II 

117TH CONGRESS 

2D SESSION S. 5263 

To amend the Clean Air Act to create a national zero-emission vehicle 

standard, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 14, 2022 

Mr. MERKLEY (for himself and Mr. WHITEHOUSE) introduced the following 

bill; which was read twice and referred to the Committee on Environment 

and Public Works 

A BILL 

To amend the Clean Air Act to create a national zeroemission vehicle standard, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Zero-Emission Vehicles 

5 Act of 2022’’ or the ‘‘ZEVs Act of 2022’’. 

6 SEC. 2. NATIONAL ZERO-EMISSION VEHICLE STANDARD. 

7 Part A of title II of the Clean Air Act (42 U.S.C. 

8 7521 et seq.) is amended by adding at the end the fol9 lowing: 


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1 ‘‘SEC. 220. NATIONAL ZERO-EMISSION VEHICLE STANDARD. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) BASE QUANTITY OF NEW PASSENGER VE4 HICLES.—The term ‘base quantity of new passenger 

5 vehicles’ means the total quantity of new passenger 

6 vehicles delivered for sale by a vehicle manufacturer 

7 during the most recent model year. 

8 ‘‘(2) PASSENGER VEHICLE.—The term ‘pas9 senger vehicle’ has the meaning given the term ‘pas10 senger motor vehicle’ in section 32101 of title 49, 

11 United States Code. 

12 ‘‘(3) QUALIFIED ELECTRIC VEHICLE.—The 

13 term ‘qualified electric vehicle’ means a passenger 

14 vehicle that is— 

15 ‘‘(A) a new clean vehicle (as defined in sec16 tion 30D(d) of the Internal Revenue Code of 

17 1986); or 

18 ‘‘(B) a new qualified fuel cell motor vehicle 

19 (as defined in section 30B(b)(3) of the Internal 

20 Revenue Code of 1986). 

21 ‘‘(4) RETIRE.—The term ‘retire’, with respect 

22 to a zero-emission vehicle credit, means to disqualify 

23 the zero-emission vehicle credit for any subsequent 

24 use under this section, including sale, transfer, ex25 change, or submission in satisfaction of a compliance 

26 obligation. 


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1 ‘‘(5) VEHICLE MANUFACTURER.— 

2 ‘‘(A) IN GENERAL.—The term ‘vehicle 

3 manufacturer’ means an entity that— 

4 ‘‘(i) engaged in the manufacturing of 

5 new passenger vehicles; and 

6 ‘‘(ii) sold not fewer than 100 new pas7 senger vehicles to ultimate purchasers in 

8 the United States within the current or 

9 previous calendar year, either directly or 

10 through an affiliate, such as a dealer. 

11 ‘‘(B) EXCLUSIONS.—The term ‘vehicle 

12 manufacturer’ does not include— 

13 ‘‘(i) a motor vehicle parts supplier; or 

14 ‘‘(ii) a dealer. 

15 ‘‘(6) ZERO-EMISSION VEHICLE.—The term 

16 ‘zero-emission vehicle’ means a passenger vehicle 

17 that produces zero exhaust emissions of any criteria 

18 pollutant, precursor pollutant, or greenhouse gas, 

19 other than water vapor, in any mode of operation or 

20 condition, as determined by the Administrator. 

21 ‘‘(b) COMPLIANCE.—For model year 2026 and each 

22 model year thereafter, each vehicle manufacturer shall 

23 meet the requirements of subsections (c) and (d) by sub24 mitting to the Administrator, not later than April 1 of 

25 the following calendar year, as applicable— 


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1 ‘‘(1) for a vehicle manufacturer that fails to 

2 meet the minimum required percentage of zero-emis3 sion vehicle sales for the applicable model year, as 

4 determined under subsection (c), a quantity of zero5 emission vehicle credits sufficient to offset that ex6 cess, as determined by the Administrator; or 

7 ‘‘(2) for a vehicle manufacturer that meets or 

8 exceeds the minimum required percentage of zero9 emission vehicle sales for the applicable model year, 

10 as determined under subsection (c), a certification of 

11 that compliance, as the Administrator determines to 

12 be appropriate. 

13 ‘‘(c) MINIMUM REQUIRED ANNUAL PERCENTAGE OF

14 ZERO-EMISSION VEHICLE CREDITS.—For model years 

15 2026 through 2035, in annual increments, the minimum 

16 annual percentage of the base quantity of new passenger 

17 vehicles of a vehicle manufacturer delivered for sale that 

18 are equivalent to zero-emission vehicles, based on the 

19 issuance of zero-emission vehicle credits, shall be the appli20 cable 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


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‘‘Minimum Required Annual Percentage of Zero-Emission Vehicle 

Credits—Continued 

Model Year Percentage 

2033 ................................................................................................ 88.0

2034 ................................................................................................ 94.0

2035 ................................................................................................ 100.0. 

