It’sCriticaltoPrioritizeCommercialandMarketReadinessforH2Hubs

ROBINGASTER|APRIL2023

EffectivelymanagingtheEnergyDepartment’shydrogenhubsprograminthefaceofformidablechallengeswillbevitalforthesuccessofdevelopinghydrogen-basedeconomicecosystems.

KEYTAKEAWAYS

1TheDepartmentofEnergy’s(DOE’s)$8billionhydrogenhubs(H2Hubs)programmustprioritizecommercialviability,askeytechnologieshaven’tbeentestedatscaleandthetargetmarketsdon’tyetexist.

1DOEmustprioritizetheeconomicsustainabilityoftheH2Hubsbyrelentlesslydrivingdownthecostoflow-carbonhydrogentoparitywithhydrogenproducedbyfossilfuels.Unlessthistargetismet,otherprogramgoalswon’tbeachieved.

1Thehubsprogramisdesignedtopavethewayforfutureecosystems,soDOEmustensurethatcriticaldataoncost,performance,productionvolumes,andotherparametersarewidelyshared.

1GettingtheH2Hubsprogramrightisimportanttoshowtheimpactofdemonstrationprogramsmorebroadly.Ifithelpssupportmarkettransitionsfornewtechnologiesornewapplications,therewillbemanymoredemonstrationsinothersectorsaswell.

1DOEisusingtheCooperativeAgreementlegalframeworkfortheH2Hubs,whichgivestheagencyincreasedinfluenceoverday-to-daydecisions.However,DOEshouldfocusprimarilyonitsoversightroleratherthaninterveningindailyprogrammanagement.

1WhileDOEhassoughtexpertadviceonmanyprojects,theneedhereisdeeper,broader,andlongerterm.

1Outsideexpertisewillbeneededtounderstandthemarketsustainabilityofproposedprojects,ensurethatbroadstrategicdecisionsarealignedwithDOEgoals,andreviewprojectsagainstagreedmilestones.

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CONTENTS

KeyTakeaways 1

Executivesummary 2

ImportanceofEffectiveManagementforH2Hubs 3

KeyChallenges 4

Mission 4

ProgramManagementConcerns 5

Oversightvs.Day-to-DayManagement 7

OutsideExpertise 8

Post-AwardNegotiations 10

Go/No-GoDecisions 11

AdditionalFundingasIncentiveforAccelerationorExpandedScope 13

MatchingFunds 13

AccountabilityandTransparency 14

Recommendations 17

Endnotes 19

EXECUTIVESUMMARY

The$8billionhydrogenhubsprogram(H2Hubs)beingdeployedbytheDepartmentofEnergy(DOE)isthemostextensivedemonstrationprogramundertakeninenergyintheUnitedStates.Designedtosupportthecreationofsustainablehydrogen-basedregionalecosystems,itfacesformidablechallenges,andDOEwillneedtoadjuststandardmanagementpracticestomeetthem.

Mostimportantly,theprogramtargetsimportantmarketsthatdon’tyetexist,inmanycasesusingtechnologiesthathavenotbeentested,missingcriticalcomponentsoftheenergytransportationinfrastructureandfacingcompetitionfromestablishedandplentifulsourcesofcheaphydrogen(thatemitsubstantialamountsofgreenhousegases(GHG)).TheH2Hubswilllikelybeatasubstantialcostdisadvantage,whichiswhyDOEwillhelpfundthecostofbuildinghydrogenproductionfacilities(byreducingcapitalexpendituresforoperators)andmayalsoprovideoperatingsupportoncetheyaremade.TheInflationReductionActalsoprovidessubstantialsubsidiesforcleanhydrogen,whilethe45Qprogramoffersadditionalsupportforcarboncaptureprojects.

Thesechallengesareformidable,andDOEneedstodobettercompletingmajorprojectsontimeandonbudget.Sogettingmanagementobjectives,structures,andresourcesrightiscriticallyimportant.Tohelpovercomethesechallenges,weoffersomesuggestionstoDOEthatwouldassistinsuccessfullyimplementingH2Hubs.Theseinclude:

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Mission.DOEmustprioritizetheeconomicsustainabilityoftheH2Hubs.Withoutthat,thehubswillfail,andanyotherobjectiveswillfailwiththem.Inaddition,hubsmustbejudgedontheircapacitytoeliminateGHGs,whichiswhyDOEisfundingthem.

