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Summary

In August 2007, Congress authorized the establishment of the Advanced Research Projects Agency - Energy (ARPA-E) within the Department of Energy (DOE) as part of the America COMPETES Act (P.L. 110-69). Modeled on the Defense Advanced Research Projects Agency (DARPA), ARPA-E would support transformational energy technology research projects with the goal of enhancing the nation's economic and energy security. Proponents of ARPA-E contend that additional science and technology would help respond to the nation's need for clean, affordable, and reliable energy. Opponents question whether ARPA-E is necessary to develop new technologies, when existing energy technologies are not fully utilized due to insufficient policies to encourage their implementation. ARPA-E proponents counter that ARPA-E is needed to catalyze the energy marketplace by accelerating research that will bridge the gap between basic research and industrial product development. The Bush Administration questions whether the DARPA model can be used for the energy sector and is concerned that it might redirect funds away from current DOE research activities, particularly the DOE Office of Science. Instead, the President's FY2009 budget requests funding for six new technology transfer collaborations. ARPA-E proponents doubt that DOE can achieve ARPA-E's goals with its existing structure and personnel, as opposed to the ARPA-E's innovative R&D management design. Congress authorized $300 million for ARPA-E in FY2008 and "such sums as are necessary" for FY2009 and FY2010. Congress subsequently appropriated no funds for FY2008. The Administration requested no funds for ARPA-E in FY2009. Congress is currently debating whether to fund ARPA-E in FY2009, and if so, the amount that should be appropriated. The House Committee on Appropriations draft FY2009 Energy and Water Development appropriations report would provide $15 million for ARPA-E, while the Senate Committee on Appropriations bill and report (S. 3258; S.Rept. 110-416) does not include any funding. Several bills propose methods of funding ARPA-E directly through a revenue source other than direct appropriations. Some experts have testified that funding ARPA-E through a mechanism that differs from the usual single-year appropriations process would enhance its ability to conduct risky research without being subject to the annual appropriations cycle, political and financial pressures, and resource fluctuations that might stifle innovation. Three climate change bills (S. 2191, S. 3036, H.R. 6186) propose long-term funding for ARPA-E as part of a cap-and-trade program. Two energy bills (H.R. 6067, H.R. 6709) propose exchanging Strategic Petroleum Reserve (SPR) crude and direct SPR funds from a prior sale, with some of the resulting funding directed to fund ARPA-E. Two other energy bills (H.R. 6670, H.R. 6817) would use Outer Continental Shelf oil and gas lease revenues to fund ARPA-E.

Related Legislation:
• S.3258
• S.2191
• S.3036
• H.R.6186
• H.R.6067
• H.R.6709
• H.R.6670
• H.R.6817

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