EEI - Edison Electric Institute Inc.
12/22/2023 | Press release | Distributed by Public on 12/22/2023 08:57
EEI Statement on the Treasury Department's Proposed Guidance for the 45V Tax Credit for Hydrogen Production
EEI Statement on the Treasury Department's Proposed Guidance for the 45V Tax Credit for Hydrogen Production
EEI Statement on the Treasury Department's Proposed Guidance for the 45V Tax Credit for Hydrogen Production
WASHINGTON (December 22, 2023) - Edison Electric Institute (EEI) Senior Vice President, Energy Supply and Finance, and Chief ESG Officer Richard McMahon today issued the following statement:
"Hydrogen has the potential to be a reliable and affordable tool to reduce emissions in a variety of sectors, including the power sector, and its production and use should be expanded. Treasury's proposed rules do not offer sufficient flexibility to allow the scale up that will be necessary to support a U.S. hydrogen economy. Instead, they appear to rely on stringent requirements, particularly given the transition to hourly matching in 2028. This would undermine the commercial viability of this nascent domestic sector and severely limit the widespread adoption of hydrogen that is produced using grid-connected facilities. As a result, the cost-reducing benefits for hydrogen included in the Inflation Reduction Act would be squandered, and an important new tool that electric companies and customers could be using to drive down carbon emissions and costs would be sidelined.
"EEI continues to support using annual matching requirements for the 45V credit, and we appreciate that the proposal initially would allow annual matching. We look forward to working with Treasury to finalize rules that help to unleash this transformational technology, not limit."
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About EEI
About EEI
EEI is the association that represents all U.S. investor-owned electric companies. Our members provide electricity for nearly 250 million Americans, and operate in all 50 states and the District of Columbia. As a whole, the electric power industry supports more than 7 million jobs in communities across the United States. In addition to our U.S. members, EEI has more than 70 international electric companies, with operations in more than 90 countries, as International Members, and hundreds of industry suppliers and related organizations as Associate Members.