Oversightvs.day-to-daymanagement.DOEisusingtheCooperativeAgreement(CA)legalframework,whichoffersDOEmoreinfluenceoverdetaileddecisions.Overall,DOEshouldfocusonitsoversightroleratherthatinterveninginmattersinwhichitmayhavelimitedtechnicalexpertiseanditsactivitiescouldcompromiseoversight.

Outsideexpertise.H2HubsareastretchforDOE,demandingexpertiseacrosstheentiresupplychain,includingmarkets.DOEshouldrecruit,pay,anduseexpertsinanumberofways,particularlyintheformofanExternalExpertBoard.

Post-awardnegotiations.DOEshouldrecognizethatitholdsaverystrongpositionwhennegotiatingwiththehubsafterselection.Companieswishingtobuildhubshavenowhereelsetogoforthefundingthatisabsolutelycriticaltotheirprojects.

Transparencyandaccountability.Thehubsaredesignedtobecomedemonstrationsforhowhydrogenecosystemscanbebuiltandoperated.Theymustthereforeshareallkeydatatoencourageotherstofollowandlearnfromthem.ThiswillnothappenunlessDOEtakesastrongpro-transparencyposition,insistingthathubsfullysharetheirdata,andprovidingdetaileddataforexpertsaswellasannualreportsforstakeholders.

Go/No-Godecisions.TheFundingOpportunityAnnouncementplacessubstantialemphasisonGo/No-Godecisionsattheendofeachphase.Thisismisplaced:Importantdecisionswillneedtobemadeatdifferentpoints(whichDOEacknowledges)—butthesehugedecisionswillberareandwillinaggregatebelessimportantthanDOE’songoingabilitytoinfluencehubactions.

Additionalfunding/incentives.DOEplanstosetasidesignificantfunding,beyondinitialawards.Itshouldusesomeofthisfundingtocreateafundingpooltoincentivizeaccelerationandscopeexpansion.Intheprocess,doingsowouldaddimportantleveragetoitsrelationswiththehubs.

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Milestonesandmetrics.TheOfficeofCleanEnergyDemonstrations(OCED)mustfirstprioritizecommercialviabilityandthenGHGreduction.However,otherobjectivesmustnotbeabandoned.Thetransparencyrecommendedaboveshouldapplytoallmetrics,notjustthosethataretoppriority.HubscanbepressuredtomeetalltheirobligationsbycapturingallobjectivesinastandardscorecardthatispublishedregularlybyOCED.

IMPORTANCEOFEFFECTIVEMANAGEMENTFORH2HUBS

TheBipartisanInfrastructureLaw(BIL)thatestablishedOCEDprovided$8billionforhydrogenhubstospurthecreationofsustainableregionalecosystemspoweredbyhydrogen.TheseH2HubscouldsignificantlyimpacttheemissionofGHGs,especiallyinhard-to-decarbonizesectorssuchassteelandheavytransportation.Thechallengeissignificant:Technologycontinuestoevolve,newmarketsareexcitingbutuntested,andtherearesubstantialandmultiplechallengesinbuildinganentireecosystem,includingupstreamlinkagestofeedstocks,productionandstoragefacilities,transportationinfrastructure,anddownstreamutilization.ThismeansDOEwillbemakingverysubstantialinvestmentsintechnologiesthathavenotbeen

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provenatscale,intheexpectationthattheywillhelpcatalyzeregionalhydrogen-centeredeconomies.

ButtheH2Hubsareimportantforanotherreasonaswell.Theyareademonstrationprogramdesignedtodemonstratethathydrogen-basedecosystemsareripeforcommercialadoptionbyprovingthematscale.Theinnovationliteraturehaslongunderscoredthedifficultboundarytechnologiesmustcrossbetweenprecommercialoperations(prototyping,pilotstages,etc.)andcommercialactivities,especiallywherethescaleisverylargeandprojectsarehighlycapitalintensive.

H2Hubsarethereforealsoexamplesofthepotentialimpactofdemonstrationprogramsmorebroadly.Cantheyhelpimportanttechnologiesmakethejumptocommercialviability?

EffectivemanagementoftheH2Hubsprogramisthereforedoublysignificant:Asuccessfulprogramwoulddirectlyacceleratedecarbonization;andsuccesswouldfurthershowthatdemonstrationprogramscanwork.ThishasimplicationsfarbeyondtheH2Hubs,beyondDOE,andevenbeyondthefederalgovernment.Iftheprecommercial/marketboundarycanbecrossedwiththehelpofsuchprograms,wecanexpecttoseemanymore,inothersectorsaswell.

