Presented by

States are paving the way for a new clean energy kid on the block: so-called green hydrogen.

An upswell of state-led legislation aimed at boosting and regulating the fuel source could help shape the trajectory of President Joe Biden’s climate plans, write David Iaconangelo, Heather Richards and Zach Bright.

While pure hydrogen is by definition carbon-free, the gas is only as climate-friendly as its production process. The bulk of hydrogen energy produced in the U.S. today — “gray” hydrogen — is extracted from natural gas, which releases carbon into the atmosphere.

“Green” hydrogen, on the other hand, uses solar, wind or other renewable power to extricate hydrogen from water, producing no planet-warming emissions. Few green hydrogen projects exist, and many new developers want to use energy from the grid, which is not always carbon-free — threatening to erase hydrogen’s climate benefits.

On the ground: State action on hydrogen comes at a pivotal period of implementation for Biden’s climate and infrastructure laws. These include efforts to develop hydrogen that is at least greenish — produced with only a minimal amount of carbon output.

The Energy Department, for example, is preparing to award up to $7 billion for the nation’s first hubs of low-carbon hydrogen production, storage, transport and consumption — and states from Mississippi and North Dakota to Hawaii and Washington are angling for a share of the bounty.

In North Dakota, Republicans are spending millions on research into storing hydrogen (along with fossil fuels) in underground salt caverns. Democrats in Washington state, meanwhile, passed a law to speed up clean energy projects, including hydrogen made from carbon-free electricity and water.

Colorado blazes the trail: Perhaps the most groundbreaking state action is in Colorado, where Democratic Gov. Jared Polis signed a tax credit for companies that use hydrogen. The move — intended to spur the nascent industry — was paired with strict emission limits and offset requirements to ensure that hydrogen is actually “green.”

The Treasury Department is considering what requirements it will tie to federal green hydrogen tax credits. In a recent letter to several federal agencies, more than 130 lawmakers from 35 states and Puerto Rico urged the agency to adopt Colorado’s approach.

It’s Thursday — thank you for tuning in to POLITICO’s Power Switch. I’m your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to [email protected]

Today in POLITICO Energy’s podcast: Alex Guillén breaks down the White House’s semiannual rulemaking agenda and why the deadlines matter.

Meet the kids behind the trial
The 16 young people behind the first U.S. youth-led climate trial in Montana have spent their lives fishing the state’s rivers and skiing its mountains, writes Lesley Clark.

Several of the young climate activists have health conditions, such as asthma, which they say is made worse by wildfire seasons that are getting longer and hotter. The youngest challenger was just 2 years old when the lawsuit was filed in 2020.

SCOTUS fallout
In its blockbuster Clean Water Act ruling last month, the Supreme Court did more than ratchet back federal oversight of the nation’s wetlands — the justices may have also removed key pathways to endangered species protections and climate reviews of major projects, writes Pamela King.

“The programs are intertwined in ways that aren’t immediately obvious,” said Robert Glicksman, a law professor at George Washington University.

COP location skirmish
The United Nations’ 2024 climate summit is scheduled to take place in Eastern Europe, but rising geopolitical tensions are creating disagreement about whether that is still a viable option, writes Zia Weise.

The region has to decide by consensus. But Russia’s invasion of Ukraine and the ongoing conflict between Armenia and Azerbaijan has resulted in a stalemate. And Moscow has vowed to block any European Union country from hosting.

Money talks: Power companies quietly pumped $215 million into U.S. politics via dark money groups.

At the pump: Gas stations are leaking toxins into nearby groundwater.

A showcase of some of our best subscriber content.

British oil major Shell said it plans to boost its natural gas business and keep oil output steady through 2030, sparking accusations that the company isn’t doing enough to cut emissions.

A new study found that electric vehicle charging availability is the biggest “friction point” for consumers considering going electric, with nearly half rejecting the idea over charging worries.

Conservatives are leveraging a new argument against investing that considers environmental impacts: It’s hurting poor families. But energy analysts say the criticism lacks any supporting evidence.

That’s it for today, folks! Thanks for reading.