[Congressional Record Volume 161, Number 126 (Wednesday, August 5, 2015)]
[Senate]
[Pages S6412-S6415]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2625. Mr. JOHNSON (for himself, Mr. Carper, Ms. Ayotte, Mrs. 
McCaskill, Ms. Collins, and Mr. Warner) submitted an amendment intended 
to be proposed by him to the bill S. 754, to improve cybersecurity in 
the United States through enhanced sharing of information about 
cybersecurity threats, and for other purposes; which was ordered to lie 
on the table; as follows:

       At the end, add the following:

            TITLE II--FEDERAL CYBERSECURITY ENHANCEMENT ACT

     SECTION 201. SHORT TITLE.

       This title may be cited as the ``Federal Cybersecurity 
     Enhancement Act of 2015''.

     SEC. 202. DEFINITIONS.

       In this title--
       (1) the term ``agency'' has the meaning given the term in 
     section 3502 of title 44, United States Code;
       (2) the term ``agency information system'' has the meaning 
     given the term in section 228 of the Homeland Security Act of 
     2002, as added by section 203(a);
       (3) the term ``appropriate congressional committees'' 
     means--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       (B) the Committee on Homeland Security of the House of 
     Representatives;
       (4) the terms ``cybersecurity risk'' and ``information 
     system'' have the meanings given those terms in section 227 
     of the Homeland Security Act of 2002, as so redesignated by 
     section 203(a);
       (5) the term ``Director'' means the Director of the Office 
     of Management and Budget;
       (6) the term ``intelligence community'' has the meaning 
     given the term in section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 3003(4)); and
       (7) the term ``Secretary'' means the Secretary of Homeland 
     Security.

     SEC. 203. IMPROVED FEDERAL NETWORK SECURITY.

       (a) In General.--Subtitle C of title II of the Homeland 
     Security Act of 2002 (6 U.S.C. 141 et seq.) is amended--
       (1) by redesignating section 228 as section 229;
       (2) by redesignating section 227 as subsection (c) of 
     section 228, as added by paragraph (4), and adjusting the 
     margins accordingly;
       (3) by redesignating the second section designated as 
     section 226 (relating to the national cybersecurity and 
     communications integration center) as section 227;
       (4) by inserting after section 227, as so redesignated, the 
     following:

     ``SEC. 228. CYBERSECURITY PLANS.

       ``(a) Definitions.--In this section--
       ``(1) the term `agency information system' means an 
     information system used or operated by an agency or by 
     another entity on behalf of an agency;
       ``(2) the terms `cybersecurity risk' and `information 
     system' have the meanings given those terms in section 227;
       ``(3) the term `information sharing and analysis 
     organization' has the meaning given the term in section 
     212(5); and
       ``(4) the term `intelligence community' has the meaning 
     given the term in section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 3003(4)).
       ``(b) Intrusion Assessment Plan.--

[[Page S6413]]

       ``(1) Requirement.--The Secretary, in coordination with the 
     Director of the Office of Management and Budget, shall 
     develop and implement an intrusion assessment plan to 
     identify and remove intruders in agency information systems.
       ``(2) Exception.--The intrusion assessment plan required 
     under paragraph (1) shall not apply to the Department of 
     Defense or an element of the intelligence community.'';
       (5) in section 228(c), as so redesignated, by striking 
     ``section 226'' and inserting ``section 227''; and
       (6) by inserting after section 229, as so redesignated, the 
     following:

     ``SEC. 230. FEDERAL INTRUSION DETECTION AND PREVENTION 
                   SYSTEM.

