DOE can and should use hydrogen hub resources to build transportation corridors – Clean Air Task Force

DOE should use its authority under the Infrastructure Investment and Jobs Act (IIJA) to provide funding to hubs for hydrogen distribution and delivery infrastructure along transportation corridors that receive clean hydrogen from hubs.

The U.S. Department of Energy’s (DOE) Regional Hydrogen Hubs program is well underway, with five hubs already recognized. DOE and hubs are at a critical point in the planning process, and building synergistic connections between hydrogen hubs and clean truck corridors is an efficient and effective use of hub funding. This is a particularly good use of resources given the geographic alignment between DOE and Department of Transportation Clean Transportation Corridor Grant Program awardees and the selected hydrogen centers.

The DOE has the authority to fund hydrogen hubs for hydrogen refueling stations on transportation corridors.

The best reading of the relevant provisions of the IIJA is that transportation corridors served by clean hydrogen hubs can receive funding from the Hubs Program¹ for hydrogen distribution and delivery infrastructure, such as B. Gas stations.

Congress funded hydrogen and fuel cell programs in the Energy Policy Act of 2005 with the goal of “building a mature hydrogen economy that creates fuel diversity in the United States’ vast transportation sector” and “eliminating most emissions.” from the transport sector.”² In 2021, the IIJA amended the Energy Policy Act by providing $8 billion to create at least four “regional clean hydrogen centers.”³ Specifically, the IIJA directs the DOE to select and fund hubs that “demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen” and “can be developed into one,” among other requirements. national network for clean hydrogen to enable a clean hydrogen economy.” (CATF has previously outlined the mutually beneficial relationship between hydrogen hubs and zero-emission freight corridors here).

When funding the hubs, the DOE “may provide grants to any selected regional clean hydrogen hub.” . Accelerating commercialization and demonstration of production, processing, Deliverystorage and End use of clean hydrogen.” In other words, the DOE can finance all parts of the clean hydrogen value chain, including the delivery of clean hydrogen to end users. And Congress specifically designated the transportation sector as a priority end user for the Hubs program.

The provision “regional hubs for clean hydrogen”.⁴ (Section 16161a) defines a regional clean hydrogen hub as “a network of clean hydrogen producers, potential clean hydrogen consumers, and interconnection infrastructure in close proximity.” Therefore, a hydrogen hub is necessarily broad; It covers everything from the production of hydrogen to its end use. And a hub includes a “connecting infrastructure” between producers and consumers, which is defined as “the devices, systems or facilities used to produce, distribute, deliveryor store hydrogen.”

Given that the transportation sector requires more distributed infrastructure than other prioritized end uses for the hubs, DOE can support the distribution and delivery of clean hydrogen to transportation end uses that are more widely distributed than other end uses. While some modes of transportation (e.g. fuel cell-powered forklifts used in a port) may operate and refuel at a more concentrated location, the IIJA sets out a broader understanding of what is covered under a hydrogen hub.⁵ The Hubs program must support the development of hubs that “can be developed into one national clean hydrogen network to enable a clean hydrogen economy.” This formulation envisages a more extensive use of hydrogen in the transport sector, which requires a correspondingly widespread refueling infrastructure. Therefore, hub financing can and should include financing the distribution of hydrogen along major highways and transport corridors, where hydrogen filling stations will be the “clean hydrogen consumers” of the hydrogen produced at the hub.⁶

Other provisions of the IIJA support this reading.⁷ Section 16161b directs the DOE to “facilitate the implementation” of the Hubs Program in establishing a clean hydrogen strategy and roadmap. spacious Production, processing, delivery, storage and use of clean hydrogen.”⁸ This provision also stipulates that the strategy should focus on “identifying the needs, barriers and pathways to the development of clean hydrogen hubs”. . . The . . . This includes transport corridors and means of transport.”⁹ Section 16161b therefore clearly states that clean hydrogen hubs can and should include transportation corridors.

Admittedly, the definition of a “regional clean hydrogen hub” uses the qualifier “located in close proximity.” The question therefore arises as to how “close” geographically the end user of clean hydrogen (e.g. a hydrogen filling station) must be to a manufacturer of clean hydrogen in order to qualify for hub funding.

