[Senate Report 118-234]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 547

118th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 118-234

======================================================================
                       INDUSTRIAL CONTROL SYSTEMS 
                  CYBERSECURITY COMPETITION ACT OF 2024

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 3635

                     TO IMPROVE THE PRESIDENT'S CUP
                       CYBERSECURITY COMPETITIONS

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               November 12, 2024.--Ordered to be printed
               
                               __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2024                    
          
-----------------------------------------------------------------------------------                  
              
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
LAPHONZA R. BUTLER, California       ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
                      Alan S. Kahn, Chief Counsel
         Christopher J. Mulkins, Director of Homeland Security
              Emily A. Ferguson, Professional Staff Member
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
          Kendal B. Tigner, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     
                                                  Calendar No. 547

118th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 118-234

======================================================================
 
                        INDUSTRIAL CONTROL SYSTEMS 
                  CYBERSECURITY COMPETITION ACT OF 2024
                    
                               _______
                                

               November 12, 2024.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3635]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3635) to improve 
the President's Cup Cybersecurity Competitions, having 
considered the same, reports favorably with an amendment, in 
the nature of a substitute, and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section-by-Section Analysis of the Bill, as Reported.............4
  V. Evaluation of Regulatory Impact..................................5
 VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............6

                         I. Purpose and Summary

    S. 3635, the Industrial Control Systems Cybersecurity 
Competition Act, enables the Cybersecurity and Infrastructure 
Security Agency (CISA) to include additional competition 
parameters in the annual President's Cup Cybersecurity 
Competition. The bill authorizes the Department of Homeland 
Security (DHS) to include operational technology (OT) and 
industrial control systems (ICS) as part of the competition. 
Currently, the competition is not required to specifically 
include categories for OT and ICS.