1 ‘‘(d) REQUIREMENT FOR 2035 AND THEREAFTER.— 

2 For model year 2035 and each model year thereafter, a 

3 vehicle manufacturer shall sell only zero-emission vehicles. 

4 ‘‘(e) ZERO-EMISSION VEHICLE CREDITS.— 

5 ‘‘(1) IN GENERAL.—A vehicle manufacturer 

6 may satisfy the requirements of subsection (b) 

7 through the submission of zero-emission vehicle 

8 credits— 

9 ‘‘(A) issued to the vehicle manufacturer 

10 under subsection (f); or 

11 ‘‘(B) obtained by purchase, transfer, or ex12 change under subsection (g). 

13 ‘‘(2) LIMITATION.—A zero-emission vehicle 

14 credit may be counted toward compliance with sub15 section (b) only once. 

16 ‘‘(f) ISSUANCE OF ZERO-EMISSION VEHICLE CRED17 ITS.— 

18 ‘‘(1) IN GENERAL.—Not later than 2 years 

19 after the date of enactment of this section, the Ad20 ministrator shall establish by rule a program— 


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1 ‘‘(A) to verify and issue zero-emission vehi2 cle credits to vehicle manufacturers; 

3 ‘‘(B) to track the sale, transfer, exchange, 

4 carry over, and retirement of zero-emission ve5 hicle credits; and 

6 ‘‘(C) to enforce the requirements of this 

7 section. 

8 ‘‘(2) APPLICATION.— 

9 ‘‘(A) IN GENERAL.—A vehicle manufac10 turer that delivered for sale, either directly or 

11 through an affiliate, such as a dealer, a new 

12 zero-emission vehicle or a qualified electric vehi13 cle in the United States may apply to the Ad14 ministrator for the issuance of a zero-emission 

15 vehicle credit. 

16 ‘‘(B) ELIGIBILITY.—To be eligible for the 

17 issuance of a zero-emission vehicle credit, a ve18 hicle manufacturer shall demonstrate to the Ad19 ministrator that the vehicle manufacturer deliv20 ered for sale 1 or more zero-emission vehicles or 

21 qualified electric vehicles in the previous model 

22 year. 

23 ‘‘(C) CONTENTS.—The application shall 

24 indicate— 


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1 ‘‘(i) the type of zero-emission vehicle 

2 or qualified electric vehicle that was deliv3 ered for sale; 

4 ‘‘(ii) the State in which the zero-emis5 sion vehicle or qualified electric vehicle was 

6 delivered for sale; and 

7 ‘‘(iii) any other information deter8 mined to be appropriate by the Adminis9 trator. 

10 ‘‘(D) AGGREGATION.—An application for a 

11 zero-emission vehicle credit under subparagraph 

12 (A) may aggregate information on all zero-emis13 sion vehicles and qualified electric vehicles deliv14 ered for sale by the vehicle manufacturer in the 

15 applicable model year. 

16 ‘‘(3) QUANTITY OF ZERO-EMISSION VEHICLE

17 CREDITS.— 

18 ‘‘(A) ZERO-EMISSION VEHICLES.—The Ad19 ministrator shall issue to a vehicle manufac20 turer the application under paragraph (2) of 

21 which is approved 1 zero-emission vehicle credit 

22 for each zero-emission vehicle delivered for sale 

23 in the United States. 

24 ‘‘(B) QUALIFIED ELECTRIC VEHICLES.— 

25 For a qualified electric vehicle delivered for sale 


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1 by a vehicle manufacturer the application under 

2 paragraph (2) of which is approved, the Admin3 istrator shall issue a partial zero-emission vehi4 cle credit based on the estimated proportion of 

5 the mileage driven— 

6 ‘‘(i) with respect to a qualified electric 

7 vehicle described in subsection (a)(3)(A), 

8 on the battery of the qualified electric vehi9 cle, as determined by the Administrator; 

10 and 

11 ‘‘(ii) with respect to a qualified elec12 tric vehicle described in subsection 

13 (a)(3)(B), on hydrogen that is produced 

14 through a process that results in a lifecycle 

15 greenhouse gas emissions (as defined in 

16 section 45V(c) of the Internal Revenue 

17 Code of 1986) rate of less than 0.45 kilo18 grams of carbon dioxide-equivalent per 

19 kilogram of hydrogen, as determined by 

20 the Administrator. 

21 ‘‘(C) CREDIT BANKING.—A zero-emission 

22 vehicle credit issued for any model year that is 

23 not submitted to comply with the minimum an24 nual percentage of zero-emission vehicles under 

25 subsection (c) during that model year may be 


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1 carried forward for use pursuant to subsection 

2 (b)(1) within the next 5 years, but not later 

3 than model year 2035. 

