06.20.25

Cantwell Questions Energy Secretary Why DOE is Spiking Clean Energy Projects, Increasing Electricity Costs

Cantwell presses Secretary Wright on whether DOE will renege on $1B promised for PNW green hydrogen hub On hydropower, Secretary acknowledges to Cantwell that “hydro has been a great resource for this country” that is “quite beneficial to our electricity grid"

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), a senior member of the Senate Energy and Natural Resources Committee, pressed U.S. Department of Energy Secretary Chris Wright on whether the Trump Administration is attempting to roll back hydrogen production investments secured and awarded under the Biden Administration -- including a $1 billion grant awarded to the Pacific Northwest Hydrogen Association in 2023 to become a one of seven Regional Clean Hydrogen Hubs, as well as a 2022 tax credit aimed at spurring more investment in clean hydrogen production called 45V.  The budget reconciliation bill passed last month by the House of Representatives eliminates the hydrogen credit, as would the proposal released earlier this week by Senate Finance Committee Chairman Mike Crapo (R-ID).

Sen. Cantwell: “I actually think getting rid of the tax credits that we have, some of the other ones, broadly, are going to lead to electricity increased cost. And so, can I get you to tell me about the hydrogen hubs, whether you believe you support the hydrogen hubs and moving forward on this?”

Wright: “So, we put together, as I'm sure you've heard, and we've published it on the website, this project review process. We have a cross-functional team that evaluates every project. We're going through 500 projects.”

Sen. Cantwell: “But is that data call a way to kill the projects? Or no, you really believe in funding some?”

Wright: “Oh, absolutely. No, we are funding plenty of projects right now, and we don't stop funding any project. We're funding all of the existing projects right now, and when we evaluate them – no, plenty of projects will pass. Plenty of projects will pass. Other projects we’ll say, “Hey, can you modify it this way to make it much more beneficial?” Some projects will be modified, and some projects will be ended. “

Video of their Q&A is HERE; a transcript is HERE.

Hydrogen is a clean fuel that, when consumed in a fuel cell, produces no dirty emissions — only water. Hydrogen can be produced from existing power resources, such as solar and hydropower.

Sen. Cantwell helped secure the Regional Clean Hydrogen Hubs (H2Hubs) program and other key hydrogen investments in the Bipartisan Infrastructure Law (BIL) during consideration in the Energy and Natural Resources Committee in July 2021, where she is a senior member, and push for its successful passage through the Senate. The H2Hubs program designated up to $7 billion in competitive grants to establish between six and 10 regional clean hydrogen hubs across the United States. These networks of hydrogen producers, consumers, and local connective infrastructure were meant to help accelerate the use of hydrogen as clean energy and work toward achieving former President Biden’s goal of a 100 percent clean electrical grid by 2035 and net-zero carbon emissions by 2050.

In October 2023, with support from the region’s Congressional delegation led by Sen. Cantwell, the Pacific Northwest Hydrogen Association received a $1 billion grant through the H2Hubs program. With continued federal support, the Pacific Northwest Hydrogen Association will be able to build out a robust network of hydrogen suppliers and off-takers in both the western and eastern parts of Washington and Oregon, as well as parts of Montana. Clean hydrogen can support decarbonization efforts already being made in the transportation, industrial, and agricultural sectors, as well as the rapidly expanding zero-carbon aviation sector being pioneered in the Pacific Northwest.

In 2022, President Biden signed the Inflation Reduction Act into law, which included the 45V hydrogen production tax credit to incentivize projects that produce clean hydrogen power. In July 2024, Sen. Cantwell joined a group of colleagues in sending a letter urging then-Treasury Secretary Janet Yellen to issue guidance on 45V eligibility that capitalizes on the “opportunity to reduce greenhouse gas emissions faster and enhance our energy security, while strengthening our economy, creating thousands of jobs, and combating the climate crisis.” The budget bill currently being negotiated in the House and the Senate would drastically shorten the timeline for projects to qualify for the 45V credits – requiring them to begin construction by Jan. 1, 2026 rather than the previous deadline of Jan. 1, 2033 – and cut funding for the H2Hubs program. The Trump Administration is also currently reviewing the remaining H2Hubs financing.

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