Press Releases

Today, Congresswomen Suzan DelBene (WA-01) and Kim Schrier, M.D. (WA-08) led 12 House Members in calling for the Biden administration to provide flexibility around the implementation of the Clean Hydrogen Production Tax Credit (45V Credit) so federal regulations don’t hinder the development of our nascent hydrogen economy. The proposed rules, while well-intentioned, are overly prescriptive and could result in the loss of half of Hydrogen Hub projects across the country. If they are not revised, the rules would set back climate progress, cancel billions in private sector investments, and cost thousands of sustainable, high-paying jobs.

“Consistent with Congress’s intent in the [Inflation Reduction Act], we urge you to consider a more nuanced, regionally-flexible approach that recognizes the varying energy landscapes across our nation. Many states have already implemented robust clean energy policies and carbon pricing mechanisms that inherently limit emissions across all sectors. Imposing additional strict federal guidelines in these regions may be redundant and counterproductive,” the lawmakers wrote.

The letter calls on the Treasury Department to make specific changes to the 45V Credit including:

1. Provide flexibility in incrementality requirements, particularly for states with existing clean energy mandates.
2. Recognize the value of existing clean energy resources, such as hydropower and nuclear, in hydrogen production by allowing production from curtailed capacity from hydropower and nuclear facilities that will be coupled with on-site hydrogen electrolyzers to count towards incrementality requirements.
3. Allow for a gradual implementation of stricter standards to enable the industry to scale up effectively, including a pause in hourly matching requirements until 2032.
4. Consider regional variations in renewable energy availability and grid characteristics when determining compliance requirements.

DelBene and Schrier, along with the Washington and Oregon congressional delegations, were instrumental in securing the designation of the Pacific Northwest (PNWH2) as one of seven clean hydrogen hubs established in the bipartisan infrastructure law. In July, the Biden administration announced that $27.5 million in initial federal investment of a total of $1 billion had been awarded to PNWH2.

A copy of the letter can be found here.