Biden allies turn against key part of his climate agenda

Democratic lawmakers and clean energy groups who often align themselves with President Biden on environmental policy are turning against his administration's latest green energy tax credit guidance.

In highly-anticipated guidance released late last month, the White House, Treasury Department and Department of Energy proposed rules governing tax credits for hydrogen power production, which advocates believe will be a critical tool for decarbonization. The guidance, though, tethers the Inflation Reduction Act's (IRA) highest production credit of $3 per kilogram of hydrogen produced to strict eco standards.

"The Biden Administration’s proposal attempts to launch a green hydrogen industry while guarding against any possibility of emissions increases during initial commercial deployment," said Jason Grumet, the CEO of the American Clean Power Association, a clean power industry group often allied with the Biden administration.