Order Code RS21442
Updated December 17, 2004
CRS Report for Congress
Received through the CRS Web
Hydrogen and Fuel Cell Vehicle R&D:
FreedomCAR and the President’s
Hydrogen Fuel Initiative
Brent D. Yacobucci
Specialist in Energy Policy
Resources, Science, and Industry Division
Summary
FreedomCAR and the Hydrogen Fuel Initiative (originally named FreedomFuel)
are two complementary government-industry research and development (R&D)
initiatives that promote the development of hydrogen fuel and fuel cell vehicles.
Coordinated by the Department of Energy, these initiatives aim to make mass-market
fuel cell and hydrogen combustion vehicles available at an affordable cost within 10 to
15 years. However, some questions have been raised about the potential effectiveness
of the initiatives. This report discusses the organization, funding, and goals of the
FreedomCAR and Fuel partnerships, and discusses legislation relevant to the
partnerships. It will be updated as events warrant.
Introduction
As one highlight of the State of the Union Address on January 28, 2003, President
George W. Bush announced a new $720 million research and development (R&D)
initiative for hydrogen as a transportation fuel. The Hydrogen Fuel Initiative1 is intended
to complement the FreedomCAR initiative,2 which focuses on cooperative vehicle
research between the federal government, universities, and private industry.
The FreedomCAR initiative replaced a related Clinton Administration initiative, the
Partnership for a New Generation of Vehicles (PNGV).3 While both initiatives aimed to
increase fuel efficiency of the automotive fleet, FreedomCAR extends the time frame by
1 The initiative was initially named “FreedomFuel,” but this name is a registered trademark and
thus the initiative was quickly renamed. Source: “US Admin Ends Use of Fuel Phrase in Flap
Over Trademark,” The Wall Street Journal Online. February 14, 2003.
2 FreedomCAR (Cooperative Automotive Research) was announced on January 8, 2002 at the
Detroit Auto Show by Energy Secretary Spencer Abraham.
3 For a more detailed discussion of PNGV, see CRS Report RS20852, The Partnership for a New
Generation of Vehicles: Status and Issues.
Congressional Research Service ˜ The Library of Congress

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another ten years and focuses research on hydrogen fuel cell vehicles; PNGV focused
mainly on diesel-fueled hybrid vehicles.4 Through FY2003, the overall level of funding
for PNGV- and FreedomCAR-related research at the Department of Energy (DOE)
remained relatively constant, with some of the funds for hybrid vehicles transferred to fuel
cell research.5 For FY2004, however, overall funding for research into hydrogen fuel, fuel
cells, and vehicle technologies increased by about 30%. Some of this increase was offset
by funding reductions in other programs, but the majority was new funding. For FY2005,
funding was increased an additional 10%.
Organization and Funding
Research on hydrogen fuel and fuel cell vehicles is overseen by two offices within
the DOE Office of Energy Efficiency and Renewable Energy. The Office of
FreedomCAR and Vehicle Technologies (FCVT) coordinates research on automotive fuel
cells and other advanced vehicle technologies, including electric propulsion systems,
vehicle systems, materials technology, and other areas. The Office of Hydrogen Fuel
Cells and Infrastructure Technologies (HFCIT) coordinates research on fuel cell
technologies (for all applications, not solely transportation),6 as well as research on
hydrogen fuel production, delivery and storage systems.
Funding for FreedomCAR research and for fuel cell technologies is contained in the
Interior and Related Agencies Appropriations. Funding for hydrogen fuel research is
contained in the Energy and Water Development Appropriations. Funding for these areas
is shown in Table 1.7
Members of the partnerships include the federal government and the national
laboratories, as well as universities, state governments, vehicle manufacturers, energy
companies, equipment manufacturers, and industry groups.
The mission of the Hydrogen Fuel Initiative is to “research, develop, and validate
fuel cells and hydrogen production, delivery, and storage technologies for transportation
and stationary applications.”8 Fuel cell R&D areas include transportation systems,
stationary systems, fuel processing, fuel cell components, and technology validation.
Hydrogen fuel R&D areas include hydrogen production and delivery, fuel storage,
hydrogen infrastructure, safety, codes and standards, and training and education.
4 For more information on fuel cell and hybrid vehicle technology, see CRS Report RL30484,
Advanced Vehicle Technologies: Energy, Environment, and Development Issues.
5 It should be noted that PNGV research did not terminate per se. The majority of PNGV-related
research is ongoing through FreedomCAR and other DOE programs.
6 Key fuel-cell-related portions of the FreedomCAR partnership will actually be funded by the
HFCIT program, through its Fuel Cell Technologies Budget.
7 U.S. Department of Energy (DOE), FY2004 Congressional Budget Request. February 2003.
Vol.3, p. 251 and Vol. 7, p. 263 .
8 DOE, Hydrogen, Fuel Cells, and Infrastructure Technologies Program, Mission, Vision, &
Goals. [http://www.eere.energy.gov/hydrogenandfuelcells/mission.html] Updated January 29,
2003.

