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WE ACT for Environmental Justice Statement on the U.S. Treasury Announcement of Final 45V Hydrogen Tax Credit Guidance

Jan 3, 2025

  • Press Release
  • FOR IMMEDIATE RELEASE
    January 3, 2025
    Contact: Chris Dobens, 718-679-8542, chris@weact.org

     

    WASHINGTON – Today, the Biden-Harris administration released its final guidance on 45V Hydrogen Production Tax Credit. In response, WE ACT for Environmental Justice’s Federal Research Manager Manuel Salgado shared the following:

    “As we’ve stated before, we continue to be concerned about the potential of the 45V tax credit to enable greenwashing of fossil fuels in the United States. We cannot afford to further prolong our dependence on fossil fuels and force yet another generation of communities to experience the detrimental health effects of their extraction and use. In order to truly be a factor in decarbonization, hydrogen must be produced with renewable energy technologies. The incorporation of the Three Pillars into the final guidance is a welcome and necessary step forward in this regard, but our work on this front is far from over. The tax credit’s inclusion of pathways for hydrogen to be made with fossil fuels raises serious environmental justice concerns and will continue to expose communities to dangerous pollution while exacerbating, not alleviating, the climate crisis. WE ACT will continue to advocate against these and other false solutions.”

    About False Solutions
    Energy sources and technologies that are marketed as solutions to the climate crisis but instead increase pollution burden, expand fossil fuel infrastructure, and/or exacerbate health risks are referred to as “false solutions.” WE ACT, through its Wrong Direction campaign, combats the deployment and promotion of natural gas, carbon capture & sequestration, dirty hydrogen, and other false solutions. For more information on how these technologies harm communities, see our webinar on the topic.

    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 low-income communities and communities of color. 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 the Climate Action Campaign’s Hydrogen Principles.

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    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 and Washington, D.C. Visit us at weact.org and follow us on Facebook, Bluesky, Twitter/X, and Instagram.