Transcripts For CSPAN2 House Energy Subcommittee On Cyber Th

Now come to order. We will see the amendment and witnesses and this morning the chairman is not here, i give the floor to my good friend Mister Mcnulty from california. Thank you for yielding me and i thank the witnesses for coming this morning. Its an incredibly important issue we need to care a lot about and good policy on. We are meeting today to discuss the state of Cyber Security integrated and the continuing threats facing Americas Energy infrastructure. We continue to see increasing threats to the grid originating at home and abroad. Im glad to see the doe and and others taking steps to address the growing dangers posed by nefarious actors. Our energy grid serves as the backbone of our economy Touching Every aspect of our lives and unreliable grid is also crucial for National Security and a clean energy future. For lawmakers to encourage advances that we can advance the security and reliability of our nations electric grid. We must work on a bipartisan basis to actively engage with the leaders as we are doing today here. Fortunately, the modernization innovation of our Energy Infrastructure is already underway. What was once a oneway Delivery System as evolved into a Dynamic Network where information and energyflows both ways. Technological advances are both, are also born from the need to secure the energy grid against potential physical and Cyber Threats. For example, technology allowing for the rerouting of power and Quick Response in the event of attack is being deployedacross the grid. Cooperation among federal, state and local governments is essential to protecting americans and our nations infrastructure. Given todays cyber environment, more important than ever that congress pursue policies that continue to foster these exciting developments andsupport our grid infrastructure. This is an issue im passionate about and any vulnerable component is a threat to our National Security making it imperative that we request in red modernization and security. Thats why im proud cochair the bipartisan grid innovation caucus with my good friend from across the aisle representative bob latta from ohio. Together were focused on providing a forum for discussing illusions to the many challenges facing the grid and educating members of congress and staff about the importance of the electric grid and relation to the economy, Energy Security and advanced technologies being utilized in advanced grid capability. This work as informed our introduction of two bills, on the topic both of which have already been marked up by this subcommittee. Their aim is to bolster americas electric infrastructure by encouraging coordination between the department of energy and the electric utility. My bill which i introduced along with mister latta, enhancing Grid Security through Publicprivate Partnership act to create a program to enhance the physical and Cyber Security of the electric utilities through assessing security vulnerabilities and increasing Security Training and collect data. It would also require the interrupt cost document estimate calculator which is used calculate the return on investment on utility investments to be updated at least every two years to ensure accurate calculation. Mister latta bill which he introduced along with me hr 360, the critical cyber events at makes important headway in protecting our criticalgrid infrastructure. The cyber sense act would create a program to identify cyber secure products for the both power grid in testing and verification program. Bubble power system supports american industry and provides all the benefits of reliable electric power to the American People. It is essential that we get the system as secure as possible and Cyber Attacks do pose a serious threat to the electric grid. Any vulnerable component in our grid is a threat to our security and this bill will go a long way something that system. I thank mister latta for his partnership and look forward to working with him and i want to take amoment to mention my support for hr 362 , the Energy Emergency leadership sponsored by chairman rush and mister walberg. This bill would establish a newdoe assistance , secretary position with jurisdiction over all Energy Emergency and security functions related to Energy Supply infrastructure and Cyber Security. I want to mention my support or one more bill on this topic, hr 370, pipeline and lng sillies your Cyber Security preparedness act sponsored by Ranking Member upton and mister bosak. This bill would require the secretary of energy to establish a program relating to the physical security and Cyber Security of pipelines and liquefied natural gas facilities. As the bills ive mentioned show, our committee is uniquely positioned to examine the issues before us today as we work to put america on a path to better securing our electric and utility systems. Now i yelled back to the chairman. I want to thank you gentlemen and on a point of personal privilege, the chair was originally sent to me in chicago this morning. My dear friend miss jade of russell sentenced me and my colleague in support and due to inclement weather last night my flight was canceled so i couldnt be there and missed learner graciously agreed to send and sit in the chair for me last night. But im here now and i want to thank esther mcnulty personally for agreeing to send in thechair in my absence. But im here so thank you. I appreciate the sentiment and i also appreciate the confidence youve shown me, mister chairman. The chair nowrecognizes mister thompson, the Ranking Member of the subcommittee for five minutes. Thank you mister chairman, im sorry to hear about your friend and im grateful that you didnt get on that plane because i drove home through that storm last night and i dont think that plane had a lot of [inaudible] todays hearing continues the subcommittees ongoing oversight of Cyber Security threats to theelectric grid , a priority that all of us have on hand and this is the first hearing specifically on this topic this year the subcommittee has been raising questions about persistent and emerging threats to the electrical grid in closed briefings and hearings of federal officials and others over the course of this session on the work weve done over the last couple of congresses. It is unquestionable that ensuring the reliable supply of electricity is viable to our nation security, economy, health and welfare. It enables telecommunications, Financial Transactions and delivery of energy and agriculture, empowers infrastructure and delivers our drinking water. It enables business and industry to provide the goods and services of our modern society. It powers our hospitals, our households and everything else. But lets face it, the us has the worlds most complex electric grid and while we have a welldeveloped system of grid operators to ensure that the lights stay on, were confronting new challenges every day and adopting to a changing generation mix , new technologies and consumer preferences. Also responding to new threats and working to strengthen the Cyber Security of the nations great. The integration into the system of new Digital Technologies that are essential for keeping up with our Nations Energy needs constantly adds vulnerabilities. Other vulnerabilities are being added with increasing dependence on Pipeline Infrastructure by electric generating units. Combine that with a rapid expansion of Cyber Capabilities by more of americas adversaries and safe learning, Transmission Infrastructure needs are particularly urgent. Many of the federal oversight structures in place today when ensure