DOE Appropriations for Its Hydrogen Program: FY2024

DOE Appropriations for Its Hydrogen Program: FY2024

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Updated March 21, 2024
DOE Appropriations for Its Hydrogen Program: FY2024
The U.S. Department of Energy (DOE) Hydrogen Program
applications, including heavy-duty transportation and
addresses the development of applications that use
energy storage; reducing the cost of clean hydrogen; and
hydrogen in place of today’s fuels to provide modern
developing regional networks through the Regional Clean
energy services. The program also considers hydrogen as an
Hydrogen Hubs (IIJA §40314). DOE’s “Hydrogen Shot”
established industrial chemical, for example, in petroleum
goal for the cost of hydrogen is $1/kg by 2031, not
refining. The DOE program includes over 400 projects
including delivery and dispensing, for production using
involving research and development (R&D), systems
electrolyzers that split water to make the hydrogen.
integration, and demonstration and deployment activities—
Currently the cost of hydrogen made with electrolyzers is
collectively performed by universities, national
roughly $5/kg.
laboratories, and industry. These projects cover the energy
value chain starting with producing hydrogen from diverse
DOE Budget Authority
feedstocks; transporting and storing it; and finally using it
Within DOE, two offices—EERE and the Office of Fossil
in various applications. The program is led by the Hydrogen
Energy and Carbon Management—were responsible for
and Fuel Cell Technologies Office (HFTO) within the DOE
executing over 80% of DOE’s budget authority on
Office of Energy Efficiency and Renewable Energy
hydrogen and fuel cells from the FY2023 annual
(EERE) with participation by other DOE offices.
appropriation. The Office of Nuclear Energy and the Office
of Science received smaller percentages. In FY2023, the
A future “hydrogen economy” using hydrogen as an energy
DOE total budget authority for hydrogen was $437.5
carrier and fuel could offer an alternative to today’s
million, including $20.0 million announced by ARPA-E
economy with its prevalent combustion of fossil fuels.
(Advanced Research Projects Agency-Energy) in
Initially thought of as a new technology for personal
September 2023.
mobility services (e.g., cars) and high-value applications
such as provision of electric power during space flight,
For FY2024, the President’s budget request for the DOE
hydrogen now is receiving attention for industrial
hydrogen program was $381.6 million. In the joint
processes, heavy vehicles, forklifts, portable power, and
explanatory statement accompanying the Consolidated
buffering and balancing of electric power. For more
Appropriations Act, 2024 (P.L. 118-42), Congress directed
information, see CRS Report R47487, The Hydrogen
$396.0 million (Figure 1) for the crosscutting initiative on
Economy: Putting the Pieces Together, by Martin C. Offutt.
hydrogen. In addition to FY2024 annual appropriations,
DOE received all hydrogen-related appropriations from
Federal Hydrogen Programs
Authorizing Legislation
Figure 1. FY2024 Appropriation for the DOE
The Electric and Hybrid Vehicle Research, Development,
Hydrogen Program, by Office ($million)
and Demonstration Act of 1976 (P.L. 94-413) authorized a
federal hydrogen program, initially at the National Science
Foundation. Congress transferred overall management
responsibility of the hydrogen program to DOE with the
Spark M. Matsunaga Hydrogen Research, Development,
and Demonstration Program Act of 1990 (P.L. 101-566).
The Energy Policy Act of 2005 (EPAct, P.L. 109-58) and
its amendments, including the Infrastructure Investment and
Jobs Act (IIJA, P.L. 117-58), further defined the DOE
program’s scope and purpose.
The DOE Program
Participants in the DOE Hydrogen Program include several
offices with responsibility for supporting hydrogen work
based on different sources of energy (e.g., renewable, fossil,
nuclear) and types of end-use (e.g., vehicles, portable

