Washington’s direct-sales measure is now law, not a pending bill. Engrossed Substitute Senate Bill 6354 became Chapter 186, Laws of 2026, and most of it took effect June 11, 2026. It creates a narrow licensing route that lets certain electric-vehicle manufacturers own dealerships that sell their own new vehicles and provide financing, leasing, and servicing for their own makes. Rivian and Lucid may fit the criteria, but the statute does not name either company. Nothing published so far confirms that either one has received the Washington dealer license or is taking direct orders from Washington buyers.
What the law changes
Washington’s dealer system generally requires new vehicles to pass through licensed independent franchise dealers. The new section carves out a limited exception. A qualifying manufacturer may apply for a vehicle-dealer license, but only to sell new vehicles of its own makes or lines that are not sold new by a licensed independent franchise dealer. The Legislature describes this as an exception inside the existing regulated framework, and the findings in the act still emphasize consumer protection, service availability, fair competition, and the role of dealerships.
Timeline and effective dates
- March 11, 2026: House passed the measure.
- March 12, 2026: Senate passed the measure.
- March 24, 2026: Governor Bob Ferguson approved the bill.
- March 25, 2026: Bill was filed.
- June 11, 2026: Act took effect, except Section 7.
- October 1, 2026: Section 7, the title-fee change, took effect. As of this article’s date, it is already in force.
Who qualifies
A manufacturer must meet every one of the following conditions to use the route:
- It is incorporated in the United States.
- It has never entered a franchise agreement with a motor vehicle dealer.
- It operated at least one service facility in Washington as of January 1, 2026.
- It exclusively produces battery-electric vehicles.
- At least 300 of its vehicles were registered in Washington before January 1, 2026.
The exemption also has boundaries. It does not allow a manufacturer that is barred from dealing directly to distribute vehicles through this route, and it does not cover a company that such a manufacturer majority-owns or controls.
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How a manufacturer gets licensed
Meeting the criteria opens a licensing path. It does not, by itself, authorize sales. The steps in the act are:
- Apply for a vehicle-dealer license and keep it active. Licensing is handled by the Department of Licensing.
- Submit a sworn affidavit from an authorized agent confirming that the company meets each eligibility criterion.
- Limit dealership sales to new vehicles of its own makes or lines that no licensed independent franchise dealer sells new.
- Keep meeting the criteria. If the company stops qualifying, the Department of Licensing must revoke the dealer license within 30 days.
Penalties and enforcement
A manufacturer that is prohibited from acting as a dealer and does not qualify for the exemption faces a $10,000 penalty for each Washington retail sale or lease. The Department of Licensing and the Attorney General share enforcement of the penalty provisions.
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Title fee and EV rebate funding
Section 7 changes title fees from October 1, 2026 through December 31, 2036. The table shows the fee structure as described in the enacted text.
| Title application | Fee | Notes |
|---|---|---|
| Vehicle dealer or lessor retail sale or lease of a new or used vehicle | $40 | Includes a $25 increase; applies until December 31, 2036 |
| Other title applications | $15 | Unchanged |
The $25 increase is split by statute. Thirty-five percent (about $8.75 of each $25) goes to the Electric Vehicle Account, which funds instant rebates that reduce the purchase or lease cost of EVs for eligible vulnerable populations. Sixty-five percent (about $16.25 of each $25) goes to the Multimodal Transportation Account. The Department of Commerce rebate program depends on the Legislature appropriating money for it.
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Earlier bill reports listed different fee figures during the legislative process. Use the enrolled statute for the final amount and allocation. The enacted provisions described here do not say how the increase is passed through to buyers.
What remains unconfirmed
- Licensing status. No public confirmation that Rivian or Lucid holds a Washington vehicle-dealer license under this section.
- Current availability. No confirmation that either company currently sells vehicles directly to Washington consumers.
- Rebate operations. The status of the instant-rebate program, and which buyers will be eligible in practice, has not been established.
- Adoption estimate. The 13% figure discussed below is a projection, not a measured outcome.
The 13% adoption estimate
The House committee report attributes to independent research an estimate that allowing direct EV sales could increase zero-emission vehicle adoption by up to 13% by 2030. Treat this as a projection cited secondhand in legislative materials. It is not an observed result from Washington, and the methodology of the underlying study is not examined here.
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Arguments on each side
The House committee report records the stakeholder arguments below. They are positions raised in a legislative report, not established findings.
Access and purchase choice
- Supporters say direct sales could widen EV access and give buyers another way to purchase.
- Opponents object that the measure gives preferential treatment to newer manufacturers compared with legacy automakers.
Dealer competition and the franchise model
- Opponents defend the franchise model and warn that an exception could alter competition among vehicle retailers.
- Supporters argue that a limited route keeps the change narrow enough to leave the wider dealer system intact.
Consumer protection, servicing, and continuity
- Supporters argue that direct sales could improve continuity of service between maker and owner.
- Opponents raise consumer safeguards if a manufacturer fails and ask for transparency on warranty-repair costs.
Public funding for rebates and transit
- Supporters point to the fee revenue as a way to fund rebates for lower-income buyers, alongside multimodal transportation.
Voices in the debate
These quotations come from the bill sponsor’s office release and its account of testimony. They are attributed to the speakers as reported there; they have not been checked against a hearing transcript.
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- Sen. Marko Liias, bill sponsor: “Making it easier for people to choose an EV is essential for reducing emissions in our transportation sector,” Liias said.
- Abigail Ramsden, Rivian’s western-states policy manager: “Rivian welcomes the opportunity to operate within a clear regulatory framework. We are fully committed to meeting all obligations while upholding the highest standards of consumer protection and transparency,” Ramsden said.
- Mike Carroll, a family dealership owner in Skagit County: “It takes a cautious approach to allowing new entrants into the market and upholds the Legislature’s intent to protect consumers and maintain fair competition among vehicle retailers,” Carroll said.
What this means if you are buying a car in Washington
For now, a Rivian or Lucid purchase in Washington still follows the existing path unless and until the company is licensed and offering direct sales. Before planning around the law, check the following:
- Ask any seller whether it holds a Washington vehicle-dealer license, and confirm that in writing.
- If you buy or lease through a dealer or lessor from October 1, 2026 onward, look for the $40 title application line on the paperwork rather than the $15 standard fee.
- Do not assume a rebate is available. Eligibility and funding depend on appropriations and a program whose operation has not been confirmed.
- Ask who will handle warranty and service work, especially if a newer manufacturer sells directly.
The shift in buying options is real, but for most Washington shoppers it is still a future one.
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