WASHINGTON, D.C. — U.S. Senator Tom Carper (D-Del.), Chairman of the Senate Environment and Public Works Committee, a senior member of the Senate Finance Committee, and the lead author of the Inflation Reduction Act’s clean hydrogen production tax credit (45V), today sent a letter to U.S. Department of Treasury Secretary Janet Yellen, U.S. Department of Energy Secretary Jennifer Granholm, and Senior Advisor to the President for Clean Energy John Podesta urging a swift, balanced implementation of the 45V credit.
Senator Carper wrote, “I believe that this tax credit is essential to building a domestic supply of clean hydrogen, especially hydrogen produced using renewable and nuclear energy, which will help our nation meet our climate and economic goals. If implemented as intended by its authors, the 45V credit offers the United States an invaluable opportunity to reduce greenhouse gas emissions, enhance energy security, and expand U.S. competitiveness while strengthening our economy and creating jobs.”
Carper continued, “…I urge you to ensure that the forthcoming guidance for 45V strikes a balance between spurring our domestic clean hydrogen industry and aligning with our emissions reduction and clean energy goals. The Administration’s direction on 45V will ultimately determine the pace of clean hydrogen deployment. That is why I strongly urge you to consider flexible and inclusive guidelines that accommodate a variety of hydrogen technologies, production methods, and projects. Without appropriate flexibility, I am concerned that there will be a chilling effect on this emerging clean energy industry – including harms to the growth potential of the hydrogen market, increased costs, delayed project development and construction, as well as the adoption of hydrogen in industries that are currently reliant on carbon-intensive processes. This delay would hinder our efforts to reduce carbon emissions and transition to cleaner energy sources.”
The full text of the letter is available here.