(Sources: Washington Post, Fuel Cell Today & Huliq News)

The hydrogen car may have legions of fervent fans, but Energy Secretary Steven Chu apparently is not among them. Earlier this year, the Nobel prize-winning scientist essentially zeroed government funding for the clean vehicles and came close to mocking their potential, saying the technology needs four “miracles” before it can become widely adopted.

“Saints only need three,” he cracked in a magazine interview.

But the hydrogen car is back. On Thursday, the Senate agreed to restore nearly all the money for hydrogen car research that the administration had proposed to cut.

The measure, part of an appropriations bill previously approved by the House, is expected to be signed by President Obama.

“It’s the right set of priorities,” said Sen. Byron L. Dorgan (D-N.D.), a leader in the effort to fund the technology. “If you discontinue the research, you shortchange the future.”

This year’s revival of government funding is unlikely to end the broader dispute over hydrogen cars, however. Before the cars can become much more than an experiment on American roads — it is estimated that there are fewer than 200 operating in the United States — the industry may need as much as $55 billion more in government support over the next 15 years, according to industry sources and a National Research Council report last year. That money would pay for more research and subsidies to build fueling stations.

By comparison, the amount appropriated Thursday is meager: $187 million. But even that level of government support has critics, who say the possibilities and benefits of the technology have been wildly exaggerated. In a press release published on the Fuel Cell Today, the USFCC said ” The bill approved by Congress is a significant win for fuel cells overall. The Obama administration requested $68 million for the EERE program. Under the final Congressional compromise, funding for fuel cells and hydrogen will receive $174 million, or $106 million higher than the Obama administration’s request.”

Funding for research into production of the hydrogen car is highly controversial. There are currently less than 200 of these cars operating in the United States.

The issue is the additional funding that will be required to establish fueling stations across the country to support these vehicles. It is currently estimated that an additional $55 billion of government support could be required to make that a reality.

Nevertheless, hydrogen cars might represent the future for automobiles in this country. These cars are fueled with hydrogen gas which combines with oxygen in the air. The only byproduct of this fuel is water vapor. This means that hydrogen fuel cell cars may provide the best means of reaching the goal of emission-free vehicles.

The reality of hydrogen powered vehicles is really not such a stretch. In Iceland, the first country to begin making a truly concerted effort to break free from the constraints and costs of fossil fuel, hydrogen powered cars and ships are already a reality. Iceland has been working on this technology for years, and does have an advantage over many other countries in the world because so much of the energy sources in Iceland are from renewable sources, such as geo-thermal and hydro-electric power.

The governments of Norway, Japan and Germany also are investing hundreds of millions in the technology, with the Germans aiming to build 1,000 stations by 2015, according to auto industry sources.

Here are some articles on the investments around the world:

• Europe’s love affair with hyrdogen technology continues; Germany Launches H2 Mobility Initiative to Expand Infrastructure for Refueling Hydrogen Vehicles
• Norway leaps ahead with its love for Hydrogen fuel – Dedicates 580 kilometer hydrogen highway

Click here to read more.

(Source: Green Car Congress, CNN & Streetsblog)

On Friday, President Obama signed into law H.R. 3435, which provides $2 billion FY 2009 emergency supplemental appropriations for the Consumer Assistance to Recycle and Save Program (Cash-for-Clunkers, C4C).

The additional $2 billion for the supplementary funding to keep the C4C program going is being transferred from the amount made available for Department of Energy–Energy Programs—Title 17—Innovative Technology Loan Guarantee Program in title IV of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5).

One of the arguments in favor of passing the bill prior to the Senate showdown, that offering $2 billion in extra “clunkers” cash would not amount to deficit spending, stems from Democratic leaders’ decision to shift the funds over from a Department of Energy (DoE) loan guarantee program.

(Source: NPR)

Pedal to the metal, Congress sent President Barack Obama legislation Thursday night with an additional $2 billion for “cash for clunkers,” the economy-boosting rebate program that caught the fancy of car buyers and instantly increased sales for an auto industry long mired in recession.

Images via Apture

The Senate approved the money on a 60-37 vote after administration officials said an initial $1 billion had run out in only 10 days. The House voted last week to keep alive the program, which gives consumers up to $4,500 in federal subsidies if they trade in their cars for new, more energy-efficient models.

Without action, lawmakers risked a wave of voter discontent as they left the Capitol for a monthlong vacation.

Supporters of the program hailed its effect on the auto industry — which had its best month in nearly a year in July — as well as its claimed environmental benefits.

“The reality is this is a program that has been working. Consumers believe it’s working. Small-business people believe it’s working. People who make steel and aluminum and advertisers … and everyone who’s involved in the larger economic impact of the auto industry believe it is working,” said Sen. Debbie Stabenow (D-MI).

The legislation had its share of critics, though, most of them Republicans.

“What we’re doing is creating debt. … The bill to pay for those cars is going to come due on our children and grandchildren,” said Sen. Judd Gregg (R-NH).

Officials said the program’s initial $1 billion probably already has been spent, but a paperwork backlog prevented an accurate accounting. The additional $2 billion is enough to help consumers purchase a half-million more new cars, they added.

There was no suspense about the outcome in the Senate, where supporters of the legislation focused their energies on defeating all attempts at amending the measure. Passage of any changes would effectively scuttle “cash for clunkers,” they said, since the House has already begun a summer vacation and is not in session to vote on revisions.

An attempt by Sen. Tom Harkin (D-IA) to limit the program to lower and middle-income consumers was jettisoned on a vote of 65-32. Gregg’s call for Congress to offset the $2 billion with spending cuts elsewhere also failed, 51-46.

The Senate’s debate capped an unusually swift response by lawmakers, who were informed scarcely a week ago that the program was quickly running short of money.

Click here to read the entire article.

(Source: Bloomberg)

The future of the U.S. “cash for clunkers” program depends on the Senate backing a $2 billion infusion this week, with at least one Republican saying he was going to try to block the effort.

“We’ve got to slow this thing down,” Senator Jim DeMint, a South Carolina Republican, said on “Fox News Sunday.”

The House voted 316-109 on July 31 for an emergency measure adding $2 billion to the program aimed at reviving U.S. auto sales, after a burst of demand exhausted most of the initial $1 billion in less than a week.

Transportation Secretary Ray LaHood said in a C-SPAN interview Sunday he expects the current $1 billion in funding to be gone by the end of the weekend. The administration will continue the program until the Senate acts, and dealers will be reimbursed for deals in the pipeline, he said. The government will make a “good-faith effort” for transactions beginning tomorrow, he said.

DeMint said he opposes the program because “we’re helping auto dealers while there are thousands of other small businesses that aren’t getting help.”

Named the Car Allowance Rebate System, the program provides credits of as much as $4,500 for the purchase of a new car when turning in an older vehicle to be scrapped. Lawmakers had expected the first $1 billion to generate about 250,000 vehicle sales and last until about Nov. 1.