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Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
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5

Expert Roundtable

The fifth session of the workshop brought together experts from industry, government, academia, and nongovernmental organizations to discuss their experiences with the clean energy innovation process. K. John Holmes, National Academies of Sciences, Engineering, and Medicine, moderated the session. Topics of discussion included establishing goals, organization and management structures, opportunities for policy, de-risking innovation, collaboration and competition, and building effective partnerships. The following participated in the session: Carla Bailo, Center for Automotive Research; Yet-Ming Chiang, Massachusetts Institute of Technology (MIT); Tanya Das, House Committee on Science, Space, and Technology; Deepak Divan, Georgia Institute of Technology; Marcius Extavour, XPRIZE Foundation; Denise Gray, LG Chem Michigan, Inc.; Kara Hurst, Amazon; Scott McKee, House Committee on Appropriations; Robin Millican, Gates Ventures; Adele Morris, Brookings Institution; Jacquelyn Pless, MIT; Louis Schick, Clean Energy Ventures; Chris Tomassi, ClearPath; David Victor, University of California, San Diego; and Jay F. Whitacre, Carnegie Mellon University.

GOAL SETTING

Defining the Goal

Gray, Millican, Schick, and Tomassi each urged the federal government to set clearly defined goals. Lack of clarity results in public and private investments that are not concentrated and lead to a division of effort,

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
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Gray observed. Schick agreed, adding that it is difficult to make policy without a fundamental agreement on the goals. Further, the government should set goals that focus on what we are trying to accomplish and less on how to accomplish it. “Don’t outlaw the clever solution you haven’t thought of yet,” he said.

Das said that efforts cannot focus only on the electricity sector; progress must also be made in decarbonizaton of the heavy industry, transportation, and building sectors.

TRAINING, EDUCATION, AND THE EMERGING WORKFORCE

Young entrepreneurs and innovators require training and support to develop and deploy technologies, said Chiang. Programs such as Cyclotron Road and Activate that provide funding for emerging entrepreneurs are essential, he noted.

Extavour emphasized the value in a long-term strategy and roadmap. This can reduce risk of long-term innovation, and also energize young people. Direct outreach and education can help to connect people to careers in clean energy, he said.

Consumers need to understand the benefits of emerging technologies because they drive purchase decisions and future investments, Bailo said. As electric vehicles and hybrid technologies proliferate, education and training are needed to enhance understanding around operation, benefits, and return on investment. Countries that have done this, such as Norway and China, have seen huge increases in the penetration in these types of vehicles. “Industry can only sell what consumers want to buy,” Bailo said.

ORGANIZATION AND MANAGEMENT

Coordination Across Offices

McKee noted that better coordination across federal agencies is necessary to work on larger topics such as bioenergy and carbon removal. He also brought up stovepiping and lack of coordination between U.S. Department of Energy (DOE) programs. He described that in DOE’s current structure, the applied energy offices and Office of Science do not communicate well enough to enable the transfer of technology research between them.

Further, the applied energy offices are structured around end-use. However, many technologies cross between offices or are prioritized within offices differently. McKee provided the example of hydrogen research, which is funded separately in multiple offices without integration. Millican agreed that because the innovation process is not

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

linear, breaking down silos between basic and applied offices is required. Tomassi suggested an organization based on the largest emitting sectors, including power, industry, transportation, and buildings.

Models

Victor encouraged further consideration of what is working. There are many examples of successful domestic and international activities, which can inform how future funds are allocated and programs are structured.

Gray reflected on her experience with the U.S. Advanced Battery Consortium, a partnership between DOE and industry to develop and demonstrate advanced battery technologies. It was highly successful, Gray observed, noting that the activity extended past initial development, focused on manufacturing and production programs, and emphasized common goals and open communication among all partners.

DOE’s Energy Storage Grand Challenge is another positive example, Das offered. Its integrated approach to advancing energy storage includes all stages of innovation, including research, demonstration, manufacturing, technology transfer, and supply chains. The private sector is involved in each step.

