subsection (c) during that
model year may be carried forward for use pursuant to
subsection (b)(1) within the next 5 years, but not
later than model year 2035.
``(g) Zero-Emission Vehicle Credit Trading.--
``(1) In general.--A zero-emission vehicle credit for any
model year before 2035 that is not submitted to the
Administrator to comply with the minimum annual percentage of
zero-emission vehicles under subsection (c) for that model year
may be sold, transferred, or exchanged by the vehicle
manufacturer to which the credit is issued or by any other
entity that acquires the zero-emission vehicle credit.
``(2) Delegation.--
``(A) In general.--The Administrator may delegate
to an appropriate market-making entity the
administration of a national tradeable zero-emission
vehicle credit market for purposes of creating a
transparent national market for the sale or trade of
zero-emission vehicle credits.
``(B) Public report.--If the Administrator makes a
delegation under subparagraph (A), the entity to which
the Administrator made the delegation shall annually
submit to Congress and make available to the public a
report describing the status of the zero-emission
vehicle credit market.
``(h) Zero-Emission Vehicle Credit Retirement.--
``(1) In general.--Any entity that obtains legal rights to
a zero-emission vehicle credit may retire the zero-emission
vehicle credit in any model year.
``(2) Use of retired zero-emission vehicle credit.--A zero-
emission vehicle credit retired under paragraph (1) may not be
used for compliance with subsection (b) in--
``(A) the model year in which the zero-emission
vehicle credit is retired; or
``(B) any subsequent model year.
``(i) Information Collection.--The Administrator may collect the
information necessary to verify and audit--
``(1) the model year sales of passenger vehicles of any
vehicle manufacturer;
``(2) a zero-emission vehicle credit submitted by a vehicle
manufacturer pursuant to subsection (b)(1);
``(3) the validity of a zero-emission vehicle credit
submitted for compliance by a vehicle manufacturer to the
Administrator; and
``(4) the quantity of passenger vehicles delivered for sale
in the United States of all vehicle manufacturers.
``(j) State Programs.--
``(1) In general.--Nothing in this section shall preempt
the authority of a State or political subdivision of a State to
adopt or enforce any law (including regulations) relating to
motor vehicles, including the authority to set standards for
motor vehicle emissions and zero-emission vehicle requirements
under section 177 and section 209.
``(2) Compliance with section.--No law or regulation of a
State or political subdivision of a State shall relieve any
vehicle manufacturer from compliance with any requirement
otherwise applicable under this section.
``(k) Sense of Congress.--It is the sense of Congress that vehicle
manufacturers should diversify vehicle technologies and models to
ensure consumer choice and access.
``(l) Regulations.--Not later than 540 days after the date of
enactment of this section, the Administrator shall promulgate
regulations to implement this section.
``(m) Enforcement.--
``(1) Civil penalty.--
``(A) In general.--A vehicle manufacturer that
fails to comply with subsection (b) shall be liable for
a civil penalty, assessed by the Administrator, in an
amount that is equal to twice the average value of the
aggregate quantity of zero-emission vehicle credits
that the vehicle manufacturer failed to submit in
violation of that subsection, as determined by the
Administrator.
``(B) Enforcement.--The Administrator shall assess
any civil penalty under subparagraph (A).
``(C) Deposit.--With respect to any civil penalty
paid to the Administrator pursuant to subparagraph (A),
the Administrator shall deposit the amount into the
Highway Trust Fund established by section 9503(a) of
the Internal Revenue Code of 1986.
``(2) Injunction.--After model year 2035, the Administrator
shall issue an injunction on the manufacture of any passenger
vehicles other than zero-emission vehicles by a vehicle
manufacturer.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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