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After failure of previous efforts, ‘baby hydrogen bill’ emerges
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One day after a controversial bill to make New Mexico a hub of hydrogen activity died in the Legislature, another — deemed a “baby hydrogen bill” by its sponsor — sprung to life. But the new legislation, House Bill 228, sponsored by Rep. Patty Lundstrom, D-Gallup, includes significant changes from two previous bills. For one, it does away with offering tax credits to public and private entities that team up to create clean hydrogen projects — a point of contention to critics who said those credits will benefit the oil and gas industry.
Instead, interested parties wanting to develop the hydrogen industry in the state will apply for public/private partnership money to be vetted and approved by a hydrogen hub development board and approved by the New Mexico Finance Authority.
The House of Representatives passed a bill authorizing such partnerships Tuesday. That bill, which Lundstrom co-sponsored, now goes to the Senate for consideration.
HB 228 is intended to gradually reduce the amount of carbon dioxide emissions in the production of clean, or “blue”, hydrogen over time. The bill calls for the level of emissions to start with two kilograms of carbon dioxide per kilogram of hydrogen produced. By 2035, the bill requires that ratio to drop to one kilogram of carbon dioxide per kilogram of hydrogen produced and, by 2045, zero carbon dioxide per kilogram of hydrogen.
“I think it’s a major economic generator,” Lundstrom said Tuesday.