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Table 1. FreedomCAR- and Hydrogen Fuel-Related R&D Funding
($ millions)
DOE
Program
FY2003
FY2004 FY2005
FY2005
Office
Request
Appropriation
HFCIT
Hydrogen Technology1
40.0
82.0
95.3
95.3
Fuel Cell Technologies2
57.0
65.2
77.5
76.0
FCVT
FreedomCAR2
87.6
89.7
91.4
89.7
1 Funding for Hydrogen Technology is contained in the Energy and Water Appropriations Bill.
2 Funding for the Fuel Cell Technologies and FreedomCAR is contained in the Interior and Related
Agencies Appropriations Bill.
Partnership Goals
The FreedomCAR and the Hydrogen Fuel Initiatives have each set four goals for
2010, and share one additional goal between them. The shared goal is to produce
hydrogen-fueled engine systems that achieve double to triple the efficiency of today’s
conventional engines at a cost competitive with conventional engines.
FreedomCAR’s individual goals mainly focus on reducing system costs for various
technologies. The FreedomCAR goals are to develop:
! Electric drive systems with a 15-year life and significantly reduced
hardware costs;
! Advanced internal combustion engine systems with double to triple the
efficiency of current systems at no more cost and no higher emissions
than conventional engine systems;
! Electrical energy storage with improved life and lower cost than current
systems; and
! Materials and manufacturing technologies that achieve a 50% weight
reduction in vehicle structure, while maintaining affordability and
increasing the use of recyclable/recycled materials.
The four goals for the Hydrogen Fuel Initiative focus on improvements in fuel cell
technology and improvements in the storage and delivery of hydrogen fuel. The
Initiative’s goals are to develop:
! Hydrogen fuel cell power systems that are durable, and deliver higher
efficiency at lower cost than today’s systems;
! Transportation fuel cell systems that deliver greater efficiency and lower
cost, and meet or exceed emissions standards;
! Hydrogen refueling systems that are highly efficient and deliver fuel at
the market price of gasoline; and
! On-board hydrogen storage systems with improved energy density and
cost over existing systems.

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Debate Over the Initiatives
The creation of FreedomCAR and the President’s Hydrogen Fuel Initiative has raised
debate over several issues. These issues include the proper role of the government in
R&D, as well as the proper level of funding, and concerns over energy efficiency and fuel
consumption.
Some environmental groups, including the Sierra Club, have criticized the initiatives.
They argue that while funding will be increased for efficient technologies, the initiatives
will not require auto manufacturers to make fuel cell vehicles available to customers by
any specific time.9 Also, groups such as the Natural Resources Defense Council argue
that the initiatives were put in place to forestall significant increases in national fuel
economy standards.10
On the other hand, the Administration argues that the increase in funding will
provide significant impetus for advancements in hydrogen and fuel cell technologies, and
that without those advancements, the technology would be unaffordable for consumers.11
Further, some engineers argue that FreedomCAR’s efficiency and cost goals may be
difficult to attain in the time frame of the program, and that any sort of sales goal would
be unrealistic.12 Moreover, industry groups argue that an explicit sales goal could force
manufacturers to abandon R&D on other promising technologies like gasoline-electric
hybrids.
Even among supporters of the program, there is criticism that FreedomCAR and the
President’s Hydrogen Fuel Initiative are under-funded and that additional government
commitments to hydrogen and fuel cells must be made. According to some proponents,
these commitments could take the form of increased R&D funding, expanded
demonstration programs, vehicle and fuel sales or production incentives, and other
incentives to make these vehicles attractive to customers.13
Research at Other Agencies
In addition to DOE, other government agencies are also involved in fuel cell vehicle
R&D, although this funding is considerably lower. The National Automotive Center
(NAC), part of the Army’s Tank-Automotive Research, Development, and Engineering
Center (TARDEC), coordinates fuel cell vehicle research between the Department of
Defense (DOD) and private contractors, and partners with DOE, the Department of
9 J. L. Laws, “Budget II: Bush Ups Ante On Hydrogen-Powered Vehicles,” Greenwire. January
29, 2003.
10 Harry Stoffer, “Unmoved by Hydrogen, Critics Seek Higher CAFE,” Automotive News.
January 21, 2002. p. 3.
11 Sheila Schimpf, “Abraham Says Hydrogen Plan to Focus On Lowering Costs, Developing
Infrastructure,” Daily Environment Report. February 10, 2003. p. A-11.
12 Sheila Schimpf, “DOE Official Reaffirms Commitment to Developing Auto Fuel Cell
Technology,” Daily Environment Report. August 9, 2002. p. A-2.
13 Carol Cole, “FreedomFuel Only ‘First Step,’ More Needed to Advance Hydrogen,” Octane
Week. February 10, 2003.

