The Clean Hydrogen Program was established by Assembly Bill 209 (The Energy and Climate Change budget bill, Chapter 251, Section 12, Chapter 7.6, Article 4, enacted in September 2022) to demonstrate or scale-up hydrogen projects that produce, process, deliver, store, or use hydrogen derived from water using eligible renewable energy resources, or produced from these eligible renewable energy resources.
Projects receiving financial incentives must:
- Reduce sector-wide emissions.
- Benefit geographically diverse areas of the state.
- Maximize air quality, equity, health, and workforce benefits.
Greenhouse Gas Reduction Fund for the Clean Hydrogen Program
The Legislature and Governor appropriate money from the Greenhouse Gas Reduction Fund (GGRF) to State agencies through the annual budget process. The California Energy Commission has received GGRF allocations for the Clean Hydrogen Program.
The Clean Hydrogen Program is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Invest, formerly known as Cap-and-Trade, dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment - particularly in disadvantaged communities.