H. Rept. 115-793 - ENERGY EMERGENCY LEADERSHIP ACT115th Congress (2017-2018)
Committee Report
Hide Overview| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.5174 |
| Committees: |
|
Report text available as:
- TXT
- PDF (PDF provides a complete and accurate display of this text.) Tip ?
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-793
======================================================================
ENERGY EMERGENCY LEADERSHIP ACT
_______
June 28, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Walden, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 5174]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 5174) to amend the Department of Energy
Organization Act with respect to functions assigned to
Assistant Secretaries, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Committee Action................................................. 4
Committee Votes.................................................. 5
Oversight Findings and Recommendations........................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 6
Statement of General Performance Goals and Objectives............ 6
Duplication of Federal Programs.................................. 6
Committee Cost Estimate.......................................... 6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 7
Disclosure of Directed Rule Makings.............................. 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Purpose and Summary
H.R. 5174, Energy Emergency Leadership Act, was introduced
by Rep. Tim Walberg (R-MI) and Rep. Bobby Rush (D-IL) on March
6, 2018. H.R. 5174 amends the Department of Energy Organization
Act to include energy emergency and energy security among the
functions that the Secretary of the Department of Energy shall
assign to an Assistant Secretary.
H.R. 5174 provides that the functions to be assigned to an
Assistant Secretary include responsibilities with respect to
infrastructure, cybersecurity, emerging threats, supply, and
emergency planning, coordination, response, and restoration. It
also provides that these functions include the provision of
technical assistance, support, and response capabilities with
respect to energy sector threats, risks, and incidents to
State, local, and tribal governments and the energy sector.
Background and Need for Legislation
The United States maintains one of the most advanced and
complex energy infrastructures in the world. This includes an
extensive system transporting oil, natural gas, and refined
product to consumers. It involves the storage capacity of more
than 600 million barrels of oil and the storage of for natural
gas equivalent to nearly 2 months of U.S. consumption. This
also includes the vast, complex electricity systems that
deliver uninterrupted power from producers to consumers. These
intricate and highly interdependent systems enable every aspect
of our daily lives.\1\ Our nation's economy, security, and the
health and safety of its citizens depend upon the reliable and
uninterrupted supply of fuels and electricity.
---------------------------------------------------------------------------
\1\See ``Valuation of Energy Security for the United States,''
Department of Energy, January 2017.
---------------------------------------------------------------------------
The manner by which energy and power is generated,
transmitted, and delivered continues to increase in complexity.
As advances in digital and information technologies layer onto
existing practices and energy infrastructures, new risks emerge
and new vulnerabilities are exposed. Recent high-profile
attempts by foreign actors to infiltrate our nation's energy
systems and infrastructure further highlight the need for
legislation aimed at mitigating these significant and growing
threats to the reliable supply of energy in the United States.
The Department of Energy's Authorities for Cybersecurity, Energy
Security, and Emergency Response
When the Department of Energy was organized in 1977, energy
security concerns revolved around oil supply shortages. As a
result, energy security emergency functions in the Department
of Energy Organization Act focused on distributing and
allocating fuels in an emergency. Over time, these functions in
DOE's organic statute remained largely unchanged, but DOE's
responsibilities and authorities have evolved substantially
beyond what was envisioned forty years ago. Energy delivery
systems have become increasingly interconnected and digitized,
while society has become more dependent on energy in all its
forms--expanding the opportunities for cybersecurity threats
and other hazards that may require emergency response.
Today, DOE's mission to advance the national, economic, and
energy security of the United States requires it to act as the
lead agency for the protection of electric power, oil, and
natural gas infrastructure. DOE has authority and
responsibilities for the physical and cybersecurity of energy
delivery systems from laws that Congress has passed and
Presidential directives. Congress has provided DOE with a wide
range of emergency response and cybersecurity authorities
affecting multiple segments of the energy sector, including in
the Department of Energy Organization Act, the Energy Policy
and Conservation Act, the Natural Gas Act, the Federal Power
Act, the Defense Production Act, and most recently the Fixing
America's Transportation Act (FAST Act).
