SHOULD CONGRESS ESTABLISH ‘‘ARPA–E,’’ THE ADVANCED RESEARCH PROJECTS AGENCY–ENERGY? HEARING BEFORE THE COMMITTEE ON SCIENCE HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS SECOND SESSION MARCH 9, 2006 Serial No. 109–39 Printed for the use of the Committee on Science ( Available via the World Wide Web: http://www.house.gov/science U.S. GOVERNMENT PRINTING OFFICE 26–480PS WASHINGTON : 2006 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 COMMITTEE ON SCIENCE HON. SHERWOOD L. BOEHLERT, New York, Chairman RALPH M. HALL, Texas BART GORDON, Tennessee LAMAR S. SMITH, Texas JERRY F. COSTELLO, Illinois CURT WELDON, Pennsylvania EDDIE BERNICE JOHNSON, Texas DANA ROHRABACHER, California LYNN C. WOOLSEY, California KEN CALVERT, California DARLENE HOOLEY, Oregon ROSCOE G. BARTLETT, Maryland MARK UDALL, Colorado VERNON J. EHLERS, Michigan DAVID WU, Oregon GIL GUTKNECHT, Minnesota MICHAEL M. HONDA, California FRANK D. LUCAS, Oklahoma BRAD MILLER, North Carolina JUDY BIGGERT, Illinois LINCOLN DAVIS, Tennessee WAYNE T. GILCHREST, Maryland DANIEL LIPINSKI, Illinois W. TODD AKIN, Missouri SHEILA JACKSON LEE, Texas TIMOTHY V. JOHNSON, Illinois BRAD SHERMAN, California J. RANDY FORBES, Virginia BRIAN BAIRD, Washington JO BONNER, Alabama JIM MATHESON, Utah TOM FEENEY, Florida JIM COSTA, California BOB INGLIS, South Carolina AL GREEN, Texas DAVE G. REICHERT, Washington CHARLIE MELANCON, Louisiana MICHAEL E. SODREL, Indiana DENNIS MOORE, Kansas JOHN J.H. ‘‘JOE’’ SCHWARZ, Michigan VACANCY MICHAEL T. MCCAUL, Texas VACANCY VACANCY (II) VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 C O N T E N T S March 9, 2006 Page Witness List ............................................................................................................. 2 Hearing Charter ...................................................................................................... 3 Opening Statements Statement by Representative Sherwood L. Boehlert, Chairman, Committee on Science, U.S. House of Representatives ........................................................ 16 Written Statement ............................................................................................ 17 Statement by Representative Bart Gordon, Minority Ranking Member, Com- mittee on Science, U.S. House of Representatives ............................................ 18 Written Statement ............................................................................................ 20 Statement by Representative Judy Biggert, Chairman, Subcommittee on En- ergy, Committee on Science, U.S. House of Representatives ........................... 22 Written Statement ............................................................................................ 24 Prepared Statement by Representative Jerry F. Costello, Member, Committee on Science, U.S. House of Representatives ........................................................ 26 Prepared Statement by Representative Eddie Bernice Johnson, Member, Com- mittee on Science, U.S. House of Representatives ............................................ 26 Prepared Statement by Representative Michael M. Honda, Minority Ranking Member, Subcommittee on Energy, Committee on Science, U.S. House of Representatives .................................................................................................... 27 Prepared Statement by Representative Sheila Jackson Lee, Member, Com- mittee on Science, U.S. House of Representatives ............................................ 27 Witnesses: Dr. Steven Chu, Director, Lawrence Berkeley National Laboratory Oral Statement ................................................................................................. 28 Written Statement ............................................................................................ 31 Biography .......................................................................................................... 36 Dr. David C. Mowery, William A. & Betty H. Hasler Professor of New Enter- prise Development, Haas School of Business, University of California at Berkeley Oral Statement ................................................................................................. 37 Written Statement ............................................................................................ 39 Biography .......................................................................................................... 42 Ms. Melanie Kenderdine, Vice President, Washington Operations, Gas Tech- nology Institute Oral Statement ................................................................................................. 43 Written Statement ............................................................................................ 46 Biography .......................................................................................................... 51 Dr. Frank L. Fernandez, President, F.L. Fernandez, Inc. Oral Statement ................................................................................................. 52 Written Statement ............................................................................................ 54 Biography .......................................................................................................... 58 Dr. Catherine Cotell, Vice President for Strategy, University and Early Stage Investment, In-Q-Tel Oral Statement ................................................................................................. 59 Written Statement ............................................................................................ 61 Biography .......................................................................................................... 66 (III) VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 IV Page Dr. Catherine Cotell, Vice President for Strategy, University and Early Stage Investment, In-Q-Tel—Continued Financial Disclosure ......................................................................................... 67 Discussion ................................................................................................................. 68 Appendix: Answers to Post-Hearing Questions Dr. Steven Chu, Director, Lawrence Berkeley National Laboratory ................... 86 Dr. David C. Mowery, William A. & Betty H. Hasler Professor of New Enter- prise Development, Haas School of Business, University of California at Berkeley ................................................................................................................ 90 Ms. Melanie Kenderdine, Vice President, Washington Operations, Gas Tech- nology Institute .................................................................................................... 92 Dr. Frank L. Fernandez, President, F.L. Fernandez, Inc. ................................... 96 Dr. Catherine Cotell, Vice President for Strategy, University and Early Stage Investment, In-Q-Tel ........................................................................................... 100 VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 SHOULD CONGRESS ESTABLISH ‘‘ARPA–E,’’ THE ADVANCED RESEARCH PROJECTS AGENCY–ENERGY? THURSDAY, MARCH 9, 2006 HOUSE OF REPRESENTATIVES, COMMITTEE ON SCIENCE, Washington, DC. The Committee met, pursuant to call, at 10:00 a.m., in Room 2318 of the Rayburn House Office Building, Hon. Sherwood L. Boehlert [Chairman of the Committee] presiding. (1) VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 2 VerDate 11-MAY-2000 09:05 Nov 17, 2006 Jkt 026480 PO 00000 Frm 00006 Fmt 6633 Sfmt 6602 C:\WORKD\FULL06\030906\26480 SCIENCE1 PsN: SCIENCE1 3 HEARING CHARTER COMMITTEE ON SCIENCE U.S. HOUSE OF REPRESENTATIVES Should Congress Establish ‘‘ARPA–E,’’ the Advanced Research Projects Agency–Energy? THURSDAY, MARCH 9, 2006 10:00 A.M.–12:00 P.M. 2318 RAYBURN HOUSE OFFICE BUILDING 1. Purpose On Thursday, March 9, 2006, the House Committee on Science will hold a hearing on whether Congress should establish an Advanced Research Projects Agency in the Department of Energy, or an ARPA–E. The National Academy of Sciences, in its report last fall on enhancing American competitiveness, Rising Above the Gathering Storm, recommended the creation of an ARPA–E to fund ‘‘transformational research that could lead to new ways of fueling the Nation and its economy,’’ and different bills have been introduced in the House and Senate to implement the recommendation. Critics of the proposal have raised a variety of issues, including that an ARPA– E may not address the actual barriers to new energy technology; that it is based on a research agency model that does not apply well to energy; that different pro- ponents of ARPA–E describe different missions for it; that it would compete with, or get swallowed up by existing energy research programs; and that it is unclear how it would be distinct from other energy research programs. The hearing is intended to