[House Report 115-793]
[From the U.S. Government Publishing Office]


115th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      115-793

======================================================================



 
                    ENERGY EMERGENCY LEADERSHIP ACT

                                _______
                                

 June 28, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5174]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5174) to amend the Department of Energy 
Organization Act with respect to functions assigned to 
Assistant Secretaries, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Committee Action.................................................     4
Committee Votes..................................................     5
Oversight Findings and Recommendations...........................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     5
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Committee Cost Estimate..........................................     6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Disclosure of Directed Rule Makings..............................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7

                          Purpose and Summary

    H.R. 5174, Energy Emergency Leadership Act, was introduced 
by Rep. Tim Walberg (R-MI) and Rep. Bobby Rush (D-IL) on March 
6, 2018. H.R. 5174 amends the Department of Energy Organization 
Act to include energy emergency and energy security among the 
functions that the Secretary of the Department of Energy shall 
assign to an Assistant Secretary.
    H.R. 5174 provides that the functions to be assigned to an 
Assistant Secretary include responsibilities with respect to 
infrastructure, cybersecurity, emerging threats, supply, and 
emergency planning, coordination, response, and restoration. It 
also provides that these functions include the provision of 
technical assistance, support, and response capabilities with 
respect to energy sector threats, risks, and incidents to 
State, local, and tribal governments and the energy sector.

                  Background and Need for Legislation

    The United States maintains one of the most advanced and 
complex energy infrastructures in the world. This includes an 
extensive system transporting oil, natural gas, and refined 
product to consumers. It involves the storage capacity of more 
than 600 million barrels of oil and the storage of for natural 
gas equivalent to nearly 2 months of U.S. consumption. This 
also includes the vast, complex electricity systems that 
deliver uninterrupted power from producers to consumers. These 
intricate and highly interdependent systems enable every aspect 
of our daily lives.\1\ Our nation's economy, security, and the 
health and safety of its citizens depend upon the reliable and 
uninterrupted supply of fuels and electricity.
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    \1\See ``Valuation of Energy Security for the United States,'' 
Department of Energy, January 2017.
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    The manner by which energy and power is generated, 
transmitted, and delivered continues to increase in complexity. 
As advances in digital and information technologies layer onto 
existing practices and energy infrastructures, new risks emerge 
and new vulnerabilities are exposed. Recent high-profile 
attempts by foreign actors to infiltrate our nation's energy 
systems and infrastructure further highlight the need for 
legislation aimed at mitigating these significant and growing 
threats to the reliable supply of energy in the United States.

The Department of Energy's Authorities for Cybersecurity, Energy 
        Security, and Emergency Response

    When the Department of Energy was organized in 1977, energy 
security concerns revolved around oil supply shortages. As a 
result, energy security emergency functions in the Department 
of Energy Organization Act focused on distributing and 
allocating fuels in an emergency. Over time, these functions in 
DOE's organic statute remained largely unchanged, but DOE's 
responsibilities and authorities have evolved substantially 
beyond what was envisioned forty years ago. Energy delivery 
systems have become increasingly interconnected and digitized, 
while society has become more dependent on energy in all its 
forms--expanding the opportunities for cybersecurity threats 
and other hazards that may require emergency response.
    Today, DOE's mission to advance the national, economic, and 
energy security of the United States requires it to act as the 
lead agency for the protection of electric power, oil, and 
natural gas infrastructure. DOE has authority and 
responsibilities for the physical and cybersecurity of energy 
delivery systems from laws that Congress has passed and 
Presidential directives. Congress has provided DOE with a wide 
range of emergency response and cybersecurity authorities 
affecting multiple segments of the energy sector, including in 
the Department of Energy Organization Act, the Energy Policy 
and Conservation Act, the Natural Gas Act, the Federal Power 
Act, the Defense Production Act, and most recently the Fixing 
America's Transportation Act (FAST Act).
    The FAST Act, which was signed into law in 2015, designated 
DOE as the Sector-Specific Agency (SSA) for the energy sector 
and provided the Department with several new energy security 
authorities to respond to physical and cyberattacks to energy 
systems. Section 61003 of the FAST Act amended section 215 of 
the Federal Power Act (FPA) and created a new section 215A 
entitled, ``Critical Electric Infrastructure Security.'' 
Section 215 of the FPA states that when the President issues or 
provides to the Secretary of Energy a written directive or 
determination identifying a grid security emergency, the 
Secretary may, with or without notice, hearing, or report, 
issue orders for emergency measures to protect or restore the 
reliability of critical electric infrastructure or of defense 
critical electric infrastructure during an emergency.\2\
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    \2\Federal Power Act Sec. 215A, 16 U.S.C. Sec. Sec. 824o-1.
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    DOE's cybersecurity roles and responsibilities are also 
guided by the Federal government's operational framework, as 
provided by the Presidential Policy Directive 41 (PPD-41) 
issued in 2016 addressing ``United States Cyber Incident 
Coordination.'' A primary purpose of PPD-41 is to improve 
coordination across the Federal government by clarifying roles 
and responsibilities. Under the PPD-41 framework, DOE serves as 
the lead agency for the energy sector, coordinating closely 
with other agencies and the private sector to facilitate the 
response, recovery, and restoration of damaged energy 
infrastructure.