              II. Background and Need for the Legislation

    Cyber threats to the United States are constantly evolving 
and cyber threat actors are developing new tools and employing 
new strategies to impact our national security by hacking into 
important systems and networks.\1\ Both state-sponsored and 
cybercriminal actors have targeted critical infrastructure 
owners and operators across the nation, seeking ransoms, 
information, attention, and in some cases, burrowing deeply 
into networks to preposition for future disruptive attacks.\2\ 
Federal experts from across the Intelligence Community, CISA, 
and others have repeatedly called for more attention to be paid 
to the cyber threats faced by critical infrastructure and to 
provide additional federal support to the sectors most at 
risk.\3\ Federal employee understanding of the technical 
nuances of protecting critical infrastructure, such as the OT 
and ICS systems, is a critical component of providing support 
and assistance to owners and operators across the nation.\4\
---------------------------------------------------------------------------
    \1\Department of Homeland Security, Secure Cyberspace and Critical 
Infrastructure (www.dhs.gov/secure-cyberspace-and-critical-
infrastructure) (accessed Mar. 26, 2024).
    \2\Major US, UK Water Companies Hit by Ransomware, Security Week 
(Jan. 24, 2024) (www.securityweek.com/major-us-uk-water-companies-hit-
by-ransomware/); Terrifying hacks on critical infrastructure have 
arrived. America isn't ready, The Hill (Dec. 12, 2023) (thehill.com/
opinion/cybersecurity/4353922-terrifying-hacks-on-critical-
infrastructure-have-arrived-america-isnt-ready/); High-impact attacks 
on critical infrastructure climb 140%, Security Intelligence (June 26, 
2023) (securityintelligence.com/news/high-impact-attacks-on-critical-
infrastructure-climb-140/).
    \3\Government Accountability Office, Cybersecurity High-Risk 
Series: Challenges in Protecting Cyber Critical Infrastructure (GAO-23-
106441) (Feb. 7, 2023).
    \4\Government Accountability Office, Improvements Needed in 
Addressing Risks to Operational Technology (GAO-24-106576) (Mar. 7, 
2024).
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    The 2024 ODNI Assessment found that ``China remains the 
most active and persistent cyber threat to U.S. Government, 
private-sector, and critical infrastructure networks.'' 
Additionally, it found that Russia ``maintains its ability to 
target critical infrastructure, including underwater cables and 
industrial control systems, in the United States . . .''. 
Iran's growing levels of expertise and willingness to conduct 
cyber operations against vulnerable, diverse targets further 
highlights the threats to critical infrastructure owners and 
operators. North Korea's ``cyber forces have matured and are 
fully capable of achieving a variety of strategic objectives 
against diverse targets, including a wider target set in the 
United States . . .''.\5\ Additionally, cybercriminals and 
ransomware gangs have increased their attacks on critical 
infrastructure, using the threat of disruption of service to 
extort public utilities and manufacturing entities.\6\
---------------------------------------------------------------------------
    \5\Office of the Director of National Intelligence, Annual Threat 
Assessment of the U.S. Intelligence Community (Mar. 11, 2024) 
(www.dni.gov/files/ODNI/documents/assessments/ATA-2024-Unclassified-
Report.pdf).
    \6\Cyberattacks Wreaking Physical Disruption on the Rise, Dark 
Reading (Apr. 2, 2024) (www.darkreading.com/ics-ot-security/
cyberattacks-wreaking-physical-disruption-on-the-rise); National 
Security Agency, Urgent Warning from Multiple Cybersecurity 
Organizations on Current Threat to OT Systems, Press Release (May 1, 
2024) (www.nsa.gov/Press-Room/Press-Releases-Statements/Press-Release-
View/Article/3761830/urgent-warning-from-multiple-cybersecurity-
organizations-on-current-threat-to-o/).
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    Critical infrastructure sectors rely on both IT and OT or 
ICS to conduct daily operations, monitor systems and networks, 
and ensure the safety of operations.\7\ OT and ICS are 
considered the backbone of most critical infrastructure 
entities and perform essential functions such as balancing 
electric grids, testing chemicals in drinking water, and 
assembling vehicles in factories.\8\ Historically and 
theoretically, successful attacks on OT and ICS can have an 
oversized impact on critical infrastructure compared to IT.\9\ 
An example of a successful attack includes the 2015 Ukraine 
power grid attack which cut off power to a large number of 
customers in the middle of winter.\10\ More recently, an 
Iranian-backed cyber group infiltrated water utility networks 
across the United States in a display of protest of the 
conflict in Gaza.\11\
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    \7\Cybersecurity and Infrastructure Security Agency, Securing 
Industrial Control Systems: A Unified Initiative (Jul. 2020) 
(www.cisa.gov/sites/default/files/publications/
Securing_Industrial_Control_Systems_S508C.pdf).
    \8\Microsoft CEE Multi-Country News Center, Cyber risks to critical 
infrastructure are on the rise (June 26, 2023) (news.microsoft.com/en-
cee/2023/06/26/cyber-risks-to-critical-infrastructure-are-on-the-rise/
).
    \9\The President's National Security Telecommunications Advisory 
Committee, NSTAC Report to the President on Information Technology and 
Operational Technology Convergence (Aug. 23, 2022) (www.cisa.gov/sites/
default/files/publications/NSTAC%20IT-OT%20Convergence%20
Report_508%20Compliant_0.pdf); 1 in 4 Organizations Shut Down OT 
Operations Due to Cyberattacks: Survey, Security Week (Mar. 20, 2024) 
(www.securityweek.com/1-in-4-organizations-shut-down-ot-operations-due-
to-cyberattacks-survey/); A Cyberattack on the U.S. Power Grid, Council 
on Foreign Relations (April 2017) (backend-live.cfr.org/sites/default/
files/pdf/2017/03/ContingencyPlanningMemo31_Knake.pdf).
    \10\Cybersecurity and Infrastructure Security Agency, Cyber-Attack 
Against Ukrainian Critical Infrastructure (July 20, 2021) 
(www.cisa.gov/news-events/ics-alerts/ir-alert-h-16-056-01); Inside the 
Cunning, Unprecedented Hack of Ukraine's Power Grid, Wired (Mar. 3, 
2016) (www.wired.com/2016/03/inside-cunning-unprecedented-hack-
ukraines-power-grid/).
    \11\Breaches by Iran-Affiliated Hackers Spanned Multiple U.S. 
States, Federal Agencies Say, AP News (Dec. 2, 2023) (apnews.com/
article/hackers-iran-israel-water-utilities-critical-infrastructure-
cisa-554b2aa969c8220016ab2ef94bd7635b); Federal government 
investigating multiple hacks of US water utilities, Politico (Nov. 28, 
2023) (www.politico.com/news/2023/11/28/federal-government-
investigating-multiple-hacks-of-us-water-utilities-
00128977#::text=Politico%20Logo&text=
The%20federal%20government%20is%20investigating,individuals%20familiar%2
0with%20the%
20probes).
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    In March 2024, the Government Accountability Office (GAO) 
published a report highlighting CISA's struggle to plan and 
respond to potential significant attacks across critical 
infrastructure systems, noting that there were very limited 
staff with OT/ICS-specific competency.\12\ As part of these 
engagements with critical infrastructure, CISA and other 
federal employees must understand the nuances in operating and 
protecting IT, OT, and ICS.
---------------------------------------------------------------------------
    \12\Government Accountability Office, Cybersecurity: Improvements 
Needed in Addressing Risks to Operational Technology (GAO-24-106576) 
(Mar. 7, 2024) (https://www.gao.gov/assets/d24106576.pdf).
---------------------------------------------------------------------------
    A technical training opportunity for federal employees is 
the annual President's Cup Cybersecurity Competition. 
Established in 2019 by E.O. 13870, the competition trains, 
identifies, and rewards the best cybersecurity talent in the 
federal workforce, including military members.\13\ CISA leads 
and hosts the annual competition as part of their mission to 
expand the size and capabilities of the cyber workforce, and 
the competition typically draws over a thousand participants. 
Participants are tested in a series of challenges following the 
National Institute for Standards and Technology (NIST) National 
Initiative for Cybersecurity Education (NICE) Cybersecurity 
Workforce Framework. The challenges include tasks related to 
cyber defense of networks, exploitation of systems, cyber 
forensics, and other technical skills.\14\ Currently, the 
President's Cup Cybersecurity Competition does not require 
categories related to skills needed to defend OT or ICS 
networks and systems.\15\
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    \13\Exec. Order No. 13870, 84 FR 20523 (May 2, 2019).
    \14\Cybersecurity and Infrastructure Security Agency, President's 
Cup FAQs (www.cisa.gov/presidents-cup-faqs) (Accessed Mar. 26, 2024).
    \15\Cybersecurity and Infrastructure Security Agency, President's 
Cup Cybersecurity Competition Challenge Repository (github.com/cisagov/
prescup-challenges).
---------------------------------------------------------------------------
    This bill mandates the President's Cup Cybersecurity 
Competition to expand its parameters to include OT and ICS in 
addition to IT categories at least every other competition. 
This will ideally improve cybersecurity by training federal 
employees on OT and ICS in addition to IT, increasing employee 
familiarity with the nuances of these systems, and allowing 
employees to more quickly respond to cyber incidents across 
critical infrastructure. Without a skilled workforce, threat 
hunting and incident response services voluntarily provided by 
the federal government to critical infrastructure entities 
would be less effective during significant cyberattacks.\16\
---------------------------------------------------------------------------
    \16\Government Accountability Office, Cybersecurity: Improvements 
Needed in Addressing Risks to Operational Technology (GAO-24-106576) 
(Mar. 7, 2024) (https://www.gao.gov/assets/d24106576.pdf).
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                        III. Legislative History

