The present paper describes, for purposes of the Department of Energy (DoE) Hydrogen Program Review, Schatz Energy Research Center (SERC) progress on the Palm Desert Renewable Hydrogen Transportation System Project for the period January through June 1996. This period represents the first six months of the three year project. The estimated cost over three years is $3.9M, $1.859M of which is funded by the DoE ($600 k for fiscal year 1996). The goal of the Palm Desert Project is to develop a clean and sustainable transportation system for a community. The project will demonstrate the practical utility of hydrogen as a transportation fuel and proton exchange membrane (PEM) fuel cells as vehicle power plants. This transportation system will be developed in the City of Palm Desert in southern California and will include a fleet of 8 fuel cell powered vehicles, solar and wind powered hydrogen generating facilities, a consumer-ready refueling station, and a service infrastructure. The system holds the promise of a clean environment and an energy supply that is predictable, domestic, safe, and abundant. During, the first part of 1996 SERC has nearly completed building a fuel cell powered personal utility vehicle, which features an upgraded safety and computer system; they have designed and built a test bench that is able to mimic golf cart loads and test fuel cell system auxiliary components; they have begun the design of the solar hydrogen generating station; they have worked with Sandia National Laboratory on an advanced metal hydride storage system; they have increased the power density of the SERC fuel cell by as much as 50%; and they have reached out to the rest of the world with a new fact sheet, world wide web pages, a press release, video footage for a television program. and instruction within the community.