The use of hydrogen as a fuel for commercial vehicles is in its infancy. Hydrogen promises a number of unique advantages over traditional hydrocarbon fuels namely: being non-polluting, renewable and independent from foreign producers. Hydrogen fueled vehicle demonstration projects must satisfy management and regulator safety expectations. This is often accomplished using hazard and safety analyses. Such an analysis has been completed to evaluate the safety of the H2Fuel bus which is to be operated in Augusta, Georgia. The evaluation methods and criteria used for this evaluation reflect the Department of Energy`s graded approach for qualifying and documenting nuclear and chemical facility safety. The analysis focused on the storage and distribution of hydrogen as the bus motor fuel with emphases on the technical and operational aspects of using metal hydride beds to store hydrogen. The safety evaluation demonstrated that the operation and maintenance of the H2Fuel bus is a``moderate`` risk after completion of the recommendations developed by the Hazard Analysis Team. This is the same risk level determined for operation of conventionally powered transit buses in the US. By the same criteria, private passenger automobile travel in the US is considered a``high`` risk. The evaluation also identified several design and operational modifications that resulted in improved safety, operability, and reliability. The hazard assessment methodology used in this project has wide-spread applicability to other innovative operations and systems, and the techniques can serve as a template for other similar projects. Other features of this project that can be used by others include the analysis team approach and the unique vehicle fire frequency data.