The problem with hydrogen is NOT storage, but getting it. The chemical bonds it makes with other elements to form methane, water etc are very hard to break. The energy required to break these bonds exceeds the energy you will then get out of it by a large margin.
Hydrogen bonds are hard to break? In water that is true, but it is not true for every hydrogen bond. "The hydrogen bond has only 5% or so of the strength of a covalent bond." http://users.rcn.com/jkimball.ma.ultranet/BiologyPages/H/HydrogenBonds.html
Here is an example of the new technology I'm talking about. Keep in mind, this is just one example. Maybe this one will turn out to be a dead end, but eventually there is a good probability of a breakthrough. All I'm saying is, keep an open mind. And NO I am not endorsing any sort of mandated alternative fuel, so the worst thing that can happen is a few companies go bankrupt (which thousands of companies do every year).
http://amminex.com/index_files/Page374.htm
Ammonia storage for Solid Oxide Fuel Cell (SOFC) systems
"Ammonia is the perfect fuel for a SOFC. Amminex has developed a compact fuel delivery system, which provides ammonia by desorption from a solid storage unit. The material has a very high ammonia capacity (0.6g/cm3), which is close to that of liquid ammonia). Ammonia is a short-cut towards kick-starting the hydrogen economy (PJ Feibelman, Thoughts on starting the Hydrogen Economy, PHYSICS TODAY 58 (6): 13-14 JUN 2005 ). It is produced world-wide, there is an infrastructure and the corresponding hydrogen density is very high. The Amminex technology bridges the gap between the safety hazard of liquid ammonia and the attractive properties in terms of NH3 as fuel. The ammonia storage material is as harmless as window cleaning fluid. The vapor pressure is 4000 lower than that of liquid ammonia at room temperature. The volumetric ammonia density is less than 10% lower."