Deluzio Letter Calls for Biden Administration to Support Blue Hydrogen, Stand with Western Pennsylvania

WASHINGTON, D.C. — Today, Congressman Chris Deluzio (PA-17) submitted a letter to Treasury Secretary Janet Yellen as a part of the public comment period on the proposed guidance for the Inflation Reduction Act’s (IRA’s) 45V Clean Hydrogen Production Tax Credit. The public comment period on the tax credit rules runs for sixty days once it is published in the Federal Register.

Blue hydrogen uses natural gas in the process of making hydrogen, but then captures and sequesters any carbon dioxide emissions underground—making it a carbon neutral energy source. Congressman Deluzio believes that the inclusion of this technology in the IRA’s incentives is required by the law’s clear language and is integral for the industry’s workforce and the successful buildout of a clean energy future relying on hydrogen. Blue hydrogen is a central part of the plans for the ARCH 2 Hydrogen Hub that could stimulate billions in investment and create upwards of 100,000 jobs across the Appalachian region. Congressman Deluzio also believes that the IRA’s incentives must include pink hydrogen derived from nuclear facilities like the Beaver Valley Power Station.

Congressman Deluzio raises three main issues in his letter to Secretary Yellen. First, that in order to support the previously announced ARCH 2 Hydrogen Hub, the 45V Clean Hydrogen Production Tax Credit should include blue hydrogen power as an eligible power source for the incentive. Second, that the timing requirement for facilities to begin operations is too short to be feasible. Third, he writes that the restriction of the tax credit to only apply to nuclear plants built within the last three years excludes all but one plant in the United States. In his submission, Congressman Deluzio asks that the final rule be improved to better include this zero-emission clean energy source.

The Congressman’s letter reads, "I implore you and the Biden Administration to consider places like my district and the greater Appalachian region, and the solid union jobs that power them, in making decisions to broaden the scope of this tax credit, in full, for both blue hydrogen and nuclear-sourced projects. I trust the administration will heed the requests from this public comment period in finalizing this rule to extend the credit to various forms of hydrogen production to best jumpstart these technologies.”

Congressman Deluzio previously commented on the announced rules in late December. Before that, he also wrote a letter to President Biden calling for the President and his Administration to reconsider restrictions that could hinder job-creating and carbon-neutral hydrogen projects.

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