Vehicular fuels: renewable and clean hydrogen: income tax: credit.
Impact
If enacted, AB 1312 would impact California's existing laws relating to vehicular fuels and environmental regulations by mandating that a growing percentage of hydrogen used in motor vehicles must come from renewable sources. Specifically, the bill requires that 33.3% of hydrogen produced be green hydrogen, rising to 44% by 2024, and reaching 100% by 2045. This creates an urgent push for the development of green hydrogen facilities and infrastructure to meet these statutory benchmarks.
Summary
Assembly Bill 1312, introduced by Assembly Member Rodriguez, focuses on promoting the use of green and clean hydrogen fuel in California. The bill proposes significant changes to the state's approach to hydrogen production and distribution, aiming to increase the use of renewable energy sources. It establishes a framework for income tax credits for facilities producing green hydrogen, as well as for building hydrogen refueling infrastructure. The bill's provisions are targeted at bolstering California's hydrogen-fueling network as part of the state's broader goal to transition to zero-emission vehicles and reduce greenhouse gas emissions significantly.
Contention
Notably, the bill includes a cap on the total tax credits available, limiting credits for hydrogen production facilities to $1 billion over ten years and $500 million annually for infrastructure. This allocation strategy is designed to incentivize investment but may also result in contention over resource distribution among competing interests in the renewable energy sector. Additionally, the requirement for annual reporting on hydrogen production and refueling station status may impose compliance burdens, creating a discussion point among stakeholders regarding the regulatory impact on potential investors.