As promised, here is a summary of the budget proposal that was presented on Monday.

The Obama Administration proposed on Monday to reduce funding for PEM-based hydrogen and fuel cell programs in FY 2011, proposing $137 million (a reduction of $37 million), and provided no money for new vehicle deployment under the Technology Validation program.  SECA program funding was proposed at $50 million, a reduction of $4 million from 2010.

There was no public criticism of the hydrogen program this year from the Secretary, and no attempt at outright elimination.  But the cuts are significant and include programs of greatest importance to the industry. The US Fuel Cell Council posted this message:

The Obama Administration’s proposal to cut FY2011 funding for fuel cells is a lost opportunity to advance the Administration’s job creation and clean energy agenda by supporting an industry that is just beginning to achieve its promise.  The fuel cell industry is poised for just the kind of growth the Obama Administration is looking for to stimulate our economy.  While research needs to continue, fuel cell products are entering early markets that value their efficiency, low emissions and superior performance.  This growth means jobs in manufacturing across the supply chain, sales, service and related fields.  Department of Energy and private sector studies project that up to 700,000 new jobs are possible in the fuel cell industry in the next 10 to 20 years.  Those jobs will occur where the market for fuel cells exists. Fuel cells are low-carbon, low-emission systems that can efficiently utilize locally available fuels and help the nation reduce oil imports.  Fuel cells work well with renewable fuels and support a renewable, green power grid. A strong public-private (government) partnership is the missing link needed to ensure the benefits of fuel cell commercialization are realized in the US. 

The chart below provides a little more detail on the budget proposed for 2011.