US Congressional appropriations in Fiscal Years (FY) 2001 through 2003 provided funds to the US Army Engineer Research & Development Center/Construction Engineering Research Laboratory (ERDC/CERL) for a demonstration of residential-scale PEM fuel cells at US military facilities. For this program, ‘residential scale’ is defined as projects ranging in size from 1 to 20 kWe, regardless of the application. Successful applicants are required to provide fuel cell power to the application for one year, with an average availability of 90%. Approximately $6m was awarded from the FY 2001 and FY 2002 appropriations, for a total of 45 fuel cells. Some 75% of these are currently in operation, with two having completed the one-year operation period. The remainder will be installed over the next few months. In addition, approximately $3.5m has been provided in the FY 2003 appropriation. A solicitation for this program was issued, pre-proposals were reviewed, and several applicants were selected to submit follow-on full proposals. It is anticipated that awards will be made before the end of 2003. All units are being closely monitored to assess their performance, and lessons learned are being fed back to the fuel cell community to assist in optimized product development and enhanced operational and maintenance procedures.