KEYCHALLENGES

ThecorechallengefacedbyhubsfundedunderH2Hubsistodemonstratesustainabilityandcommercialsuccess.Withoutthat,thehubswillfail.FundingfortheH2Hubsissubstantial,butitisnotendless,andtheselectedhubswilleventuallyhavetobecomecommerciallyviable.ExistingsourcesofhydrogenarealreadyinuseacrosstheUnitedStatesforavarietyofpurposes,derivedfromcoalandnaturalgas.Soeventuallyeachofthehubswillbemeasuredagainstthegoalofreachingprice-performance-parity(P3)inthoseexistingmarkets.

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UnlessthesetechnologiesandbusinessmodelsreachP3,theywillrequireongoingsubsidiesorregulatoryhelptocompeteeffectivelywiththeexistinghydrogenhigh-GHGproductiontechnologies.

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Whilethismaybenecessaryintheshorttermtogetcleanhydrogentothescaleneeded,theeventualobjectivemustbeP3.

EachofthefollowingchallengesforDOEhavethepotentialtoderailtheH2Hubsprogram.

Mission

Forentirelyunderstandablereasons,theH2HubsFundingOpportunityAnnouncement(FOA)isfilledtothebrimwithobjectives,allofthemworthy.TheyincludetheeconomicimperativesofdevelopinganeconomicallysuccessfulecosystemandmakingsignificantprogressonDOE’sHydrogenShoteconomicobjectives;theclimateobjectivesofdevelopingacleanhydrogeninfrastructure;socialjusticeimperativesincludingenhancedcommunityengagementandcommitmentstosharethebenefitsoftheprogramwithcommunitiesthathavehistoricallybeenpoorlyservedbyenergyprojects;environmentalobjectivesthatincludesitingandtoxicemissions;andgoodjobsatgoodpay(ideallywithunionsattached).

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IntheFOA,thesearecharacterizedbymorethan40potentialhubmetrics,some(ormany)ofwhichwillconflictatvarioustimes.

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Prioritizingthereforebecomescritical—andfailuretodosorisksdelaysorstasis.

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Theharshrealityisunlesseachhubemergesascommerciallyviableandhencesustainable,itwillfail,andasaconsequence,allotherobjectiveswillalsofail.Socommercialsustainabilitymustbethefirstpriorityforeachhub.Inourview,P3mustbeachievedwithexistingsourcesofhydrogen(i.e.,thehubsmustmatchthepriceofprevailinghydrogensourcesavailableinthemarket,atthesamepuritylevel,andwiththesamedeliverycapacity).

Ofcourse,thehubsmaynotmeetthatchallengeimmediately:That’swhytheH2Hubsprogramoffersongoingsupportbeyondinitialcapitalinvestments.It’salsowhytheInflationReductionActprovidesgeneroustaxcreditsforhubsthateffectivelyreduceGHGemissions.Buteventually(e.g.,after45Qtaxcreditsforcarboncapturerunoutafter12yearsofplantoperation),eachhubmustreachP3,oritwillfail.

BeyondP3,theH2Hubsprogramexiststoaddressclimatechange.ThefederalgovernmentismakinginvestmentsonlybecausehydrogenshowspromiseasatoolformitigatingGHGemissions,especiallyinsomedifficult-to-electrifysectors.SothenextmissionobjectivebeyondeconomicviabilityistodemonstratethatthehubsarebothreducingGHGemissionsandsupportingthepathwaytowardmeetingthespecificemissionscomponentsoftheHydrogenShotobjectives.

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Onceagain,allotherobjectivesaresubsidiarybecause,ifthehubsarenotmeetingGHGobjectives,thefederalgovernmenthasnoreasontokeepfundingthem.

Determiningprioritiesdoesnotmeanotherobjectivesareunimportantorcanbeignored.Prioritizingdoesnotsidelinesocialjustice,environmental,orworkforceobjectives.Giventheoftenpoorhistoryoftheenergysectoracrossthesedimensions,theseadditionalobjectivesmustbeunderscored.Theyshouldbeincludedintheagreementsgoverningoperationsforeachhub,fullyreflectedintheagreedmetricsandmilestonesfortheproject,andfullyreported(seeaccountabilityandtransparencysection).Butasamatteroflogic,thesearesubsidiaryobjectives:Hubscansucceedcommerciallyandreduceemissionssubstantiallywithoutmeetinganysocialjustice,environmental,orlaborobjectives.Theinverseis,however,nottrue:Hubsthatdon’tmeetcommercialobjectiveswillfail,andhubsthatmissemissionsobjectivesmaywellfindthatDOEwillpulltheplug.

