In August 2007, Congress authorized the establishment of the Advanced Research Projects Agency - Energy (ARPA-E) to support transformational energy technology research projects with the goal of enhancing the nation's economic and energy security. Modeled on the Defense Advanced Research Projects Agency (DARPA) in the Department of Defense (DOD), ARPA-E would be a new organization within the Department of Energy (DOE) (see Box 1 below ). As outlined in the America COMPETES Act ( P.L. 110-69 , §5012), the goal of ARPA-E is to enhance the economic and energy security of the United States through the development of technologies that reduce energy imports, reduce energy-related greenhouse gas emissions, and improve energy efficiency in all economic sectors. In addition, ARPA-E would aim to ensure that the United States is a technical leader in developing and deploying advanced energy technologies. According to the act, ARPA-E would achieve this goal by identifying and promoting revolutionary advances in fundamental sciences and translating scientific discoveries and cutting-edge inventions into technological innovations. ARPA-E would focus its efforts on accelerating transformational technological advances in areas that industry, by itself, is not likely to undertake due to technical and financial uncertainty. As stated in §5012, the agency's programs would accelerate novel early-stage energy research with possible technology applications; the development of techniques, processes, and technologies and related testing and evaluation; research and development (R&D) of manufacturing processes for novel energy technologies; and coordination with nongovernmental entities to demonstrate technologies and research applications to facilitate technology transfer. To achieve these goals, ARPA-E would make awards to academic institutions, companies, research foundations, and trade and industry research collaborations. In addition, awards may be made to consortia of these organizations, and these consortia could include federally funded research and development centers (FFRDCs). According to the act, the criteria for selecting projects would include novelty, scientific and technical merit, the demonstrated capability of the applicant to successfully carry out the proposed project, future commercial applications of the project, and the feasibility of partnering with one or more commercial entities, as well as additional criteria established by the director of ARPA-E. The management of ARPA-E, as described in the act, is modeled on that of DARPA (see Box 2 below ). DARPA has a well-known history of catalyzing innovative technologies, such as Saturn rocket engines used for moon flights, pilotless Predator planes used in Iraq and Afghanistan, computer-aided design, global positioning satellites, computer mouse, and Internet. DARPA seeks to sponsor revolutionary, high-payoff research that "bridges the gap between fundamental discoveries and their military use." According to a former director, "DARPA will take a chance on an idea with no data. We'll put up the money to go get the data and see if the idea holds. That is the highest-risk type of research you can have." The act states that ARPA-E would be managed by a presidentially appointed director, who would report to the Secretary of Energy. The director would approve all new programs, develop funding criteria, establish technical milestones to assess program success, and terminate programs not achieving their goals. The director would have the authority to appoint not less than 70, and no more than 120, scientific, engineering, and professional personnel without regard to civil service laws and to determine their compensation. The director would be responsible for ensuring that ARPA-E activities are coordinated with, and do not duplicate, DOE and other federal programs and laboratory activities; the Program Managers would establish R&D goals and select projects based on merit. Both the director and the Program Managers would be permitted to seek advice on the overall direction of ARPA-E and specific program tasks from a new ARPA-E advisory committee or existing DOE federal advisory committees. Additional sources of advice provided for in the act include the President's Council of Advisors on Science and Technology (PCAST), professional organizations, and disciplinary societies. The act authorizes an Energy Transformation Acceleration Fund in the Department of the Treasury, with $300 million of funding authorized for FY2008 and "such sums as are necessary" for FY2009 and FY2010. ARPA-E's budget request and appropriations are to be separate and distinct from the rest of DOE's budget. No more than 50% of ARPA-E funding may be used for coordination with nongovernmental entities for technology demonstration and research applications to facilitate technology transfer. At least 2.5% must be used for technology transfer and outreach activities. No funds may be used for construction of new buildings or facilities until August 2012. After ARPA-E has operated for four years, the National Academy of Sciences (NAS) is to evaluate how well ARPA-E is achieving its goals and mission. The ARPA-E director would submit an annual report, describing projects supported in the previous year, as part of the annual budget request to Congress. The director would also submit strategic vision roadmaps to Congress no later than October 1, 2008, and October 1, 2011. The roadmaps are to describe the strategic vision ARPA-E would use to determine its future technology investments for the subsequent three fiscal years. 