Sen. Mary Landrieu (D-LA) introduced legislation last week to create a multi-billion-dollar fund to help the new Office of Homeland Security, in cooperation with the departments of energy, commerce and interior, in its effort to protect the nation’s physical energy assets and domestic supply from disruption due to terrorist attacks.

The bill (S. 1529) calls for about 50% of the proceeds from federal oil and natural gas leases (royalties and severance taxes) that come into the federal coffers annually, or an estimated $2 billion, to be set aside to carry out this effort to tighten energy security, which she called a “tall order.” The monies would be distributed by the Office of Homeland Security to state governors to form partnerships with private industry to upgrade security. Governors would be required to submit plans and a federal cost estimates annually to protect their individual state’s energy infrastructure.

About 70% of the funds would be disbursed to various states as annual grants, while the remaining 30% would be specifically designated for energy-producing states to safeguard energy facilities along the coasts, Landrieu said during a telephone conference with reporters last Wednesday.

Proceeds in the fund, to be called the National Energy Infrastructure Security Trust Fund, could be used for military patrols of energy facilities, additional security patrols, upgrades to software systems and technology improvements, she noted. “We’re trying to leave [this area] broad.” Landrieu said that many of the nation’s energy facilities — pipelines, refineries, transmission lines and power plants — are “very obvious targets” for terrorists.

While she believes government has a role in helping private companies to make their energy facilities secure, Landrieu said, “I don’t intend for the federal government obviously to pick up the entire tab.”

Landrieu, a member of the Senate Energy Natural Resources Committee, said she was hoping that her legislation would “enhance discussion” and instill a “little more sense of urgency” in the Senate on the need to protect domestic energy facilities and supply sources.

The odds that her bill will be considered by the full Senate during this session are somewhat iffy, given that Senate Energy Committee Chairman Jeff Bingaman (D-NM) has suspended committee mark-ups of all energy bills — including those addressing security issues — for the year. Landrieu said she had “not yet” received any assurance from Majority Leader Tom Daschle (D-SD) that her measure would be put on the Senate calendar this session. She noted that she planned to send Daschle a letter last Wednesday, urging him to move quickly on energy security.

“I was disappointed to see that action taken” by Bingaman last Tuesday, Landrieu said, adding that a number of Democrats, as well as Republicans, want energy security legislation this year. Whether it’s done formally through a committee or through some other vehicle, she believes an energy security bill must be passed by Congress before it adjourns.

Although all formal committee mark-ups have been suspended, Daschle has asked Bingaman to forward to him the “urgent” energy proposals — which would likely include security initiatives — to be added to the Senate calendar for potential action prior to adjournment, a committee press aide said.

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