California will get a $247 million refund because of delayed delivery of protective masks it ordered under a deal with a Chinese manufacturer.
A state spokesman said Wednesday that the N95 respirator masks failed to meet an April 30 deadline for U.S. federal certification.
The state disclosed the refund when it released the nearly $1 billion contract with BYD, a Chinese-based electric vehicle company now making masks.
Tens of millions of masks were set to arrive in California this month.
The company now has until May 31 to get certification and must refund the rest of the state's up-front payment if it fails to meet that deadline.