Senate Report 116-137 - ENHANCING STATE ENERGY SECURITY PLANNING AND EMERGENCY PREPAREDNESS ACT OF 2019

[Senate Report 116-137]
[From the U.S. Government Publishing Office]

Calendar No. 257
116th Congress } { Report
SENATE
1st Session } { 116-137

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

ENHANCING STATE ENERGY SECURITY PLANNING AND EMERGENCY PREPAREDNESS ACT
OF 2019

_______

October 22, 2019.--Ordered to be printed

_______

Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following

R E P O R T

[To accompany H.R. 2114]

[Including cost estimate of the Congressional Budget Office]

The Committee on Energy and Natural Resources, to which was
referred the bill (H.R. 2114) to amend the Energy Policy and
Conservation Act to provide Federal financial assistance to
States to implement, review, and revise State energy security
plans, and for other purposes, having considered the same,
reports favorably thereon with an amendment (in the nature of a
substitute) and recommends that the bill, as amended, do pass.

Amendment

The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Enhancing State Energy Security
Planning and Emergency Preparedness Act of 2019''.

SEC. 2. STATE ENERGY SECURITY PLANS.

(a) In General.--Part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.) is amended by adding at the
end the following:

``SEC. 367. STATE ENERGY SECURITY PLANS.

``(a) In General.--Federal financial assistance made available to a
State under this part may be used for the implementation, review, and
revision of a State energy security plan that assesses the State's
existing circumstances and proposes methods to strengthen the ability
of the State, in consultation with owners and operators of energy
infrastructure in such State, to--
``(1) secure the energy infrastructure of the State against
all physical and cybersecurity threats;
``(2) mitigate the risk of energy supply disruptions to the
State and enhance the response to, and recovery from, energy
disruptions; and
``(3) ensure the State has a reliable, secure, and resilient
energy infrastructure.
``(b) Contents of Plan.--A State energy security plan described in
subsection (a) shall--
``(1) address all energy sources and regulated and
unregulated energy providers;
``(2) provide a State energy profile, including an assessment
of energy production, distribution, and end-use; `
``(3) address potential hazards to each energy sector or
system, including physical threats and cybersecurity threats
and vulnerabilities;
``(4) provide a risk assessment of energy infrastructure and
cross-sector interdependencies;
``(5) provide a risk mitigation approach to enhance
reliability and end-use resilience; and
``(6) address multi-State, Indian Tribe, and regional
coordination planning and response, and to the extent
practicable, encourage mutual assistance in cyber and physical
response plans.
``(c) Coordination.--In developing a State energy security plan
under this section, the energy office of the State shall, to the extent
practicable, coordinate with--
``(1) the public utility or service commission of the State;
``(2) energy providers from the private sector; and
``(3) other entities responsible for maintaining fuel or
electric reliability.
``(d) Financial Assistance.--A State is not eligible to receive
Federal financial assistance under this part, for any purpose, for a
fiscal year unless the Governor of such State submits to the Secretary,
with respect to such fiscal year--
``(1) a State energy security plan described in subsection
(a) that meets the requirements of subsection (b); or
``(2) after an annual review of the State energy security
plan by the Governor--
``(A) any necessary revisions to such plan; or
``(B) a certification that no revisions to such plan
are necessary.
``(e) Technical Assistance.--Upon request of the Governor of a
State, the Secretary may provide information and technical assistance,
and other assistance, in the development, implementation, or revision
of a State energy security plan.
``(f) Requirement.--Each State receiving Federal financial
assistance under this part shall provide reasonable assurance to the
Secretary that the State has established policies and procedures
designed to assure that the financial assistance will be used--
``(1) to supplement, and not to supplant, State and local
funds; and
``(2) to the maximum extent practicable, to increase the
amount of State and local funds that otherwise would be
available, in the absence of the financial assistance, for the
implementation of the State energy security plan under this
section.
``(g) Protection of Information.--Information provided to, or
collected by, the Federal Government under this section--
``(1) shall be exempt from disclosure under section 552(b)(3)
of title 5, United States Code; and `
``(2) shall not be made available by any Federal agency,
State, political subdivision of a State, or Tribal authority
pursuant to any Federal, State, or Tribal law, as applicable,
requiring public disclosure of information or records.
``(h) Sunset.--This section shall expire on October 31, 2024.''.
(b) Authorization of Appropriations.--Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended--
(1) by striking ``$125,000,000'' and inserting
``$90,000,000''; and
(2) by striking ``2007 through 2012'' and inserting ``2021
through 2025''.
(c) Technical and Conforming Amendments.--
(1) Conforming amendments.--Section 363 of the Energy Policy
and Conservation Act (42 U.S.C. 6323) is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection
(e).
(2) Technical amendment.--Section 366(3)(B)(i) of the Energy
Policy and Conservation Act (42 U.S.C. 6326(3)(B)(i)) is
amended by striking ``approved under section 367''.
(3) Reference.--The matter under the heading ``ENERGY
CONSERVATION'' under the heading ``DEPARTMENT OF ENERGY'' in
title II of the Department of the Interior and Related Agencies
Appropriations Act, 1985 (42 U.S.C. 6323a) is amended by
striking ``sections 361 through 366'' and inserting ``sections
361 through 367''.
(4) Table of contents.--The table of contents for part D of
title III of the Energy Policy and Conservation Act (Public Law
94-163; 89 Stat. 872; 92 Stat. 3272; 104 Stat. 1006) is amended
by adding at the end the following:

