I 

108TH CONGRESS 

1ST SESSION H. R. 1458

To authorize the Secretary of Energy to establish an Advanced Technology 

Incentives Program to fund the development and deployment of new 

advanced technologies such as fuel cells, turbines, hybrid, and storage 

system power technologies. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2003

Mr. TERRY (for himself and Mr. DOYLE) introduced the following bill; which 

was referred to the Committee on Science 

A BILL

To authorize the Secretary of Energy to establish an Advanced Technology Incentives Program to fund the development and deployment of new advanced technologies 

such as fuel cells, turbines, hybrid, and storage system 

power technologies.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Homeland Infrastruc5 ture Power Security and Assurance Incentives Act of 

6 2003’’. 
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1 SEC. 2. FINDINGS. 

2 (a) FINDINGS.—Congress finds that—

3 (1) In order to fortify and protect critical infra4 structure systems and facilities like military installa5 tions, banks, utilities, and information technology 

6 systems from potential terrorist threats and to pro7 vide efficient and assured power to such facilities ad8 vanced technologies must be encouraged and in9 stalled by U.S. electricity providers. 

10 (2) Dependence on foreign oil is a matter of na11 tional security and the nation must consider all en12 ergy resource options, including support for energy 

13 efficiency and renewable resources and technologies 

14 that will ensure a diverse energy portfolio. 

15 (3) Estimates are that power outages, brown16 outs, and other voltage disturbances cost U.S. indus17 try up to $150 billion per year and cause great dis18 ruption to the Nation’s economy. 

19 (4) Distributed Power systems, such as fuel 

20 cells, turbines and hybrid combinations of these 

21 technologies, backed up with storage systems, can 

22 reduce costly outages, and ensure more assured and 

23 secure and reliable power generation and distribu24 tion, protected from potential terrorist threats to our 

25 national infrastructure. 
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1 (b) ADVANCED TECHNOLOGY INCENTIVES PRO2 GRAM.—(1) The Secretary of Energy shall establish within 

3 the Department of Energy an Advanced Technology In4 centives Program to make funding available, subject to an5 nual appropriation, to accelerate the development and de6 ployment of new advanced technologies such as fuel cells, 

7 turbines, hybrid, and storage system power technologies. 

8 (2) Advanced technology funding provided under this 

9 section shall be used by the Secretary for payments to eli10 gible owners or operators to support efforts to reduce sys11 tem costs, and improve the performance and reliability of 

12 advanced distributed power generation and energy storage 

13 systems. Payments made by the Secretary shall be used 

14 for the purposes of demonstrating the capability of new 

15 technologies to increase power generation through en16 hanced operational, economic, and environmental perform17 ance. 

18 (3) Payments under this section may only be made 

19 upon receipt by the Secretary of an incentive payment ap20 plication establishing that an applicant is eligible to re21 ceive such payment as either—

22 (A) a qualifying advanced technology facility, or 

23 (B) a qualifying security and assured power fa24 cility 
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1 (4) Incentive payments made by the Secretary under 

2 this section to owners or operators of qualifying advanced 

3 technology facilities shall be based on the number of kilo4 watt hours of electricity generated by the facility through 

5 the use of an advanced technology during a 10-year fiscal 

6 year period beginning with the fiscal year in which the 

7 qualifying facility is first eligible for payment. 

8 (5) A payment of 1.8 cents per kilowatt-hour shall 

9 be paid to the owner or operator of a qualifying advanced 

10 technology facility under this section. An additional 0.7 

11 cents per kilowatt-hour shall be paid to the owner or oper12 ator that is also a qualifying security and assured power 

13 facility under this section. The amount of the payment 

14 made to such qualifying facilities shall be adjusted for in15 flation for each fiscal year of the program as determined 

16 by the Secretary. A facility qualifying under this section 

17 shall be eligible for an incentive payment up to, but not 

18 to exceed the first 10 million kilowatt-hours produced in 

19 any fiscal year. 

20 (c) DETERMINATION OF A SECURITY AND POWER

21 FACILITY.—Within six months after the date of enact22 ment of this section, the Secretary, in consultation with 

23 the Secretary of Homeland Security, shall—

24 (1) measure, evaluate and rate security and as25 surance performance improvement, 
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1 (2) define the types of locations and facilities 

2 that would most need the benefits of the improve3 ments, 

4 (3) determine the criteria for facilities that gen5 erate or store and distribute electric energy that im6 proves the security, assurance, and reliability of the 

7 nation’s electricity grid and protects infrastructure 

8 including military installations, financial institutions, 

9 medical and first responder facilities, and other loca10 tions critical to the security of the nation, and 

11 (4) report back to the Committee on Energy 

12 and Commerce of the United States House of Rep13 resentatives on ways that incentive payments under 

14 this section can accelerate the introduction of tech15 nologies capable of providing the maximum level of 

16 improvement and benefit to the public. 

17 (d) DEFINITIONS.—For purposes of this section: 

18 (1) ADVANCED TECHNOLOGY.—The term ‘‘ad19 vanced technology’’ means an advanced fuel cell, tur20 bine, hybrid, or storage system power that is used 

21 to generate or store electric energy at or in conjunc22 tion with a qualifying advanced technology facility. 

23 (2) QUALIFYING ADVANCED TECHNOLOGY FA24 CILITY.—The term ‘‘qualifying advanced technology 

25 facility’’ means any facility that generates electric 
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1 energy from a power generation, storage and dis2 tribution system. 

3 (3) QUALIFYING SECURITY AND ASSURED

4 POWER FACILITY.—The term ‘‘qualifying security 

5 and assurance power facility’’ means a facility that 

6 also generates or stores and distributes electric en7 ergy that improves the security and assures the reli8 ability of the nation’s electricity infrastructure in lo9 cations and facilities determined by the Secretary, in 

10 consultation with the Secretary of Homeland Secu11 rity, to be in critical need of improvement and pro12 tection. The facility must substantially reduce elec13 tric system vulnerabilities by providing exceedingly 

14 secure, reliable, rapidly available, high power quality 

15 electric energy to critical governmental, commercial 

16 and industrial demand facilities. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—The fol18 lowing sums are authorized to be apppropriated to carry 

19 out the purposes of this section: 

20 (1) For fiscal year 2004, $25,000,000. 

21 (2) For fiscal year 2005, $50,000,000. 

22 (3) For fiscal year 2006, $75,000,000. 

23 (4) For fiscal year 2007, $100,000,000.

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