HIFIA: A Bi-Partisan Bill to Build Out Hydrogen Transport Infrastructure

March 9, 2023

Reading Time : 4 min

On March 2, 2023, a bi-partisan group of Senators introduced a package of legislation dubbed the Hydrogen Infrastructure Initiative aimed at facilitating the build out of the hydrogen infrastructure necessary to transport, store and deliver hydrogen. The Hydrogen Infrastructure Initiative includes four separate pieces of legislation: (i) the Hydrogen for Ports Act (S.647), (ii) the Hydrogen for Industry Act (S.646), (iii) the Hydrogen for Trucks Act (S.648) and (iv) the Hydrogen Infrastructure Finance and Innovation Act (HIFIA) (S.649). While all four bills could play an important role in assisting the development of hydrogen infrastructure in the U.S., HIFIA is likely to be of outsize importance given its focus on addressing one of the most significant barriers to the widespread deployment of clean hydrogen: the ability to cost-effectively transport it from where it is produced to where it will be consumed. Senators Chris Coons (D-DE) and John Cornyn (R-TX) are the initiative’s original co-sponsors.

Hydrogen has a potentially large role to play in decarbonizing numerous sectors of the economy. But unlocking hydrogen’s potential may require it to be transported long distances via pipeline, long considered the most cost effective transportation method. At present, there are roughly 1,600 miles of hydrogen pipelines in the U.S., most of which are concentrated along the Gulf Coast.

If the clean hydrogen economy is truly going to scale up in the next decade to the extent many predict, the U.S. will need to build out many more miles of hydrogen pipelines or convert existing pipelines to carry hydrogen. HIFIA, if passed, would represent a promising first step towards resolving regulatory uncertainties and assisting with financing these energy transition projects. It is modeled off of WIFIA (for water infrastructure), TIFIA (for transit infrastructure) and the recently enacted CIFIA (for carbon transport infrastructure), and is comprised of the following four elements:

1) HIFIA Pilot Program

The bulk of HIFIA is devoted to establishing a pilot program pursuant to which the Department of Energy (DOE) would provide grants, long-term low-cost supplemental loans or technical assistance to hydrogen transport, storage or delivery projects, including new hydrogen pipelines, retrofitted natural gas pipelines that can transport at least a blend of hydrogen and natural gas and rail projects.  In selecting projects to receive HIFIA grants or loans, DOE would be required to identify projects that, to the extent practicable, are large capacity, common carrier infrastructure, aid in creating hydrogen economies of scale, and, among other things, generate the greatest benefit to low-income or disadvantaged communities. DOE would be required to coordinate the HIFIA Pilot Program, to the maximum extent practicable, with the Infrastructure Investment and Jobs Act’s $8 billion hydrogen hub program.

2) Broadening Title XVII Innovative Clean Energy Loan Guarantee Program

HIFIA would make clean hydrogen projects eligible to receive a DOE loan guarantee under Title XVII’s Innovative Clean Energy Loan Guarantee Program. Under Title XVII, which is administered by DOE’s Loan Programs Office (LPO), commercial scale, first-of-a-kind projects that reduce greenhouse gas emissions and are defined as “eligible projects” are able to receive DOE-backed loan guarantees. Although Title XVII currently includes “[h]ydrogen fuel cell technology for residential, industrial, or transportation applications” in its definition of eligible projects, HIFIA would substantially broaden Title XVII to include any “[h]ydrogen technologies applicable to 1 or more end-use sectors, such as power generation, transportation, aviation, storage, industrial, and chemicals, including hydrogen fuel.” Given that LPO now has in excess of $60 billion in loan authority under Title XVII to utilize, HIFIA’s expansion of the definition of eligible projects could be a significant boost to hydrogen projects, including hydrogen transport infrastructure. If the program is implemented like CIFIA, we expect the DOE to distribute the funds as low cost loans instead of grants.  Applicants will need to be aware of the terms of the loans and particular DOE-specific requirements.

3) Required Regulatory Assessment

HIFIA would require the Federal Energy Regulatory Commission (FERC), Surface Transportation Board (STB) and Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with DOE, to perform an assessment of their collective jurisdiction over the siting, construction, safety and regulation of hydrogen transportation infrastructure, including the blending of hydrogen in natural gas pipelines. If the required assessment disclosed that additional authority was needed by the above agencies to support the deployment of hydrogen transport infrastructure, they would be required to submit a report to Congress within 270 days of HIFIA’s enactment identifying what additional authority they required. The agencies would also be responsible for identifying HIFIA pilot projects’ eligibility to recover their costs under FERC or STB regulated rates. HIFIA’s required regulatory assessment could help to resolve areas of considerable uncertainty regarding the regulation of hydrogen pipelines.