``SEC. 367. STATE ENERGY SECURITY PLANS.''.

Purpose

The purpose of H.R. 2114, as ordered reported, is to amend
the Energy Policy and Conservation Act (EPCA, Public Law 94-
163, as amended) to provide Federal financial assistance to
States to implement, review, and revise State energy security
plans.

Background and Need

The Department of Energy's (DOE) State Energy Program
provides funding and technical assistance to States,
Territories, and the District of Columbia to enhance energy
planning and security. The program originated as the State
Energy Conservation Program, which was first authorized under
EPCA. The State Energy Efficiency Programs Improvement Act of
1990 (Public Law 101-440), amended EPCA to require energy
emergency planning requirements as a supplement to State energy
conservation plans. Energy emergency planning requirements are
also referred to as energy assurance programs.
On May 11, 2017, President Trump issued Executive Order No.
13800 on ``Strengthening the Cybersecurity of Federal Networks
and Critical Infrastructure.'' The Executive Order called for
an evaluation of the nation's ability to manage the
consequences of a cybersecurity attack on the electric grid. In
response, DOE issued a report on August 9, 2017, which included
the analysis required under the Executive Order. In the report,
DOE identified a number of gaps in the nation's ability to
recover from cyber incidents. One of the gaps noted by DOE is a
lack of cybersecurity incident planning in State energy
assurance plans, including plans for long-term power outage
scenarios.
This legislation addresses that gap by amending EPCA to
authorize the Secretary of Energy to provide financial
assistance for State Energy Security Plans. A State Energy
Security Plan will assess a State's existing circumstances and
propose methods to strengthen the ability of the State to (1)
secure the energy infrastructure of the State against all
physical and cybersecurity threats; (2) mitigate the risk of
energy supply disruptions to the State and enhance response to,
and recovery from, energy disruptions; and (3) ensure the State
has a reliable, secure, and resilient energy infrastructure.

Legislative History

H.R. 2114, was introduced in the House of Representatives
by Representatives Rush (D-IL) and Upton (R-MI) on April 8,
2019, and passed the House of Representatives by voice vote on
September 9, 2019.
Similar legislation, S. 2094, was introduced by Senators
Gardner and Bennet on July 11, 2019. The Subcommittee on Energy
held a hearing on the measure on September 11, 2019. The Senate
Committee on Energy and Natural Resources met in open business
session on September 25, 2019, and ordered S. 2094 favorably
reported, as amended.
In the 115th Congress, Senators Gardner and Bennet
introduced similar legislation, S. 3676, on November 29, 2018.
The Subcommittee on Energy held a hearing on S. 3676 on
November 29, 2018 (S. Hrg. 115-534). Similar legislation, H.R.
3050, was introduced in the House of Representatives by
Representatives Upton (R-MI) and Rush (D-IL) on June 23, 2017,
and passed the House of Representatives by voice vote on July
18, 2017.
The Senate Committee on Energy and Natural Resources met in
open business session on September 25, 2019, and ordered H.R.
2114 favorably reported, as amended.

Committee Recommendation

The Senate Committee on Energy and Natural Resources, in
open business session on September 25, 2019, by a majority
voice vote of a quorum present, recommends that the Senate pass
H.R. 2114, if amended as described herein. Senator Lee asked to
be recorded as voting no.

