ARPA–E Reauthorization Act of 2019 — Senate Report 116-195
Summary
This is Senate Report 116-195 of the 116th Congress, 2d Session, Calendar No. 361, titled ARPA–E Reauthorization Act of 2019, from the Committee on Energy and Natural Resources, ordered to be printed January 7, 2020. Ms. Murkowski reports on S. 2714, to amend the America COMPETES Act to reauthorize the ARPA–E program, which the Committee reports favorably with amendments and recommends that the bill, as amended, do pass. The report states that S. 2714 updates the appropriations authorization to reach $750 million in FY 2024. It also states that the Committee recommended the bill by a majority voice vote on November 19, 2019, with Senator Lee asking to be recorded as voting no.
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“ARPA–E Reauthorization Act of 2019 — Senate Report 116-195.”
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Calendar No. 361
116TH CONGRESS REPORT
" SENATE !
2d Session 116–195
ARPA–E REAUTHORIZATION ACT OF 2019
JANUARY 7, 2020.—Ordered to be printed
Ms. MURKOWSKI, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 2714]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2714) to amend the America COMPETES Act
to reauthorize the ARPA–E program, and for other purposes, hav-
ing considered the same, reports favorably thereon with amend-
ments and recommends that the bill, as amended, do pass.
AMENDMENTS
The amendments are as follows:
On page 2, between lines 18 and 19, insert the following:
(c) AWARDS.—Section 5012(f) of the America COM-
PETES Act (42 U.S.C. 16538(f)) is amended—
(1) by striking ‘‘In carrying’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—In carrying’’; and
(2) by adding at the end the following:
‘‘(2) CONSIDERATION OF PRIOR GRANTS.—In awarding
a grant under paragraph (1), the Director shall take
into account the success or failure of any project car-
ried out by the entity applying for the grant using any
prior grant funds awarded to that entity by the Direc-
tor.’’.
On page 2, line 19, strike ‘‘(c)’’ and insert ‘‘(d)’’.
On page 3, line 19, strike ‘‘(d)’’ and insert ‘‘(e)’’.
On page 4, line 14, strike ‘‘(e)’’ and insert ‘‘(f)’’.
On page 5, line 4, strike ‘‘(f)’’ and insert ‘‘(g)’’.
99–010
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2
On page 5, line 18, strike ‘‘(g)’’ and insert ‘‘(h)’’.
PURPOSE
The purpose of S. 2714 is to amend the America COMPETES Act
(COMPETES Act, Public Law 110–69) to reauthorize the Advanced
Research Projects Agency—Energy (ARPA–E) program.
BACKGROUND AND NEED
ARPA–E is an agency within the Department of Energy (DOE)
that is modeled after the Defense Advanced Research Projects
Agency. ARPA–E was first authorized in the America COMPETES
Act of 2007 (Public Law 110–69), although it was not funded until
2009 as part of the American Recovery and Reinvestment Act (Pub-
lic Law 111–5). Significant modifications to the programmatic
structure were also made in the America COMPETES Reauthoriza-
tion Act of 2010 (Public Law 110–358).
ARPA–E funds high-risk, high-reward early stage research and
development (R&D) in energy technologies. It has unique hiring
and other transactional-related authorities to allow the agency to
move quickly, hire skilled employees, halt funding for projects that
are not meeting milestones, and limit long-term staff employment.
Over the last decade ARPA–E has provided $2 billion in R&D
funding to over 800 projects in various energy-related fields. To
date, those projects have attracted $2.9 billion in private-sector fol-
low-on investment; led to the formation of 76 spin-off companies;
and resulted in the issuance of 346 patents. In 2017, the National
Academies of Science conducted a comprehensive assessment of
ARPA–E and found that the agency focused its efforts on the most
transformative technology opportunities and avoided duplicating
research being conducted by other DOE offices.
While ARPA–E’s $312 million funding authorization expired in
fiscal year (FY) 2013, current funding for FY 2020 is estimated at
$428 million. S. 2714, the ARPA–E Reauthorization Act, updates
the appropriations authorization to reach $750 million in FY 2024,
and makes several structural amendments to the agency’s orga-
nizing statute.
LEGISLATIVE HISTORY
S. 2714 was introduced on October 28, 2019, by Senators Van
Hollen and Alexander. The Energy Subcommittee held a hearing on
S. 2714 on November 6, 2019. Senators Gardner and Heinrich were
later added as cosponsors.
