S-1286-116
Placed on Senate Legislative Calendar under General Orders. Calendar No. 178.
Sponsored by Martin Heinrich (D-NM)
What it does
This bill would amend the Energy Policy Act of 2005 to create the Energy Technology Maturation Program within the Department of Energy (DOE). The program would provide funding — up to $150,000 for early-stage development and up to $750,000 for projects with an identified private sector partner — to DOE facilities, including National Laboratories, to help move promising energy technologies from the research stage toward commercial products. Funding would come from the existing Energy Technology Commercialization Fund or other DOE technology transfer funds, and the Secretary of Energy would be required to report annually on the program's results.
Who benefits
DOE National Laboratories and other DOE facilities that would receive new funding for technology development. Small businesses, which receive priority consideration when partnering with DOE facilities on projects. Private sector companies that could gain access to commercially viable technologies developed with federal research dollars. Energy technology startups and entrepreneurs seeking to license or co-develop DOE-originated innovations. Consumers and industries that could eventually benefit from new energy products reaching the market. Regions near DOE facilities that may see increased economic activity from public-private partnerships.
Who is hurt
Competing energy technology companies that did not partner with DOE facilities may face a disadvantage if subsidized competitors bring products to market faster. Applicants whose projects are not selected would receive no benefit despite investing time in the application process. Taxpayers bear the cost of the program, though the bill does not specify a new appropriation amount. Established energy companies whose existing products could face new competition from DOE-backed technologies may see market share pressure.
Supporters argue
Supporters argue that the United States consistently produces world-class energy research at its National Laboratories but struggles to move those innovations from the lab to the marketplace — a gap sometimes called the "valley of death" in technology development. They contend that targeted, modest grants (capped at $750,000) with a priority for small business partnerships would leverage existing federal research assets to create jobs and strengthen U.S. competitiveness in energy technology, without creating a large new bureaucracy or spending program.
Opponents argue
Opponents argue that the federal government has a poor track record of picking commercially viable technologies, and that directing DOE funds toward commercialization duplicates the role of private venture capital and existing programs like the Small Business Innovation Research (SBIR) program. They contend that even modest grants can distort market signals, and that the bill's broad discretion given to the Secretary of Energy to set evaluation criteria and cost-sharing requirements provides insufficient congressional oversight over how funds are allocated.