[House Report 114-826]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-826
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UNITED STATES-ISRAEL CYBERSECURITY COOPERATION ENHANCEMENT ACT OF 2016
_______
November 15, 2016.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. McCaul, from the Committee on Homeland Security, submitted the
following
R E P O R T
[To accompany H.R. 5843]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 5843) to establish a grant program at the
Department of Homeland Security to promote cooperative research
and development between the United States and Israel on
cybersecurity, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Congressional Budget Office Estimate............................. 5
Statement of General Performance Goals and Objectives............ 6
Duplicative Federal Programs..................................... 6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 6
Federal Mandates Statement....................................... 6
Preemption Clarification......................................... 6
Disclosure of Directed Rule Makings.............................. 6
Advisory Committee Statement..................................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``United States-Israel Cybersecurity
Cooperation Enhancement Act of 2016''.
SEC. 2. UNITED STATES-ISRAEL CYBERSECURITY COOPERATION.
(a) Grant Program.--
(1) Establishment.--The Secretary, in accordance with the
agreement entitled the ``Agreement between the Government of
the United States of America and the Government of the State of
Israel on Cooperation in Science and Technology for Homeland
Security Matters'', dated May 29, 2008 (or successor
agreement), and the requirements specified in paragraph (2),
shall establish a grant program at the Department to support--
(A) cybersecurity research and development; and
(B) demonstration and commercialization of
cybersecurity technology.
(2) Requirements.--
(A) Applicability.--Notwithstanding any other
provision of law, in carrying out a research,
development, demonstration, or commercial application
program or activity that is authorized under this
section, the Secretary shall require cost sharing in
accordance with this paragraph.
(B) Research and development.--
(i) In general.--Except as provided in clause
(ii), the Secretary shall require not less than
50 percent of the cost of a research,
development, demonstration, or commercial
application program or activity described in
subparagraph (A) to be provided by a non-
Federal source.
(ii) Reduction.--The Secretary may reduce or
eliminate, on a case-by-case basis, the
percentage requirement specified in clause (i)
if the Secretary determines that such reduction
or elimination is necessary and appropriate.
(C) Merit review.--In carrying out a research,
development, demonstration, or commercial application
program or activity that is authorized under this
section, awards shall be made only after an impartial
review of the scientific and technical merit of the
proposals for such awards has been carried out by or
for the Department.
(D) Review processes.--In carrying out a review under
subparagraph (C), the Secretary may use merit review
processes developed under section 302(14) of the
Homeland Security Act of 2002 (6 U.S.C. 182(14)).
(3) Eligible applicants.--An applicant shall be eligible to
receive a grant under this subsection if the project of such
applicant--
(A) addresses a requirement in the area of
cybersecurity research or cybersecurity technology, as
determined by the Secretary; and
(B) is a joint venture between--
(i)(I) a for-profit business entity, academic
institution, National Laboratory (as defined in
section 2 of the Energy Policy Act of 2005 (42
U.S.C. 15801)), or nonprofit entity in the
United States; and
(II) a for-profit business entity, academic
institution, or nonprofit entity in Israel; or
(ii)(I) the Federal Government; and
(II) the Government of Israel.
(4) Applications.--To be eligible to receive a grant under
this subsection, an applicant shall submit to the Secretary an
application for such grant in accordance with procedures
established by the Secretary, in consultation with the advisory
board established under paragraph (5).
(5) Advisory board.--
(A) Establishment.--The Secretary shall establish an
advisory board to--
(i) monitor the method by which grants are
awarded under this subsection; and
(ii) provide to the Secretary periodic
performance reviews of actions taken to carry
out this subsection.
(B) Composition.--The advisory board established
under subparagraph (A) shall be composed of three
members, to be appointed by the Secretary, of whom--
(i) one shall be a representative of the
Federal Government;
(ii) one shall be selected from a list of
nominees provided by the United States-Israel
Binational Science Foundation; and
(iii) one shall be selected from a list of
nominees provided by the United States-Israel
Binational Industrial Research and Development
Foundation.
(6) Contributed funds.--Notwithstanding any other provision
of law, the Secretary may accept, retain, and use funds
contributed by any person, government entity, or organization
for purposes of carrying out this subsection--
(A) without further appropriation; and
(B) without fiscal year limitation.
