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

August 15, 2025

On August 8, 2025, the Federal Energy Regulatory Commission (FERC) issued an enforcement order in Skye MS, LLC (Skye) and levied a $45,000 civil penalty on an intrastate pipeline operator in Mississippi, resolving an investigation into the operator’s violations of section 311 (Section 311) of the Natural Gas Policy Act (NGPA). FERC faulted the operator for providing a Section 311 transportation service without timely filing a Statement of Operating Conditions (SOC) and obtaining FERC’s approval for the transportation rates. Section 311 permits intrastate pipelines to transport interstate gas “on behalf of” interstate pipelines without becoming subject to FERC’s more extensive Natural Gas Act (NGA) jurisdiction, but requires the intrastate pipeline to have an SOC stating the rates and terms and conditions of service on file with FERC within 30 days of providing the interstate service. Under the NGPA, Section 311 rates must be “fair and equitable” and approved by FERC. In Skye, FERC stated that the operator began providing Section 311 service on certain pipeline segments in Mississippi in May 2023, following their acquisition from another Section 311 operator, but did not file an SOC with FERC until April 2025. The order ties the penalty to the approximately two-year delay between commencement of the Section 311 service and the SOC filing date. The pipeline operator was also ordered to provide an annual compliance report and to abide by additional verification requirements related to the filing of its FERC Form No. 549D, the Quarterly Transportation & Storage Report for Intrastate Natural Gas and Hinshaw Pipelines.

...

Read More

Speaking Energy

August 6, 2025

In Sierra Club v. FERC, No. 24-1199 (D.C. Cir. Aug. 1, 2025), the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) upheld the Federal Energy Regulatory Commission’s (FERC) approval of a 1,000-foot natural gas pipeline segment crossing the United States-Mexico border (the Border Pipeline) under section 3 of the Natural Gas Act (NGA), rejecting environmental groups’ challenges that FERC improperly limited its analysis under both the NGA and the National Environmental Policy Act (NEPA), as related to a 155-mile intrastate “Connector Pipeline” constructed upstream of the Border Pipeline in Texas.

...

Read More

Speaking Energy

July 17, 2025

On July 15, 2025, the Federal Energy Regulatory Commission (FERC or Commission) issued an order1 proposing to eliminate the soft price cap of $1,000 per megawatt-hour (MWh) for bilateral spot sales in the Western Electricity Coordinating Council (WECC) that was implemented following the California energy crisis. If adopted, the Commission’s proposal would eliminate the requirement that sellers make a filing with FERC cost justifying spot market sales in excess of the soft price cap, which have become increasingly common in recent years as market conditions have continued to tighten throughout the West. Eliminating the WECC soft price cap would provide sellers that make sales during periods when prices exceed the cap greater certainty that their sales will not be second guessed after the fact.

...

Read More

Speaking Energy

June 25, 2025

On June 4–5, 2025, the Federal Energy Regulatory Commission (FERC or Commission) hosted a commissioner-led technical conference to discuss resource adequacy challenges facing regional transmission organizations and independent system operators (RTO). The conference is a response to the growing concern that multiple RTO regions across the country may not have sufficient supply available in the coming years to meet demand due to resource retirements, the pace of new generation entry and higher load growth arising from the construction of data centers and reindustrialization.

...

Read More

Speaking Energy

June 12, 2025

We are pleased to share the presentation slide deck and a recording of Akin’s recently presented webinar, “Navigating U.S. Policy Shifts in the Critical Minerals Sector.”

...

Read More

Speaking Energy

June 10, 2025

On June 4, 2025, the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) announced revisions to its procedures for pipeline safety enforcement actions. The changes, outlined in two new policy memoranda from PHMSA’s Office of the Chief Counsel (PHC), aim to enhance due process protections for pipeline operators by clarifying how civil penalties are calculated and expanding the disclosure of agency records in enforcement proceedings.

...

Read More

Speaking Energy

May 22, 2025

On May 19, 2025, the Department of Energy (DOE) finalized its 2024 LNG Export Study: Energy, Economic and Environmental Assessment of U.S. LNG Exports (the 2024 Study) through the release of a Response to Comments on the 2024 Study. The Response to Comments concludes that the 2024 Study, as augmented through public comments submitted on or before March 20, 2025, supporting a finding that liquefied natural gas (LNG) exports serve the public interest. With the comment process complete, DOE will move forward with final orders on pending applications to export LNG to non-free trade agreement (non-FTA) countries.

...

Read More

Speaking Energy

May 20, 2025

On Thursday, May 15, the Senate Commerce, Science & Transportation Subcommittee on Surface Transportation, Freight, Pipelines and Safety held a hearing titled, “Pipeline Safety Reauthorization: Ensuring the Safe and Efficient Movement of American Energy.” The hearing examined legislative priorities for reauthorizing the Pipeline and Hazardous Materials Safety Administration (PHMSA).

...

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.