[House Report 117-50]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 117-50
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DOMAINS CRITICAL TO HOMELAND SECURITY ACT
_______
June 1, 2021.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 3264]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 3264) to amend the Homeland Security Act of 2002
to require research and development to identify and evaluate
the extent to which critical domain risks within the United
States supply chain pose a substantial threat to homeland
security, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and
Tax Expenditures............................................... 4
Federal Mandates Statement....................................... 4
Duplicative Federal Programs..................................... 4
Statement of General Performance Goals and Objectives............ 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits Advisory Committee Statement.......................... 4
Applicability to Legislative Branch.............................. 4
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
Purpose and Summary
H.R. 3264, the ``Domains Critical to Homeland Security
Act'' authorizes the Department of Homeland Security (DHS) to
conduct research and development into supply chain risks for
critical domains of the United States economy. The research
shall include a risk analysis for each critical domain to
determine potential homeland security threats caused by
disruption, corruption, exploitation, or dysfunction of the
domain. Based on the results of the risk analysis, DHS is
authorized to do further research into those critical domains
considered highest risk to analyze the industries within the
domains, examine performance under varying conditions, and
identify ways to establish supply chain resiliency, among other
things. The Secretary of Homeland Security is required to
report annually to Congress through fiscal year 2026 on the
results of the Department's research, along with actions the
Secretary has taken or plans to take in response to the
results.
Background and Need for Legislation
America's economic and homeland security depends on diverse
and resilient supply chains that facilitate an uninterrupted
flow of goods, services, information, and technology across the
Nation's physical and virtual borders. Disruptions caused by
natural or manmade phenomena, such as extreme weather events,
cyber attacks, geopolitical and economic competition, and other
conditions can reduce critical manufacturing capacity and the
availability and integrity of critical goods, products, and
services.
For example, the COVID-19 pandemic revealed vulnerabilities
in the Nation's medical supply chain. Persistent shortages of
personal protective equipment and testing supplies due to
limited domestic production and high global demand hampered
America's ability to combat and contain the virus.\1\ The May
2021 ransomware attack on the Colonial Pipeline Company
demonstrated the fragility of the Nation's energy supply chain
when a brief shutdown of the company's 5,550-mile pipeline--the
largest conduit of gasoline in the country--drove up gas prices
and spurred gas shortages in the southeastern and mid-Atlantic
States.\2\ An increasing global shortage of microchips has also
impacted a variety of industries, from car manufacturing to
household appliances, resulting in production delays and
reduced innovation.\3\
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\1\U.S. Government Accountability Office, COVID-19: Key Insights
from GAO's Oversight of the Federal Public Health Response, (Feb. 24,
2021), available at https://www.gao.gov/products/GAO-21-396T.
\2\Will Englund and Ellen Nakashima, ``Panic buying strikes
Southeastern United States as shuttered pipeline resumes operations,''
The Washington Post, (May 12, 2021), available at https://
www.washingtonpost.com/business/2021/05/12/gas-shortage-colonial-
pipeline-live-updates.
\3\Sam Shead, ``The global chip shortage is starting to have major
real-world consequences,'' CNBC, (May 7, 2021), available at https://
www.cnbc.com/2021/05/07/chip-shortage-is-starting-to-have-major-real-
world-consequences.html.
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Identifying and mitigating vulnerabilities in critical U.S.
supply chain domains is paramount to ensuring America's
economic security. In 2020, DHS conducted an assessment of the
current state of the global economy and identified trends that,
if unaddressed, could endanger the future prosperity of the
U.S. economy.\4\ The Committee notes that the Office of Trade
and Economic Security within the DHS Office of Strategy,
Policy, and Plans has been responsible for leading this effort
and would expect the Secretary to engage with the Committee
should the Secretary choose to direct this effort to be carried
out elsewhere in the Department. H.R. 3264 authorizes DHS to
expand upon the 2020 assessment by further researching and
analyzing the risks to critical U.S. supply chain domains. The
annual report required by this bill will identify and
prioritize those supply chains most critical to our homeland.
This will enable the public and private sectors to take
meaningful action to mitigate risks and ensure the long-term
economic security of the United States.
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\4\U.S. Department of Homeland Security, Office of Strategy,
Policy, and Plans, and Office of Trade and Economic Security, ``2020
Economic Security Assessment,'' available at https://www.dhs.gov/sites/
default/files/publications/21_0111_economic-security-assessment-annual-
report.pdf.