4) Hydrogen Pipeline Corridors Study

HIFIA requires DOE, the Environmental Protection Agency and the Council on Environmental Quality, along with other relevant agencies, to conduct a study assessing the potential layout of hydrogen pipeline corridors. The agencies would also be required to consider other aspects of building out hydrogen infrastructure such as costs, the ability to site pipelines within existing linear infrastructure corridors, the impact of hydrogen leakage, a framework for monitoring and reporting hydrogen leakage and the reduction in carbon intensity based on blending various amounts of hydrogen into natural gas. 

The Akin Energy team will be tracking HIFIA and other legislative and regulatory developments related to hydrogen transport infrastructure. While there is not sufficient political will to immediately pass these proposals, these bills are likely to come up for debate as Congress works towards reforming federal permitting across energy projects.

Share This Insight

Previous Entries

Speaking Energy

March 10, 2025

On March 5, 2025, the United States Department of Energy (DOE) approved Golden Pass LNG Terminal LLC’s (GPLNG) request to extend a deadline to begin exporting liquefied natural gas (LNG) from its terminal facility currently under construction in Sabine Pass, Texas for 18 months, from September 30, 2025, to March 31, 2027 (the Order). The Order amends GPLNG’s two existing long-term orders authorizing the export of domestically produced LNG to countries with which the United States does and does not have free trade agreements (FTA).1  The Order does not amend the authorizations’ end date, which remains December 31, 2050. Under section 3 of the Natural Gas Act (NGA), the DOE may authorize exports to non-FTA countries following completion of a “public interest” review, whereas exports to FTA countries are deemed to be in the public interest and the DOE is directed to issue authorizations without modification or delay.

...

Read More

Speaking Energy

March 4, 2025

Join projects & energy transition partner Shariff Barakat at Infocast’s Solar & Wind, where he will moderate the “Tax Equity Market Dynamics” panel.

...

Read More

Speaking Energy

February 13, 2025

Oil & gas companies continue to identify and capitalize on opportunities related to the deployment of new energy technologies, with their approaches broadly maturing and coalescing around maximizing synergies, leveraging available subsidies and responding to regulatory drivers.

...

Read More

Speaking Energy

February 11, 2025

On January 30, 2025, the Federal Energy Regulatory Commission (FERC or the Commission) approved a Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (OE) and Stronghold Digital Mining Inc. (Stronghold) resolving an investigation into whether Stronghold had violated the PJM Interconnection, L.L.C. (PJM) tariff and Commission regulations by limiting the quantity of energy made available to the market to serve a co-located Bitcoin mining operation.1 This order appears to be the first instance of a public enforcement action involving co-located load and generation and comes at a time when both FERC and market operators2 are scrutinizing the treatment of co-located load due to the rapid increase in demand associated with data center development.

...

Read More

Speaking Energy

February 5, 2025

2024 was about post-consolidation deal flow and a steady uptick in activity across the oil & gas market. This year, mergers & acquisitions (M&A) activity looks set to take on a different tone as major consolidation plays bed down.

...

Read More

Speaking Energy

January 30, 2025

The oil & gas industry is experiencing a capital resurgence, driven by stabilizing interest rates and renewed attention from institutional investors. Private equity is leading the charge with private credit filling the void in traditional energy finance and hybrid capital instruments gaining in popularity. Family offices are also playing a crucial role, providing long-term, flexible investments.

...

Read More

Speaking Energy

January 23, 2025

Under a second Trump presidency, the U.S. is expected to consider reversal of many of the Biden administration’s climate and environmental policies, in addition to a markedly different approach to trade policy and oil & gas regulation. This includes expanding oil & gas development on public lands and offshore, lifting the pause on liquified natural gas (LNG) exports to non-Free Trade Agreement countries and repealing the methane fee.

...

Read More

Speaking Energy

January 15, 2025

We are pleased to share a recording of Akin’s recently presented webinar, “Drilling Down: What Oil & Gas Companies Can Expect from Federal Agencies During Trump’s Second Administration.”

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.