H. Rept. 116-255 - ENERGY EMERGENCY LEADERSHIP ACT116th Congress (2019-2020)

116th Congress }                                           { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                           { 116-255

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                    ENERGY EMERGENCY LEADERSHIP ACT

                                _______
                                

October 28, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 362]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 362) 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
  I. Purpose and Summary..............................................1
 II. Background and Need for Legislation..............................2
III. Committee Hearings...............................................4
 IV. Committee Consideration..........................................4
  V. Committee Votes..................................................5
 VI. Oversight Findings...............................................5
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures5
VIII.Federal Mandates Statement.......................................5

 IX. Statement of General Performance Goals and Objectives............5
  X. Duplication of Federal Programs..................................5
 XI. Committee Cost Estimate..........................................6
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......6
XIII.Advisory Committee Statement.....................................6

XIV. Applicability to Legislative Branch..............................6
 XV. Section-by-Section Analysis of the Legislation...................6
XVI. Changes in Existing Law Made by the Bill, as Reported............6

                         I. Purpose and Summary

    Reps. Bobby L. Rush (D-IL) and Tim Walberg (R-MI) 
introduced H.R. 362, the ``Energy Emergency Leadership Act'', 
on January 9, 2019. H.R. 362 amends the Department of Energy 
Organization Act to include energy emergency and energy 
security among the functions that the Department of Energy 
(DOE) Secretary shall assign to an Assistant Secretary.
    H.R. 362 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.

                II. 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 evolve 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, however DOE's 
responsibilities and authorities have evolved substantially 
beyond what was envisioned 40 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, the mission of DOE 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 (FPA), the Defense Production Act, and most recently with 
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 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 relating to the supply and delivery of energy, 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. The growing interconnectedness of energy 
systems and the surpassing national importance of ensuring the 
supply and delivery of energy against cyber threats, however, 
underscore the need to further consolidate and elevate the 
Department's energy emergency functions, which as noted above 
have not been updated since 1977.\3\
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    \3\For example, at the end of his tenure, which included reforms to 
the Department's emergency management programs, Secretary Ernest Moniz 
noted the need to further reorganize and consolidate the Department's 
emergency programs in his ``Cabinet Exit Memo,'' DOE, Jan. 5, 2017.
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    In keeping with this, on February 14, 2018, Secretary of 
Energy Rick Perry announced 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 is currently led by Assistant Secretary Karen 
S. Evans, whose work focuses on energy infrastructure security, 
supporting the expanded national security responsibilities 
assigned to DOE and reporting to the Under Secretary of 
Energy.\4\
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    \4\See Press Release, U.S. Department of Energy, ``Karen Evans 
Sworn in as DOE Assistant Secretary for Cybersecurity, Energy Security, 
and Emergency Response.'' (Sep. 4, 2018), https://www.energy.gov/
articles/karen-evans-sworn-doe-assistant-secretary-cybersecurity-
energy-security-and-emergency.
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    The Committee finds that H.R. 362 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 Under Secretary Mark Menezes 
agreed in testimony during the 115th Congress that elevating 
functions to Senate-confirmed level leadership would help 
intergovernmental and interagency communication, and 
information sharing to help DOE's ability to appropriately and 
quickly address cyber-related emergencies. He noted further 
that assistant-secretary level leadership ``increases 
visibility and accountability.''\5\
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    \5\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
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    The Committee also finds that H.R. 362, 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.

                        III. Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--(1) the following hearing was used to develop 
or consider H.R. 362: The Subcommittee on Energy held a hearing 
on July 12, 2019, entitled ``Keeping The Lights On: Addressing 
Cyber Threats To The Grid.'' The Subcommittee received 
testimony from the following witnesses:
           Karen S. Evans, Assistant Secretary, Office 
        of Cybersecurity, Energy Security, and Emergency 
        Response, United States Department of Energy;
           J. Andrew Dodge, Sr., Director, Office of 
        Reliability, Federal Energy Regulatory Commission; and
           Jim Robb, President and Chief Executive 
        Officer, North American Electric Reliability 
        Corporation.

                      IV. Committee Consideration

    H.R. 362 was introduced in the House of Representatives and 
referred to the Committee on Energy and Commerce on January 9, 
2019. Subsequently, the bill was referred to the Subcommittee 
on Energy on January 25, 2019. On May 16, 2019, the 
Subcommittee on Energy met in open markup session, pursuant to 
notice, to consider H.R. 362 and agreed to a motion by Mr. 
Rush, Chairman of the Subcommittee, to forward the bill H.R. 
362 favorably to the full Committee, without amendment, by a 
voice vote.
    On July 17, 2019, the full Committee on Energy and Commerce 
met in open markup session, pursuant to notice, to consider 
H.R. 362. No amendments were offered at full Committee. 
Subsequently, the Committee agreed to a motion by Mr. Pallone, 
Chairman, to order the bill H.R. 362 reported favorably to the 
House, without amendment, by a voice vote, a quorum being 
present.

                           V. 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. 362 reported.

                         VI. Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to 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.

                    VIII. 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.

       IX. 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.

                   X. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 362 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.

                      XI. 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.

    XII. Earmarks, 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. 362 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                   XIII. Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XIV. 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.

           XV. Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 provides That the Act may be cited as the 
``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 the Department 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.

       XVI. 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




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TITLE II--ESTABLISHMENT OF THE DEPARTMENT

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                         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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