the system can mitigate and respond to cyber can be traced to this Committee Legislative work. In all five we authorized the north American Electric Reliability Corporation, and according to establish and enforce reliability standards and according to activities among industry and the feds confront Cyber Threats. In 2015 this committee will provisions including the fast act to strengthen does Energy Sector pacific authorities and to facilitate sharing of the information betweenprivatesector asset owners and the federal government. The federal agency was a meeting expertise in our nations electricity grid and the Cyber Security threats against it. It is imperative that we arm the ob with the tools and authorities to protect our electricity system from the transmission lines on the very generating stations and their pipelines. Most recently we developed legislation to elevate does functions overseeing Cyber Security and to improve information sharing, Emergency Planning and other legal activities in this jurisdiction. Legislative work is continuing but unfortunately, or but fortunately, the department is used its own authorities to implement enhanced leadership over Cyber Security and to improve interagency coordination. Against the backdrop todays hearing provides a great opportunity to update the subcommittee on what these agencies are doing to advance either security practices protections and response planning. Looking forward to hearing from assistant secretary karen evans who had that the only office of Cyber Security and Emergency Response or seizure. And she testified in september last year, she had been on the job for just a couple of weeks. Though she brought long federal experience to the table as soon as she sat down. So i look forward to discussing the ob sprint work, how well its exercising its court angle over Cyber Security and learn what challenges he sees Going Forward and how she plans to address those challenges. Will also be helpful to hear today from the regulators and the electrical grid area and amy dodge , the office of electric reliability and of course jim robb who heads nerc. These serve as the front line of Infrastructure Protection and particularly interested in learning what measures theyre working on to address threats to ensure best practices to coordinate response to Cyber Incidents , the risk of massive blackouts and the heart to think about area but the Cyber Security realities of the day require that we face these risks had on. We be sure that our agencies and appropriate groups have the tools in the toolbox and the information that they need to address the risks and what they are prepared for the consequences of special attacks. Thank you for this hearing and i yelledback. The chair now recognizes the chairman of the full committee , miss pallone for five minutes for an Opening Statement. Thank you, today we are here to get an update from federal agencies about how theyre addressing regrets to our electricity grid. We know our enemies are rapidly developing new techniques to compromise and attack our grid so its vitally important the federal government and the electric industry remain vigilant in ensuring the grid is secure. Our committee has been conducting robust oversight on this topic in a bipartisan fashion for years. Todays hearing is a public forum to discuss how the federal government is addressing Cyber Security challenges but the committee continues to receive those door briefings on the issues to understand more classified matter. Our witnesses in their Respective Agency Cyber Security recently and i believe secretary harry made the right decision in creating the position of assistant secretary for Cyber Security, Energy Security and Emergency Response focused on the pressing issues. Last month the subcommittee favorably reported legislation introduced by chairman rush and mister walberg that would enshrine the statute to support new divisions at doe. I look forward to bringing this bill and three other bipartisanbills up for a markup at the full committee. We must be active and vigilance comes to Cyber Security because time is of the essence. In march we had the first reporting malicious cyber events at this rapid Grid Operations of the western utility. Thankfully there seems to be little effect on the transmission grid and no customers lost power though we must stay ahead of anyone who is a cyber threat and i appreciate the work of nerc to continue enhancing critical Infrastructure Protection standards like the rule last october to bolster the supply chain Risk Management. Well this hearing is not specifically about that id be remiss not to mention how important it is to our prison system. We have a reliable system that we never want to find ourselves in the difficult situations our main concern about the lack of resources and expertise the Transportation Security Administration Pipeline Security Program and they look forward to hearing from you we about how we can address the safety gaps is as ive said before tse continues to devote scant attention to these matters we must look at other options to keep our pipe secured so again i think are witnesses for being here today to discuss this security issue and with that mr. Chairman if someone else wants to talk i yield back. The chair now recognizes the Ranking Member of the committee for an Opening Statement. Good morning mr. Chairman and im glad that the witnesses here a reliable supply of electricity is an essential partner thing we do in this week bender dentzer previous briefings in todays highly interconnected and Digital World in threat of cyber attack and the reliability of electricity is everpresent and growing. One of our responsibility on the energy and Commerce Committee is to review and where necessary revise policies that concerns the reliable flow of energy in this as part of his committees jurisdiction and something we take seriously no matter which party is in the majority. This mornings hearing continues his important work and focuses on the status of efforts to address cyberSecurity Threats and the electricity grid. We will hear testimony from our witnesses today. Your key players in keeping the lights on the department of energy federal predatory Commission North american Reliability Corporation. Each of your organizations has a role in supporting the active information sharing Technical Assistance standards setting oversight of standard sound engineering practices all of that is a releasable par system. I look for to hearing updates from. Especially coordination and sharing among the federal industries and we know that size condition continues to be our part past oversight looks at the emergency and cybersecurity responsibilities over the Energy Sector. This includes providing and facilitating the Technical Assistance of the Energy Sector to identify vulnerabilities and indicate respect seen some of his work firsthand that our National Labs especially in the northwest and the northwest laboratory in Washington State in idaho alt at the Idaho National laboratory. Terrific people working those labs doing amazing work on behalf of the country. They provide the analytical tools and the tests and capabilities that are proving very helpful for all kinds of industries and systems we rely upon. We learned last year that the surveillance information sharing tools particularly in what is called the Cybersecurity Risk Information Sharing Program have proven especially helpful in identifying pandemic and systematic cyber attack across the Energy Sector. Id interested to hear today from durkin d. O. E. How this can be exploited more broadly especially as it r