Congress Urges Biden Administration to Finalize Clean Hydrogen Tax Credit Rules
Key Ideas
  • Members of Congress led by Senators Whitehouse and Merkley advocate for finalizing strict rules for the Section 45V Tax Credit for Clean Hydrogen production under the Inflation Reduction Act.
  • The lawmakers emphasize the importance of reducing carbon emissions and supporting the growth of the clean hydrogen industry through tax incentives and evidence-based policy.
  • The proposed regulations prioritize clean hydrogen production aligned with the pillars of additionality, deliverability, and hourly time-based matching to ensure genuine emission reductions and prevent greenwashing.
  • A coalition of Congress members and environmental organizations, including Climate Action Campaign and Sierra Club, back the letter endorsing the regulations for the Clean Hydrogen Production Credit.
In a recent development, Senators Sheldon Whitehouse and Jeff Merkley, along with Representatives Jamie Raskin and Don Beyer, spearheaded a letter signed by 66 members of Congress urging the Biden Administration to finalize stringent rules for the Section 45V Tax Credit for Clean Hydrogen production. The lawmakers stressed the necessity of aligning the regulations with Congressional intent to drive substantial emissions reductions and foster growth in the emerging clean hydrogen sector. They emphasized the importance of not compromising on climate commitments and deploying evidence-based policy to advance clean manufacturing in the United States. The Inflation Reduction Act, which incorporates various clean energy tax credits, including the Section 45V Clean Hydrogen Production Tax Credit, aims to promote decarbonization technologies. Clean hydrogen, although in its early stages of development, holds promise in reducing emissions across industries like aviation, shipping, and steelmaking. The 45V tax credit was designed to stimulate innovation in the hydrogen industry and enable clean hydrogen to compete with conventional 'grey' hydrogen. The proposed regulations by the U.S. Treasury Department focus on a three-pillar framework that prioritizes additional, deliverable, and time-based matching aspects to ensure that clean hydrogen production adheres to stringent standards. This framework guards against fossil fuel greenwashing and promotes the use of new renewable energy sources in hydrogen generation. The letter was supported by prominent Senators and Representatives, including Ed Markey, Bernie Sanders, Elizabeth Warren, and Cory Booker, and received backing from environmental organizations like Earthjustice and the Sierra Club. The collective endorsement emphasizes the importance of implementing regulations that drive genuine emission reductions and support environmental justice communities in the transition to clean energy.
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