May 24, 2024
The Honorable Anna Caballero, Chair
Senate Appropriations Committee
1021 O Street, Room 7620
Sacramento, CA 95814
RE: Support SB 1420 (Caballero) – Hydrogen
Dear Senator Caballero:
This letter is to convey Inland Action’s support for SB 1420. Inland Action is a non-profit, non-partisan corporation of public-spirited leaders who have joined together to be catalysts for the economic well-being of the Inland Empire region of California since 1962. This bill will set a statewide standard for the use of clean hydrogen in transportation and intends to improve the permitting process for applicable hydrogen production projects. We are pleased to support SB 1420’s direction and respectfully request amendments.
California’s 2022 Scoping Plan Update calls for scaling up hydrogen capacity 1,700 times the amount of current supply by 2045. Developing the Hydrogen Economy Of the Future will allow for the decarbonization of hard-to-electrify sectors, including power generation, heavy-duty transport and goods movement, and industrial uses. These are important sectors of California’s economy that must be part of the clean energy transition. Scaling up clean hydrogen production would reduce CO2 emissions and improve air quality. Inland Action has long supported conversion to clean fuels of all types to improve air quality in the South Coast Air Basin, particularly for port operations and heavy-duty trucks which are so prevalent in our region.
The U.S. Department of Energy recently selected California to receive up to $1.2 billion for the ARCHES hydrogen hub – a historic milestone in California’s efforts to meet climate goals, cut pollution, and expand the clean energy economy. We must work swiftly to ensure that clean hydrogen’s addition to the State’s clean energy portfolio can keep pace with the progress made with other renewables, like solar and wind.
While the bill intends to improve the permitting process for applicable hydrogen production projects, we think more can be done. To grow the hydrogen economy and secure federal funding to support California’s emission reduction goals, we respectfully request two amendments to SB 1420 in support of ARCHES projects:
- Include renewable hydrogen as an eligible Renewable Portfolio Standard (RPS) resource. This language was removed from the bill and should be reconsidered.
- Incorporate additional concepts from existing law to streamline the permitting and California Environmental Quality Act (CEQA) review process for clean hydrogen production and delivery projects that meet specified criteria, to avoid lengthy processes that unnecessarily increase costs, legal fees, and administrative overhead for clean energy investments.
Proactive development of clean hydrogen’s production and delivery is a must for the California hydrogen economy to become sustainable and affordable for the end-user.
Sincerely,
Deborah Barmack
President