Representative Bernice Johnson introduced similar legislation,
H.R. 4091, in the House of Representatives on July 30, 2019, which
was referred to the Committee on Space, Science, and Technology.
The House Space, Science, and Technology Committee favorably re-
ported H.R. 4091 on October 17, 2019.
In the 115th Congress, Representative Bernice Johnson intro-
duced similar legislation, H.R. 3681, in the House of Representa-
tives on September 6, 2017, which was referred to the Committee
on Space, Science, and Technology.
The Senate Committee on Energy and Natural Resources met in
open business session on November 19, 2019, and ordered S. 2714
favorably reported, as amended.
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3
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on November 19, 2019, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
2714, if amended as described herein. Senator Lee asked to be re-
corded as voting no.
COMMITTEE AMENDMENTS
During its consideration of S. 2714, the Committee adopted an
amendment to insert a new subsection (c) in section 2 of the bill,
to require the ARPA–E Director to take into account the prior suc-
cess or failure of ARPA–E projects carried out by an entity cur-
rently seeking project funding from the agency. The Committee
also adopted conforming amendments to redesignate subsections (c)
through (g) of the bill as subsection (d) through (h).
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 sets forth the short title of the bill.
Section 2. ARPA–E amendments
Section 2(a) amends section 5012(c) of the COMPETES Act relat-
ing to the goals of ARPA–E to add energy technologies that im-
prove the resilience, reliability, and security of infrastructure to
produce, deliver and store energy. It replaces the word ‘‘energy’’
with ‘‘advanced’’ in subsection (c)(2) of the COMPETES Act such
that ARPA–E shall achieve its goals through ‘‘advanced technology
projects’’’ rather than ‘‘energy technology projects.’’
Subsection (b) strikes the word ‘‘energy’’ from section 5012
(e)(3)(A) of the COMPETES Act.
Subsection (c) amends section 5102(f) of the COMPETES Act to
require the Director to take into account the prior success or failure
of ARPA–E projects carried out by an entity currently seeking
funding for a project.
Subsection (d) expands ARPA–E’s annual reporting requirement
in section 5012(h) of the COMPETES Act to include an identifica-
tion of (1) projects that examine topics and technologies closely re-
lating to other activities funded by the Department, and (2) cur-
rent, proposed, and planned projects. This subsection also requires
an update to the strategic vision roadmap by October 1, 2021, and
every four years thereafter.
Subsection (e) amends section 5012(i) of the COMPETES Act re-
garding coordination and duplication. It adds a requirement that
an award may not be provided for a project unless the prospective
award recipient demonstrates that they have made a sufficient at-
tempt to secure private financing or that the project is not inde-
pendently commercially viable.
Subsection (f) amends section 5012(l) of the COMPETES Act re-
garding a third party evaluation of ARPA–E to direct the Secretary
of Energy to commission an updated evaluation three years after
enactment.
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Subsection (g) amends section 5012(o)(2) of the COMPETES Act
to authorize funding for ARPA–E from FY 2020 through 2024, ris-
ing from $428 million in FY 2020 to $750 million in FY 2024.
Subsection (h) makes technical changes to section 5012 of the
COMPETES Act.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has been pro-
vided by the Congressional Budget Office:
Direct Spending (Outlays) 0 0 0
Revenues 0 0 0
Increase in the- Deficit 0 0 0
S. 2714 would reauthorize activities of the Advanced Research
Projects Agency-Energy (ARPA–E), an agency tasked with re-
searching and developing transformative energy technologies,
through fiscal year 2024. The bill also would amend ARPA–E’s re-
quirements for submitting annual reports and strategic vision road-
maps to the Congress.
S. 2714 would authorize appropriations totaling $2.9 billion over
the 2020–2024 period. In 2019, the Congress appropriated $366
million for ARPA–E. Because CBO scores continuing resolutions on
an annualized basis, in 2020 CBO assumes that the same amount
of funds will be available under the current continuing resolution
(Public Law 116–69). As a result, CBO estimates that S. 2714
would authorize an increase in spending subject to appropriation in
2020 of $62 million, the difference between the authorized amount
and the annualized amount under the continuing resolution. Based
on historical spending patterns, and assuming appropriation of the
authorized and necessary amounts, CBO estimates that imple-
menting S. 2714 would cost $690 million over the 2020–2024 period
and $1.8 billion after 2024.
