Illustration: Gabriella Turrisi / Axios
Senate Republicans are weighing a longer phaseout timeline for the 45V hydrogen production tax credit that the House-passed reconciliation bill winds down by the end of this year.
Why it matters: The IRA credit is a lucrative opportunity for oil and gas producers seeking to scale up the nascent technology.
- The House-passed measure phases out the credit by the end of 2025. Industry is pressing for the timeline to be extended on projects that start construction by the end of 2029.
What we're hearing: Sen. Shelley Moore Capito reiterated that she's open to making tweaks to 45V to support West Virginia's hydrogen hub.
- The House version requires "our hydrogen hub to be under construction by the end of the year, and I don't want to see us lose that opportunity," Capito told reporters Thursday.
More than 250 companies and organizations — including all seven DOE-funded hydrogen hubs funded by the DOE under former President Biden — signed a letter published Thursday calling for the longer phaseout.
- The timeline allows "the minimum runway needed for the multi-year development cycles these projects require. Anything less puts billions in committed investments — and tens of thousands of jobs — at risk," the letter states.
- The exact timeline is still under discussion.
State of play: Hydrogen supporters are focused on GOP lawmakers representing states with large-scale hydrogen investments like Texas, Louisiana and West Virginia.
- Sen. Jim Justice told me that hydrogen "has some real promise" and "I don't think it ought to be kicked to the sideline."
In other reconciliation news, the Senate Environment and Public Works Committee was first out of the gate with its reconciliation text.
- The text shows widespread agreement with the House-passed provisions repealing Biden EV rules and the methane fee.
- Provisions to set deadlines for NEPA reviews and shield permits from judicial review for project developers that pay a fee are still likely targets for Democrats as the bill moves forward.
The other side: EPW Ranking Member Sheldon Whitehouse panned the proposal.
- "Turning the National Environmental Policy Act into a pay-to-play scheme rewards the planet's biggest polluters — a scam ripe for Trump-style corruption," Whitehouse said.
What's next: The Senate Finance Committee text, which will include thornier issues like IRA energy credits, will be a much steeper climb.
