Hydrogen, a priority for industries' decarbonization efforts, could get tied up in President-elect Trump's promised cuts to energy incentives and funding, Daniel writes.

Why it matters: The hydrogen industry has been clamoring for the IRA's 45V production tax credit — worth $100 billion by some estimates — and the IIJA's $8 billion for hydrogen hub networks of regional producers, consumers and infrastructure.

Zoom in: Under Trump, incentives would likely skew toward natural gas–derived "blue" hydrogen production as opposed to the renewables-produced "green" hydrogen that Democrats favor, industry watchers told Daniel.

• "There is some uncertainty" about whether or how hydrogen hub funding will continue, said Mona Dajani, a partner at Baker Botts who represents hydrogen clients.
• Trump officials "could modify their funding allocation to prioritize blue over green," she said.

Between the lines: Trump and congressional Republicans have said IRA tax credits and any unallocated Biden-era funding are on the chopping block as they pursue a reconciliation bill to extend Trump tax cuts.

• The hub program falls within DOE's Office of Clean Energy Demonstrations, which House Republican appropriators proposed cutting nearly in half this year.
• Project 2025 calls for eliminating OCED altogether, arguing the "government should not be picking winners and losers and should not be subsidizing the private sector to bring resources to market."

Yes, but: Hydrogen has won bipartisan Hill support — though Democrats have been split on 45V rules.

• The Treasury Department largely sided with environmentalists in proposing electricity-sourcing rules in credit guidance a year ago.
• Trump could help the industry by loosening the Biden administration's proposed environmental guardrails for the tax incentive.
• Several dozen Democrats in both chambers called on President Biden to finalize the stricter environmental standards before he leaves office.

State of play: The industry has been facing headwinds from underwhelming demand and the cost difference between low-carbon hydrogen and traditionally produced hydrogen.

• Five hydrogen hub funding awards have been finalized, while two others in the Upper Midwest and Mid-Atlantic regions remain unfinished.
• An additional $1 billion to seed demand for hydrogen — a significant challenge for the industry — is still being set up.
• "The real driver is going to end up being 45V and where that ends up," said Adam Peters, CEO of Air Liquide North America, which is involved in six of seven hubs.

Context: Hubs center on red states like Louisiana, Texas, West Virginia and North Dakota — home of Doug Burgum, Trump's nominee to lead the Interior Department and National Energy Council.

• "There's still reason to be hopeful that hydrogen developers in Republican-led states, who have benefited greatly from the federal investment and support, would continue," Dajani said.

Rep. Raúl Grijalva said this morning that he'll drop his bid to return as ranking member on the Natural Resources Committee, Nick writes.

Why it matters: The announcement opens the door for Rep. Jared Huffman, who has long been seen as next in line for Democrats on the committee.

• Like Grijalva, Huffman is a staunch progressive. He'll fight the Trump agenda and likely oppose bipartisan efforts to overhaul NEPA or other environmental laws.

Driving the news: Grijalva, 76, said in a statement that "it is the right moment to pass the torch as top Democrat on the House Natural Resource Committee for the 119th Congress."

• The Arizonan has led Democrats on the panel for a decade but has been away from the Hill much of this year undergoing treatment for lung cancer.
• He returned to votes shortly before Thanksgiving — just in time for Huffman to announce that he would challenge him for the job.

Flashback: Grijalva claimed the top spot on Natural Resources in 2015, rising to the chair when Democrats took over the House in 2019.

• He's been influential in bringing environmental justice issues into the Biden agenda.

What's next: Grijalva had previously announced that the next Congress would be his last. He said he plans to "focus on improving my health, strengthening my mobility, and serving my district.

• "I look forward to working closely with Rep. Grijalva in this time of transition," Huffman said in a statement today.

👀 1. Feeling gassy: White House climate czar John Podesta and DOE fossil energy chief Brad Crabtree are set to testify Wednesday afternoon to a House Oversight and Accountability subcommittee on the LNG export permits pause.

• The administration's long-awaited study on the climate and economic impacts of exporting LNG is expected to drop as soon as this week.

🐾 2. Computer, enhance: The House is set to vote this week on America's Conservation Enhancement Reauthorization Act, a reauthorization bill for various wildlife programs that passed the Senate by voice vote in May.

• Also on the floor agenda: Public lands bills and legislation that aim to give small businesses more say in federal regulatory processes.

🧪 3. Chemical treatment: A Senate Environment and Public Works subcommittee will hear from experts Thursday on the public health impacts of PFAS exposure.