NHA Statement on Treasury Department’s Draft Guidance on Clean Hydrogen Tax Credit

National Hydropower Association Opposes New IRA Guidance That Harms Clean Hydrogen Growth 

Washington, DC – The National Hydropower Association, the nation’s leading advocacy group for the water power industry, released the following statement in response to new guidance from the Treasury Department around the definition of ‘clean hydrogen’ (under section 45V of the Inflation Reduction Act):

“The guidance issued from the Treasury Department is overly stringent and will stunt the development of clean hydrogen hubs, which are an important part of the national strategy to reducing the use of fossil fuels in the commercial sector. These hubs also create a valuable opportunity for the water power industry to preserve and expand the existing hydropower fleet, create new jobs, and further accelerate the transition to a 24/7 reliable, carbon-free grid. The limitations to clean hydrogen put in place by the Treasury Department stifle these opportunities.

“The Administration is needlessly discriminating against existing carbon-free resources, like hydropower and nuclear. Requiring clean hydropower to rely on electricity generation that has not yet been built will hinder our nation’s efforts to address climate change. Our organization remains committed to working with the Biden Administration as well as Republicans and Democrats in Congress to ensure energy sustainability and security. We cheered the passage of the Inflation Reduction Act as a game changer for our industry, but we cannot let draconian rules defeat the very purpose of this legislative effort. We urge the Treasury Department to change course and commit to more reasonable guidance that balances our current energy needs with future sustainability goals.”