WE ACT For Environmental Justice Statement: U.S Treasury 45V Hydrogen Tax Credit Guidance

December 22, 2023
Media Contact: Jama.Joseph@weact.org, 845-671-9572


WASHINGTON – Today, the Biden-Harris administration released the rules governing the 45V Hydrogen Production Tax Credit and WE ACT for Environmental Justice energy experts, Anastasia Gordon and Manuel Salgado, offer their insights on the guidance:

“First, we continue to express our deep concern about the use of taxpayer dollars to fund elements of the Inflation Reduction Act, including 45V, that have the potential to expand the use of fossil fuels in our communities. Though there is more to do, this guidance signals progress in considering the adverse impacts of the 45V tax credit with the incorporation of the “Three Pillars,” which support the production of electrolytic (green) hydrogen in a way that does not drain resources or lead to disastrous increases in fossil fuel emissions. This can be critical to reducing harmful emissions in hard-to-abate sectors such as marine shipping, aviation, and heavy industry.

“While electrolytic green hydrogen may be useful for limited decarbonization efforts, other projects covered by 45V would utilize blue hydrogen, which is not emissions-free, as a result of being derived from gas and the potential for methane leaks during the production process. WE ACT and other members of the environmental justice movement consider blue hydrogen a dangerous false solution.

“We are hopeful to continue moving in the right direction to avoid dangerous emissions by incorporating the crucial three pillars into future tax credit regulation and energy policy – regionality, additionality, and time-matching. Overall, this guidance is a step forward to prevent further harm from false renewable energy solutions being deployed in communities that already disproportionately suffer from prejudicial energy infrastructure and pollution.”

About the Three Pillars
The three pillars—time matching, additionality, and regionality—serve vital roles for Environmental Justice communities. Time matching ensures that renewable energy aligns with hydrogen production, preventing reliance on fossil fuels during shortages. Additionality encourages growth in renewable capacity, potentially benefiting frontline communities with increased clean energy projects. Regionality considers geographical factors, aiming to develop hydrogen projects in areas with high renewable potential, though cumulative impact analysis is needed to avoid disproportionately burdening black and low-income communities. Together, these pillars shape a framework promoting equitable, sustainable, and environmentally friendly hydrogen production, aligning with Environmental Justice principles and fostering a transition to inclusive, cleaner energy solutions. The pillars, especially additionality, will play a vital role in ensuring that electrolytic hydrogen is produced in line with our Hydrogen Principles.

Learn More & Connect
To learn more about our campaign #WrongDirection that outlines the need for greater safeguards and solutions within the current Energy Policy landscape, visit here.

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About WE ACT
WE ACT for Environmental Justice is a Northern Manhattan membership-based organization whose mission is to build healthy communities by ensuring that people of color and/or low-income residents participate meaningfully in the creation of sound and fair environmental health and protection policies and practices. WE ACT has offices in New York City and Washington, D.C. Visit us at weact.org and follow us on Facebook, Twitter, and Instagram.

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