[Congressional Record (Bound Edition), Volume 149 (2003), Part 6]
[Extensions of Remarks]
[Pages 7792-7793]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCING THE HOMELAND INFRASTRUCTURE POWER SECURITY AND ASSURANCE 
                         INCENTIVES ACT OF 2003

                                 ______
                                 

                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                        Thursday, March 27, 2003

  Mr. TERRY. Mr. Speaker, today I am introducing, along with Mr. Doyle 
of Pennsylvania, the ``Homeland Infrastructure Power Security and 
Assurance Act of 2003.'' This legislation will encourage the deployment 
and increased use of advanced technologies for the production of 
secure, reliable, efficient, and clean electric power needed to reduce 
our dependence on foreign oil and to protect our energy infrastructure 
from terrorist threats. In a radio address to the nation President Bush 
stated:

       As our economy continues to grow, U.S. oil consumption is 
     projected to increase by about one-third during the next 20 
     years. Our demand for electricity is expected to rise by 45 
     percent. America is already using more energy than our 
     domestic resources can provide, and unless we act to increase 
     our energy independence, our reliance on foreign sources of 
     energy will only increase. (February 23, 2002 Radio Address 
     to Nation)

  Reducing dependence on foreign oil is a significant aspect of 
America's homeland security strategy, and this will require better 
utilization of our nation's domestic natural resource fuels. Another 
critical goal is to minimize risk of terrorist attacks on the nation's 
critical power supplies, especially at military installations and major 
financial centers. In my own congressional district, First National 
Bank has installed fuel cells in its new building in downtown Omaha 
that can each produce 200 kilowatts of electricity using natural gas. 
The electricity produced by these fuel cells powers the bank's data 
center in a secure and reliable manner. The ultra-clean power plant 
located securely inside the First National's Data Technology Center 
assures that the facility has less than one second of power downtime a 
year.
  At another popular attraction in Omaha, the Henry Doorly Zoo, a fuel 
cell has been installed at the Lied Jungle that is a 200 kW unit that 
serves 50 percent of its power needs. It operates at a 75 percent 
capacity factor and generates more than 1.3 million kilowatt-hours 
annually.
  This use of distributed stationary power generation is a prime 
example of what we can do to protect our critical infrastructure 
facilities like military installations, financial entities, utilities, 
first responder facilities like firehouses and police stations, and 
information technology systems from potential terrorist threats. 
Dispersed networks of decentralized, distributed generation power 
modules are less vulnerable to attack, and there is a wide range of 
advanced distributed technology options that can be deployed by U.S. 
electricity generators in order to fortify America's energy 
infrastructure.
  Improving the reliability of our electric power infrastructure will 
also help our economy grow. It is estimated that power outages, 
brownouts, and other voltage disturbances cost U.S. industry up to $150 
billion per year. On the other hand, it is estimated that energy 
efficient and renewable energy markets account for a $500 billion 
annual global market to U.S. companies and could lead to a net increase 
of 1.3 million jobs over the next 20 years. We need to use new, 
advanced turbines, fuel cells, and storage technologies to reduce these 
costly outages. We also need to export these technologies. This will 
improve both our energy security and our economic security.
  My legislation is directed at promoting and encouraging faster 
deployment of advanced technologies, primarily to protect the homeland, 
but with the added environmental benefits that come from clean and 
efficient power equipment. The legislation empowers the Secretary of 
Energy to administer an Advanced Technology Incentives Program. In 
order to receive incentive payments eligible owners and operators must 
submit an application to the Secretary that documents the use of 
qualifying technologies that reduce system costs, and improve 
performance and reliability of advanced distributed power generation 
and energy storage systems. This is a voluntary, not a mandatory 
program.
  The bill establishes two qualifying requirements for eligibility. 
First it must qualify as a ``qualifying advanced technology facility.'' 
Facilities meeting this requirement are eligible for payments based on 
1.8 cents per kilowatt-hour generated during a fiscal year. If an owner 
or operator provides power that qualifies as a ``qualifying security 
and assurance power facility'' a bonus of 0.7 cents per kilowatt-hour 
may be earned. The maximum number of kilowatt-hours a single owner or 
operator may accrue for each year is 10 million kilowatt-hours. There 
is authorized $250 million for the first four years of the program and 
separate appropriations will be required.
  Mr. Speaker, this legislation is timely. America is engaged in a war 
with Iraq that may disrupt our access to world oil supplies. Weather in 
the United States this winter has been unusually cold--raising home 
heating fuel prices to millions of consumers. Recently, President Bush 
elevated the threat of terrorist acts to Level Orange--the 
secondhighest level. Our national critical infrastructure, including 
power plants, electric transmission lines, and the nation's information 
technology system, are all potential targets. Secure, protected, 
reliable power must be a priority of any homeland security measures 
undertaken by the new Department of Homeland Security.
  Finally, Mr. Speaker, as a member of the Energy and Commerce 
Committee, I look forward to participating in the Committee's early 
consideration of this year's version of the ``Securing America's Future 
Energy Act.'' I also urge my colleagues to consider including 
provisions that will encourage increased use of advanced technologies 
like fuel cells and other low emission, high efficiency energy 
technologies. These innovative advanced technologies must be a part of 
both our national energy and homeland security plans.

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