Millican said that the United States needs to invest in climate and clean energy at the same level as other priorities, such as biomedical research. As a comparison, she noted that the National Institutes of Health (NIH) has a clear mission that politicians, industry, and the public can connect to. NIH is led by career civil servants and scientists, and often has directors that carry across administrations. Appropriations are at the institute levels, and peer review inoculates the agency from claims that decisions are made on a political basis.

Tomassi mentioned that the Advanced Research Projects Agency–Energy (ARPA-E) has flexibility in hiring that has allowed it to retain world-class talent. He proposed implementing those practices across all the departments.

POLICY

Monetizing Externalities

Several participants expressed support for some type of carbon tax structure, including Morris, Pless, and Whitacre. Morris said, “The most beneficial action to federal clean energy innovation is the establishment of a carbon price.” She explained that industry investments could be leveraged for the development and deployment of new technologies by harnessing the profit motive in markets across the country. Schick said that assigning

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

a definition and price to resiliency would motivate companies to move toward a common goal. Whitacre mentioned promising hybrid solutions such cap-and-trade plus a tax with some trade-offs. He also said that the structure of the gas tax should be revisited. Bailo seconded this, expanding that since gasoline usage is decreasing and will continue to decrease, the United States must develop an alternative strategy to fund roadways and enable the infrastructures necessary to transition to low-carbon mobility.

Bailo stressed the need to think holistically and consider the co-benefits of innovative, sustainable solutions. For example, cleaner air is linked to reduced health care burdens, and improving infrastructure to enable communication between vehicles can lead to reduction in crashes, congestion, and insurance costs.

Leveraging Federal Dollars

Morris proposed two specific actions that the federal government can take to enhance innovation. First, the federal government should leverage federal contracting dollars to put a shadow price on carbon for government contracts. Second, the federal government should leverage mineral leasing programs, particularly by putting a carbon adder onto federal royalties from coal produced on federal lands.

Pless and Extavour underscored the need for increased and improved subsidies for clean energy innovation, especially in early-stage research and development (R&D). Evidence-based policy requires developing a better understanding of what types of public investments and program designs are effective. This will require improved access to data and partnership with academic institutions as well as state and local governments, said Pless.

Regulatory Complexity

Divan suggested that incentives to standardize regulation, particularly in relation to electric utilities, will enable technologies to scale more easily. As he observed, “50 different solutions in 50 different states does not allow you to make the investment to scale properly.”

Chiang and Schick both noted that regulation in the electricity industry is daunting. Schick agreed that the fragmentation of regulatory environments makes achieving scale very difficult. Chiang suggested the government lower the barriers to deployment and scale by helping companies navigate the regulatory structure. Extavour referenced the recently launched Canadian government agency1 dedicated to indexing the other

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1 For additional information, see Clean Growth Hub, https://www.ic.gc.ca/eic/site/099.nsf/eng/home.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

governmental groups doing clean energy work and providing a single gateway into programs for everyone outside government. So far, the agency has been successful in helping entrepreneurs and start-ups navigate the complex regulatory system, he said.

MANAGING AND COMMUNICATING RISK IN INNOVATION

Managing Risk

Millican wondered how the historically risk-adverse federal government can enhance innovation while embracing the inevitability that some technologies will fail. Schick said that in a process where learning is involved and success is not guaranteed, the ability to change plans must be built in from the start.

Morris added that it is important to consider the factors that make an investment risky, including the market conditions in which the technology has to compete. Key to that is policy. The policy environment can flip extremely quickly. This “regulatory seesaw” dramatically increases the risk of investing in clean energy and low-emission technologies. She urged stakeholders to engage legislators on the policy they need to make confident investments.

Reducing risk means limiting scope and limiting the dollars, said Bailo. She promoted a pinpointed approach with a very clear measure of effectiveness. Small trials are necessary before expansion and regional variations must be taken into account to potential solutions.

