State Legislators Praise Administration’s Decision Around Clean Hydrogen Tax Credit

State legislators are pleased to see the Administration’s new 45V clean hydrogen tax credit guidance.

In June, more than 130 state legislators from 36 states and territories submitted a letter urging the Treasury Department, the Department of Energy, and the White House to require all eligible projects to comply with three criteria for clean electrolytic hydrogen: additionality, deliverability, and hourly matching.

Today marks a huge success for clean energy across the country and is promising for transitioning hard to decarbonize sectors. These rules will allow for a durable and truly clean hydrogen market, without increasing emissions, exacerbating environmental injustices, or decreasing air quality.

States have already been acting to ensure clean hydrogen advancement. In May, Colorado passed legislation defining “clean hydrogen” eligible for state subsidies as complying with the three criteria by no later than 2028, with backstops that could trigger them earlier to protect against negative consequences. States continue to show the way forward for how the country should transition to a clean energy economy, and legislators are excited to see the Administration follow their example.

Responses from State Legislators

Senator Lisa Cutter, Colorado

We are at a critical juncture in our transition to clean energy, and accelerating our efforts means we need to explore new technologies. But our children’s future is at stake – we must continue to be thoughtful and deliberate in developing truly clean alternative energy and move away from our reliance on fossil fuels.

It’s incredibly encouraging that the Biden Administration has recognized the need for guard rails around emerging energy sources in their rule-making for the clean hydrogen tax credit.

Representative Danielle Friel Otten, Pennsylvania

Truly green hydrogen holds great potential to facilitate our clean-energy transition and help us fuel hard-to-decarbonize sectors like manufacturing and long-haul transportation. Three-pillar compliance will be the keystone to successfully advancing our decarbonization goals through hydrogen development, and I’m grateful to see the Biden administration listening to experts to ensure that hydrogen production is adding new clean energy to the grid, protecting consumers and the environment, and expanding clean-energy jobs.