research and education. In 2004, the National Science Board convened a Task Force on Transformative Research to consider how to adapt NSF processes to encourage more funding of high-risk, potentially high-payoff research.

Several accounts indicate that although program managers might have the authority to fund at least some high-risk research, they often lack incentives do so. Partly for this reason, the percentage of effort represented by such pursuits is often quite small—1 to 3% being common. The committee believes that additional discretionary funding will enhance the transformational nature of research without requiring additional funding. Some committee members thought 5% was sufficient, others 10%. Thus, 8% seemed a reasonable compromise and is reflected in the committee’s recommended action. The degree to which such a program will be successful depends heavily on the quality and coverage of the program staff.

The federal government should create a DARPA-like organization within the Department of Energy called the Advanced Research Projects Agency-Energy (ARPA-E) that reports to the under secretary for science and is charged with sponsoring specific R&D programs to meet the nation’s long-term energy challenges.⁴²