The FAST Act, which was signed into law in 2015, designated
DOE as the Sector-Specific Agency (SSA) for the energy sector
and provided the Department with several new energy security
authorities to respond to physical and cyberattacks to energy
systems. Section 61003 of the FAST Act amended section 215 of
the Federal Power Act (FPA) and created a new section 215A
entitled, ``Critical Electric Infrastructure Security.''
Section 215 of the FPA states that when the President issues or
provides to the Secretary of Energy a written directive or
determination identifying a grid security emergency, the
Secretary may, with or without notice, hearing, or report,
issue orders for emergency measures to protect or restore the
reliability of critical electric infrastructure or of defense
critical electric infrastructure during an emergency.\2\
---------------------------------------------------------------------------
\2\Federal Power Act Sec. 215A, 16 U.S.C. Sec. Sec. 824o-1.
---------------------------------------------------------------------------
DOE's cybersecurity roles and responsibilities are also
guided by the Federal government's operational framework, as
provided by the Presidential Policy Directive 41 (PPD-41)
issued in 2016 addressing ``United States Cyber Incident
Coordination.'' A primary purpose of PPD-41 is to improve
coordination across the Federal government by clarifying roles
and responsibilities. Under the PPD-41 framework, DOE serves as
the lead agency for the energy sector, coordinating closely
with other agencies and the private sector to facilitate the
response, recovery, and restoration of damaged energy
infrastructure.
DOE Leadership in Energy Supply Emergencies
As the Energy SSA and pursuant to its other statutory
authorities, DOE coordinates with multiple Federal and State
agencies and collaborates with energy infrastructure owners and
operators on activities associated with identifying
vulnerabilities, mitigating incidents that may impact the
energy sector, and assisting with preparation, recovery or
restoration to ensure the supply of energy in emergencies.
During the past two presidential administrations, DOE has
strengthened these energy emergency functions, including for
preparedness, response, and restoration of energy systems
against all hazards. However, the growing interconnectedness of
energy systems and the national importance of ensuring the
supply and delivery of energy against cyber threats, underscore
the need to consolidate and elevate the Department's energy
emergency functions.
On February 14, 2018, Energy Secretary Rick Perry announced
the establishment of a new Office of Cybersecurity, Energy
Security, and Emergency Response (CESER) at DOE, noting ``DOE
plays a vital role in protecting our nation's energy
infrastructure from cyber threats, physical attack and natural
disaster. This new office best positions the Department to
address the emerging threats of tomorrow while protecting the
reliable flow of energy to Americans today.'' The CESER office
will be led by an Assistant Secretary who will focus on energy
infrastructure security, support the expanded national security
responsibilities assigned to DOE, and report to the Under
Secretary of Energy.\3\
---------------------------------------------------------------------------
\3\See Press Release, U.S. Department of Energy, ``Secretary of
Energy Rick Perry Forms New Office of Cybersecurity, Energy Security,
and Emergency Response.'' (Feb. 14, 2018), https://www.energy.gov/
articles/secretary-energy-rick-perry-forms-new-office-cybersecurity-
energy- security-and-emergency.
---------------------------------------------------------------------------
The Committee finds that H.R. 5174 would further enhance
the execution of this core energy emergency mission by
establishing in statute the assistant-secretary-level
leadership of DOE's emergency response and cybersecurity
functions. Given the critical role DOE serves for the nation to
coordinate, prepare for, and respond to all hazards to the
supply of energy, including cybersecurity, such assistant-
secretary level leadership will strengthen coordination across
the department, ensure more effective interagency
collaborations, and increase accountability to Congress. DOE
Undersecretary Mark Menezes, agreed in testimony that elevating
functions to Senate-confirmed level leadership would help
intergovernmental and interagency communication, and
information sharing. He noted further that assistant-secretary
level leadership ``increases visibility and
accountability.''\4\ Therefore, the Committee finds that
elevating relevant energy emergency and security functions
within DOE leadership will enhance the accountability for and
the quality and speed of information sharing with the
Department of Homeland Security. This in turn will strengthen
the necessary coordination between the Cabinet agencies and the
sharing of information across all critical infrastructure
sectors.
---------------------------------------------------------------------------
\4\See oral Testimony of Under Secretary Mark Menezes, U.S.
