[Congressional Record Volume 153, Number 33 (Tuesday, February 27, 2007)]
[Senate]
[Pages S2279-S2281]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS:
  S. 696. 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; to the Committee on Energy and Natural Resources.
  Mr. BAUCUS. Mr. President, energy is once again one of the top two or 
three domestic issues facing the Congress this year.
  Prices for gasoline, heating oil, electricity, and natural gas have 
soared in recent years, hitting working families hard. Our energy 
security has been threatened on many fronts: We have seen a terrorist 
attack on Saudi Arabian oil facilities, oil workers kidnapped in 
Nigeria, Venezuelan President Hugo Chavez threatened to cut off our 
supply of oil from his country, and some question whether Iran's role 
as an oil supplier keeps other countries from properly addressing 
Iran's nuclear proliferation threat. Recently we learned that Russia 
and Iran are talking about creating an OPEC-like organization for 
natural gas--a cartel that could put even more pressure on natural gas 
prices.
  Energy provides one of America's greatest challenges for the 21st 
century. Our economy has been dependent on oil and coal for about 100 
years. And since World War II, natural gas has become part of the 
equation. Will we continue to rely on these energy sources for the next 
100 years?
  The cost of energy will profoundly affect the future competitiveness 
of the American economy. As the Chinese and Indian economies grow, so 
will their demand for energy. And that will add further upward pressure 
to energy prices.
  Global climate change is another issue that demands that we take a 
fresh look at our energy future. While we address the issue of energy 
security, we must also keep an eye on the effect that new energy 
development will have on carbon dioxide emissions and global warming.
  We are essentially trapped in an energy box. It is a box 
characterized by high imports, wildly fluctuating prices for oil and 
natural gas, and environmental danger. As a Nation, we must experiment 
with ways to break out of that box. To break out, we need an energy 
research effort modeled after the Manhattan project, or the Apollo 
mission to the moon.
  America has a brilliant record of gathering the best minds. We have 
consistently met challenges that at first seemed to be impossible. 
During World War II, the Manhattan project brought together brilliant 
physicists and engineers to build an atomic bomb in 3 short years. And 
after President Kennedy described his vision to a joint session of 
Congress in May of 1961, the Apollo space program put a man on the moon 
in just 8 years.
  Looking back, these achievements look stunning. Both projects started 
out with no guarantee of success. Each could have ended in utter 
failure. Yet because of the talent, ingenuity, and focus of creative 
minds, they both succeeded.
  Breaking out of the energy box poses a similar challenge. Success is 
not guaranteed. But we have got to give it our best shot.
  Today I am reintroducing legislation to create an ARPA-E, Advanced 
Research Projects Agency--Energy. My legislation would create a new 
energy research agency to help our nation face the challenges of a 
newly competitive global economy. It will help us to move into a new 
energy future.
  We have the greatest research scientists on the planet. We have the 
most technically-talented workforce in

[[Page S2280]]

the world. But we do not have the vigor that we need in energy 
research. Energy research is a backwater, compared to other research 
efforts in biotechnology, medicine, computers, and defense-oriented 
projects.
  With the Manhattan project and the Apollo space program, America 
proved that we can gather the best talent for a focused mission and 
succeed. It is time that we began a similar effort on energy.
  We need to create a new agency to initiate cutting-edge, innovative 
energy research and development aimed at taking us to a new energy 
future. Doing so is essential to our effort to improve our economic 
competitiveness.
  The new agency is modeled on DARPA--the Defense Advanced Research 
Projects Agency--in the Department of Defense. Among the revolutionary 
technologies that DARPA has developed are the internet and stealth 
technology for aircraft. DARPA has been a tremendous success.
  The National Academy of Sciences, the National Academy of 
Engineering, and the Institute of Medicine joined to form the Committee 
on Prospering in the Global Economy of the 21st Century. Norm Augustine 
chaired the committee. Based on DARPA's achievements, the committee 
recommended the creation of an ARPA-E: Advanced Research Projects 
Agency--Energy.
  This was one of a number of recommendations that the committee made 
in its impressive 2005 report on the future competitive challenges that 
America faces. The committee recommended that ARPA-E be designed to 
conduct transformative, out-of-the-box energy research.

