President Bush's recent State of the Union promise of $1.2 billion for developing hydrogen fuel cell cars has set off a scramble among potential Michigan recipients of this federal largesse. Although the windfall is not as great as the President indicated-only about half of it will be new program dollars-$720 million is surely worth competing for, even if spread out over five years. With industry leadership, political clout and institutional strength, Michigan can reasonably expect to be a frontrunner in this contest.

But caveats abound for the winners, and we should be mindful of the following concerns:

Uncertain payoff. Michigan's auto industry cannot afford to wait for the uncertain 15-year payoff of hydrogen vehicles. Massive technological and economic barriers, including the need for a new fueling infrastructure, complicate the prognosis for hydrogen-fueled vehicles. Rather than betting all our chips on the promise of hydrogen cars, Detroit needs to focus on practical near-term responses to shore up market share and free itself from an over dependence on tank-like vehicles that compromise our national security, compound highway safety concerns and are increasingly associated with environmental damage.

No near-term gains. Even with the best outcomes, hydrogen fuel technology is going to mean virtually nothing for manufacturing jobs, market share or the profitability of Michigan's auto industry in the next decade and more. The wolf is at our door already. Michigan's auto industry needs to offer near-term answers to the Japanese head start on safe, affordable, attractive, fuel-efficient, hybrid powered vehicles. General Motors' recently announced selection of full and partial hybrid electric cars and trucks holds more promise for Michigan's economy than the President's hydrogen research program.

Taxpayer accountability. The country shouldn't spend tax dollars without demanding value for investment, i.e., marketed products that meet defined program goals. Bush's research program shouldn't repeat the mistakes of the Clinton Administration's $1.5 billion [Program for a New Generation Vehicle (PNGV or Supercar Program)], which has yet to generate any Big Three fuel-efficient vehicles. If Detroit's auto industry doesn't want strings attached, money for hydrogen research should be offered through an open competitive bid process to research institutions that will put the results into the public domain, to be picked up when the industry finds it practical to do so. The Bush Administration could offer far more practical assistance. Tax incentives structured to help Detroit market ready-to-go technologies at competitive prices would bring far greater near-term benefit to our domestic economy, while demonstrating commitment to the global environment.

Detroit apparently needs real incentives to be able to afford the initial costs associated with mass marketing of hybrid vehicles and other proven fuel saving technologies already sitting on the shelves at Big Three research facilities. Promises to help drivers who are not yet born buy cars with technologies which might not be developed doesn't cut it for an industry that is being squeezed by environmental, national security, cost and market share imperatives.