[Federal Register Volume 84, Number 60 (Thursday, March 28, 2019)]
[Notices]
[Pages 11777-11779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05894]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD19-12-000]


Security Investments for Energy Infrastructure Technical 
Conference; Supplemental Notice of Technical Conference

    Take notice that the Federal Energy Regulatory Commission 
(Commission) and the United States Department of Energy (DOE) will co-
host a Security Investments for Energy Infrastructure Technical 
Conference (conference) on Thursday, March 28, 2019, from 10:00 a.m. to 
4:00 p.m. This Commissioner- and DOE senior official-led conference 
will be held in the Commission Meeting Room at the Federal Energy 
Regulatory Commission, 888 First Street NE, Washington, DC 20426. The 
purpose of the conference is to discuss current cyber and physical 
security practices used to protect energy infrastructure and will 
explore how federal and state authorities can provide incentives and 
cost recovery for security investments in energy infrastructure, 
particularly the electric and natural gas sectors. Attached is the 
final agenda for this event with the confirmed list of panelists.
    The conference will be open and free to the public; however, 
interested attendees are encouraged to preregister online at: https://www.ferc.gov/whats-new/registration/03-28-19-form.asp. In-person 
attendees should allow ample time to pass through building security 
procedures before the 10:00 a.m. start time of the conference.
    The Commission intends to solicit post-technical conference 
comments and will issue a public notice with further directions 
following the conclusion of the conference.
    Information regarding the conference will be posted on the Calendar 
of Events on the Commission's website, http://www.ferc.gov, prior to 
the event. The conference will also be webcast and transcribed. Anyone 
with internet access who desires to listen to this event can do so by 
navigating to the Calendar of Events at http://www.ferc.gov and 
locating this event in the Calendar. The event will contain a link to 
the webcast. The Capitol Connection provides technical support for 
webcasts and offers the option of listening to the meeting via phone-
bridge for a fee. If you have any questions, visit http://www.CapitolConnection.org or call (703) 993-3100. Transcripts of the 
technical conference will be available for a fee from Ace-Federal 
Reporters, Inc. at (202) 347-3700.
    Commission conferences are accessible under section 508 of the 
Rehabilitation Act of 1973. For accessibility accommodations, please 
send an email to [email protected] or call toll free 1 (866) 208-
3372 (voice) or (202) 502-8659 (TTY), or send a fax to (202) 208-2106 
with the required accommodations.
    For more information about this technical conference, please 
contact Carolyn Templeton by phone at (202) 502-8785 or by email at 
[email protected]. For information related to logistics, 
please contact Sarah McKinley at (202) 502-8368 or by email at 
[email protected].

    Dated: March 21, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.

FERC/DOE Security Investments for Energy Infrastructure Technical 
Conference

Docket No. AD19-12-000

Thursday, March 28, 2019--10:00 a.m.-4:00 p.m.

    The Commission has a well-developed set of mandatory and 
enforceable reliability standards that set baseline protections for 
both cyber and physical security of the bulk electric system. Moreover, 
the Commission has well established policies that allow for the 
opportunity to recover prudently incurred costs to comply with those 
mandatory reliability standards. This technical conference is aimed at 
better understanding (1) the need for security investments that go 
beyond those measures already required by mandatory reliability 
standards, including in infrastructure not subject to those standards 
(e.g., natural gas pipelines); (2) how the costs of such investments 
are or could be recovered; and (3) whether additional incentives for 
making such investments are needed, and if so, how those incentives 
should be designed.

10:00 a.m. Opening Remarks and Introductions
10:30 a.m. Panel I: Cyber and Physical Security, Best Practices, and 
Industry and Government Engagement

    Objectives: This panel will discuss types of cyber and physical 
security threats to energy infrastructure, particularly electric 
transmission, generation, and natural gas pipelines. In addition, the 
panel will explore best practices for cyber and physical security 
mitigation beyond those measures already required by mandatory

[[Page 11778]]

reliability standards and industry and government engagement needed to 
address these matters. Panelists will be asked to address the 
following:
    Threats to Energy Infrastructure:
    1. What cyber and physical security threats are most concerning for 
the energy industry? What critical factors should industry consider 
when evaluating the risk these threats present and prioritizing risk-
mitigating security initiatives to address these threats?
    2. Does industry have adequate resources to evaluate sophisticated 
threats such as whether adversaries have established access to their 
networks, whether insider threats exist, or whether supply chain 
equipment or subcomponents are compromised?
    3. How are interdependencies among energy infrastructure sectors 
considered in risk management analyses?
    4. What are some of the challenges (e.g., staffing or technology), 
that industry faces, in order to keep current with the threats?
    5. What other current or emerging threats should be addressed? For 
example, what are some of the types of physical and cyber security 
threats that Unmanned Aircraft Systems (i.e., drones) can present? What 
experience has industry had with commercially-available products used 
to address these issues?
    Mitigation: Strategies and Best Practices:
    6. What are some of the best practices that industry uses to ensure 
effective action against cyber and physical security threats? Are 
adequate tools available for industry to assess where to apply best 
practices (e.g., risk management analyses) for cyber and physical 
security threats? Do these analyses differ between cyber and physical 
security threats?
    7. How does industry validate the effectiveness of, and maintain 
its mitigation techniques/measures (e.g., red teaming, manufacturers 
recommendations) for, both physical and cyber protection? What are the 
processes to confirm the results are addressed? Are these lessons 
shared with others in the industry?
    8. What resources are available to assist industry in evaluating 
risk to energy infrastructure and implementing mitigation measures, 
especially for small to medium size owners and operators?
    9. What training opportunities are available to owners and 
operators to understand the various risks to their energy 
infrastructure and the measures taken to mitigate against physical and 
cyber threats? What training is necessary and not available?
    10. How does industry mitigate key vulnerabilities to address 
disruptions from a cyber or physical attack or an extreme natural event 
(e.g., geomagnetic disturbance)? How should spare equipment, sharing 
programs, contractor and mutual assistance programs, and other 
processes be considered in addressing disruptions? What role should the 
federal government play in helping industry prevent and respond to 
disruptions? What preparations should be made by industry to assure 
adequate response and recovery efforts?
    Panelists:

