SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Research Projects Energy 
Act (ARPA-E) Act''.

SEC. 2. ASSISTANT SECRETARY FOR ADVANCED ENERGY RESEARCH, TECHNOLOGY 
              DEVELOPMENT, AND DEPLOYMENT.

    (a) Establishment.--
            (1) In general.--The Secretary of Energy shall establish in 
        the Department of Energy the position of Assistant Secretary 
        for Advanced Energy Research, Technology Development, and 
        Deployment (referred to in this Act as the ``Assistant 
        Secretary''), to be headed by, and to report to, the Secretary.
            (2) Qualifications.--The Assistant Secretary shall be an 
        individual with--
                    (A) an advanced education degree in energy 
                technology; and
                    (B) substantial commercial research and technology 
                development and deployment experience.
    (b) Mission.--The mission of the Assistant Secretary is--
            (1) to implement an innovative energy research, technology 
        development, and deployment program to--
                    (A) increase national security by significantly 
                reducing petroleum and imported fuels consumption;
                    (B) significantly improve the efficiency of 
                electricity use and the reliability of the electricity 
                system; and
                    (C) significantly reduce greenhouse gas emissions; 
                and
            (2) to sponsor a diverse portfolio of cutting-edge, high-
        payoff research, development, and deployment projects to carry 
        out the program.
    (c) Experimental Personnel Authority.--The Assistant Secretary may 
staff the office of the Assistant Secretary primarily using a program 
of experimental use of special personnel management authority in order 
to facilitate recruitment of eminent experts in science or engineering 
for management of research and development projects and programs 
administered by the Assistant Secretary under similar terms and 
conditions as the authority is exercised under section 1101 of the 
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 5 U.S.C. 3104 note), as determined by the 
Assistant Secretary.
    (d) Transactions Other Than Contracts and Grants.--To carry out 
projects under this Act, the Assistant Secretary may enter into 
transactions to carry out advanced research projects under this 
subsection 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)).
    (e) Prizes for Advanced Technology Achievements.--
            (1) In general.--Subject to paragraphs (2) through (4), the 
        Assistant Secretary 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 to advance the 
        mission described in subsection (b) 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).
            (2) Competition requirements.--In carrying out this 
        subsection, the Assistant Secretary shall--
                    (A) use a competitive process for the selection of 
                recipients of cash prizes; and
                    (B) conduct widely-advertised solicitation of 
                submissions of research results, technology 
                developments, and prototypes.
            (3) Maximum amount for all cash prizes.--The total amount 
        of all cash prizes awarded for a fiscal year under this 
        subsection may not exceed $50,000,000.
            (4) Maximum amount of individual cash prizes.--The amount 
        of an individual cash prize awarded under this subsection may 
        not exceed $10,000,000 unless the amount of the award is 
        approved by the Secretary of Energy.
    (f) Annual Reports.--As soon as practicable after the end of each 
fiscal year for which the Assistant Secretary receives funds under 
subsection (h), the Assistant Secretary shall submit to the Committee 
on Energy and Natural Resources of the Senate and the Committee on 
Energy and Commerce, and the Committee on Science, of the House of 
Representatives a report on the progress, challenges, future 
milestones, and strategic plan of the Assistant Secretary, including--
            (1) a description of, and rationale for, any changes in the 
        strategic plan;
            (2) the adequacy of human and financial resources necessary 
        to achieve the mission described in subsection (b); and
            (3) in the case of cash prizes awarded under subsection 
        (e), a description of--
                    (A) the applications of the research, technology, 
                or prototypes for which prizes were awarded;
                    (B) the total amount of the prizes that were 
                awarded;
                    (C) the methods used for solicitation and 
                evaluation of submissions and an assessment of the 
                effectiveness of those methods; and
                    (D) recommendations to improve the prize program.
    (g)  Relationship to Other Authority.--The program under this Act 
may be carried out in conjunction with, or in addition to, the exercise 
of any other authority of the Assistant Secretary to acquire, support, 
or stimulate basic, advanced, and applied research, technology 
development, or prototype projects.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this Act--
            (1) $1,000,000,000 for fiscal year 2007; and
            (2) $2,000,000,000 for each of fiscal years 2008 through 
        2011.
Output: Advanced Research Projects Energy Act (ARPA-E) Act - Instructs the Secretary of Energy to establish in the Department of Energy the position of Assistant Secretary for Advanced Energy Research, Technology Development, and Deployment to: (1) implement an innovative energy research, technology development, and deployment program; and (2) sponsor a diverse portfolio of cutting-edge, high-payoff research, development, and deployment projects to carry it out.

Authorizes the Assistant Secretary to award cash prizes in recognition of outstanding achievements in basic, advanced, and applied research, technology development, and prototype development.