I've had a great deal of experience with reviewing EPA STAR (Science to 
Achieve Results) Grant and SBIR proposals, so I offer here my explanation 
for the 98% reject rate.  The funding rate for these is usually about 15%, 
but within individual categories that means that of 8 proposals submitted, 
only 1 will be funded in that category, similar to those for university 
research grants.  So the competition is usually category specific.

The tendency for both DOE and EPA is to fund proposals that appear to have 
commercial viability.  This pretty much limits the landscape to existing 
companies that have a proven track record for success in either producing 
commercially viable products or processes or in winning funding.  Both are 
usually considered by the "400" as they are part of the evaluation criteria 
and especially by the government, which makes the final decisions on awards. 
Thus, high risk ideas are often sent hurtling down the reject chute.

In this particular procurement, "awards of $500,000 to $10 million" are to 
be made. "The ARPA-E awards are specifically targeted at development-stage 
companies, and are intended to help these companies cross the proverbial 
"valley of death" between identifying a promising technology and developing 
it to the point where key risks are abated and commercial adoption is 
possible."

The quoted text is from one of your links.  I haven't read the procurement 
details, but the language certainly sounds like the intent was to fund 
existing work and not startups or concept companies of which there is never 
any shortage.

I would also bet that of the 3500 proposals, less than a third made any 
sense whatsoever.  Thus, the reject letter was probably more kind than 
accurate.  Many proposals fall into several readily identifiable categories. 
The non responsive proposal.  The idea that has no chance proposal, e.g. 
cold fusion.  The started off OK, but couldn't explain how they would 
actually do it proposal.  The we have already exhausted all of the funding 
from other government agencies and will now try to extract some from this 
one proposal (a very common approach).  The one man company with no 
resources except a checking account proposal.

Once these are disposed of, it does get a little tricky in trying to pick 
winners and I have some sympathy for all parties involved.  I would note in 
regard to the recommendation to apply for SBIR grants that the SBIR program 
has similar criteria with a phased tier of funding, so some of the proposals 
that failed to win the ARPA "powerball" might make it with the SBIR "scratch 
off" lottery.  But I wouldn't bet on it.


----- Original Message ----- 
From: "Andrew Revkin" <[email protected]>
To: <[email protected]>
Sent: Monday, August 03, 2009 8:47 AM
Subject: [geo] Is this what an energy revolution looks like?


>
> Here's an ARPA-E rejection letter.  98% of those pursuing energy
> breakthroughs rejected by DOE: http://bit.ly/EnergyRejection in first
> round...
> -- 
> Andrew C. Revkin
> The New York Times / Environment
> 620 Eighth Ave., NY, NY 10018
> Tel: 212-556-7326 Mob: 914-441-5556
> Fax:  509-357-0965
> http://www.nytimes.com/revkin
>
> > 


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