       ``(a) Definitions.--In this section--
       ``(1) the term `agency' has the meaning given that term in 
     section 3502 of title 44, United States Code;
       ``(2) the term `agency information' means information 
     collected or maintained by or on behalf of an agency;
       ``(3) the term `agency information system' has the meaning 
     given the term in section 228; and
       ``(4) the terms `cybersecurity risk' and `information 
     system' have the meanings given those terms in section 227.
       ``(b) Requirement.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall deploy, 
     operate, and maintain, to make available for use by any 
     agency, with or without reimbursement--
       ``(A) a capability to detect cybersecurity risks in network 
     traffic transiting or traveling to or from an agency 
     information system; and
       ``(B) a capability to prevent network traffic associated 
     with such cybersecurity risks from transiting or traveling to 
     or from an agency information system or modify such network 
     traffic to remove the cybersecurity risk.
       ``(2) Regular improvement.--The Secretary shall regularly 
     deploy new technologies and modify existing technologies to 
     the intrusion detection and prevention capabilities described 
     in paragraph (1) as appropriate to improve the intrusion 
     detection and prevention capabilities.
       ``(c) Activities.--In carrying out subsection (b), the 
     Secretary--
       ``(1) may access, and the head of an agency may disclose to 
     the Secretary or a private entity providing assistance to the 
     Secretary under paragraph (2), information transiting or 
     traveling to or from an agency information system, regardless 
     of the location from which the Secretary or a private entity 
     providing assistance to the Secretary under paragraph (2) 
     accesses such information, notwithstanding any other 
     provision of law that would otherwise restrict or prevent the 
     head of an agency from disclosing such information to the 
     Secretary or a private entity providing assistance to the 
     Secretary under paragraph (2);
       ``(2) may enter into contracts or other agreements with, or 
     otherwise request and obtain the assistance of, private 
     entities to deploy and operate technologies in accordance 
     with subsection (b);
       ``(3) may retain, use, and disclose information obtained 
     through the conduct of activities authorized under this 
     section only to protect information and information systems 
     from cybersecurity risks;
       ``(4) shall regularly assess through operational test and 
     evaluation in real world or simulated environments available 
     advanced protective technologies to improve detection and 
     prevention capabilities, including commercial and non-
     commercial technologies and detection technologies beyond 
     signature-based detection, and utilize such technologies when 
     appropriate;
       ``(5) shall establish a pilot to acquire, test, and deploy, 
     as rapidly as possible, technologies described in paragraph 
     (4);
       ``(6) shall periodically update the privacy impact 
     assessment required under section 208(b) of the E-Government 
     Act of 2002 (44 U.S.C. 3501 note); and
       ``(7) shall ensure that--
       ``(A) activities carried out under this section are 
     reasonably necessary for the purpose of protecting agency 
     information and agency information systems from a 
     cybersecurity risk;
       ``(B) information accessed by the Secretary will be 
     retained no longer than reasonably necessary for the purpose 
     of protecting agency information and agency information 
     systems from a cybersecurity risk;
       ``(C) notice has been provided to users of an agency 
     information system concerning access to communications of 
     users of the agency information system for the purpose of 
     protecting agency information and the agency information 
     system; and
       ``(D) the activities are implemented pursuant to policies 
     and procedures governing the operation of the intrusion 
     detection and prevention capabilities.
       ``(d) Private Entities.--
       ``(1) Conditions.--A private entity described in subsection 
     (c)(2) may not--
       ``(A) disclose any network traffic transiting or traveling 
     to or from an agency information system to any entity without 
     the consent of the Department or the agency that disclosed 
     the information under subsection (c)(1); or
       ``(B) use any network traffic transiting or traveling to or 
     from an agency information system to which the private entity 
     gains access in accordance with this section for any purpose 
     other than to protect agency information and agency 
     information systems against cybersecurity risks or to 
     administer a contract or other agreement entered into 
     pursuant to subsection (c)(2) or as part of another contract 
     with the Secretary.
       ``(2) Limitation on liability.--No cause of action shall 
     lie in any court against a private entity for assistance 
     provided to the Secretary in accordance with this section and 
     any contract or agreement entered into pursuant to subsection 
     (c)(2).
       ``(3) Rule of construction.--Nothing in paragraph (2) shall 
     be construed to authorize an Internet service provider to 
     break a user agreement with a customer without the consent of 
     the customer.
       ``(e) Attorney General Review.--Not later than 1 year after 
     the date of enactment of this section, the Attorney General 
     shall review the policies and guidelines for the program 
     carried out under this section to ensure that the policies 
     and guidelines are consistent with applicable law governing 
     the acquisition, interception, retention, use, and disclosure 
     of communications.''.
       (b) Prioritizing Advanced Security Tools.--The Director and 
     the Secretary, in consultation with appropriate agencies, 
     shall--
       (1) review and update governmentwide policies and programs 
     to ensure appropriate prioritization and use of network 
     security monitoring tools within agency networks; and
       (2) brief appropriate congressional committees on such 
     prioritization and use.
       (c) Agency Responsibilities.--
       (1) In general.--Except as provided in paragraph (2)--
       (A) not later than 1 year after the date of enactment of 
     this Act or 2 months after the date on which the Secretary 
     makes available the intrusion detection and prevention 
     capabilities under section 230(b)(1) of the Homeland Security 
     Act of 2002, as added by subsection (a), whichever is later, 
     the head of each agency shall apply and continue to utilize 
     the capabilities to all information traveling between an 
     agency information system and any information system other 
     than an agency information system; and
       (B) not later than 6 months after the date on which the 
     Secretary makes available improvements to the intrusion 
     detection and prevention capabilities pursuant to section 
     230(b)(2) of the Homeland Security Act of 2002, as added by 
     subsection (a), the head of each agency shall apply and 
     continue to utilize the improved intrusion detection and 
     prevention capabilities.
       (2) Exception.--The requirements under paragraph (1) shall 
     not apply to the Department of Defense or an element of the 
     intelligence community.
       (d) Table of Contents Amendment.--The table of contents in 
     section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 
     101 note) is amended by striking the items relating to the 
     first section designated as section 226, the second section 
     designated as section 226 (relating to the national 
     cybersecurity and communications integration center), section 
     227, and section 228 and inserting the following:

