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[House Report 106-696]
[From the U.S. Government Publishing Office]

106th Congress                                            Rept. 106-696
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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

 
    DEPARTMENT OF ENERGY SECURITY OVERSIGHT IMPROVEMENT ACT OF 2000
                                _______
                                

                 June 23, 2000.--Ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 3906]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 3906) to ensure that the Department of Energy has 
appropriate mechanisms to independently assess the 
effectiveness of its policy and site performance in the areas 
of safeguards and security and cyber security, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
Committee on Government Reform Oversight Findings................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Constitutional Authority Statement...............................     8
Applicability to Legislative Branch..............................     8
Exchange of Committee Correspondence.............................     8
Section-by-Section Analysis of the Legislation...................     9

                               Amendment

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Department of Energy Security 
Oversight Improvement Act of 2000''.

SEC. 2. FINDINGS.

  The Congress finds that--
          (1) internal Department of Energy oversight of safeguards and 
        security has suffered over the years from inconsistent 
        application, lack of senior management attention, reduced 
        resources, and overlapping and conflicting roles and 
        responsibilities among various Department offices;
          (2) the Department of Energy is in need of a statutorily-
        based independent security oversight office with the 
        responsibility to regularly assess the effectiveness of the 
        Department's policy and site performance in the area of 
        safeguards and security, including computer security, and 
        report to the Secretary on such findings annually;
          (3) the Department of Energy's oversight of security at its 
        sites should be streamlined to reduce overlapping and redundant 
        oversight, to improve accountability, and to ensure greater 
        consistency in application, findings, and reporting of results; 
        and
          (4) it is appropriate to establish a single, independent 
        security oversight office within the Department of Energy, 
        without prejudice to the continued compliance assurance 
        activities conducted at the Department site level.

SEC. 3. OFFICE OF INDEPENDENT SECURITY OVERSIGHT.

  (a) Office.--The Secretary of Energy shall maintain an Office of 
Independent Security Oversight, which shall be headed by a Director 
appointed by the Secretary without regard to political affiliation and 
solely on the basis of integrity and demonstrated ability in the 
oversight and evaluation of security for nuclear and classified 
programs. The Director shall report directly to and be under the 
general supervision of the Secretary, but the Director shall not report 
to or be subject to supervision by any other office or officer of the 
Department of Energy. The Secretary shall not prevent, prohibit, or 
delay the Director from initiating, carrying out, or completing any 
inspection, evaluation, or report undertaken pursuant to this Act. Such 
Office shall be responsible for carrying out the missions and functions 
described in subsections (c) and (d), but the Office shall have no 
authority to establish or require the implementation of any change to 
the policies, programs, or practices of the Department of Energy.
  (b) Experts and Consultants.--In addition to employees of the 
Department of Energy, the Director is authorized to utilize such 
experts and consultants as the Director deems appropriate. For such 
purposes, the Director may procure temporary and intermittent services 
under section 3109(b) of title 5, United States Code. Upon request of 
the Director, the head of any Federal agency is authorized to detail, 
on a reimbursable basis, any of the personnel of such agency to the 
Director to assist the Director in carrying out functions under this 
section.
  (c) Mission.--The Office of Independent Security Oversight shall be 
responsible for the independent evaluation of the effectiveness of 
safeguards and security (including computer security) policies, 
programs, and practices throughout the Department of Energy, including 
the National Nuclear Security Administration. The Office shall identify 
security weaknesses, make recommendations to the Secretary for 
improvement, and review the effectiveness and timeliness of corrective 
actions taken by the Department.
  (d) Functions.--The Office of Independent Security Oversight shall 
perform the following functions:
          (1) Conduct regular evaluations of safeguards and security 
        programs at Department of Energy sites that have significant 
        amounts of special nuclear material, classified information, or 
        other security interests. The scope of the evaluations shall 
        include all aspects of safeguards and security, including 
        physical protection of special nuclear material, accountability 
        of special nuclear material, protection of classified and 
        sensitive information, classified and unclassified computer 
        security, personnel security, and interactions with foreign 
        nationals.
          (2) Issue reports to the Secretary that clearly identify 
        specific findings relating to security weaknesses, and make 
        recommendations for improvement.
          (3) Perform timely followup reviews to ensure that any 
        corrective actions implemented by the Department are effective.
          (4) Evaluate and assess Department of Energy policies related 
        to safeguards and security.
          (5) Develop recommendations and opportunities for improving 
        safeguards and security policies, programs, and practices for 
        submittal to the Secretary.
          (6) Any other function the Secretary considers appropriate 
        and consistent with the mission described in subsection (c).
  (e) Timing of Regular Evaluations.--
          (1) General rule.--Except as provided in paragraph (2), 
        evaluations conducted under subsection (d)(1) shall occur at 
        least once every 2 years.
          (2) Computer security evaluations.--Evaluations conducted 
        under subsection (d)(1) with respect to classified and 
        unclassified computer security shall occur at least once every 
        18 months.
  (f) Access to Information.--In carrying out this section, the 
Director shall have access to all records and personnel of the 
Department concerning its safeguards and security programs, including 
classified and unclassified computer security programs.

SEC. 4. REPORTS.