    Senator Gary C. Peters (D-MI) introduced S. 3635, the 
Industrial Control Systems Cybersecurity Competition Act, on 
January 22, 2024, with original cosponsor Senator Mike Braun 
(R-IN). The bill was referred to the Committee on Homeland 
Security and Governmental Affairs.
    The Committee considered S. 3635 at a business meeting on 
January 31, 2024. At the business meeting, Senator Peters 
offered a substitute amendment to the bill along with a 
modification to the substitute amendment. The Peters substitute 
amendment as twice modified changed the bill to include 
spending caps on the competition, a requirement to submit 
reports to Congress before initiating a new competition, a 
sunset, and no new funding. The Committee adopted the 
modification to the Peters substitute amendment, and the Peters 
substitute amendment as modified, by unanimous consent, with 
Senators Peters, Carper, Hassan, Rosen, Ossoff, Paul, Lankford, 
Romney, Scott, and Marshall present.
    The bill, amended by the Peters substitute amendment as 
twice modified, was ordered reported favorably by roll call 
vote of 9 yeas to 1 nay with Senators Peters, Carper, Hassan, 
Rosen, Ossoff, Lankford, Romney, Scott, and Marshall voting in 
the affirmative, and Senator Paul voting in the negative. 
Senators Sinema, Blumenthal, Butler, and Hawley voted yea by 
proxy, for the record only, and Senator Johnson voting in the 
negative by proxy, for the record only.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``Industrial Control Systems Cybersecurity Competition Act.''

