http://story.news.yahoo.com/news?tmpl=story&cid=542&ncid=693&e=9&u=/ap/2
0050122/ap_on_go_ca_st_pe/homeland_security_warnings

By Ted Bridis
Associated Press Writer

WASHINGTON - The government has ended grant programs that has provided
more than $1.2 million a year since 2002 for two homeland security
organizations that distribute information about potential threats to oil
and gas and public transit companies.

The information sharing and analysis centers were set up to protect
energy and bus, rail and ferry systems.

Collectively, more than a dozen such centers help protect banks,
chemical plants, water utilities and other sectors. The centers, many of
which are privately financed, are part of the Bush administration's
effort to encourage corporations to ensure the safety of vital parts of
the country's infrastructure.

The energy industry's early warning center lost $629,000 in annual
Energy Department grants since 2002. On Friday, it switched to a cheaper
communications network that can relay emergency notices from the
government to its 500 members, which represent leading oil and gas
companies and organizations.

Unlike the old system, it will not permit member companies to distribute
among themselves terror warnings, tips or other data.

"We're still figuring out how to provide the more detailed analytical
capabilities - more than the government provides - and how to share
information between members," said Kendra Martin, director of security
for the American Petroleum Institute.

The warning center for the public transit industry, which serves more
than 130 companies and organizations, risks shutting down as early as
next month because the Federal Transit Authority did not renew its $1.2
million, two-year federal grant.

In each case, the Homeland Security Department encouraged the industry
centers to join for free its new Homeland Security Information Network,
which distributes government alerts among corporations, trade groups and
others. 

Some officials said they worried that participation in the federal
network could discourage companies from sharing sensitive details among
themselves about threats they would prefer to keep from the government.

"It would certainly dampen the sharing," Martin said. "Nothing would
prevent companies from continuing to share, but they would be sharing
information on a government system that the government has access to. It
was different when we knew it was a system we controlled."

The administration said it did not intend to discourage information
sharing among companies.

Each industry's early warning center will decide whether or how it would
share warnings with the government, said Jim Caverly, director of
Homeland Security's Infrastructure Coordination Division.

He acknowledged that the government limits industries' use of a
federally funded information network without any benefit to the
government. 

"If the biggest players in industry want to have a closed community to
talk about sensitive threats or problems, they should have the ability
and right to do that," said Harris Miller, head of the Washington-based
Information Technology Association of America, a trade group. "Then you
decide whether to share that information with the government."

Miller, who represents the warning center for the technology industry,
said the industry centers should be capable of both discussing threats
privately and notifying the government when appropriate.




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