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                                                       Calendar No. 264
116th Congress  }                                            {   Report
                                 SENATE
 1st Session    }                                            {  116-144

======================================================================



 
                    ENERGY CYBERSECURITY ACT OF 2019

                                _______
                                

                October 23, 2019.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2333]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2333) to provide for enhanced energy grid 
security, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                PURPOSE

    The purpose of S. 2333 is to provide for enhanced energy 
grid security.

                          BACKGROUND AND NEED

    The United States' electric grid is comprised of a vast 
network of transmission and distribution systems that deliver 
electricity from producers to consumer homes and businesses. 
Many sectors of our economy, including healthcare and 
manufacturing, simply cannot operate without a reliable supply 
of electricity. As advances in digital and information 
technology continue to electrify our daily lives, we increase 
our exposure to a potentially devastating cyber or physical 
attack on the grid.
    A number of federal agencies are responsible for protecting 
our electric grid from physical and cyber threats, including 
DOE and the Federal Energy Regulatory Commission (FERC). DOE 
works closely with electric sector owners and operators to 
detect and mitigate risks to critical electric infrastructure, 
and to develop tools and other resources to assist the sector 
in evaluating and improving their security preparedness. Also, 
with the enactment of the Fixing America's Surface 
Transportation Act (Public Law 114-94) in 2015, Congress 
codified DOE as the Sector-Specific Agency for cybersecurity 
for the energy sector.
    With respect to FERC, the Energy Policy Act of 2005 (Public 
Law 109-58) created the Electric Reliability Organization (ERO) 
to develop mandatory reliability standards for the electric 
transmission system, including physical and cybersecurity 
standards. The law tasked FERC with approving and enforcing 
these mandatory standards--violations of which that can result 
in penalties of up to $1 million per violation per day.
    S. 2333 would establish a program at DOE to develop 
advanced energy cybersecurity technologies, secure control 
system vulnerabilities, and develop workforce curricula for 
energy sector cybersecurity. The bill would also establish a 
program to identify and address supply chain vulnerabilities 
and expand the cooperation of the Federal government with 
industry to coordinate responses to cyber threats.

                          LEGISLATIVE HISTORY

    S. 2333 was introduced by Senators Cantwell and Heinrich on 
July 30, 2019.
    In the 115th Congress, a similar measure was included as 
section 2002 in S. 1460, the Energy and Natural Resources Act 
of 2017. S. 1460 was introduced by Senators Murkowski and 
Cantwell on June 28, 2017, and placed directly on the 
Legislative Calendar (Cal. 162).
    In the 114th Congress, a similar measure was included as 
section 2002 in S. 2012, the Energy Policy Modernization Act of 
2016. An original bill, S. 2012 was reported by the Committee 
on Energy and Natural Resources on July 30, 2015, and passed by 
the Senate, as amended, on April 26, 2016, by a vote of 85-12.
    The Senate Committee on Energy and Natural Resources met in 
open business session on September 25, 2019, and ordered S. 
2333 favorably reported.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on September 25, 2019, by a majority 
voice vote of a quorum present, recommends that the Senate pass 
S. 2333. Senators Barrasso and Lee asked to be recorded as 
voting no.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 sets forth the short title of the bill.

Sec. 2. Definitions

    Section 2 provides key definitions.

Sec. 3. Enhanced grid security

    Section 3(a) directs the Secretary of Energy (Secretary) to 
carry out a program to develop advanced energy sector 
cybersecurity technologies and applications, and to leverage 
electric grid architecture to assess risks to the energy 
sector. It further authorizes $65 million for each of fiscal 
years (FYs) 2020 through 2028 to carry out subsection (a).
    Subsection (b) requires the Secretary to carry out a 
program on cybertesting and mitigation to identify 
vulnerabilities of energy sector supply chain products; oversee 
third-party cybertesting; and develop procurement guidelines 
for energy section supply chain components. It further 
authorizes $15 million for each of FYs 2020 through 2028 to 
carry out subsection (b).
    Subsection (c) authorizes the Secretary to carry out a 
program on energy sector operational support for 
cyberresilience with the following objectives: to enhance and 
periodically test the emergency response capabilities of the 
Department and coordination with the Department, the National 
Laboratories, and private industry; expand cooperation of DOE 
with the intelligence community for energy sector-related 
threat collection; enhance the tools of the DOE and the 
Electricity Information Sharing and Analysis Center (E-ISAC) 
for monitoring the status of the energy sector; expand industry 
participation in E-ISAC; and provide technical assistance to 
small electric utilities to assess cybermaturity. It further 
authorizes $10 million for each of FYs 2020 through 2028 to 
carry out subsection (c).
    Subsection (d) directs the Secretary to develop an advanced 
energy security program to secure energy networks. The 
program's objective is to increase the functional preservation 
of electric grid operations or natural gas and oil operations 
in the face of threats and hazards. In carrying out this 
program the Secretary is authorized to develop capabilities to 
identify vulnerabilities; provide modeling to predict impacts; 
develop a maturity model for physical and cybersecurity; 
conduct exercises to mitigate electric grid vulnerabilities; 
conduct research for electric grid components; and provide 
technical assistance for standards and risk analysis. It 
further authorizes $10 million for each of FYs 2020 through 
2028 to carry out subsection (d).
    Subsection (e) requires the program to be carried out 
consistent with existing Department programs, DOE's 2011 
``Roadmap to Achieve Energy Delivery Systems Cybersecurity,'' 
and any other relevant strategic framework.
    Subsection (f) directs the Secretary, in consultations with 
FERC and the North American Electric Reliability Corporation, 
to conduct a study within 180 days of enactment to explore 
alternative management structures and funding mechanisms to 
expand industry participation in E-ISAC, and to submit such 
study to the appropriate Congressional committees.

                   COST AND BUDGETARY CONSIDERATIONS

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2333. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2333, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 2333, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    Executive views on S. 2333 were not requested by the 
Committee.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by S. 2333 as ordered 
reported.

                                  [all]