Joe Biden grinned from ear to ear after the White House unveiled these new regulations to try and prop up EVs

Dec 28, 2023

The Biden administration is doubling down on their efforts to prop up the struggling electric vehicle market.

And now he is taking action that even has the moderate Chamber of Commerce up in arms.

That’s why Joe Biden grinned from ear to ear after the White House unveiled these new regulations to try and prop up EVs.

The Biden White House has unveiled new guidance that places major restrictions on the type of hydrogen power development now eligible for federal tax credits.

Tighter and “greener” energy standards

The proposed guidance, released in a joint announcement by the White House, Treasury Department and Department of Energy, ties the 2022 Inflation Reduction Act’s (IRA) highest production credit of $3 per kilogram of hydrogen produced to new tighter and “greener” energy standards. 

The new restrictions had been strongly supported by environmentalists and some green energy companies, as well as the struggling EV market.

But they are strongly opposed by both business groups and clean power industry organizations.

“The Inflation Reduction Act’s hydrogen tax credit will help build a clean hydrogen industry that will be critical in reducing emissions from harder-to-decarbonize sectors like heavy industry and heavy transportation,” President Biden’s clean energy czar, John Podesta, said in a statement.

And Energy Secretary Jennifer Granholm claimed, “Today’s announcement will further unprecedented investments in a new, American-led industry as we aim to lead and propel the global clean energy transition. Hydrogen has the potential to clean up America’s manufacturing industry, power the transportation sector and shore up our energy security all while delivering good-paying jobs and new economic opportunity to communities in every pocket of America.”

Hydrogen has been widely accepted as a key technology for reducing future greenhouse gas emissions, especially in hard-to-decarbonize sectors like shipping, heavy trucking and cement and steel manufacturing. 

The transportation and industrial sectors account for nearly 60% of U.S. greenhouse gas emissions.

Worth as much as $100 billion

The hydrogen production tax credits are considered some of the most generous clean energy incentives under the IRA, the Democrats’ massive climate and tax bill President Biden signed in August 2022. 

Most experts believe these tax incentives are worth up to $100 billion. 

The legislation was considered the country’s most ambitious effort yet to spur on the growth of hydrogen.

But the technology remains a new technology that still requires billions of dollars in investment to enable large-scale production.

But the tax credit formulation has caused an intense debate, leading to massive delays in the issuance of the new guidance. 

Under the new guidance, hydrogen producers are only eligible for the highest tax credit if electricity is generated from a green energy source, such as wind and solar. 

In addition, the guidance requires that, beginning in 2028, hydrogen developers’ electricity comes from a clean source on an hourly basis. 

The new proposal is already facing significant opposition from industry groups and hydrogen companies. 

Groups like the U.S. Chamber of Commerce, the Fuel Cell and Hydrogen Energy Association (FCHEA) and the Clean Hydrogen Future Coalition, have argued such strict regulations will deter investment, increase the cost of hydrogen, lead to fewer projects, and discriminate against existing low-carbon power sources.

“The guidance announced today by the Biden-Harris administration will place unnecessary burdens on the still nascent clean hydrogen industry,” FCHEA President and CEO Frank Wolak said.  

“The nation needs commonsense solutions for this tax credit that are aligned with the congressional intent to spur robust economic development and create jobs while reducing carbon emissions.” 

“Congress intended the tax credit to spur domestic clean hydrogen production and allow the United States to maintain an international competitive advantage, not to be an inadvertent backdoor to regulate use of the electric utility grid,” he added. 

“The United States cannot achieve its climate goals without clean hydrogen, and these proposed regulations and requirements will unnecessarily hold back our domestic industry, driving investment, manufacturing and technology leadership overseas.”

There is one group who will benefit, the failing EV industry.

And that is, after all, Joe Biden’s real goal.

Hot Take Politics will keep you up-to-date on any developments to this ongoing story. 

 

 

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