``Sec. 226. Cybersecurity recruitment and retention.
``Sec. 227. National cybersecurity and communications integration 
              center.
``Sec. 228. Cybersecurity plans.
``Sec. 229. Clearances.
``Sec. 230. Federal intrusion detection and prevention system.''.

     SEC. 204. ADVANCED INTERNAL DEFENSES.

       (a) Advanced Network Security Tools.--
       (1) In general.--The Secretary shall include in the 
     Continuous Diagnostics and Mitigation Program advanced 
     network security tools to improve visibility of network 
     activity, including through the use of commercial and free or 
     open source tools, to detect and mitigate intrusions and 
     anomalous activity.
       (2) Development of plan.--The Director shall develop and 
     implement a plan to ensure that each agency utilizes advanced 
     network security tools, including those described in 
     paragraph (1), to detect and mitigate intrusions and 
     anomalous activity.
       (b) Improved Metrics.--The Secretary, in collaboration with 
     the Director, shall review and update the metrics used to 
     measure security under section 3554 of title 44, United 
     States Code, to include measures of intrusion and incident 
     detection and response times.
       (c) Transparency and Accountability.--The Director, in 
     consultation with the Secretary, shall increase transparency 
     to the public on agency cybersecurity posture, including by 
     increasing the number of metrics available on Federal 
     Government performance websites and, to the greatest extent 
     practicable, displaying metrics for department components, 
     small agencies, and micro agencies.
       (d) Maintenance of Technologies.--Section 3553(b)(6)(B) of 
     title 44, United States Code, is amended by inserting ``, 
     operating, and maintaining'' after ``deploying''.

     SEC. 205. FEDERAL CYBERSECURITY REQUIREMENTS.

       (a) Implementation of Federal Cybersecurity Standards.--
     Consistent with section 3553 of title 44, United States Code, 
     the Secretary, in consultation with the Director, shall 
     exercise the authority to issue binding operational 
     directives to assist the Director in ensuring timely agency 
     adoption of and compliance with policies and standards 
     promulgated under section 11331 of title 40, United States 
     Code, for securing agency information systems.