  My bill proposes that ARPA-E be a small agency with a total of 250 
people. A minimum of 180 of them would be technical staff. A director 
of the agency and four deputies would lead ARPA-E. I propose that ARPA-
E be funded at $300 million in fiscal year 2008, $600 million in 2009, 
$1.1 billion in 2010, $1.5 billion in 2011, and $2.0 billion in 2012.
  We would require that the staff have a technical background. The 
agency would use the Experimental Personnel Authority designed for 
DARPA. That authority authorizes higher salaries than for typical 
Federal employees, and faster hiring, so that the agency could get to 
work quickly.
  To keep the intense, innovative focus that we want, technical staff 
would be limited to 3 to 4 years at the agency. Managers would be 
limited to 4 to 6 years. The director could give both groups extended 
terms of employment if the director so chose.
  For contracts, the agency would use the DARPA procedure. That 
procedure allows more flexible contracting arrangements than are 
normally possible under the Federal Acquisition Regulations. To ensure 
that ARPA-E would conduct innovative research, 75 percent of research 
projects initiated by ARPA-E would not be peer reviewed.
  The ARPA-E would be authorized to award cash prizes to encourage and 
accelerate energy research accomplishments.
  Finally, the bill would require a report by the end of fiscal year 
2008 on whether ARPA-E would need its own energy research lab.
  Congress enacted an important companion piece to ARPA-E last December 
in the Tax Relief and Health Care Act of 2006. That law extended the 
credit for electricity from renewable resources, added $400 million to 
the Clean Renewable Energy Bond program, extended the deduction for 
energy efficient buildings and the credit for energy efficient homes, 
and provided incentives for cellulosic biomass ethanol facilities.
  On the energy agenda this year is consideration of President Bush's 
proposal to increase Federal targets for use of renewable and 
alternative fuels. And additional tax incentives to encourage the 
development and use of alternative energy are being contemplated.
  We are seeing exciting new efforts in America to strengthen our 
energy competitiveness. We need to build on this foundation by creating 
an aggressive energy research agency that will push the limits of new 
technology and discover alternative energy sources.
  America has massive coal reserves. So coal gasification is receiving 
greater attention. Gasification involves breaking down coal under heat 
and pressure to create synthetic natural gas. We must address the 
environmental issues. But if this technology can be improved, then 
America will be able to take a huge step toward energy independence.
  There are exciting developments in wind energy. In Montana, the 
Judith Gap Wind Farm has been generating power at full capacity, using 
90 wind turbines. Each turbine can produce enough electricity for 
roughly 400 homes. The entire farm can produce the electricity needed 
to supply 300,000 customers. And my State ranks in the top 15 States in 
the Nation for wind power capacity. Nationwide, wind power generating 
capacity increased 27 percent in 2006.
  Fusion is another possible area where aggressive research could lead 
to huge payoffs. Continuing research will help us to determine whether 
energy production through fusion is a practical option.
  Ethanol is also gaining as an alternative energy option. The Nation's 
first cellulosic ethanol pilot facility has opened in Jennings, 
Louisiana. This 1.4 million gallons-per-year, demonstration-scale 
facility will produce cellulosic ethanol from sugarcane plant residue 
and specially-bred energy cane by the end of 2007.
  There are also exciting developments in nanotechnology, solar power, 
energy-efficient materials, biomass, and green buildings.
  All of these are examples of possible directions for our Nation's 
energy future. But we need a more aggressive and focused research and 
development effort to push these alternatives. And we need an effort to 
create scientific breakthroughs to supplement existing technologies.
  We have got to give it our best shot. As President Franklin Roosevelt 
said, we must conduct ``bold, persistent experimentation.''
  Our economic security is at stake. Our ability to compete in the new 
world economy is at stake.
  ARPA-E will help us to move forward on existing technologies. It will 
help us to find new technologies that are not even imaginable today.
  I urge my Colleagues to look closely at this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 696

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 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

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     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.
                                 ______