Proposed Hydrogen Tax Credit Regs Establish Important Climate Protections; Opportunities Exist to Strengthen Further
Statement from Amanda Leland, Executive Director, Environmental Defense Fund
(Washington, D.C. – December 22, 2023) The U.S. Treasury Department today released proposed regulations governing what qualifies as clean hydrogen under the 45V Hydrogen Production Tax Credit. We congratulate the White House and everyone involved for helping to ensure that hydrogen is a credible climate solution in the U.S. The final language will determine whether the nation’s growing investment in hydrogen will deliver on its promise to help decarbonize our energy system.
“The proposal does a great job addressing very complex challenges. The draft rule takes us a very big step forward toward a genuinely sustainable hydrogen economy that delivers real benefits for the climate and for the broader clean energy ecosystem. We applaud the administration’s diligent work.
“Getting hydrogen right means reining in all of the emissions associated with production and use. Looking ahead to a final 45V rule, we need to make sure the tax policy takes proper account of the methane emissions from hydrogen made from fossil fuels, as well as the warming potential of hydrogen itself when released into the atmosphere.
“We look forward to supporting the White House and interagency team and continuing to work closely with business, labor and local communities as the process moves forward.”
With more than 3 million members, Environmental Defense Fund creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships to turn solutions into action. edf.org
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