[[Page S6414]]

       (b) Cybersecurity Requirements at Agencies.--
       (1) In general.--Consistent with policies, standards, 
     guidelines, and directives on information security under 
     subchapter II of chapter 35 of title 44, United States Code, 
     and the standards and guidelines promulgated under section 
     11331 of title 40, United States Code, and except as provided 
     in paragraph (2), not later than 1 year after the date of 
     enactment of this Act, the head of each agency shall--
       (A) identify sensitive and mission critical data stored by 
     the agency consistent with the inventory required under the 
     first subsection (c) (relating to the inventory of major 
     information systems) and the second subsection (c) (relating 
     to the inventory of information systems) of section 3505 of 
     title 44, United States Code;
       (B) assess access controls to the data described in 
     subparagraph (A), the need for readily accessible storage of 
     the data, and individuals' need to access the data;
       (C) encrypt or otherwise render indecipherable to 
     unauthorized users the data described in subparagraph (A) 
     that is stored on or transiting agency information systems;
       (D) implement a single sign-on trusted identity platform 
     for individuals accessing each public website of the agency 
     that requires user authentication, as developed by the 
     Administrator of General Services in collaboration with the 
     Secretary; and
       (E) implement identity management consistent with section 
     504 of the Cybersecurity Enhancement Act of 2014 (15 U.S.C. 
     7464), including multi-factor authentication, for--
       (i) remote access to an agency information system; and
       (ii) each user account with elevated privileges on an 
     agency information system.
       (2) Exception.--The requirements under paragraph (1) shall 
     not apply to--
       (A) the Department of Defense or an element of the 
     intelligence community; or
       (B) an agency information system for which--
       (i) the head of the agency has personally certified to the 
     Director with particularity that--

       (I) operational requirements articulated in the 
     certification and related to the agency information system 
     would make it excessively burdensome to implement the 
     cybersecurity requirement;
       (II) the cybersecurity requirement is not necessary to 
     secure the agency information system or agency information 
     stored on or transiting it; and
       (III) the agency has all taken necessary steps to secure 
     the agency information system and agency information stored 
     on or transiting it; and

       (ii) the head of the agency or the designee of the head of 
     the agency has submitted the certification described in 
     clause (i) to the appropriate congressional committees and 
     the authorizing committees of the agency.
       (3) Rules of construction.--Nothing in this section shall 
     be construed--
       (A) to alter the authority of the Secretary, the Director, 
     or the Director of the National Institute of Standards and 
     Technology in implementing subchapter II of chapter 35 of 
     title 44, United States Code;
       (B) to affect the National Institute of Standards and 
     Technology standards process or the requirement under section 
     3553(a)(4) of title 44, United States Code; or
       (C) to discourage continued improvements and advancements 
     in the technology, standards, policies, and guidelines used 
     to promote Federal information security.

     SEC. 206. ASSESSMENT; REPORTS.