SoDOEmustfocus.Itwillbeahardroadtocommercialviabilityforallthesehubs,andthosebasedoncarboncapturetechnologiesmayalsoneedhelptomeetemissionsobjectives.DOEneedstofacethosefactsandprioritizeaccordingly.

ProgramManagementConcerns

Beginningin1999,theNationalAcademiesissuedwhatcanonlybedescribedasahighlycriticalseriesofreportsonDOEprojectmanagement.ItnotedthatlargeDOEprojectssystematicallyperformworsethansimilarprojectsinboththeprivatesectorandotherfederalagenciesandlisted16areasinwhichDOEfell“farshortofbestpractices:”

DocumentationshowsthatDOE’sconstructionandenvironmentalremediationprojectstakemuchlongerandcostabout50percentmorethancomparableprojectsbyotherfederalagenciesorprojectsintheprivatesector.Moreover,DOEprojectscommonlyoverruntheirbudgetsandschedules,leadingtopressuresforcutbacksthathaveresultedinfacilitiesthatdonotfunctionasintended,projectsthatareabandonedbeforetheyarecompleted,orfacilitiesthathavebeensolongdelayedthat,uponcompletion,theynolongerserveanypurpose.

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Theseproblemshaveinthepastplagueddemonstrationprogramsinparticular.Forexample,theFutureGencarbonsequestrationprojectinMattoon,Illinois,inDecember2007failedinFebruary2007andagainafterasignificantrestructuringin2010withanexpenditureofabout$200million.Lessrecently,thefailureoftheClinchRiverbreederreactorprojectshowsthefollyofignoringmarketconsiderationsandofoverlyoptimisticconstructionandcostprojections.

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Currentevidencesuggeststhatthoseconcernsarestillsalient:InitsmostrecentprojectmanagementdashboardfromOctober22,2022,thetop3projectslisted(bysize),and6ofthetop10,wereinbreachofbaselinecost,schedule,andscope(seefigure1).

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Thatisnotencouraging,andsuggeststhateffectiveoversight(andstrongtechnicalsupport)willbesignificantfortheH2Hubs,giventhattheproposedhubsarelargerthanallbutthreeoftheprojectslisted.

Table1:DOEdashboardofactiveprojects,October2022(top10bybudget)

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ProjectName

OriginalBudget

(Millions)

ProjectBudget

(Millions)

MonthlyOverallAssessment

WasteTreatmentandImmobilizationPlant(WTP)

$5,781

$16,813

Red

UPFMainProcessBuildingSubproject$4,732$4,732Red

UPFSalvageandAccountabilityBuildingSubprojects

$1,180

$1,180

Red

ECSELaboratoryandSupport

Infrastructure

$560

$560

Green

LosAlamosPlutoniumPitProductionProject(LAP4)

$529

$529

Green

SaltstoneDisposalUnit#10,11,12$496$496Green

SPR-LE2-BigHill

$457

$457

Red

On-SiteWasteDisposalFacility—

InfrastructureConstruction

$373

$373

Green

SPR-LE2-BayouChoctaw

$355

$355

Red

SPR-LES-BryanMound

$315

$315

Red

TheH2Hubsprogramismuchmorecomplex,andeachhubwill(asidefromahandfulofexceptions)bemuchlargerthantheprojectslistedinthedashboard.Themanagementchallengesarethereforemuchmorepowerfulandcomplicated.

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TheremainderofthispaperoffersselectedwaysOCEDcouldmanagetheH2Hubsprogramtomitigatethemultiplerisksitfacesandbuildthesuccessfulprogramweallneed.

Oversightvs.Day-to-DayManagement

DOEplanstoadopttheCAframeworkforworkingwiththehubs.CAsaresimilartothebetter-knownCooperativeResearchandDevelopmentAgreements(CRADAs)usedmainlytofacilitatecooperationbetweenfederallabsandoutsideentities.CAsdifferinofferingDOEmoreday-to-dayengagementwiththeprojects,thoughthosedetailsmustbeworkedoutineachcase.

