Deluzio Concerned Announced Rules Would Hurt Clean Hydrogen Production in Western Pennsylvania

CARNEGIE, PA – Today, Congressman Chris Deluzio (PA-17) released the following statement in response to the Biden Administration’s newly proposed guidance for the 45V Hydrogen Power Tax Credit elements of the Inflation Reduction Act. The proposed guidance announced leaves the eligibility of blue hydrogen for these tax credits uncertain. 

“While these proposed rules aren’t final, I’m disappointed to see the limits placed on hydrogen production and am concerned about their impact on the future of hydrogen power in places like Western Pennsylvania. 

“The language of the Inflation Reduction Act is clear: we should not be picking winning technologies or restricting flexibility in this new energy sector. Rules like the ones proposed today risk slowing or undermining Western Pennsylvania’s ability to grow the solid union jobs that hydrogen power can deliver. 

“Expanding the types of technologies eligible for the tax credit will not just jumpstart the hydrogen power industry, but will also keep Western Pennsylvania as a leader in powering the country, securing our energy future, and meeting our climate goals.” 

Thanks to funding from the Inflation Reduction Act (IRA), the Biden Administration is investing $7 billion in Regional Clean Hydrogen Hubs, one of which includes parts of Rep. Deluzio’s district in Western Pennsylvania. Blue Hydrogen, which uses natural gas in the electrolysis process of making hydrogen, but then captures and sequesters any carbon dioxide emissions underground, is carbon neutral. This type of energy is the one targeted for many nascent hydrogen power projects in Western Pennsylvania and its forthcoming hub. 

In a December 12th letter to President Joe Biden, Rep. Deluzio raised concerns to the President that rigid restrictions on Blue Hydrogen could result in unintended consequences and squash job-creation—especially in Pennsylvania's 17th Congressional District. In the letter, the Congressman urged the President to consider energy communities like southwestern Pennsylvania, along with “the solid union jobs that power them, before finalizing any rules that would unnecessarily exclude viable carbon neutral energy projects.” 

The rules proposed by the Treasury Department today will be open for public comment soon. 

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