power, thermal comfort). DOE’s June 2023 National Clean
Source: Explanatory Statement to Accompany Division D
Hydrogen Strategy and Roadmap envisages 10 million
of the Consolidated Appropriations Act, 2024, P.L. 118-42.
metric tons of new production of hydrogen per year by
ARPA-E funding for hydrogen is determined annually
2030, further stipulated to be “clean hydrogen” as defined
based on programs developed through office and
in statute and DOE regulation. The Strategy and Roadmap
stakeholder priorities and defined, in part, by the proposals
has three focal points: increasing the use of industrial
it receives and awards.
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link to page 1 DOE Appropriations for Its Hydrogen Program: FY2024
the IIJA for FY2022 through FY2024. These include funds
DOE to support updates to Greenhouse Gases, Regulated
for two programs—Clean Hydrogen Manufacturing and
Emissions, and Energy Use in Technologies (GREET), the
Recycling Research, Development, and Demonstration; and
model the IRA requires to be used to determine whether the
Clean Hydrogen Electrolysis—which together received
“well-to-gate” greenhouse gas (GHG) emissions meet the
$300 million for each of FY2022 through FY2024. In July
threshold for eligibility for the tax credit and at what dollar-
2023, DOE accepted applications for the first $750 million
level. Further information is available in CRS In Focus
in funding for these two programs and has not announced
IF12602, The Clean Hydrogen Production Credit: How the
awards to date. The IIJA also appropriated $8 billion for
Incentives are Structured, by Nicholas E. Buffie and Martin
Regional Clean Hydrogen Hubs, awards for which are in
C. Offutt. The NPRM raised the possibility that GREET
negotiations.
could be updated one or more times per year.
In the joint explanatory statement accompanying the
Recent Developments
Consolidated Appropriations Act, 2024, (P.L. 118-42)
On February 9, 2024, ARPA-E announced the awarding of
Congress directed $170.0 million for HFTO, nearly $7
$20.0 million of FY2023 funds for geologic hydrogen for
million above the President’s request. The funding for
16 projects. One-half the amount of the awards went to
HFTO makes up the majority of the pie slice for EERE in
universities and roughly one-quarter each to the private
Figure 1 (as well as the majority of prior-year
sector and DOE national laboratories. The projects
appropriations). As incorporated by reference in the joint
collectively would address two areas. In one area, projects
explanatory statement, H.Rept. 118-126 directed that $10.0
would consider management of reservoirs of naturally-
million in the Vehicle Technologies control point be used to
occurring hydrogen—roughly two-thirds of funds. In a
research novel, more efficient hydrogen combustion
second area, projects would focus on the subsurface
engines—a figure that was not in the President’s request.
production of hydrogen through stimulated mineralogical
processes—roughly one-third of funds. ARPA-E also
Where DOE Spends the Money
announced the awarding of funds to Argonne National
DOE’s Hydrogen Program awards grants, contracts, and
Laboratory to develop GREET further to include additional
cooperative agreements to investigators at universities,
pathways for manufacturing hydrogen.
industry, and national laboratories. This supports over 400
projects. These include R&D focused on the hardware, such
On October 13, 2023, DOE announced it was entering
as the fuel cell, for a hydrogen economy. R&D is intended
award negotiations with seven finalists for the Regional
to reduce cost and improve performance of production and
Clean Hydrogen Hubs (IIJA §40314) for a total award
end-use technology and other parts of the hydrogen value
value of $7 billion. On January 17, 2024, DOE announced
chain. The projects also include work at higher levels of
that it had selected a consortium to receive $1 billion for a
integration, such as to validate first-of-a-kind systems,
Demand-side Support Initiative as part of the Regional
reduce technological risk, and address the other aspects of a
Clean Hydrogen Hubs. The Hubs received $1.6 billion in
hydrogen economy (e.g., safety, codes and standards, and
appropriated funds in each of FY2022 through FY2024.
workforce development). In H.Rept. 118-126, the House
Appropriations Committee encouraged DOE to examine the
Congressional Considerations
potential of hydrogen to provide power for electric vehicle
H.Rept. 118-126 and S.Rept. 118-72 directed that DOE
charging in grid-constrained locations.
coordinate hydrogen and fuel cell programs across DOE
offices. S.Rept. 118-72 noted the number of coordination
Hydrogen Programs at Non-DOE Federal Agencies
mechanisms, including crosscuts and “Earthshots,” such as
DOE’s HFTO has a coordinating role for hydrogen
the Hydrogen Shot discussed above, and directed DOE to
activities across the executive branch. Several other
simplify and consolidate these into one function.
agencies—the Department of the Army, National
Aeronautics and Space Administration, and Department of
The 45V tax credit, and how much of it taxpayers will be
the Navy, among others—administer hydrogen programs.
able to claim in the Regional Clean Hydrogen Hubs, may
DOE estimates that, for FY2022 and FY2023 combined,
be of interest to Congress. The development and updating
projects funded by non-DOE hydrogen programs totaled
of the GREET model could inform adjustments to which
over $70.0 million, an increase of roughly $30.0 million
projects are eligible for the 45V credit and at what dollar-
from combined FY2019 and FY2020. The projects range
level; this may be of continued interest to Congress. The
from basic research on fuel cells to activities aimed at early
IIJA required that DOE consider a number of goals (e.g.,
deployment, including demonstrations of fuel cells in
long-term employment, geographic diversity) for the
applications such as forklifts and unmanned underwater and
Regional Clean Hydrogen Hubs and established timetables
aerial vehicles.
for DOE’s implementation of these hubs. How and to what
extent DOE implements these goals, and how quickly it
P.L. 117-169, commonly known as the Inflation Reduction
obligates IIJA funding, may be of continued interest to
Act of 2022 (IRA), created the Clean Hydrogen Production
Congress.
Tax Credit in Internal Revenue Code Section 45V (IRC
45V). The Department of the Treasury published a notice of
Martin C. Offutt, Analyst in Energy Policy
proposed rulemaking (NPRM) and notice of public hearing
on December 26, 2023, for implementing 45V. In S.Rept.
IF12514
118-72, the Senate Appropriations Committee instructed

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DOE Appropriations for Its Hydrogen Program: FY2024

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