Victor said that the risk-adverse nature of policy is intrinsic to government. To some extent, nongovernmental actors must be relied on to take more of the necessary risks. He highlighted the difference between “hard risks” and “soft risks.” The government is able to take more “soft risks” because failures are less visible and successes are more prominent. Additionally, programs like ARPA-E and the Defense Advanced Research Projects Agency (DARPA) are already good at identifying failures and successes and acting accordingly. Perhaps more corporations like these should be set up, he said.

The transformations of the electricity and transportation sectors will converge in the near future at fast charging, Divan said. The generation capacity needed to enable fast charging for electrified transportation is immense and considerably beyond current capacity. This represents a significant risk and requires aggressive communication between the U.S. Department of Transportation and DOE to manage. Divan observed that resiliency at the edge of the grid also needs to be prioritized.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

Public Perception

Das noted a public misconception of risk. She relayed that including Solyndra, failed projects represent only 3 percent of the Loan Program Office’s (LPO’s) funding to date. Educating policy makers and the public on the actual versus perceived magnitude of risk is a good place to start, suggested Das.

Pless agreed that public education is needed, particularly in those communities that are impacted most. Benefits and risks should be framed in a way that is relevant to low-income communities and communities facing disproportionate health impacts, she said.

The COVID-19 Pandemic

The COVID-19 pandemic has highlighted the cost of not responding to risk, Whitacre noted. The current price tag of COVID-19 in the United States stands at $8 trillion. “That changes the way we think about portraying risk and portraying issues that risk has to be taken to solve,” he said. The energy community must consider how to incorporate this narrative into its framing of risk, he summarized. While $8 trillion is a significant sum, it is on a magnitude that the country has spent before, for example, during World War II, added Schick. Further, the risk of inaction is under-appreciated, he said.

Thinking about the impact of COVID-19 on clean energy, Chiang used vaccines as an example of where a portfolio approach is necessary. This is an instance where the public can understand why acceptance of some failures is necessary to achieve broader success, he said. Further, at the absolute depth of economic activity during the pandemic, greenhouse gas emissions decreased by only 17 percent, underscoring the need for continued efforts to accelerate clean energy efforts.

The pandemic has shifted people’s primary worries to the more immediate and less long term, said Victor. Attention must be paid to the relationships between clean energy and immediate concerns such as health and jobs. Victor also raised the contrast between Europe’s pandemic response compared to most other nations. Clean energy is featured prominently in many European recovery plans, focusing much of the markets outside the United States. Schick added that shifting international dynamics will undoubtedly impact global cooperation as many countries turn inward.

McKee said a potential benefit could be job creation and direct economic stimulus through supplemental appropriations recovery packages. However, he worried that after the government spends trillions of dollars on COVID-19, some policy makers may find it difficult to justify spending on other areas.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

COLLABORATION AND COMPETITION

Intellectual Property and Innovation

Victor remarked that intellectual property has become the overarching priority in the U.S.-China relationship, and he worried that the adversarial relationship will stifle innovation. “We cannot have the large markets necessary for clean energy innovation, the access to ideas globally, and the capacity for researchers to collaborate without a better solution to the U.S.-China relationship,” said Victor.

Manufacturing and Supply Chains

From an economic competitiveness standpoint, Das highlighted the immense opportunity to domestically design and manufacture products. Extavour and Whitacre expressed concern regarding international supply chains. Extavour pointed out that the U.S. capacity to produce and acquire rare earth elements requires improvement. Whitacre added that most fundamental materials in clean energy technologies are sourced outside the country. If innovators and manufacturers in the United States had access to more key supplies, innovation would accelerate. Evaluating the supply chain is often expensive and variable depending on geopolitics. “We need a new class of manufacturing firms in the United States that can do this without such a barrier to entry,” he said.