DOE Leadership in Energy Supply Emergencies

    As the Energy SSA and pursuant to its other statutory 
authorities, DOE coordinates with multiple Federal and State 
agencies and collaborates with energy infrastructure owners and 
operators on activities associated with identifying 
vulnerabilities, mitigating incidents that may impact the 
energy sector, and assisting with preparation, recovery or 
restoration to ensure the supply of energy in emergencies.
    During the past two presidential administrations, DOE has 
strengthened these energy emergency functions, including for 
preparedness, response, and restoration of energy systems 
against all hazards. However, the growing interconnectedness of 
energy systems and the national importance of ensuring the 
supply and delivery of energy against cyber threats, underscore 
the need to consolidate and elevate the Department's energy 
emergency functions.
    On February 14, 2018, Energy Secretary Rick Perry announced 
the establishment of a new Office of Cybersecurity, Energy 
Security, and Emergency Response (CESER) at DOE, noting ``DOE 
plays a vital role in protecting our nation's energy 
infrastructure from cyber threats, physical attack and natural 
disaster. This new office best positions the Department to 
address the emerging threats of tomorrow while protecting the 
reliable flow of energy to Americans today.'' The CESER office 
will be led by an Assistant Secretary who will focus on energy 
infrastructure security, support the expanded national security 
responsibilities assigned to DOE, and report to the Under 
Secretary of Energy.\3\
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    \3\See Press Release, U.S. Department of Energy, ``Secretary of 
Energy Rick Perry Forms New Office of Cybersecurity, Energy Security, 
and Emergency Response.'' (Feb. 14, 2018), https://www.energy.gov/
articles/secretary-energy-rick-perry-forms-new-office-cybersecurity-
energy-     security-and-emergency.
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    The Committee finds that H.R. 5174 would further enhance 
the execution of this core energy emergency mission by 
establishing in statute the assistant-secretary-level 
leadership of DOE's emergency response and cybersecurity 
functions. Given the critical role DOE serves for the nation to 
coordinate, prepare for, and respond to all hazards to the 
supply of energy, including cybersecurity, such assistant-
secretary level leadership will strengthen coordination across 
the department, ensure more effective interagency 
collaborations, and increase accountability to Congress. DOE 
Undersecretary Mark Menezes, agreed in testimony that elevating 
functions to Senate-confirmed level leadership would help 
intergovernmental and interagency communication, and 
information sharing. He noted further that assistant-secretary 
level leadership ``increases visibility and 
accountability.''\4\ Therefore, the Committee finds that 
elevating relevant energy emergency and security functions 
within DOE leadership will enhance the accountability for and 
the quality and speed of information sharing with the 
Department of Homeland Security. This in turn will strengthen 
the necessary coordination between the Cabinet agencies and the 
sharing of information across all critical infrastructure 
sectors.
---------------------------------------------------------------------------
    \4\See oral Testimony of Under Secretary Mark Menezes, U.S. 
Department of Energy, Before the Subcommittee on Energy, Committee on 
Energy and Commerce, March 14, 2018.
---------------------------------------------------------------------------
    The Committee also finds that H.R. 5174, by establishing 
energy emergency leadership explicitly in the Department of 
Energy Organization Act, ensures the benefits of elevated 
leadership over the relevant missions will endure. Tristan 
Vance, Chief Energy Officer of Indiana, testifying on behalf of 
the National Association of State Energy Officials, testified 
that the creation of the CSER office ``is precisely the type of 
action needed to modernize and improve our states' and the 
nation's ability to respond to and mitigate the risks of energy 
supply disruptions from all hazards.'' He also noted that the 
bill ``would elevate and make permanent this core DOE function, 
and NASEO strongly supports the subcommittee's action.''\5\
---------------------------------------------------------------------------
    \5\See Written Testimony of Tristan Vance, Director, Indiana Office 
of Energy Development, Chief Energy Officer of Indiana, Before the 
Subcommittee on Energy, Committee on Energy and Commerce, March 14, 
2018.
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                            Committee Action

