II 110th CONGRESS 1st Session S. 696 IN THE SENATE OF THE UNITED STATES February 27, 2007 Mr. Baucus introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To establish an Advanced Research Projects Administration-Energy to initiate high risk, innovative energy research to improve the energy security of the United States, and for other purposes.

1.

Short title

This Act may be cited as the Energy Research Act of 2007.

2.

Advanced Research Projects Administration-Energy

(a)

Establishment

There is established the Advanced Research Projects Administration-Energy (referred to in this section as ARPA–E). (b)

Goals

The goals of ARPA–E are to reduce the quantity of energy the United States imports from foreign sources and to improve the competitiveness of the United States economy by— (1)promoting revolutionary changes in the critical technologies that would promote energy competitiveness; (2)turning cutting-edge science and engineering into technologies for energy and environmental application; and (3)accelerating innovation in energy and the environment for both traditional and alternative energy sources and in energy efficiency mechanisms to— (A)reduce energy use; (B)decrease the reliance of the United States on foreign energy sources; and (C)improve energy competitiveness. (c)

Director

(1)

In general

ARPA–E shall be headed by a Director (referred to in this section as the Director) appointed by the President. (2)

Positions at Level V

Section 5316 of title 5, United States Code, is amended by adding at the end the following: Director, Advanced Research Projects Administration-Energy. . (d)

Duties

(1)

In general

In carrying out this section, the Director shall award competitive grants, cooperative agreements, or contracts to institutions of higher education, companies, or consortia of such entities (which may include federally funded research and development centers) to achieve the goal described in subsection (b) through acceleration of— (A)energy-related research; (B)development of resultant techniques, processes, and technologies, and related testing and evaluation; and (C)demonstration and commercial application of the most promising technologies and research applications. (2)

Small-business concerns

The Director shall carry out programs established under this section, to the maximum extent practicable, in a manner that is similar to the Small Business Innovation Research Program established under section 9 of the Small Business Act (15 U.S.C. 638) to ensure that small-business concerns are fully able to participate in the programs. (e)

Personnel

(1)

Program managers

(A)

Appointment

The Director shall appoint employees to serve as program managers for each of the programs that are established to carry out the duties of ARPA–E under this section. (B)

Duties

Program managers shall be responsible for— (i)establishing research and development goals for the program, as well as publicizing goals of the program to the public and private sectors; (ii)soliciting applications for specific areas of particular promise, especially areas for which the private sector cannot or will not provide funding; (iii)selecting research projects for support under the program from among applications submitted to ARPA–E, based on— (I)the scientific and technical merit of the proposed projects; (II)the demonstrated capabilities of the applicants to successfully carry out the proposed research project; and (III)such other criteria as are established by the Director; and (iv)monitoring the progress of projects supported under the program. (2)

Other personnel

(A)

In general

Subject to subparagraph (B), the Director shall appoint such employees as are necessary to carry out the duties of ARPA–E under this section. (B)

Limitations

The Director shall appoint not more than 250 employees to carry out the duties of ARPA–E under this section, including not less than 180 technical staff, of which— (i)not less than 20 staff shall be senior technical managers (including program managers designated under paragraph (1)); and (ii)not less than 80 staff shall be technical program managers. (3)

Experimental personnel authority

In appointing personnel for ARPA–E, the Director shall have the hiring and management authorities described in section 1101 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 5 U.S.C. 3104 note). (4)

Maximum duration of employment

(A)

Program managers and senior technical managers

(i)

In general

Subject to clause (ii), a program manager and a senior technical manager appointed under this subsection shall serve for a term not to exceed 4 years after the date of appointment. (ii)

Extensions

The Director may extend the term of employment of a program manager or a senior technical manager appointed under this subsection for not more than 4 years through 1 or more 2-year terms. (B)

Technical program managers

A technical program manager appointed under this subsection shall serve for a term not to exceed 6 years after the date of appointment. (5)

Location

The office of an officer or employee of ARPA–E shall not be located in the headquarters of the Department of Energy. (f)

Transactions other than contracts and grants

(1)

In general

To carry out projects through ARPA–E, the Director may enter into transactions (other than contracts, cooperative agreements, and grants) to carry out advanced research projects under this section under similar terms and conditions as the authority is exercised under section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g)). (2)

Peer review

Peer review shall not be required for 75 percent of the research projects carried out by the Director under this section. (g)

Prizes for advanced technology achievements

The Director may carry out a program to award cash prizes in recognition of outstanding achievements in basic, advanced, and applied research, technology development, and prototype development that have the potential for application to the performance of the mission of ARPA–E under similar terms and conditions as the authority is exercised under section 1008 of the Energy Policy Act of 2005 (42 U.S.C. 16396). (h)

Coordination of activities

The Director— (1)shall ensure that the activities of ARPA–E are coordinated with activities of Department of Energy offices and outside agencies; and (2)may carry out projects jointly with other agencies. (i)

Report

Not later than September 30, 2008, the Director shall submit to Congress a report on the activities of ARPA–E under this section, including a recommendation on whether ARPA–E needs an energy research laboratory. (j)

Authorization of appropriations

There are authorized to be appropriated to carry out this section— (1)$300,000,000 for fiscal year 2008; (2)$600,000,000 for fiscal year 2009; (3)$1,100,000,000 for fiscal year 2010; (4)$1,500,000,000 for fiscal year 2011; and (5)$2,000,000,000 for fiscal year 2012.