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Hearings
For the purposes of clause 3(c)(6) of rule XIII, the
following hearings were used to develop H.R. 3264:
On February 10, 2021, the Committee held a hearing entitled
``Homeland Cybersecurity: Assessing Cyber Threats and Building
Resilience.'' The Committee received testimony from Mr.
Christopher Krebs, Former Director of the Cybersecurity and
Infrastructure Security Agency, DHS; Ms. Sue Gordon, Former
Principal Deputy of National Intelligence, Office of the
Director of National Intelligence; Mr. Michael Daniel,
President and Chief Executive Officer, Cyber Threat Alliance;
and Mr. Dmitri Alperovitch, Executive Chairman, Silverado
Policy Accelerator.
On February 24, 2021, the Committee held a hearing entitled
``Confronting the Coronavirus: Perspectives on the COVID-19
Pandemic One Year Later.'' The Committee received testimony
from Ms. A. Nicole Clowers, Managing Director, Health Care
Team, U.S. Government Accountability Office; Ms. Crystal
Watson, DrPH, Senior Scholar, Johns Hopkins Center for Health
Security, Assistant Professor in the Department of
Environmental Health and Engineering, Johns Hopkins Bloomberg
School of Public Health; Dr. Ngozi O. Ezike, MD, Director,
Illinois Department of Public Health; and Mr. J. Ryan McMahon
II, County Executive, Onondaga County, New York.
Committee Consideration
The Committee met on May 18, 2021, with a quorum being
present, to consider H.R. 3264 and ordered the measure to be
reported to the House with a favorable recommendation, without
amendment, by unanimous consent.
No amendments were offered during consideration of H.R.
3264.
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. 3264.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee advises that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Congressional Budget Office Estimate, New Budget Authority, Entitlement
Authority, and Tax Expenditures
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974, and with
respect to the requirements of clause 3(c)(3) of rule XIII of
the Rules of the House of Representatives and section 402 of
the Congressional Budget Act of 1974, the Committee has
requested but not received from the Director of the
Congressional Budget Office a statement as to whether this bill
contains any new budget authority, spending authority, credit
authority, or an increase or decrease in revenues or tax
expenditures.
Federal Mandates Statement
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Duplicative Federal Programs
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 3264 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the objective of H.R. 3264 is to
authorize DHS to conduct research and development into supply
chain risks for critical domains of the United States economy
and to annually report on the results of the research and
actions to address any identified risks.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits Advisory Committee Statement
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(d), 9(e), or 9(f) of rule XXI.
Applicability to Legislative Branch
The Committee finds that H.R. 3264 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 states that the Act may be cited as the
``Domains Critical to Homeland Security Act.''
Sec 2. Critical Domain Research and Development.
This section amends subtitle H of title VIII of the
Homeland Security Act of 2002 to authorize the Secretary of
Homeland Security to conduct research and development to
identify United States critical domains for economic security
and evaluate the extent to which disruption, corruption,
exploitation, or dysfunction of any such domain poses a
substantial threat to homeland security.
This section requires that the research conducted by the
Secretary of Homeland Security include a risk analysis of each
identified United States critical domain for economic security
to determine the degree to which there exists a present or
future threat to homeland security in the event of disruption,
corruption, exploitation, or dysfunction to such domain. Such
analysis shall consider, to the extent possible, the
vulnerability and resilience of relevant supply chains,
influence of malign economic actors, and asset ownership, among
other things.
Based on the identification and risk analysis of United
States critical domains for economic security, this section
authorizes the Secretary to conduct additional research into
those critical domains where there exists the highest degree of
a present or future threat to homeland security. For each such
high-risk domain, the additional research shall analyze the
industries within the domain, examine performance under varying
conditions, and identify ways to establish supply chain
resiliency, among other things.
This section allows the Secretary to consult with
appropriate Federal agencies, State agencies, and private
sector stakeholders when conducting the authorized research. It
also directs the Secretary to publish a report annually through
fiscal year 2026 containing information relating to the
Department's research, including findings, evidence, analysis,
and recommendations. The section also directs the Secretary to
transmit the required annual reports to Congress along with a
description of the actions the Secretary will take or has taken
in response to the research results.
