Biden Pushes Strict Climate-Subsidy Rules Despite Energy Producers’ Warnings

The Biden administration on Friday proposed tough new rules for a valuable climate subsidy, siding with environmental groups despite warnings from some of the nation’s biggest energy companies that strict limits could stifle a critical industry.

The proposed criteria would determine who gets generous tax credits for producing hydrogen, one of the few viable replacements for fossil fuels in heavy industries such as steelmaking and shipping, where renewable electricity and batteries aren’t sufficient. 

Companies including NextEra Energy, BP and Constellation Energy had warned that restrictive rules for the tax credit could cause project cancellations and prevent the...