The costs of the legislation (detailed in Table 1) would fall within
budget function 270 (energy).
TABLE 1.—ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 2714
By fiscal year, millions of dollars—
2020– 2020–
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2024 2029
Estimated Authorization a ...................... 62 497 567 651 750 0 0 0 0 0 2,527 2,527
Insert offset folio 9 here SR195.001
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5
TABLE 1.—ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 2714—
Continued
By fiscal year, millions of dollars—
2020– 2020–
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2024 2029
Estimated Outlays ................................. 2 21 79 197 391 536 550 463 230 41 690 2,510
a S.
2714 would authorize the appropriation of $428 million in 2020 for ARPA–E activities. However, CBO
estimates that $366 million has been allocated on an annualized basis from funds made available under the
current continuing resolution (Public Law 116–69), which provided appropriations through December 20, 2019.
Thus, the estimated authorization for 2020 ($62 million) is equal to the specified amount ($428 million) minus
the annualized amount from the continuing resolution ($366 million).
On November 5, 2019, CBO transmitted a cost estimate for H.R.
4091, the ARPA–E Reauthorization Act of 2019, as ordered re-
ported by the House Committee on Science, Space, and Technology
on October 17, 2019. S. 2714 is similar to H.R. 4091, and CBO’s
estimates of the budgetary effects of those bills are the same.
The CBO staff contact for this estimate is Aaron Krupkin. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the Standing
Rules of the Senate, the Committee makes the following evaluation
of the regulatory impact which would be incurred in carrying out
S. 2714. The bill is not a regulatory measure in the sense of impos-
ing Government-established standards or significant economic re-
sponsibilities on private individuals and businesses.
No personal information would be collected in administering the
program. Therefore, there would be no impact on personal privacy.
Little, if any, additional paperwork would result from the enact-
ment of S. 2714, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 2714, as ordered reported, does not contain any congression-
ally directed spending items, limited tax benefits, or limited tariff
benefits as defined in rule XLIV of the Standing Rules of the Sen-
ate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of Energy at the No-
vember 6, 2019, hearing on S. 2417 follows:
TESTIMONY OF ASSISTANT SECRETARY DANIEL SIMMONS,
OFFICE OF ENERGY EFFICIENCY AND RENEWABLE EN-
ERGY, U.S. DEPARTMENT OF ENERGY
INTRODUCTION
Chairman Cassidy, Ranking Member Heinrich, and
Members of the Energy Subcommittee of the Committee on
Energy and Natural Resources, thank you for the oppor-
tunity to testify today on legislation pertinent to the De-
partment of Energy now pending in the Senate. My name
is Daniel Simmons, and I am the Assistant Secretary for
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6
the Office of Energy Efficiency and Renewable Energy
(EERE).
As the Assistant Secretary, I am responsible for over-
seeing a broad portfolio of energy efficiency and renewable
energy programs. The technologies in my portfolio advance
America’s economic growth and energy security while en-
hancing the reliability and resilience of the U.S. energy
system. The Department of Energy supports improving the
energy efficiency and reducing energy costs, while at the
same time ensuring important performance standards are
met or exceeded. For instance, we want to ensure schools
and other buildings are sufficiently bright to ensure safety,
and that water flow from faucets is strong enough to clean
dirty hands. Today, I would like to share what relevant
work my office has done and is doing in the areas that
these bills address.
I have been asked to testify on eleven (11) bills today,
addressing a range of important energy issues. The Ad-
ministration continues to review all of these bills. I appre-
ciate the ongoing bipartisan efforts to address our Nation’s
energy challenges and I look forward to working with the
Committee.
BILLS
S. 2714—ARPA–E Reauthorization Act of 2019
S. 2714, the ARPA E Reauthorization Act of 2019, would
authorize a significant increase in the Department of En-
ergy’s Advanced Research Project Agency-Energy’s fund-
ing, from $428 million in Fiscal Year 2020 to $750 million
in Fiscal Year 2024. The bill also adds an annual reporting
requirement for ARPA–E’s scale-up and demonstration ac-
tivities and would broaden the authorized scope of ARPA–
E to support not only projects that improve the resilience,
reliability, and security of America’s energy infrastructure
but also those that improve the management, clean-up,
and disposal of radioactive waste and spent nuclear fuel.
The Department will continue to review the legislation
and looks forward to working with Congress as the legisla-
tive process moves forward.