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 Bush Administration requested no funds for ARPA-E in FY2009, and took no actions to begin its operations. In the American Recovery and Reinvestment Act (ARRA; P.L. 111-5 ), Congress provided ARPA-E funding of $400 million which supplemented FY2009 funds of $15 million ( P.L. 111-8 ). As a result, ARPA-E's received its initial funding of $415 million in FY2009. The ARRA funds are available for obligation until September 30, 2010. The Obama Administration has proposed ARPA-E receive funding of $10 million in FY2010. The House Committee on Appropriations declined to provide this funding. No Senate action has taken place. President Obama announced the establishment of ARPA-E in a speech at the National Academy of Sciences. Shortly afterward, the Obama Administration released a funding opportunity announcement soliciting concept papers. The Administration has not announced ARPA-E's director or organization. These activities are discussed below. On April 27, 2009, President Obama in remarks at the National Academy of Sciences stated the following: And today, I'm also announcing that for the first time, we are funding an initiative—recommended by this organization—called the Advanced Research Projects Agency for Energy, or ARPA-E. This is based, not surprisingly, on DARPA, the Defense Advanced Research Projects Agency, which was created during the Eisenhower administration in response to Sputnik. It has been charged throughout its history with conducting high-risk, high-reward research. And the precursor to the Internet, known as ARPANET, stealth technology, the Global Positioning System all owe a debt to the work of DARPA. So ARPA-E seeks to do the same kind of high-risk, high-reward research. My administration will pursue, as well, comprehensive legislation to place a market-based cap on carbon emissions. We will make renewable energy the profitable kind of energy. We will put in place the resources so that scientists can focus on this critical area. And I am confident that we will find a wellspring of creativity just waiting to be tapped by researchers in this room and entrepreneurs across our country. We can solve this problem. In a fact sheet that provided additional details regarding the speech, the Obama Administration stated the following: SPARKING THE CLEAN ENERGY REVOLUTION •    As part of his plan to build a clean energy economy that will reduce our dependence on foreign oil and cut carbon pollution, the President will announce the launch of the $400 million Advanced Research Projects Agency-Energy (ARPA-E). In addition, the Department of Energy will announce grants to establish 46 Energy Frontier Research Centers. •    ARPA-E is a new Department of Energy organization modeled after the Defense Advanced Research Projects Agency, the defense agency that gave us the Internet, stealth aircraft, and many other technological breakthroughs. The recommendation to create ARPA-E came from a report of the National Academy of Sciences entitled Rising Above The Gathering Storm, and funding for ARPA-E was included in the Recovery Act. •    ARPA-E will award grants to recipients that enhance the economic and energy security of the United States through the development of breakthrough energy technologies; reduce the need for consumption of foreign oil; reduce energy-related emissions, including greenhouse gases; improve the energy efficiency of all economic sectors; and ensure that the United States maintains a technological lead in developing and deploying advanced energy technologies. •    ARPA-E will issue an initial solicitation that will focus on applicants with a well-formed R&D plan for a transformational concept or new technology that can make a significant contribution towards attainment of the President's Energy Plan. Under this announcement, ARPA-E will fund energy technology projects that (1) translate scientific discoveries and cutting-edge inventions into technological innovations and (2) accelerate transformational technological advances in areas that industry is not likely to undertake independently because of high technical or financial risk. Later that day, the DOE released a Funding Opportunity Announcement (FOA) with ARPA-E's first solicitation. The solicitation states the following: This is the first solicitation for the Advanced Research Projects Agency – Energy (ARPA-E). ARPA-E is a new organization within the Department of Energy (DOE), created specifically to foster research and development (R&D) of transformational energy-related technologies.