If you receive an error similar to below when calling the GCP API using ADC login credentials with either gcloud or terraform:

Cannot add the project "myproj-i1wsbbn8pkfeq3jhkcg0z4" to ADC as the quota project because the account in ADC does not have the "serviceusage.services.use" permission on this project. You might receive a "quota_exceeded" or "API not enabled" error.

The problem is that a valid quota project is not specified in the local ADC credentials file. Either:

The ADC credentials have an empty or invalid quota project
The quota project does not have the Cloud Resource Manager API enabled
Your user does not have the “Server Usage Admin” role

ADC Credentials have empty or invalid quota project

The local ADC credentials file needs a ‘quota_project_id’ field. Use the grep below to see if it exists.

# will be empty if quota project not defined for ADC
grep quota_project_id ~/.config/gcloud/application_default_credentials.json

If it is empty or uses an invalid/deleted project id, you can fix it without needing to reauthenticate.

# show list of valid project id
gcloud projects list --format="csv[no-heading](project_id)"

# update ADC file with valid project id
gcloud auth application-default set-quota-project <my-quota-project-id>

But the root cause for the ADC file not having a valid quota project is because the ADC defaults to using the main gcloud config values, so you should define the value there for future usage.

# ADC will use the quota project in gcloud as the first fallback
gcloud config set billing/quota_project <my-quota-project-id>

# ADC will use default project as last fallback
gcloud config set project <my-quota-project-id>

Quota Project needs Cloud Resources Manager API enabled

The quota project also needs the Cloud Resources Manager API enabled.

# is required API enabled?
gcloud services list --project <my-quota-project-id> | grep cloudresourcemanager.googleapis.com

# if not, enable
gcloud services enable cloudresourcemanager.googleapis.com --project <my-quota-project-id>

Your user does not have Service Usage Admin role

Your ADC user needs to have the “Service Usage Admin” role (roles/serviceusage.serviceUsageAdmin). This should be set at either the quota project level OR organization level (depending on your user implementation). If your user is Owner/Editor, you already have this permission.

Go to IAM & Admin > IAM, select your user and grant the “Service Usage Admin” role as shown below. You may need to have your GCP administrator add this role.

REFERENCE

Google ref, gcloud auth application-default set-quota-project

Google ref, Application Default Credentials

Google ref, troubleshooting ADC talks about quota project

Google ref, gcloud auth application-default login

Github hashicorp issue, lists breaking change in 2020 that requires quota project

Google release notes, lists breaking change with ADC and quota project

artcoded.net, details how user needs “Service Usage Admin” role when hitting this error

GCP, “Service Usage Admin” role

GCP, Understanding roles “Service Usage Admin”

NOTES

If this is your absolute first project, you can use the Google console web UI to create a project that can specifically be used as the quota project.

Link to enabling Cloud Resource Manager API

https://console.developers.google.com/apis/api/cloudresourcemanager.googleapis.com/overview?project=my-project-id-123

Specifying quota project as parameter

gcloud auth application-default login --project <my-quota-project-id>