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TheCAaddsengagement,butindoingsoitcreatescontradictions,oratleasttensions,forDOE.CAsanticipate“substantialinvolvement”forDOEineachfundedhub(seebox).WhatexactlythismeanswillbedefinedthroughnegotiationsbetweenDOEandthehubsafterselectionsaremade.Critically,itseemstoimplyatleastsomeDOEengagementinhubdecision-making,certainlyformajordecisionsbutpossiblyonamoreday-to-daylevelaswell.

Yet,increasedinputunderminesDOE’sprimaryroleasasourceofeffectiveoversight.OCEDwillevaluateprogressagainstagreeduponmilestones,anditholdsthekeythatunlocksfurtherfundingwithinthephasesoffundedprojectsandespeciallyattheendofeachphase,whenOCEDexpectstomakeaGo/No-Godecision.PreciselytotheextentOCEDbecomesinvolvedindetailedhubdecision-making,itsimpartialoversightroleisjeopardized:ThemoreinvolvedOCEDbecomes,thelessindependentitsperspectiveislikelytobe.

AboutCooperativeAgreements

AccordingtoDOE:

AnexecutiveagencyshalluseacooperativeagreementasthelegalinstrumentreflectingarelationshipbetweentheUnitedStatesGovernmentandaState,alocalgovernment,orotherrecipientwhen—(1)theprincipalpurposeoftherelationshipistotransferathingofvaluetotheState,localgovernment,orotherrecipienttocarryoutapublicpurposeofsupportorstimulationauthorizedbyalawoftheUnitedStatesinsteadofacquiring(bypurchase,lease,orbarter)propertyorservicesforthedirectbenefitoruseoftheUnitedStatesGovernment;and(2)substantialinvolvementisexpectedbetweentheexecutiveagencyandtheState,localgovernment,orotherrecipientwhencarryingouttheactivitycontemplatedintheagreement.

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Thiscontradictionmaybeinevitable.ItishardtoimaginethatOCEDcouldprovideeffective

oversightwithoutadetailedunderstandingofhowaprojectoperates,allsignificantdecisions,personalmoves,organizationalstructure,etc.

However,ingeneral,amorearm’s-lengthinterpretationoftheCArelationshipwillbenefitbothparties.DOEwillundoubtedlyfindithardtoacquirethedetailedmanagementcapabilitiesthatwouldmakeitausefulday-to-daypartner,andthatwouldinanycasetendtodetractfromitsnecessaryoversightfunction.

Hence,instructuringtheCA,DOEneedstoavoidfourkeytraps:

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Itcannotaffordtobecomearoadblockagainstagiledecision-makingandtheinevitablecoursecorrections.Detailedinvolvementinday-to-daydecision-makingisnotlikelytobeasuccessfultactic.

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Itshouldnotbesoclosetothedecision-makingprocessthatobjectiveoversightbecomesdifficultorimpossible.DOEalsomaymightneedtodevelopinternalprocessestostrengthenitsoversight.

Itmustavoidtheworstofallworlds:beingimplicatedindecisionsbutwithoutanyrealcapacitytoaffectthem.GiventhatDOEwillwishtoseeacontinuingflowoffundingtothehubs,ithasrelativelylittlenativeleverageoverdecisionsoncecontractsareinplace,unlesstheCAcontractshardwirepoweroverspecifickindsofdecisions.Itmustfocussignificantresourcesandattentiononoversight.ThisshouldincluderesourcesfromtheH2Hubsprogram,OCED,andtheoutsideexpertsdiscussedahead.Inaddition,

effectiveoversightwillrequirethatOCEDcommitfullytoprogramtransparency:Outsideoversightwillbeabsolutelycritical,anditcanbeeffectiveonlyifaccesstorelevantdataisfreelyprovided.

Toresolvethesechallenges,OCEDwillneedbothinternalandexternaloversightcapabilities.DOEitselfmustbethefirstsourceofoversight,anditshouldensurethatinputintotheprocessisincludedfromarangeofDOEcomponentsoutsidethedirectchainofcommandforthehubs.Beyondthat,OCEDshouldleanheavilyontheexternalexpertiserecommendedahead(seeOutsideExpertise).ThatcanbeconsideredanextensionofthekindofindependentoutsidereviewsoftenusedatDOE;forexample,theDOEHydrogenandFuelCellsTechnologyOfficehascommissionedseveraloutsidereviews.

