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Improving Cybersecurity for Critical Infrastructure Control Systems Is Only a First Step

July 28, 2021 The central question raised by today’s National Security Memorandum (NSM) on Improving Cybersecurity for Critical Infrastructure Control Systems is what should take the place of a voluntary approach to cybersecurity. This responsibility falls on Congress. In many areas, Congress has realized that the United States is in a contest with China. The Chinese think the United States is unable to govern itself. Providing the authorities needed for better cybersecurity is an opportunity to prove China wrong. Proposed legislation in 2012 would have given the Department of Homeland Security (DHS) the authority to regulate critical infrastructure, but it was fiercely opposed by many in the private sector. One result of this failure to pass legislation in 2012 has been more than a decade of significant economic loss (probably more than $1 trillion in aggregate) and major damage to national security.

DHS Issues Pipeline Cybersecurity Directive but Industry Championing FERC Mandatory Standards

FERC Takes Action to Encourage Cybersecurity Investments | Akin Gump Strauss Hauer & Feld LLP

[co-author: Shawn Whites] Building off its White Paper issued last summer, the Federal Energy Regulatory Commission (FERC or the “Commission”) has proposed changes to its regulations that would encourage more robust investment in cybersecurity infrastructure. The notice of proposed rulemaking (NOPR) provides incentive rate treatment for voluntary utility investments that go “above and beyond” FERC’s mandatory cybersecurity standards. Comments on the NOPR are due April 6. The Commission’s Critical Infrastructure Protection (CIP) Reliability Standards require users, owners and operators of the “bulk-power system” 1 to safeguard critical cyber assets. FERC categorizes assets based on the risk to the bulk-power system if the assets are compromised, with different requirements applying depending on the risk category. Most of the requirements apply to the high- and medium-risk categories.

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