S646-118

What This Bill Does

The Hydrogen for Industry Act of 2023 creates a $1.2 billion federal grant program to help heavy industrial manufacturers switch from fossil fuels to hydrogen. It aims to reduce greenhouse gas emissions in sectors like steel, cement, glass, and chemical manufacturing by funding commercial-scale demonstration projects that prove hydrogen can work as an industrial fuel or feedstock.

Who Benefits and How

Heavy industry manufacturers (steel, cement, glass, chemicals, fertilizer) can receive grants up to $400 million each to build or retrofit facilities that use hydrogen, covering up to 50% of project costs. Hydrogen producers and technology companies benefit from increased demand for their products and services. Workers in manufacturing regions are prioritized, as the program requires projects to maximize job creation and retention. Low-income and disadvantaged communities are specifically targeted for project benefits, as the Secretary must prioritize projects that generate the greatest benefit to these communities.

Who Bears the Burden and How

Federal taxpayers fund the $1.2 billion appropriation over fiscal years 2024-2028. Grant recipients must provide at least 50% non-Federal cost share (matching funds) for demonstration projects. Project operators must implement hydrogen leakage monitoring, reporting, and leak detection/repair programs, adding compliance costs. The bill explicitly states that technologies demonstrated under this program cannot be used as the basis for new Clean Air Act emissions standards, protecting industries from immediate regulatory burdens.

Key Provisions

• Authorizes $1.2 billion for the "Hydrogen Technologies for Heavy Industry Demonstration Program" from FY 2024-2028
• Provides competitive grants up to $400 million per project for commercial-scale hydrogen demonstrations in heavy industry
• Covers 10 specific industrial applications: iron/steel, cement, glass, ammonia/fertilizer, food processing, synthetic fuels, biorefining, chemical synthesis, process heaters, and cogeneration
• Requires 50% non-Federal cost share and use of technologies that have completed pilot-scale testing
• Mandates hydrogen leakage monitoring and leak detection/repair programs
• Prioritizes projects that reduce greenhouse gas emissions, benefit low-income communities, and maximize domestic job creation
• Orders a joint study by Energy, Commerce, and Transportation departments on hydrogen safety, feasibility, and environmental impacts