Lastly, this section defines the terms ``United States
critical domains for economic security'' and ``economic
security,'' and authorizes $1 million to be appropriated for
each of fiscal years 2022 through 2026 for the purpose of
conducting the research and producing the required reports.
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 italics and existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Homeland
Security Act of 2002''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle H--Miscellaneous Provisions
* * * * * * *
Sec. 890B. Homeland security critical domain research and development.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle H--Miscellaneous Provisions
* * * * * * *
SEC. 890B. HOMELAND SECURITY CRITICAL DOMAIN RESEARCH AND DEVELOPMENT.
(a) In General.--
(1) Research and development.--The Secretary is
authorized to conduct research and development to--
(A) identify United States critical domains
for economic security and homeland security;
and
(B) evaluate the extent to which disruption,
corruption, exploitation, or dysfunction of any
of such domain poses a substantial threat to
homeland security.
(2) Requirements.--
(A) Risk analysis of critical domains.--The
research under paragraph (1) shall include a
risk analysis of each identified United States
critical domain for economic security to
determine the degree to which there exists a
present or future threat to homeland security
in the event of disruption, corruption,
exploitation, or dysfunction to such domain.
Such research shall consider, to the extent
possible, the following:
(i) The vulnerability and resilience
of relevant supply chains.
(ii) Foreign production, processing,
and manufacturing methods.
(iii) Influence of malign economic
actors.
(iv) Asset ownership.
(v) Relationships within the supply
chains of such domains.
(vi) The degree to which the
conditions referred to in clauses (i)
through (v) would place such a domain
at risk of disruption, corruption,
exploitation, or dysfunction.
(B) Additional research into high-risk
critical domains.--Based on the identification
and risk analysis of United States critical
domains for economic security pursuant to
paragraph (1) and subparagraph (A) of this
paragraph, respectively, the Secretary may
conduct additional research into those critical
domains, or specific elements thereof, with
respect to which there exists the highest
degree of a present or future threat to
homeland security in the event of disruption,
corruption, exploitation, or dysfunction to
such a domain. For each such high-risk domain,
or element thereof, such research shall--
(i) describe the underlying
infrastructure and processes;
(ii) analyze present and projected
performance of industries that comprise
or support such domain;
(iii) examine the extent to which the
supply chain of a product or service
necessary to such domain is
concentrated, either through a small
number of sources, or if multiple
sources are concentrated in one
geographic area;
(iv) examine the extent to which the
demand for supplies of goods and
services of such industries can be
fulfilled by present and projected
performance of other industries,
identify strategies, plans, and
potential barriers to expand the
supplier industrial base, and identify
the barriers to the participation of
such other industries;
(v) consider each such domain's
performance capacities in stable
economic environments, adversarial
supply conditions, and under crisis
economic constraints;
(vi) identify and define needs and
requirements to establish supply
resiliency within each such domain; and
(vii) consider the effects of sector
consolidation, including foreign
consolidation, either through mergers
or acquisitions, or due to recent
geographic realignment, on such
industries' performances.
(3) Consultation.--In conducting the research under
paragraph (1) and subparagraph (B) of paragraph (2),
the Secretary may consult with appropriate Federal
agencies, State agencies, and private sector
stakeholders.
(4) Publication.--Beginning one year after the date
of the enactment of this section, the Secretary shall
publish a report containing information relating to the
research under paragraph (1) and subparagraph (B) of
paragraph (2), including findings, evidence, analysis,
and recommendations. Such report shall be updated
annually through 2026.
(b) Submission to Congress.--Not later than 90 days after the
publication of each report required under paragraph (4) of
subsection (a), the Secretary shall transmit to the Committee
on Homeland Security of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs of the
Senate each such report, together with a description of actions
the Secretary, in consultation with appropriate Federal
agencies, will undertake or has undertaken in response to each
such report.
(c) Definitions.--In this section:
(1) United states critical domains for economic
security.--The term ``United States critical domains
for economic security'' means the critical
infrastructure and other associated industries,
technologies, and intellectual property, or any
combination thereof, that are essential to the economic
security of the United States.
(2) Economic security.--The term ``economic
security'' means the condition of having secure and
resilient domestic production capacity, combined with
reliable access to the global resources necessary to
maintain an acceptable standard of living and to
protect core national values.
(d) Authorization of Appropriations.--There is authorized to
be appropriated $1,000,000 for each of fiscal years 2022
through 2026 to carry out this section.
* * * * * * *