The U.S. Treasury Department has finalized regulations for clean hydrogen production tax credits, implementing the Section 45V credit. These rules impact the renewable energy sector by setting requirements for qualifying for the credit and resolving disputes over carbon intensity (CI) calculations. The CI, crucial for determining eligibility and credit amount, will be based on life cycle emissions using the GREET model. The regulations cover various areas such as provisional emissions rates, clean hydrogen production verification, and using renewable energy for hydrogen production. Additionally, the rules address issues like additionality, hourly matching, and deliverability for zero-carbon electricity. In detail, the rules stipulate that CI is determined based on well-to-gate emissions, including all processes from feedstock to hydrogen production. The regulations address issues like electricity additionality, allowing flexibility for existing facilities and specifying conditions for new renewable generation. Hourly matching requirements are phased in, starting with annual matching until 2029 and transitioning to hourly matching by 2030. The regulations also cover deliverability, with rules aligning electricity generation with hydrogen production regions. Developers can optimize their Section 45V credit by ensuring hydrogen CI meets set thresholds. The credit value varies based on CI levels, with incentives for lower emissions. The rules provide opportunities for taxpayers to enhance their credit value by calculating emissions on an hourly basis. Overall, the regulations offer clarity for the clean hydrogen sector and outline strategies for maximizing tax incentives while promoting environmentally friendly practices.