Committee Amendments

During its consideration of H.R. 2114, the Committee
adopted an amendment in the nature of a substitute.
The Joint Staff Amendment makes several changes to conform
the text with S. 2094. Specifically the amendment adds language
to protect critical energy infrastructure information from
widespread disclosure, and ensures that financial assistance
provided to states is used to supplement, and not supplant,
existing state funds.

Section-by-Section Analysis

Section 1. Short title

Section 1 sets forth the short title of the bill.

Sec. 2. State energy security plans

Section 2(a) amends Part D of title III of EPCA by adding a
new section 367 titled ``State Energy Security Plans.''
New section 367(a) allows the Secretary to provide
financial assistance to a State for a State Energy Security
Plan (Plan) that assesses the State's existing circumstances
and proposes methods to strengthen the ability of the State to
secure infrastructure and minimize supply disruptions,
New section 367(b) describes the required contents of a
Plan, which include a State energy profile, potential hazards
to the energy sector, and a risk assessment to energy
infrastructure.
New section 367(c) provides that in developing a Plan, the
energy office of the State shall coordinate with the public
utility or service commission of the State, the private sector,
and other entities responsible for maintaining fuel or electric
reliability.
New section 367(d) provides that a State is not eligible to
receive Federal financial assistance for a Plan unless it meets
the requirements of this section.
New section 367(e) allows the Secretary, upon the request
of the Governor of a State, to provide information and
technical assistance to support the development,
implementation, or revision of a Plan.
New section 367(f) requires each State to provide assurance
that financial assistance provided under this section is used
to supplement, and not supplant, existing State funds.
New section 367(g) exempts information provided to or
collected by the Federal government under this section from
Federal, State, and Tribal public information disclosure laws.
New section 366(h) sunsets the authority for this section
on October 31, 2024.
Section 2(b) authorizes to be appropriated $90 million for
each of fiscal years 2021 through 2025 to carry out State
energy conservation plans.
Section 2(c) contains technical and conforming amendments.

Cost and Budgetary Considerations

The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

H.R. 2114 would authorize the Department of Energy (DOE) to
provide grants to states to implement, review, and revise state
energy security plans and would authorize DOE to provide
information and technical assistance to states during that
process. Under the act, state energy security plans would
include assessments of current energy plans and proposed
methods to strengthen the physical and cybersecurity of a
state's energy infrastructure.
In 2019, DOE allocated $55 million for a similar grant
program. Based on spending patterns for that program and
assuming appropriation of the authorized amounts, CBO estimates
that implementing H.R. 2114 would cost $212 million over the
2020 2024 period and $238 million after 2024.
The costs of the legislation (detailed in Table 1) fall
within budget function 270 (energy).

TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2114
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Authorization............................................... 0 90 90 90 90 90 0 0 0 0 360 450
Estimated Outlays........................................... 0 18 45 68 81 87 72 45 23 9 212 448
--------------------------------------------------------------------------------------------------------------------------------------------------------

On October 18, 2019, CBO transmitted a cost estimate for S.
2094, the Enhancing State Energy Security Planning and
Emergency Preparedness Act of 2019, as ordered reported by the
Senate Committee on Energy and Natural Resources on September
25, 2019. The two pieces of legislation are similar and CBO's
estimated budgetary effects are the same.
The CBO staff contact for this estimate is Sofia Guo. The
estimate was reviewed by H.Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.

Regulatory Impact Evaluation

In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 2114. The Act is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 2114, as ordered reported.

Congressionally Directed Spending

H.R. 2114, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.

Executive Communications

The Committee did not request executive views on H.R. 2114.
However, H.R. 2114 is similar to S. 2094, and the testimony
provided by the Department of Energy at the September 11, 2019,
hearing on S. 2094 is as follows:

Testimony of Under Secretary of Energy, Mark W. Menezes, U.S.
Department of Energy

introduction

Chairman Cassidy, Ranking Member Heinrich, and Members of
the Subcommittee, it is a privilege and an honor to serve at
the Department of Energy (DOE or the Department), which is
tasked with, among other important responsibilities: overseeing
the Nation's nuclear energy research and development programs;
creating and sustaining American leadership in the transition
to a global clean energy economy; working effectively with the
States on our Nation's energy challenges; and supporting our
current, and developing our Nation's future, energy workforce.
Thank you for the opportunity to testify today on behalf of the
Department regarding legislation pertinent to DOE that is now
pending in the Senate.
I have been asked to testify on nine (9) bills today. The
Administration continues to review all of these bills. I
appreciate the ongoing bipartisan efforts to address our
Nation's energy challenges and I look forward to working with
the Committee.