“Proximity” is not defined in the Act and should therefore be construed based on its ordinary and general meaning and the statutory context.¹⁰ The term “immediate proximity” is inherently contextual;¹¹ Compared to the other planets, Mercury is in “close proximity” to the Sun, but is still millions of kilometers away. Therefore, when interpreting “proximity,” “both ‘the specific context’ in which (the relevant provision) appears, ‘and the broader context of the law as a whole’’ provide insight into its meaning.¹² In fact, “(a) statutory provision that may appear ambiguous on its own is often clarified by the rest of the statute… because only one of the permitted meanings has a material effect consistent with the rest of the statute.”¹³

Applying these principles and considering the broader legal context and objectives of the hub provision, “proximity” as used in the hub provision should include infrastructure on transportation corridors that consume clean hydrogen produced at a hub . Congress funded the Hub Program to “relief spacious Production, processing, delivery, storage and use of clean hydrogen¹⁴ and directed DOE to select hubs that “can be developed into one national clean hydrogen network to enable a clean hydrogen economy.”¹⁵ In fact, in another provision of the IIJA, Congress described hydrogen hubs as “including transportation corridors.”¹⁶ “Proximity” should therefore be interpreted as an indicator of the infrastructure’s potential to facilitate the distribution and delivery of clean hydrogen to consumers, including those in the transport sector.¹⁷ This is the only interpretation that “has a material effect consistent with the rest of the law,” as hydrogen hubs can only effectively advance the use of clean hydrogen in the transport sector if the hubs deliver hydrogen to key transport corridors.¹⁸

¹ 42 USC § 161616a(d).

² Energy Policy Act of 2005, Pub. L. No. 109-58, § 802, 119 Stat. 594 (codified at 42 USC § 16151).

³ Energy Policy Act of 2005, Pub. L. No. 109-58, § 802, 119 Stat. 594 (codified at 42 USC § 16151).

⁴ 42 USC § 16161a.

⁵ Section 16154, the “Clean Hydrogen Research and Development Program,” confirms this reading. The IIJA modified this pre-existing program by, among other things, directing the DOE to “conduct promotion and assistance activities.” . . the use of clean hydrogen in the transportation sector, including in light, medium and heavy-duty vehicles, rail, aviation and maritime applications.” ID. § 16154(e)(11). This update confirms that when Congress refers to the “transportation sector” in the context of clean hydrogen, it intended to cover the entire transportation sector (i.e., more distributed transportation end-use applications) and not just short-haul applications.

⁶ This may include pipelines to deliver the hydrogen, as well as equipment or facilities, such as hydrogen filling stations, required for the “distribution” and “delivery” of hydrogen to hydrogen-powered vehicles.

⁷ See Fischer v. United States144 S. Ct. 2176, 2183 (2024) (In interpreting a statutory provision, “both ‘the specific context’ in which (the relevant provision) appears ‘and the broader context of the statute as a whole'” provide insight into its meaning.)

⁸ 42 USC § 16161b(a)(1) (emphasis added).

⁹ ID. § 16161b(a)(2)(F)(iii) (emphasis added).

¹⁰ Sandifer v. US Steel Corp.571 US 220, 227 (2014) (cleaned) (citedPerrin v. United States444 U.S. 37, 42 (1979)); see also Wis. Cent. Ltd. v. United States138 S. Ct. 2067, 2074 (2018) (“Words generally should be interpreted as having their ordinary, contemporary, and common meaning at the time of the adoption of the statute by Congress”) (cleaned) (quoted Perrin444 US, at 42).

¹¹ See armor system. & Procedures against Iq HK2005 US Dist. LEXIS 62468, *24 (ED Wisc. January 5, 2005) (“The meaning of ‘in close proximity’ depends on what one is talking about. For example, people may live in close proximity to one another without their houses adjoining or next to one another. “)

¹² Fisherman144 S. Ct. around 2183. See also Keen v. Helson930 F.3d 799, 803, (6th Cir. 2019) (clarified) (“Another tool of interpretation is the context provided by the rest of the statute. Statutory interpretation is a holistic endeavor—the structure and the Wording of other parts of a law can help clarify the meaning of an isolated term.”); Am. Growers Ins. Co. v. Fed. Crop Ins. Corp.532 F.3d 797, 803 (8th Cir. 2008) (“The long-established rule of plain language statutory interpretation requires “examination of the text of the statute as a whole, taking into account its context, purpose, and policy.”);Catalyst Pharms., Inc. v. Becerra14 F.4th 1299, 1310 (11th Cir. 2021) (“A reasonable statutory interpretation must take into account both the specific context in which … language is used and the broader context of the statute as a whole.”) (clarified high).

¹³ To use. Air Regulatory Group v. EPA573 U.S. 302, 321 (2014).

¹⁴ 42 USC § 16161b(a)(1) (emphasis added).

¹⁵ ID . § 16161a(b)(3).

¹⁶ ID.§ 16161b(a)(2)(F)(iii).

¹⁷ See Gordillo 920 F.3d around 1297.

¹⁸ See Sackett v. EPA 598 U.S. 651, 676 (2023);see alsoTo use. Air Regulation Group573 US at 321.