CA Legislature Greenlights McNerney’s Bill to Boost Green Hydrogen, a Clean-Energy Gamechanger

SACRAMENTO – Both houses of the California Legislature today approved Sen. Jerry McNerney’s SB 1350, groundbreaking legislation that would significantly expand the use of green hydrogen, a clean-energy gamechanger.

SB 1350 would allow natural gas power plants to use hydrogen made from renewable resources like wind and solar under California’s world-leading clean energy standards as the facilities transition away from fossil fuels. 

SB 1350 won approval in the state Senate on a vote of 37-0, after the state Assembly approved the bill on a 57-0 vote. SB 1350 now goes to Gov. Gavin Newsom’s desk, and if signed, it would be the first such law in the nation. It would take effect immediately.

“California is a world leader in clean energy thanks to solar and wind power and large-scale battery storage. But we won’t achieve 100% renewable energy by 2045 by relying on those sources alone. We must add green hydrogen to the mix,” Sen. McNerney said. “The Legislature’s overwhelming approval of SB 1350 sends a clear message: Green hydrogen is the gamechanger we need to meet our climate goals, and it will protect good-paying jobs throughout the state.”

SB 1350 is co-sponsored by the Green Hydrogen Coalition and State Building and Construction Trades Council.

“The Legislature’s approval of SB 1350 is a landmark step toward securing California's clean energy future,” said Janice Lin, founder and president of the Green Hydrogen Coalition. “This legislation not only recognizes the critical role that renewable hydrogen can play in providing reliable zero-carbon electricity, it also creates the policy certainty needed to unlock investment in hydrogen-ready power plants that will keep the lights on, lower long-term electricity system costs, and help California continue to lead the world in clean energy innovation.”

“We thank Senator McNerney for his leadership in championing SB 1350 and its technical fix to the Renewable Portfolio Standard Guidebook,” said Chris Hannan, president of the State Building and Construction Trades Council. “By enabling electricity generated using qualifying hydrogen, SB 1350 will support new production opportunities in California. This expanded hydrogen supply will help decarbonize hard-to-abate sectors and create thousands of union construction jobs.”

Green hydrogen is produced from wind, solar, or other renewable sources, and when it’s used to make electricity, it emits no climate-harming gases. It’s also a versatile energy source that will protect and produce jobs while helping California meet its world-leading climate goals.

Thanks to the state’s rapid expansion of solar and wind power and battery storage during the past decade, renewable energy now accounts for about 60% of CA’s electricity. But the state continues to rely on natural gas power plants during overnight hours, after utility batteries have depleted, and during winter months when there is less solar energy available.

Green hydrogen offers a game-changing solution. It can be used in existing natural gas power plants, thereby further reducing our dependence on fossil fuels while relieving the need to build costly new infrastructure and protecting good-paying jobs in those facilities. For example, Los Angeles Department of Water and Power plans to retrofit several of its natural gas plants to run off renewable hydrogen fuel by 2045. 

However, under current state law, using green hydrogen in a natural gas power plant does not qualify as a clean energy source under California’s Renewables Portfolio Standard. RPS requires utilities to procure 60% of their electricity portfolio from qualified clean energy sources by 2030. 

SB 1350 would ensure that the use of green hydrogen in a natural gas power plant also qualifies for RPS credit if it meets clean energy standards, including:

• Green hydrogen can only be produced by state-certified renewable sources
• At least 20% of the fuel used in the facility must be green hydrogen
• The use of green hydrogen must reduce air pollution from the electrical sector.

SB 1350 will provide a boost to facilities that plan to use green hydrogen, including the Lodi Energy Center in Sen. McNerney’s district – and to planned facilities that will produce green hydrogen, such as Element Resources’ Lancaster Clean Energy Center. LCEC would be the largest clean hydrogen project in the nation, providing 1,200 construction jobs while removing millions of pounds of CO2 from California’s power sector. Sen. McNerney added the urgency clause to SB 1350 to ensure the timely use of $675 million in federal energy credits by LCEC.

Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee, and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.