(7) Report.--Not later than 180 days after the date of
completion of a project for which a grant is provided under
this subsection, the grant recipient shall submit to the
Secretary a report that contains--
(A) a description of how the grant funds were used by
the recipient; and
(B) an evaluation of the level of success of each
project funded by the grant.
(8) Classification.--Grants shall be awarded under this
subsection only for projects that are considered to be
unclassified by both the United States and Israel.
(b) Termination.--The grant program and the advisory committee
established under this section terminate on the date that is seven
years after the date of the enactment of this Act.
(c) Prohibition on Additional Funding.--No additional funds are
authorized to be appropriated to carry out this Act.
(d) Definitions.--In this section--
(1) the term ``cybersecurity research'' means research,
including social science research, into ways to identify,
protect against, detect, respond to, and recover from
cybersecurity threats;
(2) the term ``cybersecurity technology'' means technology
intended to identify, protect against, detect, respond to, and
recover from cybersecurity threats;
(3) the term ``cybersecurity threat'' has the meaning given
such term in section 102 of the Cybersecurity Information
Sharing Act of 2015 (enacted as title I of the Cybersecurity
Act of 2015 (division N of the Consolidated Appropriations Act,
2016 (Public Law 114-113)));
(4) the term ``Department'' means the Department of Homeland
Security; and
(5) the term ``Secretary'' means the Secretary of Homeland
Security.
PURPOSE AND SUMMARY
H.R. 5843 the United States-Israel Cybersecurity
Cooperation Enhancement Act of 2016 authorizes the Secretary of
Homeland Security to carry out a grant program at the U.S.
Department of Homeland Security (DHS) to support cybersecurity
research and development and the demonstration and
commercialization of cybersecurity technologies with the State
of Israel.
Additionally, H.R. 5843 requires cost sharing (with at
least 50 percent of program costs provided by a non-Federal
source) but the requirement may be reduced or waived by the
Secretary of DHS on a case-by-case basis. Funds may be
contributed to the grant program by any person, government
entity or organization. The Secretary must utilize an advisory
board to oversee and monitor the grants that are awarded and
report to Congress on the use of grant funds.
BACKGROUND AND NEED FOR LEGISLATION
Currently, the United States and Israel are parties to an
``Agreement on Cooperation in Science and Technology for
Homeland Security Matters.'' The Agreement, which covers mutual
interest in research, development, testing and evaluation
relating to homeland security, authorizes the Under Secretary
of Science and Technology to initiate, encourage, develop and
facilitate bilateral Cooperative Activities with the State of
Israel in a myriad of homeland security-related science and
technology capabilities.\1\ H.R. 5843 builds on this
established relationship between the U.S. and Israel.
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\1\Agreement between the Government of the United States of America
and the Government of the State of Israel on Cooperation in Science and
Technology for Homeland Security Matters. May 29, 2008. Accessed at:
https://www.dhs.gov/xlibrary/assets/
agreement_us_israel_sciencetech_cooperation_2008-05-29.pdf.
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In particular, H.R. 5843 encourages innovation responsive
to homeland security needs. The pace of change in the
cybersecurity landscape--from increasing use of vulnerable
technologies to more sophisticated threat actors--requires
enhanced cybersecurity research and development. Protecting
critical networks will require commercialization of products
for the national security market as well as a better
understanding of the human element of cybersecurity through
social science research. As two leading destinations for
private cybersecurity investment\2\, both the United States and
Israel have the capacity to address national cybersecurity
challenges. Collaborative activities leverage the existing
infrastructure in both countries to drive original solutions to
shared security concerns in this new domain.
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\2\Reed, J. (2016, January 12). Israel cyber-security expertise
lures growing share of investment. The Financial Times. Retrieved from
https://www.ft.com/content/dfa5c916-b90e-11e5-b151-8e15c9a029fb.
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HEARINGS
No hearings were held on H.R. 5843 in the 114th Congress.
COMMITTEE CONSIDERATION
The Committee met on September 13, 2016, to consider H.R.
5843, and ordered the measure to be reported to the House with
a favorable recommendation, as amended, by voice vote. The
Committee took the following actions:
The following amendment was offered:
An Amendment in the Nature of a Substitute offered by Mr.
Langevin (#1); was AGREED TO by voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto.
No recorded votes were requested during consideration of
H.R. 5843.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held oversight
hearings and made findings that are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
5843, the United States-Israel Cybersecurity Cooperation
Enhancement Act of 2016, would result in no new or increased
budget authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
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.
