Pair of bills could dramatically alter direct-to-consumer EV sales in Washington state
The two bills were introduced in the state Senate in January, and franchised dealers are voicing opposition.
Washington state is a key EV market and is one of the states that adopted California's zero-emission vehicle program rules.
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The bipartisan Senate Bill 5592 would allow manufacturers of zero-emission vehicles to offer direct sales if a brand establishes at least two service centers in Washington and provides mobile service prior to commencing sales. The bill also would allow online direct sales if the vehicles are delivered through a designated service center, delivery center or 'an authorized partnered dealership.'
Washington law now prohibits direct-to-consumer vehicle sales except for Tesla. Rivian and Lucid operate showrooms and service centers in the state, however.
Multiple Washington dealers, in a state Senate labor and commerce hearing on Feb. 4., spoke against Senate Bill 5592 but were in favor of Senate Bill 5377, which would impact Tesla.
Senate Bill 5377 would repeal an exemption given to Tesla in 2014 that allows the brand to sell direct to consumer and bypass franchised dealerships.
Washington State Sen. Rebecca Saldaña, a Democrat, is a sponsor of both bills. She acknowledged the two bills seem contradictory, but said the state is nowhere close to reaching its goal of 100 percent of all new passenger vehicles and light-duty trucks being zero-emission by 2035.
'It has been, I feel, unfair that one company ... had this exemption for all these years, especially now when we have so many other companies,' Saldaña said before public comment.
Dealer Brad Brotherton, who owns two General Motors dealerships in suburban Seattle, is against Senate Bill 5592.
'When Tesla entered the market, EVs were a novelty and exceptions were made,' Brotherton said during the hearing. 'That's no longer necessary.'
Susan Daaga, general counsel for the Washington State Auto Dealers Association, also testified against Senate Bill 5592.
Representatives for Lucid and Rivian both said during the hearing they opposed Senate Bill 5377, but support Senate Bill 5592. A representative for Tesla also opposed Senate Bill 5377.
'Tesla has been and continues to be Washington state's catalyst for electric vehicle adoption,' said Ava Ames, Tesla's Northwest regional sales and delivery manager. Ames said if Tesla was unable to sell direct to consumer, it would hurt Washington's continued transition to sustainable transportation and would limit consumer choice.
Senate Bill 5592 was first read Jan. 30. A companion bill in the state's House of Representatives was first read Jan. 29 and is in the House's consumer protection and business committee.
Senate Bill 5377 was first read Jan. 20 and is in the Senate's labor and commerce committee.
The legislative session began on Jan. 13 and ends on April 27.
Washington State Standard reported on Feb. 4 that franchised dealers opposed and blocked a similar effort in the 2024 session, despite strong support of then Gov. Jay Inslee, a Democrat. Inslee, a longtime EV advocate, did not seek reelection and was succeeded by Bob Ferguson, also a Democrat.
Senate Bill 5592 also would include training and infrastructure grants from the Washington State Department of Commerce.
The bill said the department must establish a zero emission vehicle technician training and infrastructure grant program at traditional dealerships. Funds would be used only for publicly available charging and equipment infrastructure, plus employee training on EV technology and service.
The bill notes that a qualified zero emissions vehicle manufacturer could also partner with 'traditional auto dealers to operate as service centers or delivery partners for the direct sale of ZEVs.'
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