More Environment, Energy & Transportation Policy Plays

To create a cleaner and more energy-secure future, the United States must build, use, and export world-class vehicles that are more fuel efficient and environmentally friendly. Long-term potential solutions range from hydrogen-powered fuel cell vehicles to "plug-in" hybrids. In the near term, conventional hybrids, as well as vehicles and other products that run on home-grown biofuels, hold enormous potential to help reduce America's oil dependence.

Despite such benefits, until-recently low fuel prices and a surfeit of government incentives have combined to dissuade businesses from investing aggressively to develop and commercialize such technologies.

"Michigan has the capability to become America's alternative energy development epicenter, and that offers a tremendous opportunity to diversify our economy and provide high-tech, high-wage, 21st century jobs to our residents." -- Michigan Gov. Jennifer M. Granholm

The federal government launched the FreedomCAR program in January 2002 to promote fuel cell and battery electric vehicles. States are playing a key role in speeding their development, too. Currently, at least 24 states and the District of Columbia have fuel cell R&D incentives. The California Fuel Cell Partnership (inspired, but not mandated, by the state's zero-emission vehicle requirements) is among the best known and well established.

Created by then-Gov. Gray Davis in 1999, CaFCP members include nine major car manufacturers, five major energy companies, six government agencies and technology companies. Automakers and transit agencies have placed more than 200 fuel cell passenger cars and transit buses on California's roads. Most are demonstration vehicles operated by real-world drivers. In addition to road testing vehicles, CaFCP members operate 25 hydrogen stations in the state, with more to come. Emphasis has shifted from fleet demonstrations to preparing for the early commercial market, which could be in the next 5-7 years. Programs such as California's Hydrogen Highway Network and the U.S. Department of Transportation's fuel cell bus program are helping build the foundations for market.

In another effort, California entrepreneurs, engineers, environmentalists and consumers united to create CalCars, a non-profit startup that promotes plug-in hybrids (PHEVs). PHEVs are like regular hybrids but with larger batteries and the ability to recharge from a standard outlet (mostly at night). They're the best of both worlds: local travel is electric, yet the vehicle has unlimited gasoline range.

As in the case of California, Michigan has continued to focus on hydrogen fuel cells and transportation applications and is incorporating an initiative aimed at making the state a leader in alternative energy technologies. Current and upcoming efforts in such areas as vegetable oil-to-fuel and animal waste-to-electricity conversions are broadening the state's profile beyond autos. Michigan, the automotive capital of the world for the past century, plans to spend $2 billion in bond money in the next decade to ensure that it becomes the nation's alternative energy epicenter.

While Michigan seeks to become the epicenter of alternative energy, Ohio is spurring the development of fuel cell technologies primarily by offering grants and subsidies.

As part of former Gov. Taft's 10 year, $1.1 billion Third Frontier Project, Ohio is investing $103 million in the state's Fuel Cell Initiative, a program to support the state's nascent but growing industry of fuel-cell and advanced-material manufacturers.

The funding support was renewed in 2005, and again by Gov. Ted Strickland's administration in 2008. Ohio has invested over $75 million since 2003 in a variety of fuel cell R&D, manufacturing commercialization and demonstration projects that encompass multiple fuel cell technologies and potential market applications. Along with significant university research and curriculum development at the K-12 and two year associate degree levels, Ohio has established a leading position for fuel cell industry development.

Ohio has also been the center for both the demonstration and manufacture of niche transport applications for fuel cells in warehouse distribution equipment -- fork lift trucks. These markets will provide in field experience that will help the broader transport applications.

Although it is far too early to tell how well California, Michigan, and Ohio's new initiatives are working, they represent a promising way to preserve U.S. jobs in the auto industry, create new, high-paying positions around alternative energy applications, and reduce smog and emissions implicated in global warming.

Resources For Action

NextEnergy, Michigan
www.nextenergy.org/

Ohio Fuel Cell Initiative
http://www.ohiochannel.org/your_state/
third_frontier_project/index.cfm

California Fuel Cell Partnership
www.fuelcellpartnership.org/

CalCars
www.calcars.org/

Additional Reading

Britta Gross, Hydrogen Fueling Infrastructure Assessment, December 2007
http://www.h2andyou.org/pdf/
GM-SH%20HYDROGEN%20INFRA%20PAPER.pdf

Kevin Chandler, Battelle and Leslie Eudy, National Renewable Energy Laboratory Alameda-Contra Costa Transit District (AC Transit) Fuel Cell Transit Buses: Evaluation Results Update
http://www.nrel.gov/hydrogen/pdfs/42249.pdf

Contacts

Ken Alfred
Executive Director
Ohio Fuel Cell Coalition
737 Bolivar Road Suite 2500
Cleveland, OH 44115
(216) 363-6883
(216) 363-6893 (fax)
ken.alfred@fuelcellsohio.org

James Saber
Director, Program Development
NextEnergy
461 Burroughs
Detroit, MI 48202
(313) 833-0100 ext. 240
saberj@nextenergy.org

Chris White
Communications Director
California Fuel Cell Partnership
3300 Industrial Boulevard
Suite 1000
West Sacramento, CA 95691
(916) 371-2870
(916) 375-2008 (fax)
cwhite@cafcp.org