ARPA–E, a success by some measures, remains fragile

As the Advanced Research Projects Agency–Energy celebrates its fifth birthday next month, it boasts a portfolio of 362 clean-energy projects. Backed by more than $900 million in grants, those projects span 18 technology areas that range from developing innovative renewable energy sources to exploring alternatives to rare-earth metals and microorganisms for the reduction of vehicle emissions. Twenty-two of the awardees, who were recipients of ARPA–E grants totaling $95 million, have attracted a total of $625 million in private financing. In addition, at least two dozen project teams sponsored by ARPA–E have spawned new companies to commercialize their technologies.

Although those numbers may seem impressive, ARPA–E’s future, let alone growth, isn’t altogether assured given the austere budget climate. The House of Representatives had passed a bill last year that would have slashed ARPA–E’s fiscal year 2014 budget to $50 million, an 81% reduction from the $265 million provided in FY 2013. Although the final appropriation for this year was set at $280 million after negotiations with the Senate, the experience demonstrates how the 42-person office, part of the Department of Energy, is “still fragile” and just one appropriation away from becoming largely irrelevant, said Bart Gordon, the former Tennessee Democratic representative who helped to codify ARPA–E in the America COMPETES Act. That law, which authorized a variety of new science education and technology development programs at multiple agencies, expired in October 2013, and reauthorization efforts have stalled. President Obama has included $325 million for ARPA–E in his fiscal year 2015 budget request.

Gordon was among program supporters who spoke at the annual ARPA–E conference outside Washington, DC, in late February. Representative Paul Tonko (D-NY) said the ARPA–E budget “pales in comparison to what it should be.” And Senator Chris Coons (D-DE) agreed that Congress “should accelerate its investment significantly.” Cheryl Martin, acting ARPA–E director, said that the agency could ramp up to a $1 billion budget over time, though certainly not within one year. “We see more problems and ideas than we [can] fund. Over time, those kinds of numbers are appropriate,” she said.

For an operation that was created to back high-risk, high-payoff technologies, ARPA–E has had few failures so far. Of the 362 projects funded to date, only 18 have been terminated, Martin says. Many others have altered their objectives though, she adds.