A growing number of influential Hill Democrats are siding with the hydrogen industry by backing emissions carve-outs while the Biden administration works to finalize lucrative tax incentives.
In the past several weeks, 20 Democrats — including one top climate hawk, Sen. Martin Heinrich of New Mexico — have rallied to hydrogen’s defense, arguing that the Treasury Department’s initial rollout of tax credits was too stringent.
“There seems to be a fair amount of agreement and consensus on our side, and even with Republicans,” said Senate Environment and Public Works Chair Tom Carper (D-Del.). “I think we got off the right track when those initial rules were released.”
That stance has angered environmentalists and their congressional allies. They argue that any loosening of what is known as the “three pillars” approach pairing hydrogen production with clean energy sources would worsen emissions, foiling plans to curb climate change. On Monday, more than 100 groups signed a letter urging Treasury to stick to its guns.