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 23, 2016.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5843, the United
States-Israel Cybersecurity Cooperation Enhancement Act of
2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Mark P. Hadley
(for Keith Hall).
Enclosure.
H.R. 5843--United States-Israel Cybersecurity Cooperation Enhancement
Act of 2016
H.R. 5843 would direct the Department of Homeland Security
(DHS) to establish a grant program to support cybersecurity
research and development and the commercialization of
cybersecurity technology over a seven-year period. Grant
recipients would have to initiate joint ventures that would
include both U.S. and Israeli participants (such as academic
institutions). Based on information from DHS about the
potential scope of the program and its relationship with other
cybersecurity research being done at DHS, CBO estimates that
the new grant program would cost about $1 million annually;
such spending would be subject to the availability of
appropriated funds.
Enacting H.R. 5843 could affect direct spending if non-
federal partners contribute funds for DHS to provide
cybersecurity grants; therefore, pay-as-you-go procedures do
apply. However, the net effect of collecting and spending those
contributions would be negligible. Enacting H.R. 5843 would not
affect revenues.
CBO estimates that enacting H.R. 5843 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 5843 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
Academic institutions would benefit from grants established in
the bill for cybersecurity research and technology
commercialization. Any costs incurred, including matching
contributions, would result from complying with conditions of
federal assistance.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, H.R. 5843 contains the following
general performance goals and objectives, including outcome
related goals and objectives authorized.
This legislation authorizes the Secretary of Homeland
Security to carry out a grant program at the Department of
Homeland Security to support cybersecurity research and
development and the demonstration and commercialization of
cybersecurity technologies with the State of Israel.
DUPLICATIVE FEDERAL PROGRAMS
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 5843 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS
In compliance with rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
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.
PREEMPTION CLARIFICATION
In compliance with section 423 of the Congressional Budget
Act of 1974, requiring the report of any Committee on a bill or
joint resolution to include a statement on the extent to which
the bill or joint resolution is intended to preempt State,
local, or Tribal law, the Committee finds that H.R. 5843 does
not preempt any State, local, or Tribal law.
DISCLOSURE OF DIRECTED RULE MAKINGS
The Committee estimates that H.R. 5843 would require 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
This section provides that this bill may be cited as the
``United States-Israel Cybersecurity Cooperation Enhancement
Act of 2016''.
Sec. 2. United States-Israel cybersecurity cooperation
This section establishes a grant program at the U.S.
Department of Homeland Security (DHS) to support cybersecurity
research and development and demonstration and
commercialization of cybersecurity technologies. This grant
program is in accordance with the ``Agreement between the
Government of the United States and the Government of the State
of Israel on Cooperation in Science and Technology for Homeland
Security Matters'' signed on May 29, 2008 or any successor
agreement.
This section defines cost sharing as one of the
requirements of the grant program. Under those requirements the
Secretary shall require cost sharing at not less than 50
percent to be provided by a non-Federal source. The Secretary
may reduce or waive the percentage requirement on a case-by-
case basis. This section also requires grant awards to be made
only after an impartial review of the scientific and technical
merit of the proposals, but allows the Secretary to utilize the
merit review processes developed under section 302(14) of the
Homeland Security Act of 2002.\3\
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\3\Codified at 6 U.S.C. 182(14) (requiring the Under Secretary for
Science and Technology to develop and oversee the administration of
guidelines for merit review of research and development throughout
DHS).
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This section also defines an eligible applicant as one
which addresses a requirement in the arena of ``cybersecurity
research'' or ``cybersecurity technology'' (as defined in the
proposed legislation) and is comprised of either: 1) a U.S.
non-governmental and an Israeli non-governmental entity; or 2)
the Governments of the United States and Israel.
In order to be eligible for a grant the applicant must
submit an application to the Secretary, who will consult with
an advisory board charged with monitoring the method by which
grants are awarded. The advisory board shall be comprised of a
member of the Federal Government, a selectee from the United
States-Israel Binational Science Foundation and a selectee from
the United States-Israel Binational Industrial Research and
Development Foundation.
This section further outlines the reporting requirements
grant recipients must meet within 180 days of completing a
grant-funded project and requires all projects to be
unclassified.
Lastly, this section specifies that the grant program and
advisory committee established herein shall terminate seven
years from the date of enactment and authorizes no additional
funds to carry out this program.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
As reported, H.R. 5843 makes no changes to existing law.
[all]