CONCLUSION
Thank you again for the opportunity to testify before the
Subcommittee today. The Department appreciates the on-
going bipartisan efforts to address our Nation’s energy
challenges, and looks forward to working with the Com-
mittee on the legislation on today’s agenda and any future
legislation. I would be happy to answer your questions.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, the changes in existing law made by S. 2714,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italic,
existing law in which no change is proposed is shown in roman):
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7
AMERICA COMPETES ACT
Public Law 110–69, as Amended
* * * * * * *
TITLE V—DEPARTMENT OF ENERGY
* * * * * * *
SEC. 5012. ADVANCED RESEARCH PROJECTS AGENCY—ENERGY.
* * * * * * *
(c) GOALS.—
(1) IN GENERAL.—The goals of ARPA–E shall be—
ø(A) to enhance the economic and energy security of the
United States through the development of energy tech-
nologies that result in—
(i) reductions of imports of energy from foreign
sources;
(ii) reductions of energy-related emissions, including
greenhouse gases; and
(iii) improvement in the energy efficiency of all eco-
nomic sectors; and¿
(A) to enhance the economic and energy security of the
United States through the development of energy tech-
nologies that—
(i) reduce imports of energy from foreign sources;
(ii) reduce energy-related emissions, including green-
house gases;
(iii) improve the energy efficiency of all economic sec-
tors; and
(iv) improve the resilience, reliability, and security of
infrastructure to produce, deliver, and store energy;
and
(B) to ensure that the United States maintains a techno-
logical lead in developing and deploying advanced energy
technologies.
(2) MEANS.—ARPA–E shall achieve the goals established
under paragraph (1) through øenergy¿ advanced technology
projects by—
(A) identifying and promoting revolutionary advances in
fundamental and applied sciences;
(B) translating scientific discoveries and cutting-edge in-
ventions into technological innovations; and
(C) accelerating transformational technological advances
in areas that industry by itself is not likely to undertake
because of technical and financial uncertainty.
* * * * * * *
(e) RESPONSIBILITIES.—The responsibilities of the Director shall
include—
(1) approving all new programs within ARPA–E;
(2) developing funding criteria and assessing the success of
programs through the establishment of technical milestones;
(3) administering the Fund through awards to institutions of
higher education, companies, research foundations, trade and
industry research collaborations, or consortia of such entities,
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which may include federally-funded research and development
centers, to achieve the goals described in subsection (c) through
targeted acceleration of—
(A) novel early-stage øenergy¿ research with possible
technology applications;
* * * * * * *
(f) AWARDS.—
øIn carrying¿ (1) IN GENERAL.—In carrying out this section,
the Director may provide awards in the form of grants, con-
tracts, cooperative agreements, cash prizes, and other trans-
actions.
(2) CONSIDERATION OF PRIOR GRANTS.—In awarding a grant
under paragraph (1), the Director shall take into account the
success or failure of any project carried out by the entity apply-
ing for the grant using any prior grant funds awarded to that
entity by the Director.
* * * * * * *
(g) PERSONNEL.—
* * * * * * *
(3) HIRING AND MANAGEMENT.—
(A) IN GENERAL.—The Director shall have the authority
to—
(i) make appointments of scientific, engineering, and
professional personnel without regard to the civil serv-
ice laws;
(ii) fix the basic pay of such personnel at a rate to
be determined by the Director at rates not in excess
of Level II of the Executive Schedule (EX–II) without
regard to the civil service laws; and
(iii) pay any employee appointed under this øsub-
part¿ subparagraph payments in addition to basic pay,
except that the total amount of additional payments
paid to an employee under this subpart for any 12-
month period shall not exceed the least of the fol-
lowing amounts:
(I) $25,000.
(II) The amount equal to 25 percent of the an-
nual rate of basic pay of the employee.
(III) The amount of the limitation that is appli-
cable for a calendar year under section 5307(a)(1)
of title 5, United States Code.
* * * * * * *
(h) REPORTS AND ROADMAPS.—
(1) ANNUAL REPORT.—As part of the annual budget request
submitted for each fiscal year, the Director shall provide to the
relevant authorizing and appropriations committees of Con-
gress a report ødescribing projects¿ describing—
(A) projects supported by ARPA–E during the previous
fiscal yearø.¿, including projects that examine topics and
technologies closely relating to other activities funded by
the Department;
(B) an analysis of whether the Director is in compliance
with subsection (i)(1)(A) in supporting projects that exam-
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ine the topics and technologies described in subparagraph
(A); and
(C) current, proposed, and planned projects to be carried
out pursuant to subsection (e)(3)(D).