interactions with the states

DOE has a long and successful history of working with
States on the Nation's most significant energy challenges. DOE
has provided support for State and local governments to develop
and refine energy assurance plans, build in-house expertise on
infrastructure interdependencies (i.e., other critical
infrastructure systems' reliance on electricity for operations)
and vulnerabilities, integrate renewable energy, address
challenges associated with premature nuclear power plant
retirements and opportunities associated with advanced nuclear
deployment, and utilize new applications such as cyber and
smart grid technologies.
S. 2094--Enhancing State Energy Security Planning and Emergency
Preparedness Act
Planning for energy sector disruptions--often led by state
energy offices--is essential to safeguarding energy system
reliability and resilience. Energy assurance planning can help
to achieve a robust, secure and reliable energy infrastructure
that is also able to restore services rapidly in the event of
any disaster. Nearly all state and territory governments and
select local governments have an energy security or assurance
plan, which serves as a foundation for action when an energy
disruption threatens public welfare or when the energy industry
requests help. These plans address energy supply risks and
vulnerabilities and enable a quick recovery and restoration.
Combined with training and exercises for personnel and
stakeholders, energy assurance plans enhance response and
recovery efforts and support resiliency.
The Department will continue to review the legislation and
looks forward to working with Congress as the legislative
process moves forward.

conclusion

Thank you again for the opportunity to be here today. The
Department appreciates the ongoing bipartisan efforts to
address our Nation's energy challenges, and looks forward to
working with the Committee on the legislation on today's agenda
and any future legislation. I would be happy to answer your
questions.

Changes in Existing Law

In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by H.R. 2114, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

ENERGY POLICY AND CONSERVATION ACT OF 1975

Public Law 94-163, As Amended

* * * * * * *

TABLE OF CONTENTS

* * * * * * *

TITLE III--IMPROVING ENERGY EFFICIENCY

* * * * * * *

PART D--STATE ENERGY CONSERVATION PROGRAMS

Sec. 361. Findings and purpose.
Sec. 362. State energy conservation plans.
Sec. 363. Federal assistance to States.
Sec. 364. State energy efficiency goals.
Sec. 365. General provisions.
Sec. 366. Definitions.
Sec. 367. State Energy Security Plans
* * * * * * *

TITLE III--IMPROVING ENERGY EFFICIENCY

* * * * * * *

PART D--STATE ENERGY CONSERVATION PROGRAMS

* * * * * * *

FEDERAL ASSISTANCE TO STATES

Sec. 363. (a)

* * * * * * *

[(e)(1) Effective October 1, 1991, to be eligible for
Federal financial assistance pursuant to this section, a State
shall submit to the Secretary, as a supplement to its energy
conservation plan, an energy emergency planning program for an
energy supply disruption, as designed by the State consistent
with applicable Federal and State law. The contingency plan
provided for by the program shall include an implementation
strategy or strategies (including regional coordination) for
dealing with energy emergencies. The submission of such plan
shall be for informational purposes only and without any
requirement of approval by the Secretary.
[(2) Federal financial assistance made available under
this part to a State may be used to develop and conduct the
energy emergency planning program requirement referred to in
paragraph (1).]
[(f)] (e) If the Secretary determines that a State has
demonstrated a commitment to improving the energy efficiency of
buildings within such State, the Secretary may, beginning in
fiscal year 1994, provide up to $1,000,000 to such State for
deposit into a revolving fund established by such State for the
purpose of financing energy efficiency improvements in State
and local government buildings. In making such determination
the Secretary shall consider whether--

* * * * * * *

GENERAL PROVISIONS

Sec. 365. (a) The Secretary may prescribe such rules as may
be necessary or appropriate to carry out his authority under
this part.

* * * * * * *

(f) For the purpose of carrying out this part, there are
authorized to be appropriated [$125,000,000] $90,000,000 for
each of fiscal years [2007 through 2012] 2021 through 2025.

* * * * * * *

DEFINITIONS

Sec. 366. As used in this part--

* * * * * * *

(3) The term ``energy audit'' means any process which
identifies and specifies the energy and cost savings
which are likely to be realized through the purchase
and installation of particular energy conservation
measures or renewable-resource energy measures and
which--
(A) is carried out in accordance with rules
of the Secretary; and
(B) imposes--
(i) no direct costs, with respect to
individuals who are occupants of
dwelling units in any State having a
supplemental State energy conservation
plan [approved under section 367], and
(ii) only reasonable costs, as
determined by the Secretary, with
respect to any person not described in
clause (i).