4 ‘‘(g) ZERO-EMISSION VEHICLE CREDIT TRADING.— 

5 ‘‘(1) IN GENERAL.—A zero-emission vehicle 

6 credit for any model year before 2035 that is not 

7 submitted to the Administrator to comply with the 

8 minimum annual percentage of zero-emission vehi9 cles under subsection (c) for that model year may be 

10 sold, transferred, or exchanged by the vehicle manu11 facturer to which the credit is issued or by any other 

12 entity that acquires the zero-emission vehicle credit. 

13 ‘‘(2) DELEGATION.— 

14 ‘‘(A) IN GENERAL.—The Administrator 

15 may delegate to an appropriate market-making 

16 entity the administration of a national tradeable 

17 zero-emission vehicle credit market for purposes 

18 of creating a transparent national market for 

19 the sale or trade of zero-emission vehicle cred20 its. 

21 ‘‘(B) PUBLIC REPORT.—If the Adminis22 trator makes a delegation under subparagraph 

23 (A), the entity to which the Administrator made 

24 the delegation shall annually submit to Con25 gress and make available to the public a report 


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1 describing the status of the zero-emission vehi2 cle credit market. 

3 ‘‘(h) ZERO-EMISSION VEHICLE CREDIT RETIRE4 MENT.— 

5 ‘‘(1) IN GENERAL.—Any entity that obtains 

6 legal rights to a zero-emission vehicle credit may re7 tire the zero-emission vehicle credit in any model 

8 year. 

9 ‘‘(2) USE OF RETIRED ZERO-EMISSION VEHICLE

10 CREDIT.—A zero-emission vehicle credit retired 

11 under paragraph (1) may not be used for compliance 

12 with subsection (b) in— 

13 ‘‘(A) the model year in which the zero14 emission vehicle credit is retired; or 

15 ‘‘(B) any subsequent model year. 

16 ‘‘(i) INFORMATION COLLECTION.—The Adminis17 trator may collect the information necessary to verify and 

18 audit— 

19 ‘‘(1) the model year sales of passenger vehicles 

20 of any vehicle manufacturer; 

21 ‘‘(2) a zero-emission vehicle credit submitted by 

22 a vehicle manufacturer pursuant to subsection 

23 (b)(1); 


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1 ‘‘(3) the validity of a zero-emission vehicle cred2 it submitted for compliance by a vehicle manufac3 turer to the Administrator; and 

4 ‘‘(4) the quantity of passenger vehicles delivered 

5 for sale in the United States of all vehicle manufac6 turers. 

7 ‘‘(j) STATE PROGRAMS.— 

8 ‘‘(1) IN GENERAL.—Nothing in this section 

9 shall preempt the authority of a State or political 

10 subdivision of a State to adopt or enforce any law 

11 (including regulations) relating to motor vehicles, in12 cluding the authority to set standards for motor ve13 hicle emissions and zero-emission vehicle require14 ments under section 177 and section 209. 

15 ‘‘(2) COMPLIANCE WITH SECTION.—No law or 

16 regulation of a State or political subdivision of a 

17 State shall relieve any vehicle manufacturer from 

18 compliance with any requirement otherwise applica19 ble under this section. 

20 ‘‘(k) SENSE OF CONGRESS.—It is the sense of Con21 gress that vehicle manufacturers should diversify vehicle 

22 technologies and models to ensure consumer choice and 

23 access. 


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1 ‘‘(l) REGULATIONS.—Not later than 540 days after 

2 the date of enactment of this section, the Administrator 

3 shall promulgate regulations to implement this section. 

4 ‘‘(m) ENFORCEMENT.— 

5 ‘‘(1) CIVIL PENALTY.— 

6 ‘‘(A) IN GENERAL.—A vehicle manufac7 turer that fails to comply with subsection (b) 

8 shall be liable for a civil penalty, assessed by 

9 the Administrator, in an amount that is equal 

10 to twice the average value of the aggregate 

11 quantity of zero-emission vehicle credits that 

12 the vehicle manufacturer failed to submit in vio13 lation of that subsection, as determined by the 

14 Administrator. 

15 ‘‘(B) ENFORCEMENT.—The Administrator 

16 shall assess any civil penalty under subpara17 graph (A). 

18 ‘‘(C) DEPOSIT.—With respect to any civil 

19 penalty paid to the Administrator pursuant to 

20 subparagraph (A), the Administrator shall de21 posit the amount into the Highway Trust Fund 

22 established by section 9503(a) of the Internal 

23 Revenue Code of 1986. 

24 ‘‘(2) INJUNCTION.—After model year 2035, the 

25 Administrator shall issue an injunction on the manuVerDate Sep 11 2014 03:50 Dec 22, 2022 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S5263.IS S5263

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1 facture of any passenger vehicles other than zero2 emission vehicles by a vehicle manufacturer.’’. 

Æ 


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