    On March 14, 2018 the Subcommittee on Energy held a hearing 
on H.R. 5175 entitled, ``DOE Modernization: Legislation 
Addressing Cybersecurity and Emergency Response.'' The 
Subcommittee received testimony from:
           Mark Menezes, Under Secretary of Energy, 
        U.S. Department of Energy;
           Scott Aaronson, Vice President, Security and 
        Preparedness, Edison Electric Institute;
           Mark Engels, Senior Enterprise Security 
        Advisor, Dominion Energy;
           Tristan Vance, Director, Office of Energy 
        Development, State of Indiana on behalf of the National 
        Association of State Energy Officials;
           Zachary Tudor, Associate Laboratory Director 
        for National and Homeland Security, Idaho National 
        Laboratory; and,
           Kyle Pistor, Vice President of Government 
        Relations, National Electrical Manufacturers 
        Association.
    On April 18, 2018, the Subcommittee on Energy met in open 
markup session and forwarded H.R. 5174, without amendment, to 
the full Committee by a voice vote.
    On May 9, 2018, the full Committee on Energy and Commerce 
met in open markup session and ordered H.R. 5174, without 
amendment, favorably reported to the House by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. There were no record votes taken in connection with 
ordering H.R. 5174 reported.

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held a hearing and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 5174 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
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, May 17, 2018.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5174, the Energy 
Emergency Leadership Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 5174--Energy Emergency Leadership Act

    H.R. 5174 would amend the Department of Energy (DOE) 
Organization Act to include functions related to energy 
emergencies and energy security among the duties to be assigned 
by the Secretary of Energy to one of DOE's assistant 
secretaries. Under the bill, that assistant secretary would be 
responsible for activities related to the physical and 
cybersecurity of energy infrastructure; planning and 
coordinating responses to energy emergencies; and providing 
security-related technical assistance to state, local and 
tribal governments.
    Using information from DOE, CBO estimates that enacting 
H.R. 5174 would not significantly affect the federal budget. 
H.R. 5174 would not affect the scope or cost of DOE's 
activities related to energy emergencies or energy security; as 
a result, CBO expects that any changes in federal spending 
under the bill--which would be subject to appropriation--would 
be small.
    H.R. 5174 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5174 would not affect 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 5174 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Megan Carroll. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                       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.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to ensure 
more effective implementation of the Department of Energy's 
energy emergency and cybersecurity responsibilities.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 5174 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, 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.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 5174 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee finds 
that H.R. 5174 contains 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

    Section 1 provides the short title of ``Energy Emergency 
Leadership Act.''

Section 2. Functions assigned to assistant secretaries

    Section 2 amends the Department of Energy Organization Act 
to include energy emergency and energy security among the 
functions that the Secretary of Energy shall assign to an 
Assistant Secretary; provides that these functions include 
responsibilities with respect to infrastructure, cybersecurity, 
emerging threats, supply and emergency planning, coordination, 
response, and restoration; and provides that these functions 
also include the provision of technical assistance, support, 
and response capabilities with respect to energy security 
threats, risks, and incidents to State, local, and tribal 
governments and the energy sector.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                 DEPARTMENT OF ENERGY ORGANIZATION ACT