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Transportation (DOT), the Environmental Protection Agency (EPA), academia, and
industry. For example, through the NAC, Georgetown University is conducting a fuel cell
bus demonstration program with $5 million in annual funding provided by DOT. In
another example, NAC is researching a fuel cell auxiliary power unit that could provide
power for communications and other accessories without engine idling (a one-time
appropriation of $3 million in FY2001).14 Other one-year research projects in FY2003
appropriations (P.L. 108-7) include fuel cell bus projects in Connecticut ($3 million) and
Alabama ($1 million).
Current Legislation
The appropriations processes for FY2006 through FY2008 will directly affect the
future of FreedomCAR and the President’s Hydrogen Fuel Initiative. Between FY2004
and FY2008, the Administration is requesting $720 million in funding above FY2003
levels for the initiatives. This may lead to concerns over budgetary constraints. As some
of this funding increase may be offset through reductions in other research, development,
and demonstration programs (such as the Clean Cities Program), concerns may be raised
over the future of those other programs, as well. For FY2004, Congress agreed to
increase funding for the initiatives at roughly $60 million above FY2003 levels (See
Table 1).15 For FY2005, Congress provided nearly all of the requested funding,
increasing the appropriation by approximately $25 million above the FY2004 level.16
In addition to appropriations legislation, hydrogen and fuel cell vehicles were
addressed by other bills in the 108th Congress. On November 17, 2003, the conference
committee on the energy bill (H.R. 6) issued its report (H.Rept. 108-375). In addition to
other provisions, the bill authorized appropriations for hydrogen and fuel cell research at
a level slightly higher than that requested by the President — $2.15 billion over five years,
as opposed to the requested $1.8 billion. In addition to R&D funding, the bill provided
tax incentives for the purchase of new fuel cell vehicles.17 The House approved the
conference report on November 18, 2003. On November 21, a cloture motion on the bill
was rejected in the Senate. It is likely that these issues will be addressed again in the 109th
Congress.
Another key piece of legislation that could affect hydrogen and fuel cell R&D is the
highway reauthorization bill. The main highway transportation authorization statute, the
Transportation Equity Act for the 21st Century (TEA-21), expired in the 108th Congress.
14 Engine idling is a key source of emissions from heavy vehicles, especially long-haul trucks.
Currently, climate control, electronics, and other accessories require the vehicle to idle,
consuming fuel and emitting pollutants at its lowest efficiency point.
15 Energy and Water Appropriations Bill (P.L. 108-137; H.Rept. 108-357) and Interior and
Related Agencies Appropriations Bill (P.L. 108-108; H.Rept. 108-330)
16 FY2005 Consolidated Appropriations Act (P.L. 108-447; H.Rept. 108-792).
17 This provision was taken from stand alone legislation, H.R. 1054 (Camp) and S. 505 (Hatch),
known as the CLEAR ACT. The CLEAR ACT provides incentives for the purchase of
alternative fuel and advanced technology vehicles, as well as for the development of alternative
fuel infrastructure. For more information on the CLEAR ACT, see CRS Report RS21277,
Alternative Fuel Vehicle Tax Incentives and the CLEAR ACT.

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As TEA-21 funds programs to develop and demonstrate alternative fuel vehicles and
infrastructure, its successor may include provisions for hydrogen and fuel cell vehicle
development and demonstration.
Other bills related to hydrogen and fuel cells would create tax credits for the
purchase of stationary fuel cells or fuel cell vehicles, establish other incentives for their
use (e.g., HOV exemptions for fuel cell vehicles), and provide additional funding for
R&D on hydrogen and fuel cells.
Issues for Congressional Consideration
FreedomCAR and the President’s Hydrogen Fuel Initiative raise several key issues
for Congressional consideration. Some of these issues are:
! Given rising federal deficits and the potential for increased defense costs,
can the federal government afford the $720 million increase for hydrogen
and fuel cell R&D?
! Should the federal government be picking hydrogen and fuel cell vehicle
technologies over other technologies, such as hybrid vehicles and lean-
burn engines?
! Would the designation of a target deadline for commercialization of fuel
cell vehicles help focus the program and make better use of funding
resources? Alternately, would such a deadline force manufacturers to
abandon other promising technologies or create an unfair burden on the
industry?
! Should the government focus on long-term research or should it focus on
technologies closer to commercialization, or both?

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