Department of Energy, Before the Subcommittee on Energy, Committee on
Energy and Commerce, March 14, 2018.
---------------------------------------------------------------------------
The Committee also finds that H.R. 5174, by establishing
energy emergency leadership explicitly in the Department of
Energy Organization Act, ensures the benefits of elevated
leadership over the relevant missions will endure. Tristan
Vance, Chief Energy Officer of Indiana, testifying on behalf of
the National Association of State Energy Officials, testified
that the creation of the CSER office ``is precisely the type of
action needed to modernize and improve our states' and the
nation's ability to respond to and mitigate the risks of energy
supply disruptions from all hazards.'' He also noted that the
bill ``would elevate and make permanent this core DOE function,
and NASEO strongly supports the subcommittee's action.''\5\
---------------------------------------------------------------------------
\5\See Written Testimony of Tristan Vance, Director, Indiana Office
of Energy Development, Chief Energy Officer of Indiana, Before the
Subcommittee on Energy, Committee on Energy and Commerce, March 14,
2018.
---------------------------------------------------------------------------
Committee Action
On March 14, 2018 the Subcommittee on Energy held a hearing
on H.R. 5175 entitled, ``DOE Modernization: Legislation
Addressing Cybersecurity and Emergency Response.'' The
Subcommittee received testimony from:
Mark Menezes, Under Secretary of Energy,
U.S. Department of Energy;
Scott Aaronson, Vice President, Security and
Preparedness, Edison Electric Institute;
Mark Engels, Senior Enterprise Security
Advisor, Dominion Energy;
Tristan Vance, Director, Office of Energy
Development, State of Indiana on behalf of the National
Association of State Energy Officials;
Zachary Tudor, Associate Laboratory Director
for National and Homeland Security, Idaho National
Laboratory; and,
Kyle Pistor, Vice President of Government
Relations, National Electrical Manufacturers
Association.
On April 18, 2018, the Subcommittee on Energy met in open
markup session and forwarded H.R. 5174, without amendment, to
the full Committee by a voice vote.
On May 9, 2018, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 5174, without
amendment, favorably reported to the House by a voice vote.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. There were no record votes taken in connection with
ordering H.R. 5174 reported.
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 5174 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 17, 2018.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce, House of Representatives,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5174, the Energy
Emergency Leadership Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 5174--Energy Emergency Leadership Act
H.R. 5174 would amend the Department of Energy (DOE)
Organization Act to include functions related to energy
emergencies and energy security among the duties to be assigned
by the Secretary of Energy to one of DOE's assistant
secretaries. Under the bill, that assistant secretary would be
responsible for activities related to the physical and
cybersecurity of energy infrastructure; planning and
coordinating responses to energy emergencies; and providing
security-related technical assistance to state, local and
tribal governments.
Using information from DOE, CBO estimates that enacting
H.R. 5174 would not significantly affect the federal budget.
H.R. 5174 would not affect the scope or cost of DOE's
activities related to energy emergencies or energy security; as
a result, CBO expects that any changes in federal spending
under the bill--which would be subject to appropriation--would
be small.
H.R. 5174 would not affect direct spending or revenues;
therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 5174 would not affect
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 5174 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Megan Carroll.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to ensure
more effective implementation of the Department of Energy's
energy emergency and cybersecurity responsibilities.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 5174 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 5174 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, the Committee finds
that H.R. 5174 contains no directed rule makings.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability To Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title of ``Energy Emergency
Leadership Act.''
Section 2. Functions assigned to assistant secretaries
Section 2 amends the Department of Energy Organization Act
to include energy emergency and energy security among the
functions that the Secretary of Energy shall assign to an
Assistant Secretary; provides that these functions include
responsibilities with respect to infrastructure, cybersecurity,
emerging threats, supply and emergency planning, coordination,
response, and restoration; and provides that these functions
also include the provision of technical assistance, support,
and response capabilities with respect to energy security
threats, risks, and incidents to State, local, and tribal
governments and the energy sector.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
DEPARTMENT OF ENERGY ORGANIZATION ACT
* * * * * * *
TITLE II--ESTABLISHMENT OF THE DEPARTMENT
* * * * * * *
assistant secretaries
Sec. 203. (a) There shall be in the Department 8 Assistant
Secretaries, each of whom shall be appointed by the President,
by and with the advice and consent of the Senate; who shall be
compensated at the rate provided for at level IV of the
Executive Schedule under section 5315 of title 5, United States
Code; and who shall perform, in accordance with applicable law,
such of the functions transferred or delegated to, or vested
in, the Secretary as he shall prescribe in accordance with the
provisions of this Act. The functions which the Secretary shall
assign to the Assistant Secretaries include, but are not
limited to, the following:
(1) Energy resource applications, including functions
dealing with management of all forms of energy
production and utilization, including fuel supply,
electric power supply, enriched uranium production,
energy technology programs, and the management of
energy resource leasing procedures on Federal lands.
