Federal Infrastructure Investment and Jobs Act.
The federal Infrastructure Investment and Jobs Act of 2021 provides $8 billion over five years to support at least four regional clean hydrogen hubs to demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen. The United States Department of Energy (DOE) must solicit proposals for regional clean hydrogen hubs by May 15, 2022, and select the four hubs one year later.
"Renewable hydrogen" means hydrogen produced using renewable resources both as the source for the hydrogen and the source for the energy input into the production process.
Office of Renewable Fuels.
The statewide Office of Renewable Fuels (Office) is established within the Department of Commerce (Commerce). The Office must report to the director of Commerce and may employ staff to carry out the Office's duties, subject to the availability of amounts appropriated. The purpose of the Office is to leverage, support, and integrate with other state agencies to:
The Office must take certain specified actions, including:
The Office may take all appropriate steps to seek and apply for federal funds, grants, and donations. These funds must be deposited in the Renewable Fuels Accelerator Account.
Regional Clean Energy Hub.
Subject to funds appropriated, and for the purpose of providing support for a timely and competitive application to the United States Department of Energy for a regional hydrogen hub, the Director of Commerce must provide support to a public-private partnership entity that leverages private sector leadership and is composed of multiple interests, including public and private project developers, manufacturers and end users, research institutions, academia, government, and communities around the state.
The public-private partnership entity should, among other things:
Utilities and Transportation Commission Hydrogen Fuel Study.
By December 1, 2024, the Utilities and Transportation Commission (UTC) must submit to the Legislature a report addressing the following:
Renewable Fuels Accelerator Account.
The Renewable Fuels Accelerator Account (Account) is created in the state treasury. Revenues to the Account consist of appropriations made by the Legislature, federal funds, gifts or grants from the private sector or foundations, and other sources deposited in the Account. Moneys in the Account may be spent only after appropriation. The Director of the Office, or Director's designee, may authorize expenditures from the Account for the Office.
Green Electrolytic Hydrogen.
Green electrolytic hydrogen is defined as hydrogen produced through electrolysis and does not include hydrogen manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.
The defined term "electrolytic hydrogen" is changed to instead refer to "green electrolytic hydrogen."
Federally recognized tribes and labor unions are added to the list of entities with whom the Office of Renewable Fuels is directed to coordinate.
A legislative is finding is added to indicate that the state may help to promote and strengthen applications for regional hydrogen hub federal funding through state funding assistance to support a timely and competitive application to the United States Department of Energy by a public-private partnership entity that leverages private sector leadership and is composed of multiple interests, including public and private project developers, manufacturers and end users, research institutions, academia, government, and communities around the state.
Additional criteria are added for an entity to receive funding from the Department of Commerce for the purpose of preparing an application for regional hydrogen hub funding from the United States Department of Energy, including that the entity should, among other things, include specific commitments, as required by the federal application, from industries, transportation agencies, utilities, and other public and private sector entities to assist in funding the application and to develop plans to construct infrastructure for, or to incorporate, or both, the production, distribution, and end use of hydrogen fuels into their transition to cleaner energy.
A section is removed that would have amended the scope of projects eligible for review and certification from the Energy Facility Site Evaluation Council.
A section is removed that would have authorized municipal utilities to produce, use, sell, and distribute renewable hydrogen and green electrolytic hydrogen.
A section is removed that would have authorized public utility districts to produce, use, sell, and distribute green electrolytic hydrogen.
(In support) Embracing innovation and opening up opportunities is a good idea. The natural gas industry is working hard to accelerate the use of hydrogen, which would make use of the 43,000 miles of natural gas distribution system in Washington.
There is an ongoing quest for appliances that are cost-effective and provide supplemental heating sources. Washington should not ban natural gas, but instead should look at how to apply renewable gases in order to use the same infrastructure. It is good to include hydrogen in the mix of available fuels. Moving to electric-only could leave people stranded, especially during storms. There is interest in looking to how the state blends and transitions to renewable fuels.
The renewable hydrogen hub authorized in the recent federal infrastructure bill is Washington's to lose. The hub will generate considerable investment. The deadline to submit applications for the hubs is May 15. There is currently no money in the proposed budgets to provide funds to support the application process.
This bill is vital in establishing Washington as a leader in the production of electrolytic hydrogen. Electrolytic hydrogen is an opportunity to build a renewable fuels workforce. A single state-coordinated application is the best way to produce a successful application for federal hydrogen hub funding.
The bill provides a vision for future generations. Accelerating the generation and distribution of green hydrogen will serve to take stress off the electrical grid. Washington is perfectly positioned to be a national hydrogen hub. The bill will help support a safe and sustainable future.
(Opposed) None.
Public utility districts are authorized to produce, use, sell, and distribute green electrolytic hydrogen to the same extent that they are currently authorized to produce, use, sell, and distribute renewable hydrogen. Municipal utilities are also authorized to produce, use, sell, and distribute green electrolytic hydrogen and renewable hydrogen to the same extent that they are currently authorized to produce, use, sell, and distribute gas and electricity.
Existing exemptions from retail sales tax, use tax, and leasehold excise tax that apply to certain aspects of the production of renewable hydrogen, to include the production of green electrolytic hydrogen are expanded.
The Department of Revenue is required to publish guidance to advise county assessors when appraising renewable energy facilities.
A requirement for the Utilities and Transportation Commission to submit a report to the Legislature on various topics related to advancing the production and use of nonfossil feedstock hydrogen in Washington is removed.
A null and void clause is also added, making the bill null and void unless funded in the operating budget.
(In support) There is between $500 million and $1 billion in the Infrastructure Investment and Jobs Act of 2021 to fund hydrogen networks and demonstrate end-use projects. Multiple potential projects exist in Washington, so being awarded a regional hydrogen hub is Washington's to lose. The bill sets up a structure that puts the state in a position to be a successful applicant for a regional hydrogen hub.
(Opposed) None.