* * * * * * *

SEC. 367. STATE ENERGY SECURITY PLANS.

(a) In General.-- Federal financial assistance made
available to a State under this part may be used for the
implementation, review, and revision of a State energy security
plan that assesses the State's existing circumstances and
proposes methods to strengthen the ability of the State, in
consultation with owners and operators of energy infrastructure
in such State, to--
(1) secure the energy infrastructure of the State
against all physical and cybersecurity threats;
(2) mitigate the risk of energy supply disruptions to
the State and enhance the response to, and recovery
from, energy disruptions; and
(3) ensure the State has a reliable, secure, and
resilient energy infrastructure.
(b) Contents of Plan.--A State energy security plan
described in subsection (a) shall--
(1) address all energy sources and regulated and
unregulated energy providers;
(2) provide a State energy profile, including an
assessment of energy production, distribution, and end-
use;
(3) address potential hazards to each energy sector
or system, including physical threats and cybersecurity
threats and vulnerabilities;
(4) provide a risk assessment of energy
infrastructure and cross-sector interdependencies;
(5) provide a risk mitigation approach to enhance
reliability and end-use resilience; and
(6) address multi-State, Indian Tribe, and regional
coordination planning and response, and to the extent
practicable, encourage mutual assistance in cyber and
physical response plans.
(c) Coordination.--In developing a State energy security
plan under this section, the energy office of the State shall,
to the extent practicable, coordinate with--
(1) the public utility or service commission of the
State;
(2) energy providers from the private sector; and
(3) other entities responsible for maintaining fuel
or electric reliability.
(d) Financial Assistance.--A State is not eligible to
receive Federal financial assistance under this part, for any
purpose, for a fiscal year unless the Governor of such State
submits to the Secretary, with respect to such fiscal year--
(1) a State energy security plan described in
subsection (a) that meets the requirements of
subsection (b); or
(2) after an annual review of the State energy
security plan by the Governor--
(A) any necessary revisions to such plan; or
(B) a certification that no revisions to such
plan are necessary.
(e) Technical Assistance.--Upon request of the Governor of
a State, the Secretary may provide information and technical
assistance, and other assistance, in the development,
implementation, or revision of a State energy security plan.
(f) Requirement.--Each State receiving Federal financial
assistance under this part shall provide reasonable assurance
to the Secretary that the State has established policies and
procedures designed to assure that the financial assistance
will be used--
(1) to supplement, and not to supplant, State and
local funds; and
(2) to the maximum extent practicable, to increase
the amount of State and local funds that otherwise
would be available, in the absence of the financial
assistance, for the implementation of the State energy
security plan under this section.
(g) Protection of Information.--Information provided to, or
collected by, the Federal Government under this section--
(1) shall be exempt from disclosure under section
552(b)(3) of title 5, United States Code; and
(2) shall not be made available by any Federal
agency, State, political subdivision of a State, or
Tribal authority pursuant to any Federal, State, or
Tribal law, as applicable, requiring public disclosure
of information or records.
(h) Sunset.--This section shall expire on October 31, 2024.

* * * * * * *

DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT,
1985

Public Law 98-473, as Amended

* * * * * * *

TITLE II--RELATED AGENCIES

* * * * * * *

Department of Energy

* * * * * * *

Energy Conservation

For necessary expenses in carrying out energy conservation
activities, $467,969,000 to remain available until expended:
Provided, That for the base State Energy Conservation Program
(part D of the Energy Policy and Conservation Act, [sections
361 through 366] sections 361 through 367), each State will
hereafter match in cash or in kind not less than 20 percent of
the Federal contribution: Provided further, That these funds
may be used for grants to the Commonwealth of the Northern
Mariana Islands, the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of Palau
under part D of title III of the Energy Policy and Conservation
Act (relating to primary and supplemental State energy
conservation programs, 42 U.S.C. 6321 6327) and under the
National Energy Extension Service Act (42 U.S.C. 7001 7011):
Provided further, That pursuant to section 111(b)(1)(B) of the
Energy Reorganization Act of 1974, as amended, 42 U.S.C.
5821(b)(1)(B), of the amount appropriated under this head,
$16,000,000 shall be available for a grant for basic industry
research facilities located at Northwestern University without
section 111(b)(2) of such Act being applicable.

* * * * * * *

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