PUBLIC-PRIVATE PARTNERSHIPS

Role of Private Sector

McKee mentioned the importance of consistent communication between the government and private sector to ensure that the work being pursued has end-use applications. Further, he encouraged strategies to make it easier and faster for private companies to partner with the government. Outreach activities are needed to educate companies about the capabilities of the federal system, particularly partnerships with the national laboratories, he said.

Divan pointed out that, unlike in other sectors, the electricity industry does not fund long-term research. Payback periods are too long for venture capital, and therefore national laboratories and university centers sustain research. However, a lack of incentives creates challenges in generating user pull from utilities. Partnerships are needed to fill this gap in long-term research, Divan said, and structural disincentives that slow adoption must also be addressed.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

Coalitions

Hurst noted that many companies struggle to begin decarbonization efforts and make investments with the largest possible impact. She advocated for working through coalitions to share products, services, and solutions through the entire value chain. Hurst listed Amazon’s initiatives to fast-track its own renewable energy goals; invest in solar, wind, and battery technologies; and bring low-carbon power to local communities in the process. She described how these efforts have been strengthened through collaboration with organizations such as We Mean Business, American Council on Renewable Energy, and Renewable Energy Buyers Alliance. She encouraged enhancing the connection between the coalitions and policy through partnerships with the federal government.

Gray said that the government should be strategic in how it advertises the benefits of collaborative efforts. She suggested rewarding companies that are engaging with the federal government, industry, academia, and the international community to advance innovation. “We should use them as an example, with the hopes that others will follow along,” she said.

Technology Transfer and Scale-Up

Chiang cited the SCALEUP program,2 which builds from ARPA-E’s primary R&D focus to support the scaling of energy technologies across the often fraught transition from development to manufacturing. The government should expand its support of start-ups through manufacturing stages and fund a broad portfolio of technologies, leaving room for both successes and failures, said Chiang.

Whitacre added that bridging that gap through venture funds alone is not sufficient. The risk is often too high for private capital alone, resulting in failure or acquirement of the IP by other nations. Whitacre and Bailo advocated for investment of private funds alongside public funds focused on large-scale demonstration and deployment projects.

Millican stressed the importance of adequate funding for demonstration and deployment. Das emphasized a need for programs that are targeted to invest at every step along the pathway to commercialization. The Tech-to-Market Program and Office of Technology Transitions run critical programs, but they require substantial increases in investment. In addition to existing programs, Das noted that new models are being proposed—like the DOE Foundation—that have the potential for significant impact. Tomassi also advocated for a more ambitious demonstration

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2 For more information on the SCALEUP program, see https://arpa-e.energy.gov/technologies/scaleup-launch-pad-2020.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×

program at DOE, whether it be better utilization of the LPO or a dedicated stream of funding for demonstrations.

The newly funded Advanced Reactor Demonstration Program aims to help industry demonstrate advanced nuclear reactors by the mid-2020s, said Tomassi. Importantly, the program will convene an advisory panel that will include industry. Because there is not much R&D at the utility level, this model of bringing in industry early to provide guidance is critical.

Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 44
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 45
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 46
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 47
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 48
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 49
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 50
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
Page 51
Suggested Citation:"5 Expert Roundtable." National Academies of Sciences, Engineering, and Medicine. 2021. Enhancing Federal Clean Energy Innovation: Proceedings of a Workshop. Washington, DC: The National Academies Press. doi: 10.17226/25973.
×
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A widespread and rapid transition to a low-carbon energy system by 2050 is essential to keep pace with ambitious policy goals and avoid the worst consequences of climate change. Innovation is necessary to lower costs and improve performance of existing technologies and to develop new clean energy options that address challenges in harder-to-decarbonize sectors. To examine means by which the U.S. federal government can rise to this challenge, the National Academies of Sciences, Engineering, and Medicine hosted a virtual workshop series "Enhancing Federal Clean Energy Innovation" on July 27 to August 7, 2020. The workshop featured timely, action-orientated assessments of how to strengthen development and penetration of new clean energy technologies. This publication summarizes the presentations and discussions that occurred over the course of the workshop.

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