Section 2. President's cup cybersecurity competitions

    Subsection (a) amends Section 7121 of the Homeland Security 
Act of 2002 (6 U.S.C. 665m) by striking subsection (d) 
paragraph (3), designating paragraphs (1), (2), and (4) as 
subparagraphs (A), (B), and (C), and striking ``each 
competition''. It adds a biennial requirement that the 
competition incorporate categories demonstrating offensive and 
defensive cyber operations involving information technology, 
operational technology or industrial control systems, or other 
categories of technology systems at determined appropriate. 
This subsection also provides for 20% caps on spending in items 
in subparagraph (A), (B), (C), and (D). Additionally, this 
subsection adds a requirement that the Director cannot hold a 
competition until the report for the previous year has been 
submitted to Congress. This subsection also adds a sunset of 5 
years to the competition.
    Subsection (b) adds no additional funds allowed to be 
appropriated for the purpose of carrying out the amendments 
made by the bill.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate




    S. 3635 would add new categories to an awards competition 
for the federal cybersecurity workforce that is conducted by 
the Cybersecurity and Infrastructure Security Agency (CISA). 
The bill would expand the categories comprising CISA's awards 
program to include knowledge of cyber threats to systems that 
are used in the automated control of critical infrastructure 
processes (such as power generation and water treatment).
    S. 3635 would not impose any new operating requirements on 
CISA, nor would it amend the cap on the total amount of money 
that can be awarded annually through the competition. As a 
result, CBO estimates that enacting the bill would not affect 
the federal budget.
    The CBO staff contact for this estimate is Aldo Prosperi. 
The estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 6--DOMESTIC SECURITY

           *       *       *       *       *       *       *


CHAPTER 1--HOMELAND SECURITY ORGANIZATION

           *       *       *       *       *       *       *



SUBCHAPTER XVIII--CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY

           *       *       *       *       *       *       *



SEC. 665M. PRESIDENT'S CUP CYBERSECURITY COMPETITION

    (a) * * *
    (b) * * *
    (c) * * *
    (d) Competition Parameters--
          [Each competition] (1) In general.--Each Competition 
        shall incorporate the following elements:
          [(1)](A) * * *
          [(2)](B) * * *
          [(3) Categories demonstrating offensive and defensive 
        cyber operations, such as software reverse engineering 
        and exploitation, network operations, forensics, big 
        data analysis, cyber analysis, cyber defense, cyber 
        exploitation, secure programming, obfuscated coding, or 
        cyber-physical systems.]
          [(4)](C) Any other elements related to [paragraphs 
        (1), (2), or (3)] subparagraph (A) or (B), as 
        determined necessary by the Director.
          (2) Biennial requirements.--Not less frequently than 
        every second competition, the competition shall 
        incorporate categories demonstrating offensive and 
        defensive cyber operations involving--
                  (A) information technology (as defined in 
                section 11101 of title 40, United States Code), 
                such as software reverse engineering and 
                exploitation, network operations, forensics, 
                big data analysis, cyber analysis, cyber 
                defense, cyber exploitation, secure 
                programming, and obfuscated coding;
                  (B) operational technology (as defined in 
                section 3 of the IoT Cybersecurity Improvement 
                Act of 2020 (15 U.S.C. 278g-3a)) or industrial 
                control systems (as defined in section 2220C of 
                the Homeland Security Act of 2002 (6 U.S.C. 
                665i)), such as knowledge of supervisory 
                control and data acquisition systems and the 
                protocols and communication methods used in 
                such systems, detection of anomalies, 
                exploitation of operational technology or 
                industrial control systems, and responding to 
                and recovering after incidents involving 
                operational technology or industrial control 
                systems; or
                  (C) any other category of technological 
                system requiring cybersecurity or information 
                security, as determined appropriate by the 
                Director.
    (e) Use of Funds.--
          (1) In general.--
          In order to further the goals and objectives of the 
        competition, the Director may use amounts made 
        available to the Director for the competition for 
        reasonable expenses for the following:
                  (A) Advertising, marketing, and promoting the 
                competition, which shall not exceed 20 percent 
                of the amounts made available for the 
                competition during any fiscal year.
                  (B) Meals for participants and organizers of 
                the competition if attendance at the meal 
                during the competition is necessary to maintain 
                the integrity of the competition, which shall 
                not exceed 20 percent of the amounts made 
                available for the competition during any fiscal 
                year.
                  (C) Promotional items, including merchandise 
                and apparel, which shall not exceed 20 percent 
                of the amounts made available for the 
                competition during any fiscal year.
                  (D) Consistent with section 4503 of title 5, 
                necessary expenses for the honorary recognition 
                of competition participants, including members 
                of the uniformed services, which shall not 
                exceed 20 percent of the amounts made available 
                for the competition during any fiscal year.

           *       *       *       *       *       *       *

    (h) Limitation.--The Director may not hold an annual 
cybersecurity competition under this section for a year until 
after the Director submits the report required under subsection 
(g) with respect to the competition held under this section 
during the previous year.
    (i) Sunset.--The Director may not conduct a competition 
under the authority under this section on or after the first 
day of the first year that begins more than 5 years after the 
date of enactment of the Industrial Control Systems 
Cybersecurity Competition Act.

           *       *       *       *       *       *       *


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