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.

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 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.

Summary: Energy Research Act of 2007 - Establishes the Advanced Research Projects Administration - Energy (ARPA-E) to reduce foreign energy imports and to improve the competitiveness of the U.S. 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 reduce energy use.

Requires the ARPA-E Director to 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).

Requires the Director to implement such programs in a manner similar to the Small Business Innovation Research Program in order to ensure that small-business concerns are fully able to participate in the programs.

Authorizes the Director to carry out a program to award cash prizes in recognition of outstanding achievements with potential application to the mission of ARPA-E.