Congresswoman Schrier Secures Tax Credit for Washington Clean Energy

WASHINGTON, D.C. – On Friday, Congresswomen Kim Schrier, M.D. (WA-08) and Suzan DelBene (WA-01) celebrated a huge win that will ensure Washington State remains a leader in clean energy production. After the Congresswomen and lawmakers called on the Biden Administration to change overly prescriptive regulations proposed for the Clean Hydrogen Production Tax Credit (45V) in November 2024, the Administration released a final rule that accounts for Washington State’s robust climate laws, cutting duplicative red tape and helping enable a strong hydrogen industry in the region. The proposed rule as written could have resulted in the loss of half of Hydrogen Hub projects across the country, including in Washington.

Congresswoman Schrier has long advocated for the specific change made in the final rule for state law flexibility, and previously wrote to Treasury Secretary Janet Yellen in February of 2024. A copy of that letter can be found here. 

“Hydrogen producers in the region are eager to benefit from significant public investment in order to accelerate a clean hydrogen economy, create clean energy jobs, and remain competitive on the global scale," said Congresswoman Schrier. "The 45V tax credit is an important piece of the puzzle to accomplish that. States that have already made strong climate inroads should not be penalized and producers in-state should be eligible for these tax credits. These tax credits will bring the region closer to developing the greenest hydrogen in the country. I’m so proud to lead this effort with Congresswoman Delbene and go to bat for cleaner energy and lower utility bills for my constituents.”

“The hydrogen tax credit that I authored in the Inflation Reduction Act is meant to support the growth and sustainability of this nascent industry. The Pacific Northwest and other regions were selected as Hydrogen Hubs to help grow this critical energy source but the initial regulations posed a risk to the viability of these projects,” said Congresswoman DelBene. “I am glad the administration incorporated our feedback. The changes we secured in the final tax credit regulations will ensure that Congress’ intent is followed and these projects continue moving forward, creating good-paying jobs and clean energy to power our economy.”

“Douglas PUD is excited about Washington’s commitment to renewable hydrogen. This is definitely a winning policy that will create more jobs and energy in our region,” said Gary Ivory, General Manager for Douglas PUD. “We thank Congresswoman Schrier for her efforts to secure this provision that will remove a major barrier to green hydrogen in Washington State.” 

"We were pleased to see that the updated 45v rule includes acknowledgement of states like Washington that have taken steps to implement clean electricity standards which will make hydrogen production much more viable in our region."  said Chris Green, President of the PNWH2. "While we are continuing to analyze the new rule we appreciate this much needed certainty on this issue and we are grateful to members of Congress like Rep. Schrier for continuing to advocate for a balanced solution from US Treasury."  

A copy of the letter can be found here.

Schrier and DelBene, along with the Washington and Oregon congressional delegations, were instrumental in securing the designation of the Pacific Northwest (PNWH2) as one of seven clean hydrogen hubs established in the bipartisan infrastructure law. In July, the Biden administration announced that $27.5 million in initial federal investment of a total of $1 billion had been awarded to PNWH2. 

More information about the administration’s announcement today can be found here.