       (a) Definitions.--In this section--
       (1) the term ``intrusion assessments'' means actions taken 
     under the intrusion assessment plan to identify and remove 
     intruders in agency information systems;
       (2) the term ``intrusion assessment plan'' means the plan 
     required under section 228(b)(1) of the Homeland Security Act 
     of 2002, as added by section 203(a) of this Act; and
       (3) the term ``intrusion detection and prevention 
     capabilities'' means the capabilities required under section 
     230(b) of the Homeland Security Act of 2002, as added by 
     section 203(a) of this Act.
       (b) Third Party Assessment.--Not later than 3 years after 
     the date of enactment of this Act, the Government 
     Accountability Office shall conduct a study and publish a 
     report on the effectiveness of the approach and strategy of 
     the Federal Government to securing agency information 
     systems, including the intrusion detection and prevention 
     capabilities and the intrusion assessment plan.
       (c) Reports to Congress.--
       (1) Intrusion detection and prevention capabilities.--
       (A) Secretary of homeland security report.--Not later than 
     6 months after the date of enactment of this Act, and 
     annually thereafter, the Secretary shall submit to the 
     appropriate congressional committees a report on the status 
     of implementation of the intrusion detection and prevention 
     capabilities, including--
       (i) a description of privacy controls;
       (ii) a description of the technologies and capabilities 
     utilized to detect cybersecurity risks in network traffic, 
     including the extent to which those technologies and 
     capabilities include existing commercial and non-commercial 
     technologies;
       (iii) a description of the technologies and capabilities 
     utilized to prevent network traffic associated with 
     cybersecurity risks from transiting or traveling to or from 
     agency information systems, including the extent to which 
     those technologies and capabilities include existing 
     commercial and non-commercial technologies;
       (iv) a list of the types of indicators or other identifiers 
     or techniques used to detect cybersecurity risks in network 
     traffic transiting or traveling to or from agency information 
     systems on each iteration of the intrusion detection and 
     prevention capabilities and the number of each such type of 
     indicator, identifier, and technique;
       (v) the number of instances in which the intrusion 
     detection and prevention capabilities detected a 
     cybersecurity risk in network traffic transiting or traveling 
     to or from agency information systems and the number of times 
     the intrusion detection and prevention capabilities blocked 
     network traffic associated with cybersecurity risk; and
       (vi) a description of the pilot established under section 
     230(c)(5) of the Homeland Security Act of 2002, as added by 
     section 203(a) of this Act, including the number of new 
     technologies tested and the number of participating agencies.
       (B) OMB report.--Not later than 18 months after the date of 
     enactment of this Act, and annually thereafter, the Director 
     shall submit to Congress, as part of the report required 
     under section 3553(c) of title 44, United States Code, an 
     analysis of agency application of the intrusion detection and 
     prevention capabilities, including--
       (i) a list of each agency and the degree to which each 
     agency has applied the intrusion detection and prevention 
     capabilities to an agency information system; and
       (ii) a list by agency of--

       (I) the number of instances in which the intrusion 
     detection and prevention capabilities detected a 
     cybersecurity risk in network traffic transiting or traveling 
     to or from an agency information system and the types of 
     indicators, identifiers, and techniques used to detect such 
     cybersecurity risks; and
       (II) the number of instances in which the intrusion 
     detection and prevention capabilities prevented network 
     traffic associated with a cybersecurity risk from transiting 
     or traveling to or from an agency information system and the 
     types of indicators, identifiers, and techniques used to 
     detect such agency information systems.

       (2) OMB report on development and implementation of 
     intrusion assessment plan, advanced internal defenses, and 
     federal cybersecurity best practices.--The Director shall--
       (A) not later than 6 months after the date of enactment of 
     this Act, and 30 days after any update thereto, submit the 
     intrusion assessment plan to the appropriate congressional 
     committees;
       (B) not later than 1 year after the date of enactment of 
     this Act, and annually thereafter, submit to Congress, as 
     part of the report required under section 3553(c) of title 
     44, United States Code--
       (i) a description of the implementation of the intrusion 
     assessment plan;
       (ii) the findings of the intrusion assessments conducted 
     pursuant to the intrusion assessment plan;
       (iii) advanced network security tools included in the 
     Continuous Diagnostics and Mitigation Program pursuant to 
     section 204(a)(1);
       (iv) the results of the assessment of the Secretary of best 
     practices for Federal cybersecurity pursuant to section 
     205(a); and
       (v) a list by agency of compliance with the requirements of 
     section 205(b); and
       (C) not later than 1 year after the date of enactment of 
     this Act, submit to the appropriate congressional 
     committees--
       (i) a copy of the plan developed pursuant to section 
     204(a)(2); and
       (ii) the improved metrics developed pursuant to section 
     204(b).

     SEC. 207. TERMINATION.

