Hydrogen Policy Moves Forward in AZ

As Arizona continues to take a leadership role in clean and renewable energy technology–in particular when it comes to research, development and innovation–it is absolutely critical that the state has policies in place that will support the innovation sector.

In particular, efforts within Arizona to explore and bolster the use of hydrogen as an alternative energy source are gaining ground. For example, last year the U.S. Department of Energy awarded a grant of $20 million to study the production of clean hydrogen from nuclear power at Palo Verde Nuclear Generating Station in Phoenix. In addition, Arizona-based Nikola Motors is working to develop hydrogen fuel cell technology for the commercial trucking industry, and Southwest Gas has teamed up with Arizona State University to to study how hydrogen-blended natural gas can further reduce carbon emissions while still providing clean and reliable energy. These are but just a few examples, though there are more–which is why supportive policies to continue this trend are so important.

Fortunately, Senator T.J. Shope (R-Coolidge), has been a champion of hydrogen technology in the Arizona Legislature. This year, Senator Shope sponsored two bills to support Arizona’s hydrogen industry. The first, SB1396, was signed by Governor Ducey on April 22 and establishes a legislative hydrogen study committee to “investigate and evaluate existing laws and regulations and recommend legislation related to the production, distribution and storage of hydrogen.” The second, SB1599, would have exempted hydrogen from Arizona’s transaction privilege tax, but unfortunately it failed to advance through the legislature.

Senator Shope’s attention to Arizona’s hydrogen economy is exactly the type of approach we need from Arizona’s elected officials. Policies to support the research, development and deployment of new and innovative sources of alternative fuels will help ensure Arizona remains at the cutting edge of clean energy.