Poor old Senators Joe Manchin and Shelley Capito of WV! President Joe Biden’s decision to use the Inflation Reduction Act’s tax benefits to only go to companies that use the green hydrogen production process has upset the two dirty coal birds of WV. Both claim that President Biden are violating the law and reneging on promises he made to both senators. Manchin and Capito claim that President Biden’s move will jeopardize the WV hydrogen project.
First up, I don’t think it will jeopardize the WV hydrogen project, and secondly, both are just pissed off that the coal companies won’t be able to make any profits off of the green hydrogen process. My heart bleeds for Manchin and Capito. /s.
Here is how one of the local newspapers in WV covered Manchin’s and Capito’s BS:
CHARLESTON — The effort to kick-start a new hydrogen production industry in West Virginia and across the nation could be much harder to do under proposed rules for a tax credit meant to incentivize the new industry.
Last week, the U.S. Department of Treasury released guidance for the Clean Hydrogen Production Credit – known as the 45V hydrogen tax credit. The credit, included in the $737 billion Inflation Reduction Act, provides up to $3 per kilogram of hydrogen produced for projects that begin prior to 2033…
Hydrogen is a fuel that can be used to decarbonize manufacturing processes, such as steel and metals production, and heavy transportation. Hydrogen also can be used as a long-term fuel cell to store energy for future use. The byproduct of hydrogen is water.
There are several ways to produce hydrogen. The blue hydrogen process uses natural gas coupled with carbon capture and sequestration to capture greenhouse emissions from the blue hydrogen process and storing the emissions underground. The green hydrogen process uses renewable energy, such as wind and solar power, to extract the hydrogen.
I love that description of “blue” hydrogen process. Carbon capture and sequestration to capture greenhouse emissions! Isn’t that just wonderful!
Too bad that technology is not readily available or cost effective:
In the United States, despite significant industry and government investment in the technology, more than 80% of proposed CCS (Carbon Capture and Storage) projects have failed to become operational due to high costs, low technological readiness, the lack of a credible financial return, and dependence on government incentives that are withdrawn.
And by the way, approximately 73% of global CCS projects use the natural gas produced for enhanced oil recovery (EOR). In other words, this sounds a lot like “clean coal technology,” which we do not have. Nice slogan, but so far, a mirage.
What Manchin and Capito want is the tax credit to go to the “blue” hydrogen production process. And they are both claiming that if the tax credit goes to solar and wind companies instead, it will directly harm an infrastructure project slated for WV:
In October, Biden announced the creation of seven regional hydrogen hubs, including an Appalachian Hydrogen Hub located mostly in West Virginia with additional locations in Southeastern Ohio and Western Pennsylvania. The hub will consist of linked assets, or production nodes between the three states spread across hundreds of miles.
According to administration officials, the Appalachian Hydrogen Hub will create 18,000 construction jobs and 3,000 permanent jobs. The hub will partner with the Appalachian Regional Clean Hydrogen Hub, or ARCH2, which includes more than 40 partnering companies in the natural gas, energy and manufacturing sectors, West Virginia University and Marshall University, local transit authorities and the federal National Energy Technology Laboratory.
The $1.2 trillion Infrastructure Investment and Jobs Act — negotiated in 2021 by Manchin and Sen. Shelley Moore Capito, R-W.Va., — included $9.5 billion in funding for hydrogen research. Manchin and Capito inserted specific language in the infrastructure investment and Jobs Act requiring a hub in Appalachia.
Well, both got their hydrogen hub in Appalachia, but they are pissed that coal companies are not going to get the tax credit for hydrogen production in the IRA, which Capito voted against, by the way. Manchin voted for the IRA, but he has been loudly complaining about that devious Joe Biden with regards to the IRA.
“This Administration cannot keep itself from violating the Inflation Reduction Act in their relentless pursuit of their radical climate agenda,” Manchin said. “Today’s proposed rules on the IRA’s hydrogen production tax credit will only make it more difficult to jumpstart the hydrogen market, which will be a critical part of our secure energy future.
“Make no mistake, obstructing hydrogen development in our country is the short-sighted goal of the far-left advocacy groups who lobbied the Administration for these restrictions because they oppose all energy sources other than solar and wind–and even the renewables industries have said these restrictions are a bad idea,” Manchin continued. “For an Administration that wants to reduce emissions and fight climate change, it makes no sense to kneecap the hydrogen market before it can even begin…
“Hydrogen has the potential to be the new horsepower of our country and will strengthen our energy security so we are less dependent on foreign adversaries, and crucially, it can be produced carbon-free,” Manchin said. “Adding onerous new restrictions for the hydrogen tax credit is particularly hypocritical when this administration has bent, broken, and ignored the law again and again to make it easier to access electric vehicle tax credits.
“Today’s proposed rule doesn’t just violate the law — it makes absolutely no sense, and I will continue to fight this Administration’s manipulation of the IRA,” Manchin continued.
I seem to recall from my political science classes that congress may enact a law, but it is up to the executive branch to enforce the law. And it has been known in the past that executive branch departments come up with the rules and regulations to administer the law. And sometimes we get some friction between the two branches of government. And this friction is not always based upon bad faith by the executive branch.
But if we are to assign bad faith to anyone here, it would be to Manchin and Capito. First up for Capito, she voted against the IRA, so I say, “Tough shit to you!” on who gets the tax credit for hydrogen production. And as for Manchin, I recall him pulling all kinds of bad faith moves while killing Build Back Better or anything to help with the global climate crisis. Looks to me like President Biden is keeping his word that there will be a big hydrogen hub built in WV.
And if Biden didn’t spell out to Manchin every little ruling and regulation that would go into enforcing the IRA, I say, “Good!” Manchin may think he was snookered by Biden, but Lord know that Manchin has used plenty of bad faith moves on Biden and his fellow Democrats. What Biden is doing is better for the environment and all Americans. Meanwhile, if Manchin and Capito’s coal company donors cannot make money of this deal, great!