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.

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Homeland Infrastructure Power 
Security and Assurance Incentives Act of 2003''.

SEC. 2. FINDINGS.

    (a) Findings.--Congress finds that--
            (1) In order to fortify and protect critical infrastructure 
        systems and facilities like military installations, banks, 
        utilities, and information technology systems from potential 
        terrorist threats and to provide efficient and assured power to 
        such facilities advanced technologies must be encouraged and 
        installed by U.S. electricity providers.
            (2) Dependence on foreign oil is a matter of national 
        security and the nation must consider all energy resource 
        options, including support for energy efficiency and renewable 
        resources and technologies that will ensure a diverse energy 
        portfolio.
            (3) Estimates are that power outages, brownouts, and other 
        voltage disturbances cost U.S. industry up to $150 billion per 
        year and cause great disruption to the Nation's economy.
            (4) Distributed Power systems, such as fuel cells, turbines 
        and hybrid combinations of these technologies, backed up with 
        storage systems, can reduce costly outages, and ensure more 
        assured and secure and reliable power generation and 
        distribution, protected from potential terrorist threats to our 
        national infrastructure.
    (b) Advanced Technology Incentives Program.--(1) The Secretary of 
Energy shall establish within the Department of Energy an Advanced 
Technology Incentives Program to make funding available, subject to 
annual appropriation, to accelerate the development and deployment 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 eligible owners or operators 
to support efforts to reduce system 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 enhanced operational, economic, and 
environmental performance.
    (3) Payments under this section may only be made upon receipt by 
the Secretary of an incentive payment application establishing that an 
applicant is eligible to receive such payment as either--
            (A) a qualifying advanced technology facility, or
            (B) a qualifying security and assured power facility
    (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 kilowatt 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 operator 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 inflation 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 enactment of this section, the Secretary, in 
consultation with the Secretary of Homeland Security, shall--
            (1) measure, evaluate and rate security and assurance 
        performance improvement,
            (2) define the types of locations and facilities that would 
        most need the benefits of the improvements,
            (3) determine the criteria for facilities that generate or 
        store and distribute electric energy that improves 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 locations critical to the 
        security of the nation, and
            (4) report back to the Committee on Energy and Commerce of 
        the United States House of Representatives on ways that 
        incentive payments under this section can accelerate the 
        introduction of technologies 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 ``advanced technology'' 
        means an advanced fuel cell, turbine, hybrid, or storage system 
        power that is used to generate or store electric energy at or 
        in conjunction with a qualifying advanced technology facility.
            (2) Qualifying advanced technology facility.--The term 
        ``qualifying advanced technology facility'' means any facility 
        that generates electric energy from a power generation, storage 
        and distribution 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 energy that improves the security and assures the 
        reliability of the nation's electricity infrastructure in 
        locations and facilities determined by the Secretary, in 
        consultation with the Secretary of Homeland Security, to be in 
        critical need of improvement and protection. The facility must 
        substantially reduce electric 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 following 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.

Summary: Homeland Infrastructure Power Security and Assurance Incentives Act of 2003 - Instructs the Secretary of Energy to establish within the Department of Energy an Advanced Technology Incentives Program to provide funding to accelerate development and deployment of new advanced technologies such as fuel cells, turbines, hybrid, and storage system power technologies.

Requires the use of such funding for: (1) eligible owners or operators to support efforts to reduce system costs, and improve the performance and reliability of advanced distributed power generation and energy storage systems; and (2) demonstrating the capability of new technologies to increase power generation through enhanced operational, economic, and environmental performance.

Directs the Secretary to: (1) evaluate security and assurance performance improvement; (2) define locations and facilities that would benefit most from such improvements; and (3) determine the criteria for facilities that generate or store and distribute electric energy that improves the security and reliability of the nation's electricity grid and protects locations critical to its security (including military installations, financial institutions, medical and first responder facilities).