     William R. Evanina; Director, Office of the Director of 
National Intelligence, National Counterintelligence and Security Center
     Robert Kolasky; Director, Department of Homeland Security, 
Cybersecurity and Infrastructure Security Agency, National Risk 
Management Center
     Charles P. Kosak; Deputy Assistant Secretary, Department 
of Defense, Defense Continuity and Mission Assurance
     Sonya T. Proctor; Assistant Administrator of Surface 
Operations Department of Homeland Security, Transportation Security 
Administration, Security Operations
     Nicholas K. Akins; President and CEO, American Electric 
Power
     Mark A. Gabriel; Administrator and CEO, Western Area Power 
Administration
     James B. Robb; President and CEO, North American Electric 
Reliability Corporation
     Thomas J. Galloway; President and CEO, North American 
Transmission Forum
     Donald F. Santa; President and CEO, Interstate Natural Gas 
Association of America
12:30 p.m. Lunch Break
1:45 p.m. Panel II: Incentives and Cost Recovery for Security 
Investments

    Objectives: This panel will explore how federal and state 
authorities can provide incentives and cost recovery for security 
investments in energy infrastructure, particularly electric 
transmission, generation, and natural gas pipeline infrastructure. 
Panelists will be asked to address the following:
    Cost Recovery:
    1. What role do states currently play in requiring and/or 
facilitating energy infrastructure security investments? Do states 
require industry to have plans and programs to prevent and recover from 
cyber and physical attacks? Is industry subject to requirements to 
assess risk and prioritize action based on state priorities?
    2. Are current cost recovery policies of the federal and state 
governments affecting the ability of owners and operators of energy 
infrastructure to invest in cyber and physical security for this energy 
infrastructure? Do federal and state policies complement or conflict 
with each other? Are these policies helping or hindering security 
investments?
    3. Do cost recovery policies at the state and federal level 
facilitate the adoption of best practices for threat mitigation at 
energy infrastructures? Do they allow for cost recovery for investment 
to address mitigation of new and emerging threats (e.g., intentional 
electromagnetic interference and electromagnetic pulse)?
    4. Is FERC's September 14, 2001 Statement of Policy on 
Extraordinary Expenditures Necessary to Safeguard National Energy 
Supplies \1\ still helpful to facilitate investment that supports 
physical and cyber security of energy infrastructure, or are any 
revisions to the Policy Statement needed to facilitate such investment?
---------------------------------------------------------------------------

    \1\ Extraordinary Expenditures Necessary to Safeguard National 
Energy Supplies, 96 FERC ] 61,299 (2001) (Policy Statement).
---------------------------------------------------------------------------

    5. For competitive generators that do not recover their costs 
through retail rates, are there mechanisms under which they may recover 
costs for physical or cybersecurity investments other than through 
their market-based rates?
    6. If federal standards, guidelines, or authorities indicate that 
an energy facility is high-risk or critical (i.e., designation as 
Defense Critical Electric Infrastructure under Section 215A of the 
Federal Power Act), how would such designations be considered as a 
company prioritizes security investments? How would such a designation 
be considered by state regulators when reviewing cost recovery filings 
for measures taken above and beyond compliance with mandatory 
reliability standards?
    7. What factors should the states be aware of when reviewing cost 
recovery filings for cyber and physical security investments? Can these 
factors be included on an industry-wide or multi-state level?
    8. Certain events could require significant unbudgeted resources to 
respond effectively. How should these costs be considered by federal 
and state authorities for cost recovery?
    Financial Incentives:
    9. What type of incentives would be most effective to facilitate 
investment in

[[Page 11779]]

cyber and physical security? How could costs for these incentives be 
recovered?
    10. How could the Commission use its authority under Section 219 of 
the Federal Power Act to establish incentives for improved cyber and 
physical security? Are there other ratemaking or accounting changes 
that would help incent investments in cyber and physical security?
    11. Are there any grants or other cost recovery mechanisms 
available for industry to assist with security investments at their 
facilities?
    12. What changes could federal and state authorities make to 
current policies to better incent the adoption of best practices for 
cyber and physical security at energy infrastructure facilities?
    13. How should state and federal authorities prioritize incentives 
for various security investments? How should such incentives balance 
the need for improved security with the rate impact on consumers?
    Panelists:

     Christopher M. Crane; President and CEO, Exelon 
Corporation
     Nicholas A. Brown; President and CEO, Southwest Power 
Pool, Inc.
     Jay Scott Emler; Commissioner, Kansas Corporation 
Commission
     Kevin G. Wailes; CEO, Lincoln Electric System and Co-
Chair, Electricity Subsector Coordinating Council
     Paul Kjellander; Commissioner, Idaho Public Utilities 
Commission
     Alan S. Armstrong; President and CEO, Williams
     Upendra J. Chivukula; Commissioner, New Jersey Board of 
Public Utilities
3:45 p.m. Closing Remarks
4:00 p.m. Adjourn

[FR Doc. 2019-05894 Filed 3-27-19; 8:45 am]
BILLING CODE 6717-01-P