(2) Energy research and development functions,
including the responsibility for policy and management
of research and development for all aspects of--
(A) solar energy resources;
(B) geothermal energy resources;
(C) recycling energy resources;
(D) the fuel cycle for fossil energy
resources; and
(E) the fuel cycle for nuclear energy
resources.
(3) Environmental responsibilities and functions,
including advising the Secretary with respect to the
conformance of the Department's activities to
environmental protection laws and principles, and
conducting a comprehensive program of research and
development on the environmental effects of energy
technologies and programs.
(4) International programs and international policy
functions, including those functions which assist in
carrying out the international energy purposes
described in section 102 of this Act.
(6) Intergovernmental policies and relations
including responsibilities for assuring that national
energy policies are reflective of and responsible to
the needs of State and local governments, and for
assuring that other components of the Department
coordinate their activities with State and local
governments, where appropriate, and develop
intergovernmental communications with State and local
governments.
(7) Competition and consumer affairs, including
responsibilities for the promotion of competition in
the energy industry and for the protection of the
consuming public in the energy policymaking processes,
and assisting the Secretary in the formulation and
analysis of policies, rules, and regulations relating
to competition and consumer affairs.
(8) Nuclear waste management responsibilities,
including--
(A) the establishment of control over
existing Government facilities for the
treatment and storage of nuclear wastes,
including all containers, casks, buildings,
vehicles, equipment, and all other materials
associated with such facilities;
(B) the establishment of control over all
existing nuclear waste in the possession or
control of the Government and all commercial
nuclear waste presently stored on other than
the site of a licensed nuclear power electric
generating facility, except that nothing in
this paragraph shall alter or effect title to
such waste;
(C) the establishment of temporary and
permanent facilities for storage, management,
and ultimate disposal of nuclear wastes;
(D) the establishment of facilities for the
treatment of nuclear wastes;
(E) the establishment of programs for the
treatment, management, storage, and disposal of
nuclear wastes;
(F) the establishment of fees or user charges
for nuclear waste treatment or storage
facilities, including fees to be charged
Government agencies; and
(G) the promulgation of such rules and
regulations to implement the authority
described in this paragraph,
except that nothing in this section shall be construed
as granting to the Department regulatory functions
presently within the Nuclear Regulatory Commission, or
any additional functions than those already conferred
by law.
(9) Energy conservation functions, including the
development of comprehensive energy conservation
strategies for the Nation, the planning and
implementation of major research and demonstration
programs for the development of technologies and
processes to reduce total energy consumption, the
administration of voluntary and mandatory energy
conservation programs, and the dissemination to the
public of all available information on energy
conservation programs and measures.
(10) Power marketing functions, including
responsibility for marketing and transmission of
Federal power.
(11) Public and congressional relations functions,
including responsibilities for providing a continuing
liaison between the Department and the Congress and the
Department and the public.
(12) Energy emergency and energy security functions,
including--
(A) responsibilities with respect to
infrastructure, cybersecurity, emerging
threats, supply, and emergency planning,
coordination, response, and restoration; and
(B) upon request of a State, local, or tribal
government or energy sector entity, and in
consultation with other Federal agencies as
appropriate, provision of technical assistance,
support, and response capabilities with respect
to energy security threats, risks, and
incidents.
(b) At the time the name of any individual is submitted for
confirmation to the position of Assistant Secretary, the
President shall identify with particularity the function or
functions described in subsection (a) (or any portion thereof)
for which such individual will be responsible.
* * * * * * *
[all]