           *       *       *       *       *       *       *
TITLE II--ESTABLISHMENT OF THE DEPARTMENT

           *       *       *       *       *       *       *



                         assistant secretaries

  Sec. 203. (a) There shall be in the Department 8 Assistant 
Secretaries, each of whom shall be appointed by the President, 
by and with the advice and consent of the Senate; who shall be 
compensated at the rate provided for at level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code; and who shall perform, in accordance with applicable law, 
such of the functions transferred or delegated to, or vested 
in, the Secretary as he shall prescribe in accordance with the 
provisions of this Act. The functions which the Secretary shall 
assign to the Assistant Secretaries include, but are not 
limited to, the following:
          (1) Energy resource applications, including functions 
        dealing with management of all forms of energy 
        production and utilization, including fuel supply, 
        electric power supply, enriched uranium production, 
        energy technology programs, and the management of 
        energy resource leasing procedures on Federal lands.
          (2) Energy research and development functions, 
        including the responsibility for policy and management 
        of research and development for all aspects of--
                  (A) solar energy resources;
                  (B) geothermal energy resources;
                  (C) recycling energy resources;
                  (D) the fuel cycle for fossil energy 
                resources; and
                  (E) the fuel cycle for nuclear energy 
                resources.
          (3) Environmental responsibilities and functions, 
        including advising the Secretary with respect to the 
        conformance of the Department's activities to 
        environmental protection laws and principles, and 
        conducting a comprehensive program of research and 
        development on the environmental effects of energy 
        technologies and programs.
          (4) International programs and international policy 
        functions, including those functions which assist in 
        carrying out the international energy purposes 
        described in section 102 of this Act.
          (6) Intergovernmental policies and relations 
        including responsibilities for assuring that national 
        energy policies are reflective of and responsible to 
        the needs of State and local governments, and for 
        assuring that other components of the Department 
        coordinate their activities with State and local 
        governments, where appropriate, and develop 
        intergovernmental communications with State and local 
        governments.
          (7) Competition and consumer affairs, including 
        responsibilities for the promotion of competition in 
        the energy industry and for the protection of the 
        consuming public in the energy policymaking processes, 
        and assisting the Secretary in the formulation and 
        analysis of policies, rules, and regulations relating 
        to competition and consumer affairs.
          (8) Nuclear waste management responsibilities, 
        including--
                  (A) the establishment of control over 
                existing Government facilities for the 
                treatment and storage of nuclear wastes, 
                including all containers, casks, buildings, 
                vehicles, equipment, and all other materials 
                associated with such facilities;
                  (B) the establishment of control over all 
                existing nuclear waste in the possession or 
                control of the Government and all commercial 
                nuclear waste presently stored on other than 
                the site of a licensed nuclear power electric 
                generating facility, except that nothing in 
                this paragraph shall alter or effect title to 
                such waste;
                  (C) the establishment of temporary and 
                permanent facilities for storage, management, 
                and ultimate disposal of nuclear wastes;
                  (D) the establishment of facilities for the 
                treatment of nuclear wastes;
                  (E) the establishment of programs for the 
                treatment, management, storage, and disposal of 
                nuclear wastes;
                  (F) the establishment of fees or user charges 
                for nuclear waste treatment or storage 
                facilities, including fees to be charged 
                Government agencies; and
                  (G) the promulgation of such rules and 
                regulations to implement the authority 
                described in this paragraph,
        except that nothing in this section shall be construed 
        as granting to the Department regulatory functions 
        presently within the Nuclear Regulatory Commission, or 
        any additional functions than those already conferred 
        by law.
          (9) Energy conservation functions, including the 
        development of comprehensive energy conservation 
        strategies for the Nation, the planning and 
        implementation of major research and demonstration 
        programs for the development of technologies and 
        processes to reduce total energy consumption, the 
        administration of voluntary and mandatory energy 
        conservation programs, and the dissemination to the 
        public of all available information on energy 
        conservation programs and measures.
          (10) Power marketing functions, including 
        responsibility for marketing and transmission of 
        Federal power.
          (11) Public and congressional relations functions, 
        including responsibilities for providing a continuing 
        liaison between the Department and the Congress and the 
        Department and the public.
          (12) Energy emergency and energy security functions, 
        including--
                  (A) responsibilities with respect to 
                infrastructure, cybersecurity, emerging 
                threats, supply, and emergency planning, 
                coordination, response, and restoration; and
                  (B) upon request of a State, local, or tribal 
                government or energy sector entity, and in 
                consultation with other Federal agencies as 
                appropriate, provision of technical assistance, 
                support, and response capabilities with respect 
                to energy security threats, risks, and 
                incidents.
  (b) At the time the name of any individual is submitted for 
confirmation to the position of Assistant Secretary, the 
President shall identify with particularity the function or 
functions described in subsection (a) (or any portion thereof) 
for which such individual will be responsible.

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