The Clean Energy Ministerial is  focused on improving energy efficiency worldwide, enhancing clean  energy supply, and expanding clean energy access. Agencies Obligated About $97 Million in Total for Clean Energy Cooperation with China for Fiscal Years 2008 through 2015

U.S. agencies obligated about $97 million for clean energy cooperation  with China over the 8-year period of fiscal years 2008 through 2015. More  than 90 percent of this money was obligated by three agencies: DOE,  USTDA, and State. The work through fiscal  year 2015 was separated into three tracks focused on clean coal,  clean vehicles, and energy efficiency in buildings. Export promotion: Activities to promote U.S. exports received about  13 percent of the funding, all of which was from USTDA and included  feasibility studies, trade missions, and some technical assistance. For example, CERC  projects had led to the launch of 15 products by the end of 2015,  including software for enhancing energy efficiency in buildings. The Three Key Programs Have Yielded Some Results

Our analysis of the measures and documents used by the three programs  to track performance at the program and lower levels shows that all of the  programs have yielded some results, such as the number of products  launched as a result of CERC, the dollar value of exports generated by  USTDA’s projects, and the number of people trained on global climate  change by CCWG initiatives. Although the Three Programs Monitor Performance, They Generally Lack Targets, Making It Unclear How Results Compare with Intended Performance

All three programs monitor progress toward their goals through a variety  of tools, such as performance reports and program reviews. To help manage program performance, linking  goals to performance measures that are tracked against established  targets is a leading practice for federal programs. DOE Has Taken Steps to Manage IP Risks CERC Participants May Face, but Participants Are Reluctant to Share IP

DOE officials identified potential sharing of background IP—IP generated  outside the scope of a research and development collaboration—and  participants not having a clear plan for managing IP as risks to U.S.  companies and researchers participating in CERC. According to agency officials,  this has not been the case in previous science and technology  agreements between the United States and other countries. CERC Participants Reported No Significant Issues with DOE’s Approach to IP, but Participants Are Reluctant to Share IP

CERC participants we interviewed did not report any significant issues  with steps DOE has taken to address IP risks. DOE officials acknowledged that companies participating in CERC face a  tradeoff between the risks of sharing background IP and the potential  benefits, such as valuable research and development outcomes and  gaining a market advantage through demonstrating projects in China. These officials also stated that it is appropriate for companies to assess  risks for themselves and not share their most valuable IP if the related  risk is determined to be too great. Conclusions

Both the United States and China have committed to efforts to address  climate change, including doubling their research and development  investments on clean energy. CERC and CCWG  officials are in the process of planning the next phases of those programs,  and USTDA describes itself as an agency that values the role of data in  making program decisions. In their written comments reproduced in appendices IV, V,  and VI, DOE, State, and USTDA, respectively, agreed with our  recommendations and noted plans to take action to address them. This  report examines (1) how much funding U.S. agencies have obligated to  clean energy cooperation with China; (2) what is known about the results  of key U.S.-China cooperation programs and the extent to which these  programs follow leading practices in performance monitoring; and (3) the  extent to which the U.S. Department of Energy (DOE) manages risks that  may face U.S. participants in the U.S.-China Clean Energy Research  Center (CERC).
Why GAO Did This Study

The United States and China lead the world in energy consumption, and both are investing in renewable resources and efforts to increase the efficiency of traditional fossil fuel sources in part to address climate change. In 2014, a congressional commission raised questions about bilateral cooperation between the United States and China on clean energy, including potential IP risks to U.S. participants involved in collaborative research projects.
GAO was asked to review government-led U.S.-China collaborative initiatives on clean energy. This report examines (1) how much funding U.S. agencies obligated for clean energy cooperation with China, (2) what is known about the results of key programs and the extent to which they follow leading practices in performance monitoring, and (3) the extent to which DOE managed risks that CERC participants may face. GAO analyzed funding data, reviewed documents and compiled reported results, interviewed agency officials and participants of key programs, and conducted site visits.

What GAO Found

In fiscal years 2008–2015, U.S. agencies obligated a total of about $97 million for clean energy cooperation with China. Two-thirds of this money was obligated for three key programs (projects of which are depicted from left to right below):
Department of Energy (DOE) program, the U.S.-China Clean Energy Research Center (CERC), that has focused on research and development in clean coal, clean vehicles, and energy efficiency in buildings;
U.S. Trade and Development Agency (USTDA) program focused on export promotion through projects such as feasibility studies and trade missions; and
Department of State (State) program that includes information sharing and technology demonstration projects across various clean energy technologies.
The key programs have yielded some results and have performance monitoring tools but generally lack targets for their performance, making the significance of their progress unclear. Examples of the programs' results include: for CERC, as of the end of 2015, the launch of 15 products, such as software for enhancing energy efficiency of buildings; and for the USTDA program, through fiscal year 2015, about $230 million in U.S. exports from its clean energy projects. Based on performance monitoring principles in the GPRA Modernization Act of 2010, it is a leading practice for federal programs to link goals to performance measures with established targets. Without targets, it is unclear how results compare with intended performance and what improvements may be needed; this is particularly important as DOE and State officials are planning the next phases of their programs and USTDA emphasizes the role of data in program decisions.
DOE identified intellectual property (IP) risks CERC participants may face, such as participants not having a clear plan for protecting IP, and took steps to manage them. These steps included requiring agreements clarifying IP rights and providing training, in part to encourage participants to share IP created outside of CERC projects. DOE officials said this IP sharing is important for valuable research and development collaboration. CERC participants GAO spoke with reported no significant issues with DOE's management of IP risks but, nonetheless, have been reluctant to share IP. DOE officials acknowledged that participants face a tradeoff between the risks and benefits of sharing IP with Chinese participants and that it is appropriate for companies to assess risks for themselves.

What GAO Recommends

GAO is making four recommendations to enhance performance monitoring, including that DOE, USTDA, and State each develop targets for program-level performance and track progress against them for the key programs GAO reviewed. The agencies agreed with GAO's recommendations and plan to take actions to address them.