WRI Climate’s Post

Proposed Clean Hydrogen Production Credit regulations aim to boost clean energy industry. The Treasury Department and IRS have issued proposed rules that seek to minimize climate pollution in connection with clean hydrogen production, and accelerate its development as contemplated by Inflation Reduction Act, our colleague Brad Rosen reports. While clean hydrogen holds considerable potential to reduce emissions across a range of sectors and applications, the Treasury Department also acknowledges that currently, hydrogen production typically results in significant climate pollution. Learn more about the efforts to develop this emerging industry! #tax #taxlaw #cleanhydrogen #cleanenergy #ira2022

Unlocking the potential of clean hydrogen in the U.S. requires transparency on tax credits. As identified in our report Fueling Up: How to Make U.S. Clean Hydrogen Projects Happen, the proposed IRS regulations under Section 45V have raised concerns within the industry and caused market uncertainty. Designed to incentivize clean hydrogen production, these regulations require adherence to strict criteria, with eligible credits meeting three criteria: additionality, time matching, and deliverability.   However, developers and utilities have voiced concerns on the perceived strictness of the regulations, warning that it will drive up costs and make it harder to fund and construct projects. Further clarity from the IRS on its finalized rule is cautiously awaited.   For more information, download the report: https://lnkd.in/gnft_yZc   #CleanHydrogen #TaxCredits #IRS #CleanEnergy #IndustryReport

On December 22, 2023, the U.S. Treasury and IRS unveiled long-awaited proposed regulations for claiming the Clean Hydrogen Production Tax Credit established by the Inflation Reduction Act of 2022.  This credit offers significant incentives for domestic production of clean hydrogen, defined as having lifecycle greenhouse gas emissions below 4 kilograms of CO2e per kilogram of hydrogen.  While uncertainties remain, the potential for innovation, market growth, and international collaboration is substantial. Developers and stakeholders alike should actively engage in the ongoing regulatory process and leverage the opportunities presented by this transformative initiative. Do you have any data or research that could inform this discussion? #USTeasury #IRS #CleanHydrogen #RenewableEnergy #CarbonOffsets #InflationReductionAct #GreenhouseGasEmissions #CO2e

Prompt action by the IRS is critically important, as the agency’s guidance on the definition of “clean” hydrogen for tax purposes may have a significant impact on the economic viability of H2Hubs and development of the domestic hydrogen market, and the potential to timely achieve the Strategy’s emission reduction and net zero goals.

Countless businesses, ranging from large-scale industries to SMEs, depend on #LiquidGases as a primary energy source across various operations. Thanks to their highly controllable temperatures, negligible NOx, SOx and particulate matter emissions, they are an efficient, reliable and lower carbon energy source for industry. More on how liquid gases can make the EU industry more sustainable while remaining competitive👇: https://bit.ly/45mv0jV #EnergyEverywhere

States with #cleanfuel standards or under consideration to decarbonize and reduce #GHG emissions in the #transportation sector. #EXISTING #CA: reduction of CI to 20% by 2030 (30% by 2030, 52.5% by 2035, 75% by 2040 proposed) - LCFS 2023 Amendments - 9.8.23 https://lnkd.in/gqRFk8hB #OR: reduction of CI by 10% below 2015 levels by 2025, 20% below by 2030 and 37% below 2015 levels by 2035 (previously at 10% and 20%) - https://lnkd.in/geNcbW_a #WA: reduction of CI by 20% by 2034 based on 2017 levels. https://lnkd.in/g7YAAn75 #PENDING #IL: reduce the CI by 20% by 2038. Senate Bill 1556 - 3.10.23 (Senator David Koehler) https://lnkd.in/gzTTm5rY #MA: Senate Bill 2286 - 2.16.23 (Senator Marc Pacheo) https://lnkd.in/geJbUF9k #MI: decrease the CI by 25% below 2019 levels by 2035. Senate Bill 275 - 4.19.23 (Senator Sam Singh) https://lnkd.in/gAgtfDF4 #MN: reducing the CI by 25% below 2018 levels by 2030, 75% by the end of 2040, and 100% by 2050. Senate File 2584 - 3.2.23, House File 2602 - 3.6.23 (Senator Scott Dibble) https://lnkd.in/gURETfK9 #NM: reducing the CI by at least 20% compared to 2018 levels by 2030, and 30% by 2040. SB 14 (Senator Mimi Stewart) https://nmcleanfuels.com/ #NY: lower the CI by 20% reduction by 2030. Bill S1292 (Senator Kevin Parker) https://lnkd.in/gEQxPgCQ - passed Senate / Assembly committee #VT: reduce the CI by 10% below 2018 levels by 2030. S25 - 1.19.23 (Senator Becca White) https://lnkd.in/gE2ZFnN5 #DISCUSSION #CO: GHG Roadmap has set targets for reducing statewide greenhouse gas (GHG) pollution by 26% by 2025, 50% by 2030, and 90% by 2050 from 2005 levels. https://lnkd.in/gnrRPsKF #HI: Hawaii Clean Energy Initiative (HCEI) aims to achieve 100% clean energy in the state by 2045. https://lnkd.in/gsUEEFvG #NE: Clean Fuels Nebraska Coalition, collaborating with Great Plains Institute, plans to introduce legislation in 2023. https://lnkd.in/gZnnPr7q #OH: Clean Fuels Ohio, collaborating with the Great Plains Institute to introduce legislation in 2023. https://lnkd.in/g74W3Wjt #PA: The upcoming legislation to establish LCFS. LCFS Co-Sponsorship Memo - 3.6.23 (Senator Gene Yaw, Senator Scott Martin) https://lnkd.in/gC6FKA2M #esg #sustainability #innovation #decarbonization NXTClean Fuels

⚠️ 45v, the US #inflationreductionact tax credit is, by far, the world's most generous clean hydrogen subsidy. And the debate as to what should qualify as clean hydrogen is white-hot as we enter the final stages. But this debate is just chapter 1. Next, we must all answer a much broader and more significant question. “What does it mean to consume clean power?" The clean hydrogen standard wars in the EU and US have brought us the key elements and leading research to help answer that question - hourly matched new supply being the key ingredient.

The IRS has made corrections to the proposed regulations under Section 45V of the Internal Revenue Code, which deals with a tax credit for clean hydrogen production. This correction aims to clarify and refine the regulations to ensure the tax incentives effectively promote clean hydrogen production. The correction addresses specific issues identified in the initial regulations, providing clearer guidance and resolving ambiguities. Key changes include a more precise definition of clean hydrogen, detailed guidance on calculating the tax credit, clear eligibility criteria, and specific requirements for recordkeeping and reporting. Additionally, anti-abuse provisions have been introduced to ensure the tax credit supports genuine clean hydrogen production. See the corrections here: https://lnkd.in/eV_K4PMJ #ushydrogenalliance #hydrogen #cleanhydrogen #hydrogennow #hydrogeneconomy #hydrogenhubs #fuelcell #zeroemission #energy #cleanenergy #decarbonization #sustainability