       (a) In General.--The authority provided under section 230 
     of the Homeland Security Act of 2002, as added by section 
     203(a) of this Act, and the reporting requirements under 
     section 206(c) shall terminate on the date that is 7 years 
     after the date of enactment of this Act.
       (b) Rule of Construction.--Nothing in subsection (a) shall 
     be construed to affect the limitation of liability of a 
     private entity for assistance provided to the Secretary under 
     section 230(d)(2) of the Homeland Security Act of 2002, as 
     added by section 203(a) of this Act, if such assistance was 
     rendered before the termination date under subsection (a) or 
     otherwise during a period in which the assistance was 
     authorized.

     SEC. 208. IDENTIFICATION OF INFORMATION SYSTEMS RELATING TO 
                   NATIONAL SECURITY.

       (a) In General.--Except as provided in subsection (c), not 
     later than 180 days after the date of enactment of this Act--
       (1) the Director of National Intelligence, in coordination 
     with the heads of other agencies, shall--
       (A) identify all unclassified information systems that 
     provide access to information that may provide an adversary 
     with the ability to derive information that would otherwise 
     be considered classified;
       (B) assess the risks that would result from the breach of 
     each unclassified information system identified in 
     subparagraph (A); and
       (C) assess the cost and impact on the mission carried out 
     by each agency that owns an unclassified information system 
     identified in subparagraph (A) if the system were to be 
     subsequently designated as a national security system, as 
     defined in section 11103 of title 40, United States Code; and

[[Page S6415]]

       (2) the Director of National Intelligence shall submit to 
     the appropriate congressional committees, the Select 
     Committee on Intelligence of the Senate, and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives a report that includes the findings under 
     paragraph (1).
       (b) Form.--The report submitted under subsection (a)(2) 
     shall be in unclassified form, and shall include a classified 
     annex.
       (c) Exception.--The requirements under subsection (a)(1) 
     shall not apply to the Department of Defense or an element of 
     the intelligence community.

     SEC. 209. DIRECTION TO AGENCIES.

       (a) In General.--Section 3553 of title 44, United States 
     Code, is amended by adding at the end the following:
       ``(h) Direction to Agencies.--
       ``(1) Authority.--
       ``(A) In general.--Subject to subparagraph (B), in response 
     to a known or reasonably suspected information security 
     threat, vulnerability, or incident that represents a 
     substantial threat to the information security of an agency, 
     the Secretary may issue an emergency directive to the head of 
     an agency to take any lawful action with respect to the 
     operation of the information system, including such systems 
     owned or operated by another entity on behalf of an agency, 
     that collects, processes, stores, transmits, disseminates, or 
     otherwise maintains agency information, for the purpose of 
     protecting the information system from, or mitigating, an 
     information security threat.
       ``(B) Exception.--The authorities of the Secretary under 
     this subsection shall not apply to a system described in 
     paragraph (2) or (3) of subsection (e).
       ``(2) Procedures for use of authority.--The Secretary 
     shall--
       ``(A) in coordination with the Director, establish 
     procedures governing the circumstances under which a 
     directive may be issued under this subsection, which shall 
     include--
       ``(i) thresholds and other criteria;
       ``(ii) privacy and civil liberties protections; and
       ``(iii) providing notice to potentially affected third 
     parties;
       ``(B) specify the reasons for the required action and the 
     duration of the directive;
       ``(C) minimize the impact of a directive under this 
     subsection by--
       ``(i) adopting the least intrusive means possible under the 
     circumstances to secure the agency information systems; and
       ``(ii) limiting directives to the shortest period 
     practicable;
       ``(D) notify the Director and the head of any affected 
     agency immediately upon the issuance of a directive under 
     this subsection;
       ``(E) consult with the Director of the National Institute 
     of Standards and Technology regarding any directive issued 
     under this subsection that implements standards and 
     guidelines developed by the National Institute of Standards 
     and Technology;
       ``(F) ensure that directives issued under this subsection 
     do not conflict with the standards and guidelines issued 
     under section 11331 of title 40;
       ``(G) consider any applicable standards or guidelines 
     developed by the National Institute of Standards and issued 
     by the Secretary of Commerce under section 11331 of title 40; 
     and
       ``(H) not later than February 1 of each year, submit to the 
     appropriate congressional committees a report regarding the 
     specific actions the Secretary has taken pursuant to 
     paragraph (1)(A).
       ``(3) Imminent threats.--
       ``(A) In general.--Notwithstanding section 3554, the 
     Secretary may authorize the use of protective capabilities 
     under the control of the Secretary for communications or 
     other system traffic transiting to or from or stored on an 
     agency information system for the purpose of ensuring the 
     security of the information or information system or other 
     agency information systems, if--
       ``(i) the Secretary determines that there is an imminent 
     threat to agency information systems;
       ``(ii) the Secretary determines that a directive issued 
     under subsection (b)(2)(C) or paragraph (1)(A) is not 
     reasonably likely to result in a timely response to the 
     threat;
       ``(iii) the Secretary determines that the risk posed by the 
     imminent threat outweighs any adverse consequences reasonably 
     expected to result from the use of protective capabilities 
     under the control of the Secretary;
       ``(iv) the Secretary provides prior notice to the Director 
     and the head and chief information officer (or equivalent 
     official) of each agency to which specific actions will be 
     taken pursuant to this subparagraph, and notifies the 
     appropriate congressional committees and authorizing 
     committees of each such agencies within 7 days of taking an 
     action under this subparagraph, of--

