Proposal would limit water permits for industrial hydrogen production

The proposal would say that splitting water into hydrogen and oxygen for industrial hydrogen production is not a beneficial use of water. This applies to splitting water molecules to produce hydrogen industrially. It would not prohibit uses that lose water through evaporation when their main purpose is not splitting water molecules. It would not prohibit using wastewater. This act would take effect July 1, 2026.

The proposal would require water officials to deny certain applications that would split water into hydrogen and oxygen for industrial hydrogen production. The rules cover certain water permits, requests to change permits or water use, and temporary transfers, as specified in each section. For some application types, denial is required only if the water source faced priority regulation, or its users were regulated to meet an interstate compact or U.S. Supreme Court decree, within the past ten years. The section 41-3-932 denial rule has no ten-year condition. Applications to use by-product water are exempt from the specified denial rules. The act would take effect July 1, 2026.

The proposal would say that older permits and water rights do not authorize splitting water molecules for industrial hydrogen production unless that use was explicitly permitted or approved under prior law. This rule covers permits and water rights issued before July 1, 2026. The exception applies only when that specific use was explicitly permitted or approved under prior law. The rule applies to permits and water rights issued before July 1, 2026.