The Department remains focused on the technologies that are critical to making electric and hybrid vehicles commercially viable and competitive with current production gasoline-fueled vehicles in performance, reliability, and affordability. During Fiscal Year 1994, significant progress was made toward fulfilling the intent of Congress. The Department and the United States Advanced Battery Consortium (a partnership of the three major domestic automobile manufacturers) continued to work together and to focus the efforts of battery developers on the battery technologies that are most likely to be commercialized in the near term. Progress was made in industry cost-shared contracts toward demonstrating the technical feasibility of fuel cells for passenger bus and light duty vehicle applications. Two industry teams which will develop hybrid vehicle propulsion technologies have been selected through competitive procurement and have initiated work, in Fiscal Year 1994. In addition, technical studies and program planning continue, as required by the Energy Policy Act of 1992, to achieve the goals of reducing the transportation sector dependence on imported oil, reducing the level of environmentally harmful emissions, and enhancing industrial productivity and competitiveness.