(2) STRATEGIC VISION ROADMAP.—Not later than øOctober 1,
2010, and October 1, 2013¿ October 1, 2021, and every 4 years
thereafter, the Director shall provide to the relevant author-
izing and appropriations committees of Congress a roadmap
describing the strategic vision that ARPA–E will use to guide
the choices of ARPA–E for future technology investments over
the following ø3¿ 4 fiscal years.
(i) COORDINATION AND NONDUPLICATION.—
(1) IN GENERAL.—To the maximum extent practicable, the
Director shall ensure øthat the activities¿ that—
(A) the activities of ARPA–E are coordinated with, and
do not duplicate the efforts of, programs and laboratories
within the Department and other relevant research
agenciesø.¿; and;
(B) an award is not provided for a project unless the pro-
spective award recipient demonstrates that—
(i) the prospective award recipient has made a suffi-
cient attempt to secure private financing, as deter-
mined by the Director; or
(ii) the project is not independently commercially via-
ble.
(2) TECHNOLOGY TRANSFER COORDINATOR.—To the extent ap-
propriate, the Director may coordinate technology transfer ef-
forts with the Technology Transfer Coordinator appointed
under section 1001 of the Energy Policy Act of 2005 (42 U.S.C.
16391).
* * * * * * *
(l) ARPA–E EVALUATION.—
(1) IN GENERAL.—øAfter ARPA–E has been in operation for
6 years¿ Not later than 3 years after the date of enactment of
the ARPA–E Reauthorization Act of 2019, the Secretary shall
offer to enter into a contract with the National Academy of
Sciences under which the National Academy shall conduct an
evaluation of how well ARPA–E is achieving the goals and mis-
sion of ARPA–E.
(2) INCLUSIONS.—The evaluation øshall¿ may include—
(A) øthe recommendation of the National Academy of
Sciences¿ a recommendation on whether ARPA–E should
be continued or terminated; and
(B) a description of lessons learned from operation of
ARPA–E, and the manner in which those lessons may
apply to the operation of other programs of the Depart-
ment.
(3) AVAILABILITY.—On completion of the evaluation, the eval-
uation shall be made available to Congress and the public.
* * * * * * *
(o) FUNDING.—
(1) FUND.—There is established in the Treasury of the
United States a fund, to be known as the ‘‘Energy Trans-
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10
formation Acceleration Fund’’, which shall be administered by
the Director for the purposes of carrying out this section.
(2) AUTHORIZATION OF APPROPRIATIONS.—Subject to øpara-
graphs (4) and (5)¿ paragraph (4), there are authorized to be
appropriated to the Director for deposit in the Fund, without
fiscal year limitation—
ø(A) $300,000,000 for fiscal year 2008;
ø(B) such sums as are necessary for each of fiscal years
2009 and 2010;
ø(C) $300,000,000 for fiscal year 2011;
ø(D) $306,000,000 for fiscal year 2012; and
ø(E) $312,000,000 for fiscal year 2013.¿
(A) $428,000,000 for fiscal year 2020;
(B) $497,000,000 for fiscal year 2021;
(C) $567,000,000 for fiscal year 2022;
(D) $651,000,000 for fiscal year 2023; and
(E) $750,000,000 for fiscal year 2024.
(3) SEPARATE BUDGET AND APPROPRIATION.—
(A) BUDGET REQUEST.—The budget request for ARPA–E
shall be separate from the rest of the budget of the Depart-
ment.
(B) APPROPRIATIONS.—Appropriations to the Fund shall
be separate and distinct from the rest of the budget for the
Department.
(4) ALLOCATION.—Of the amounts appropriated for a fiscal
year under paragraph (2)—
(A) not more than 50 percent of the amount shall be
used to carry out subsection (e)(3)(D);
(B) at least 5 percent of the amount shall be used for
technology transfer and outreach activities, consistent with
the goal described in subsection ø(c)(2)(D)¿ (c)(2)(C) and
within the responsibilities of program directors described
in subsection (g)(2)(B)(vii); and
(C) no funds may be used for construction of new build-
ings or facilities during the 5-year period beginning on the
date of enactment of this Act.
* * * * * * *
Æ
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