Can help Companies Operating the electrical grid, Pipeline System and infrastructure. This hearing is an hour and 35 minutes. Good morning, everyone. The committee will come to order. I apologize. A little later start than i had hoped. Over the years, we have conducted a number of hearings designed to examine the vulnerabilities of our nations electric grid system. This congress we held hearings focused on cybersecurity, electromagnetic pulse at both the full and subcommittee levels. We will add to that by looking at advanced and emerging cyber technologies developed in our National Labs and private sectors. These are technological improvements and sometimes breakthroughs that could be used to protect the grid as well as other future sectors from future Cyber Attacks. I have mentioned outside the committee around the country, sometimes we get the sense that folks believe in this Immaculate Conception theory of energy, that it just happens. We all recognize, i think, there is a lot more to this than that. A related question is what happens what happens when the lights dont turn on . When you flip that switch and just expect it to happen and then theyre not there . What happens when electricity is out for an extended period of time . Were certainly seeing that in puerto rico right now, the u. S. Virgin islands, the real world impact of extended power outage. Just as we can harden our infrastructure to protect it from natural disasters, we must look to ways to constantly evolve from cyber intrusions as well. Seems like everyday now we hear about an attempted hack or actual breach that has taken place and the list is long and getting longer. Opm, ukraines power grid, wanna cry ransom wear, home depot, targety the list keeps growing and growing. Just last friday the Homeland Security issued a threat to Energy Systems. In this midst of all this we have to continually look for ways to mitigate or diminish our vulnerabilities, whether application of quantum encryption, Artificial Intelligence or moving control of grid infrastructure off the public internet the witnesses we have today will help provide our committee with insights how we can protect our National Energy infrastructure now and into the future. I mentioned quantum encryption. Id like to note a recent article about the advances china has made on this topic. Earlier this year china announced a satellite and ground station 745 miles apart had communicated through quantum particles. Last month, a Video Conference between china and austria, this is a distance about 4600 miles, was held via chinas quantum satellite. Theyve established a 1200 mile quantum link between shanghai and beijing and announced they will build a 10 billion Quantum Research facility. According to that article, some scientists believe with the amount of resources that china is putting into the field, a quantum computer may be built within a decade or less. Whether or not these claims are accurate remains to be seen. It is Clear Circuit research is under way Significant Research is under way in the cyber realm. I look forward to the efforts you have been involved with to combat and deal with this threat particularly to keep our Energy Electric grid reliable. I want to thank you, senator kemp, because you have been dogged and persistent when it comes to the issue of Cyber Threats particularly as they relate to the energy grid. Thank you. Thanks for scheduling this important hearing so we can continue the discussions of what technologies to protect our electronic grid and Cyber Attacks. I want to say at the outset i spent much of this summer working on this issue as well and spent a great deal of time at our National Labs with secretary perry, focusing on some of our cybersecurity collusions. I hope he understands the pressing need here and budget proposed by the administration. Its very important we continue to have the resources as a nation to fight and protect key Energy Infrastructure. I am dismayed that instead of focusing on Cyber Security as one of the key issues of resiliency he is instead trying to get a command economy approach with ferc by trying to change marketbased rate prices for consumers and instead try to push a rule that would drive coal into the marketplace and raise rates on consumers. I think ferc operates best when it operates on market rules. I am requesting, madam chair in light of yesterday or two days ago amazing news about the huge increase in park fees we would have a hearing on this in the future. Many of my constituents woke up to literally shock over the fact that these exorbitant rates would be charged in our park system. I hope we can have some input on this and show that our constituents are extremely concerned about it. For us in the northwest, our Outdoor Economy is a big juggernaut. I know it is in your state as well. Anyway, thank you for having this hearing and thank you to the witnesses for being here, its such a critical issue and getting your input is very important. Id like to especially welcome mr. Carl inhofe arguing on behalf of the northwest lab. Thank you for hosting us and the secretary earlier this year and for all the impressive work that you do. Cybersecurity is the one issue that keeps me up at night worrying about how foreign entities and actors might attack us in the next provocation of National International effort. We used to think of it as a plane that might fly into airspace or sub that might Cross International waters. Now, what we have to worry about is provocations from actual grid attacks. If we dont make necessary investments to prevent and defend against these impacts our enemies can succeed in widespread blackouts or devastating economy or threatening to bring millions of americans to the point without power being in great disarray. As i referenced earlier, the Trump Administration proposed budget cuts that the cyber put us at risk. I sent letters and spent a lot of time this summer hoping they would see the impacts here to our budget and what they would do. Since our committees last cybersecurity hearing when we discussed the ukraine outages of 2015 and 2016. We have witnessed numerous large scale cyberattacks as the risks continue to grow. In july the Washington Post reported the hackers were into the systems. In september, revealed the hackers accessed the personal information of 143 mn americans through the data breach of equifiscal. Just this week, the department of Homeland Security issued a equifax. And just this week they referenced the july incidents i just mentioned. With each day with Cyber Threats to the grid and multiple efforts under way its important to combat effectively our security risks through innovation we need to take action. The good news is our National Labs are ready to play a key role in bolstering our cybersecurity and do so in close collaboration with the cyber sector. The firewall blocks 24 million suspected internet communications, 25,000 confirmed Cyber Attacks. Thats what they do each day. I have no doubt they know how to protect our country and important missions. Our Witnesses Today will demonstrate the breakthroughs that result from these productive Public Private partnerships and why they need to continue. In that vein im calling on increase in collaboration of government, militaries and academia. I know we are going to, in our state, try to continue the discussion at the university of washington, in a symposium on increasing cybersecurity workforce, although on the commerce kn Commerce Committee attended some of the hearings they had and we know from our doe Energy Review this is what the secretary