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OutsideExpertise

Forverypracticalreasons,OCEDshouldbeseekingsignificantoutsideexpertise.InitsOctober21,2021,lettertoSecretaryGranholm,theInformationTechnologyandInnovationFoundation(ITIF)andothernon-governmentalorganizations(NGOs)stronglyrecommendedthatOCEDleanonoutsideexpertiseinmanagingthehubs.

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However,theletterdidnotaddressthedetailsofhowexactlythisoutsideexpertisewouldwork.

NationalAcademiesExternalReviewRecommendations

PertheNuclearRegulatoryCommission:

TheNationalAcademiesreportshadspecificrecommendationsforexternalreviewoflargeprojects(>$750m).ItrecommendedthatforearlyphasesDOEshoulduseanindependentprojectreview(IPR)usingFederalstafffromotheragenciesunlesstheprojectwasfoundtobesufficientlycomplexthatanexternalindependentreview(EIR)waswarrantedduringthesestages);andthatbothIPRandEIRreviewshouldbeusedduringCD-3andCD-4.

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ItappearslikelythatOCEDwillputtogetheraMeritReviewBoardbeforereviewingthefullhubapplicationsstartinginApril2023.Membershipmaycomefromotherfederalagenciesorfromexpertsoutsidethefederalgovernment(oramix).However,thisreviewfunctionisonlyoneplacewhereexternalinputwouldbevaluable,andinourview,itisnotthemostimportant.

AnExternalExpertBoard(EEB)shouldsupportfourcorefunctions:

1.Selection.AnEEBis,asOCEDhasalreadyapparentlyconcluded,neededtoprovide

expertinputintotheselectionprocess,focusedinparticularonthecommercialprospectsforeachproposalaswellassomeaspectsofthetechnologiesbeingproposed,alongwith

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theproposedecosystemitself(includinginfrastructure,upstreamlinkages,storage,andendusers).

2.Expertiseduringnegotiations.Ifusedcorrectly,EEBinputcouldhelpOCEDnegotiatewithhubsandintheprocessenhancehubproposals.Projectscanbetweakedandimprovedconsiderablyduringthisperiod,andOCEDwouldbewisetotakefulladvantageoftheEEB’sexpertise.

3.Ongoingsupportforhubs.LiketheH2Hubsprogrammorebroadly,eachhubwillbebuiltlargelyfromscratch,andwhilesomewillcomewithsignificantexpertiseindevelopingandmanagingsuchbigandcomplexprojects,othersmayneedmoresupport.AccesstoindustryexpertiseviatheEEBcouldbehighlybeneficialforthehubs,andOCEDshouldensurethatthisexpertiseisavailabletothem.

4.Oversightandreview.TheH2Hubsprogramshouldbehighlytransparent.Partofthattransparencywillderivefromstrongpublicreportingfeatures,andtheEEBcouldparticipateheretoensurethathubsreportingiseffectiveandcomplete.Forexample,theEEBcouldbetaskedwithaddressinghubannualreports(seereportingsectionbelow).TheEEBcouldalsoprovideitsownformalorinformaloversightofthehubsbyhighlightingconcernsandofferingrecommendationsandsolutions.

ThesefunctionalrequirementssuggesttheEEBthatshouldremaininplacethroughouteachhub’sdevelopment,andeachwouldthereforebetaskedwithasubstantialamountofwork.ThatimpliesEEBmembersshouldbepaidfortheirwork(thisistoomucheffortforOCEDtoseekprobonoparticipants).TheEEBwillalsoneeditsownstaffing:notnecessarilysubstantialFTEs,butenoughthattheEEBcanoperateasafunctioningentityandmemberscanreceiveenoughsupporttobeeffective.

Giventhisdeeperandlongerrole,OCEDmustensurethatconflictofinterestrulesarebothclearlyspecifiedandseentobeapplied.Thisisachallenge,asitisdifficulttofindexpertsthatdon’thavesomestakeinindustryoutcomes,evenamongacademics.Andtheuseofindustryexpertsoftenfaceschallenges—theNationalInstitutesofHealth(NIH),forexample,usespeerreviewtomanagegrantapplications,hasaseparateinstituteentirelydevotedtomanagingthisprocess,andstillrunsintocontroversies.

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OCEDshouldthereforebepreparedtoimplementbestconflict-of-interestpracticesandalsotoassumethatthesewil