       ``(I) any action taken under this subparagraph; and
       ``(II) the reasons for and duration and nature of the 
     action;

       ``(v) the action of the Secretary is consistent with 
     applicable law; and
       ``(vi) the Secretary authorizes the use of protective 
     capabilities in accordance with the advance procedures 
     established under subparagraph (C).
       ``(B) Limitation on delegation.--The authority under 
     subparagraph (A) may not be delegated by the Secretary.
       ``(C) Advance procedures.--The Secretary shall, in 
     coordination with the Director and in consultation with the 
     heads of agencies, establish procedures governing the 
     circumstances under which the Secretary may authorize the use 
     of protective capabilities under subparagraph (A). The 
     Secretary shall submit the procedures to Congress.
       ``(4) Limitation.--The Secretary may direct or authorize 
     lawful action or protective capability under this subsection 
     only to--
       ``(A) protect agency information from unauthorized access, 
     use, disclosure, disruption, modification, or destruction; or
       ``(B) require the remediation of or protect against 
     identified information security risks with respect to--
       ``(i) information collected or maintained by or on behalf 
     of an agency; or
       ``(ii) that portion of an information system used or 
     operated by an agency or by a contractor of an agency or 
     other organization on behalf of an agency.
       ``(i) Annual Report to Congress.--Not later than February 1 
     of each year, the Director shall submit to the appropriate 
     congressional committees a report regarding the specific 
     actions the Director has taken pursuant to subsection (a)(5), 
     including any actions taken pursuant to section 11303(b)(5) 
     of title 40.
       ``(j) Appropriate Congressional Committees.--In this 
     section, the term `appropriate congressional committees' 
     means--
       ``(1) the Committee on Appropriations, the Committee on 
     Homeland Security and Governmental Affairs, and the Committee 
     on Commerce, Science, and Transportation of the Senate; and
       ``(2) the Committee on Appropriations, the Committee on 
     Homeland Security, the Committee on Oversight and Government 
     Reform, and the Committee on Science, Space, and Technology 
     of the House of Representatives.''.
       (b) Technical Amendment.--Section 3554(a)(1)(B) of title 
     44, United States Code, is amended--
       (1) in clause (iii), by striking ``and'' at the end; and
       (2) by adding at the end the following: ``(v) emergency 
     directives issued by the Secretary under section 3553(h); 
     and''.
       ``(v) emergency directives issued by the Secretary under 
     section 3553(h); and''.
                                 ______