said we need to do, to build the cyber wf Cyber Workforce for tomorrow. Hopefully it will bring the expertise and experience and all aspects we face. Its clear to me Cyber Solutions require us to leverage world class expertise of our labs and private sector and all of us working together. Thats why i hope secretary perry and the president will reverse their harmful 32 cut to the Cybersecurity Budget hopefully without delay and help us make the investments we need for the future. Thank you. You, senator cantwell and know i join you in your concern with the recent announcement from park service about the fees. That is something we will look to. I welcome each of you to the committee this morning. Thank you for giving us your time. I will introduce each of you, give you an opportunity to present approximately five minutes or so, know your full statement will be included as part of the record and when each of you have presented, we will start asking questions. Carl inhofe j from the northwest laboratory. Welcome. Dr. Raines from the Oakridge National laboratory and we have another national lab expert with us this morning. Mr. Zachary tudor, from the national Homeland Security at idaho National Laboratory. Dr. Dunkin earl is with us, president and chief Technology Officer for quibetech incorporated and the last member of the panel is dr. Daniel rydell the new ceo of Contact Services inc. Delight to have each of you. Mr. Inhofe, if you would please lead off. Thank you, chairman murkowski, Ranking Member cantwell and members of the committee. My name is carl inhofe, i lead the research at Washington State. For more than two decades pnl supported resilience for utilities across the nation. I also chair the laboratory consortium, a team of four National Laboratories including oakridge that supports the initiative along with 100 partners from academia and industry. I would like to offer two points for the Cyber Resilience of the nations cyber system. Point one, sharing with doe has significantly improved our National Grid cyber readiness. We must continue to advance in scope, speed, industry inclusion for full Situational Awareness of operational control systems as well as utility enterprise networks. Two, it offers important opportunities for defensive tools for the challenges and grid edge as well as core Grid Operations and in this area ill offer three examples. Looking first at improving grid cyber Situational Awareness, doe developed and deployed, first for doe assets across the u. S. In early 2000s, it was successfully tested and transitioned over the past three years. With industry investing in infrastructure and doe funding the evaluation this program gets Cyber Threats and shares that with over 70 of the utilities in the United States. It expands coverage and speed and accuracy and affordability in awareness tools. Going for doe is expanding it and other independent utilities. Cyber risks spanning the it and ot elements. Requiring significant sense of the environment. Pml is applying it leveraging science of High Performance computing and statistics and reemerging field of deep learning referring to deep advances in artificial concepts in the 90s delivered on profoundly improved High Performance computer programs the big deltas since the 90s and emerging data sets as well. These control system anomalies resulting in better faster Automated Systems and exchanges. The nation must also develop resilient paradigms for networks, open data and system controls. Networks are important because the emerging grid is substantially more dependent today than 10 years ago. Pml recently teamed with Washington State using a product for a new software called defined networks and Communication Networks through software commands and provide an additional defense layer for the grid. The concepts are important for ecommerce and Utility Market constructs. The challenge is how to protect data in open environments. One is block chain, the Technology Bitcoin uses for secure transactions. Distributive Power Generation and Energy Storage systems and transsacktive energy. A 30 Technology Innovation is adaptive control systems that adjust to realtime based on conditions. It provides a more level cyber Playing Field by adjusting on the fly to confuse and obfuscate as they attack a system. It is absolutely essential but not sufficient to deliver National Cyber readiness posture. Small midatlantic size grid operators must implement fundamental best practices applications and utilities must have new evaluation tools and data to evaluate Cyber Technology investments and deliver these improved technology aspects. In conclusion the sharing efforts have significantly advanced, cyber Situational Awareness. The next challenge is to integrate controlled system, Situational Awareness to achieve full awareness across it and ot systems and in parallel leverage High Performance computing to new control theory to develop inherently Resilient Systems and systems designed for network, data and controlled systems. Thank you. Thank you, mr. Imhoff. Dr. Raines, welcome. Good morning. Member cantwell and members of the committee. Thank you for the opportunity to appear before this distinguished panel. Im dr. Rick raines at the department of Oakridge National laboratory. I previously served as director of cybersecurity at analytics and followed by military and federal Service Career where i founded and directed the air force Cyberspace Technical Center of excellence at the institute of technology. The department of energys National Laboratory system has a long history of providing solutions to the nations hardest problems. Our structure and operations encourage partnerships with industry and others for challenges. Cybersecurity of our Critical Energy energinfrastructure is a National Challenge. Today i want to talk about the electrical grid and Technology Break through to harden the defenses as youre well aware our electrical grid is a Vital National asset and system becoming increasingly vulnerable to cyber intrusions due in large part to connectivity with the public internet. Operational risks have increased. Energy sector devices and systems are experiencing an increased exposure to savvy and nefarious cyber actors. As a result, were in a highly dynamic cycle of developing cybersecurity measures and capabilities to address these rapidly emerging threats. Our challenge is to produce solutions to better protect Energy Sector communications and controls while continuing to make the grid smarter and better able to recover when problems do arise including the devastating effects of hurricanes harvey, irma and maria. Scientists are engaged in research to defend and monitorize the grid including monitoring and sensing of the grid state and new technologies to better control and utilize distributive Power Resources such as Community Micro grids. We have cyber technologies that can detect intrusions like Malicious Software code and direct threats and realtime Cyber Awareness tools in communication traffic. Among our cyber communication work is a cyber called dark net that shields the nations from hostile cyber intrusions while maintaining stateoftheart. Dark net is a way to get communications and control of the electric grid off the public internet. Moving these functions into a private system could be accomplished using existing and underutilized optical fiber, commonly known as dark fiber. Its estimated over 100,000 miles of optical fiber exists within the u. S. Bundling with multiple fibers, communication techniques can easily increase this capacity tenfold. Id like to be