The U.S. Department of Energy (DOE) funds research and development relating to energy-efficient transportation technologies, including providing funding for fleet demonstration projects.  Several zero-emission transportation solutions can potentially qualify for DOE funding. Particular areas of DOE interest include:

• Hydrogen fuel cells
• Development and demonstrations of vehicles using hydrogen fuel cells
• Development and demonstrations of vehicles using hydrogen internal combustion engine (HICE) technology
• Development of technologies and systems for hydrogen delivery and storage

The U.S. Energy Policy Act of 2005 authorized $4.5 billion for programs relating directly or indirectly to zero-emission transportation solutions.  Specific DOE initiatives include the U.S. national FreedomCar Initiative, whose goal is to promote development and commercialization of automobiles using zero-emission fuel cell technology.

The following table lists a dozen different DOE programs created or extended by the U.S. Energy Policy Act of 2005, indicating the funding levels, in dollars, authorized for fiscal years 2006 through 2010.  In cases where a funding level was authorized but no fiscal year was specified, the authorized funding level is indicated in fiscal 2008.

The DOE usually requires cost-sharing of some type as a condition of receiving funding under these types of programs.  As a general rule of thumb, the DOE will pay for up to 80% of the cost of basic R&D programs, and up to 50% of the cost of demonstration programs.  Cost-sharing can typically be supplied by the organization(s) receiving the DOE funding, or by third party sources such as state or local governments.

DOE funding is distributed through a variety of mechanisms and channels.  One such mechanism is the DOE’s Clean Cities Program, which promotes development of low-emission, energy efficient technologies through a network of regional Clean Cities organizations.  Much of the DOE’s funding for zero-emission transportation solutions is distributed through the DOE's Hydrogen, Fuel Cells & Infrastructure Technologies Program which selects research and development (R&D) and other projects through open and competitive procurements.  is the lead Federal Agency for directing and integrating activities in hydrogen production, storage, and delivery with transportation and stationary fuel cell activities. The program conducts its research, development, and validation activities through nine interrelated program elements. These elements and their focus are summarized as follows:

• Hydrogen Production - Production of hydrogen from domestic resources minimizing environmental impacts
• Hydrogen Delivery - Distribution of hydrogen from centralized or distributed sites of production
• Hydrogen Storage - Storage of hydrogen (or its precursors) on vehicles within the distribution system
• Fuel Cells - Conversion of hydrogen to electrical or thermal power; use of hydrogen to power vehicles; for auxiliary power units for vehicles; and stationary and portable applications
• Technology Validation - Technical validation of systems in real-world environments
• Codes & Standards - Development of model codes and standards for domestic and international production, distribution, storage, and utilization of hydrogen
• Safety - Safety assurance in DOE-sponsored R&D activities and in the marketplace
• Education - Education of key target audiences-including teachers and students, state and local governments, safety and code officials, and the public-about the hydrogen economy
• Systems Analysis - Understanding the complex interactions between components, system costs, energy efficiency, environmental impacts, societal impacts and system trade-offs

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