(b) ADVANCED
TECHNOLOGY
INCENTIVES
PRO-
GRAM.—(1) The Secretary of Energy shall establish within 
the Department of Energy an Advanced Technology In-
centives Program to make funding available, subject to an-
nual appropriation, to accelerate the development and de-
ployment of new advanced technologies such as fuel cells, 
turbines, hybrid, and storage system power technologies. 
(2) Advanced technology funding provided under this 
section shall be used by the Secretary for payments to eli-
gible owners or operators to support efforts to reduce sys-
tem costs, and improve the performance and reliability of 
advanced distributed power generation and energy storage 
systems. Payments made by the Secretary shall be used 
for the purposes of demonstrating the capability of new 
technologies to increase power generation through en-
hanced operational, economic, and environmental perform-
ance. 
(3) Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment ap-
plication establishing that an applicant is eligible to re-
ceive such payment as either—
(A) a qualifying advanced technology facility, or 
(B) a qualifying security and assured power fa-
cility
(4) Incentive payments made by the Secretary under 
this section to owners or operators of qualifying advanced 
technology facilities shall be based on the number of kilo-
watt hours of electricity generated by the facility through 
the use of an advanced technology during a 10-year fiscal 
year period beginning with the fiscal year in which the 
qualifying facility is first eligible for payment. 
(5) A payment of 1.8 cents per kilowatt-hour shall 
be paid to the owner or operator of a qualifying advanced 
technology facility under this section. An additional 0.7 
cents per kilowatt-hour shall be paid to the owner or oper-
ator that is also a qualifying security and assured power 
facility under this section. The amount of the payment 
made to such qualifying facilities shall be adjusted for in-
flation for each fiscal year of the program as determined 
by the Secretary. A facility qualifying under this section 
shall be eligible for an incentive payment up to, but not 
to exceed the first 10 million kilowatt-hours produced in 
any fiscal year. 
(c) DETERMINATION OF A SECURITY AND POWER 
FACILITY.—Within six months after the date of enact-
ment of this section, the Secretary, in consultation with 
the Secretary of Homeland Security, shall—
(1) measure, evaluate and rate security and as-
surance performance improvement,
(2) define the types of locations and facilities 
that would most need the benefits of the improve-
ments, 
(3) determine the criteria for facilities that gen-
erate or store and distribute electric energy that im-
proves the security, assurance, and reliability of the 
nation’s electricity grid and protects infrastructure 
including military installations, financial institutions, 
medical and first responder facilities, and other loca-
tions critical to the security of the nation, and 
(4) report back to the Committee on Energy 
and Commerce of the United States House of Rep-
resentatives on ways that incentive payments under 
this section can accelerate the introduction of tech-
nologies capable of providing the maximum level of 
improvement and benefit to the public. 
(d) DEFINITIONS.—For purposes of this section: 
(1) ADVANCED TECHNOLOGY.—The term ‘‘ad-
vanced technology’’ means an advanced fuel cell, tur-
bine, hybrid, or storage system power that is used 
to generate or store electric energy at or in conjunc-
tion with a qualifying advanced technology facility. 
(2) QUALIFYING ADVANCED TECHNOLOGY FA-
CILITY.—The term ‘‘qualifying advanced technology 
facility’’ means any facility that generates electric
energy from a power generation, storage and dis-
tribution system. 
(3) QUALIFYING
SECURITY
AND
ASSURED 
POWER
FACILITY.—The term ‘‘qualifying security 
and assurance power facility’’ means a facility that 
also generates or stores and distributes electric en-
ergy that improves the security and assures the reli-
ability of the nation’s electricity infrastructure in lo-
cations and facilities determined by the Secretary, in 
consultation with the Secretary of Homeland Secu-
rity, to be in critical need of improvement and pro-
tection. The facility must substantially reduce elec-
tric system vulnerabilities by providing exceedingly 
secure, reliable, rapidly available, high power quality 
electric energy to critical governmental, commercial 
and industrial demand facilities. 
(e) AUTHORIZATION OF APPROPRIATIONS.—The fol-
lowing sums are authorized to be apppropriated to carry 
out the purposes of this section: 
(1) For fiscal year 2004, $25,000,000. 
(2) For fiscal year 2005, $50,000,000. 
(3) For fiscal year 2006, $75,000,000. 
(4) For fiscal year 2007, $100,000,000.
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