  (a) Report by Office.--The Office of Independent Security Oversight 
shall, before February 15 of each year, transmit to the Secretary of 
Energy an unclassified report, with a classified appendix if requested 
or necessary, summarizing the activities of the Office during the 
immediately preceding calendar year. Such report shall include--
          (1) a summary of each significant report made to the 
        Secretary pursuant to this Act during the reporting period, 
        including a description of key security findings contained in 
        those reports;
          (2) the adequacy of corrective actions, if any, taken by the 
        Department to address significant problems and deficiencies;
          (3) an identification of each significant problem or 
        deficiency described in previous annual reports on which 
        corrective action has not been effectively completed;
          (4) a description and explanation of the reasons for any 
        significant revisions to security policy decisions made during 
        the reporting period; and
          (5) a description of any significant security policy decision 
        with which the Director is in disagreement, along with an 
        explanation of the reasons for disagreement.
  (b) Report by Secretary.--The Secretary of Energy shall, before March 
15 of each year, transmit to the appropriate committees of Congress, 
without alteration, the Office's annual report submitted under 
subsection (a), along with an unclassified report, with a classified 
appendix if requested or necessary, summarizing the Secretary's 
response thereto. Such report from the Secretary shall include--
          (1) a description of the Secretary's response to each 
        significant report and security finding made to the Secretary 
        pursuant to this Act during the reporting period;
          (2) an explanation of the reasons for any failure on the part 
        of the Department of Energy to remedy security findings 
        identified by the Office in the current annual report and 
        previous annual reports; and
          (3) to the extent relevant, an explanation of how the 
        President's budget submissions will impact the ability of the 
        Department to remedy unresolved security findings identified by 
        the Office in its annual reports.
  (c) Public Availability.--Within 60 days after the transmission of 
the annual reports to the Congress under subsection (b), the Secretary 
of Energy shall make copies of the unclassified portions of such 
reports available to the public.
  (d) Special Reports.--The Director of the Office of Independent 
Security Oversight shall report immediately to the Secretary of Energy 
whenever the Director becomes aware of deficiencies relating to the 
security programs, practices, or operations of the Department of Energy 
that require an immediate response. The Secretary shall, within 7 
calendar days after receiving a report under this subsection, notify 
the appropriate committees of Congress in writing and explain the 
corrective actions taken to address such deficiencies.
  (e) Congressional Testimony and Briefings.--The Director of the 
Office of Independent Security Oversight, whenever called to testify 
before any Committee of Congress or to brief its Members or staff, 
shall provide the Secretary of Energy with advance notice of the 
subject matter of that testimony or briefing, but shall provide the 
requested information to the Congress without any further review, 
clearance, or approval by any other official in the Executive Branch.

                          Purpose and Summary

    The purpose of H.R. 3906 is to strengthen the internal 
oversight of physical and computer security within the 
Department of Energy by establishing in statute an Office of 
Independent Security Oversight within the Department of Energy 
and requiring annual reporting to the Congress by the Secretary 
of Energy.

                  Background and Need for Legislation

    Prior to the establishment of the National Nuclear Security 
Administration (NNSA) on March 1, 2000, the routine oversight 
of security policies and practices at Department of Energy 
(DOE) contractor-run laboratories and facilities had been the 
responsibility of the various DOE operations offices, with 
assistance from the Office of Security Affairs at DOE 
Headquarters. In 1999, Secretary Richardson placed the primary 
security responsibility within a newly-created Office of 
Security and Emergency Operations, headed by a ``security 
czar'' reporting directly to the Secretary. This office is 
responsible for establishing and implementing DOE security 
policies throughout the entire Department. DOE's implementation 
plan for the NNSA creates a companion security policy office 
within NNSA, but it is headed by the Secretary's security czar. 
DOE calls this arrangement ``dual-hatting'' because the 
position reports to both the Secretary and the NNSA 
Administrator, depending on the site at issue.
    Since 1982, DOE has also had an independent security 
oversight group that performs inspections of field sites on an 
as-needed basis. This independent oversight office has, at 
various times in its history, reported to the Assistant 
Secretary for Defense Programs, the Deputy Secretary of Energy, 
the Under Secretary of Energy, the Assistant Secretary for 
Environment, Safety and Health, and (now) the Secretary of 
Energy. Its current name is the Office of Independent Oversight 
and Performance Assurance. DOE's implementation plan for the 
NNSA also acknowledges the role of the Office of Independent 
Oversight and Performance Assurance as a centralized, 
independent inspection function for the entire Department, 
including NNSA facilities, and states that the new NNSA 
organizational structure will not affect the role or 
responsibilities of this office. But, unlike some aspects of 
security and environment, safety, and health oversight in the 
new NNSA, the Office of Independent Oversight and Performance 
Assurance is not a ``dual-hatted'' position, and remains 
reporting solely to the Secretary of Energy.
    Numerous internal and external security experts have 
observed that DOE security policies and practices have been 
largely ineffective in ensuring that classified and nuclear 
matter is adequately protected from unauthorized access. 
Moreover, as the General Accounting Office found in a recent 
report (``Nuclear Security: Improvements Needed in DOE's 
Safeguards and Security Oversight,'' GAO/RCED-00-62, Feb. 24, 
2000), DOE's security oversight historically has been 
inconsistent at best, in part because such oversight has not 
been sufficiently coordinated at a centralized level to ensure 
that prompt corrective actions are taken and that lessons are 
learned and shared throughout the DOE complex. Secretary 
Richardson's decision to elevate the Office of Independent 
Oversight and Performance Assurance to report directly to him 
has been a positive first step in correcting some of these 
historical management deficiencies. Legislation is needed to 
ensure that this Office continuesto report directly to the 
Secretary of Energy and is not ``demoted'' to a lower level in the DOE 
organization by a future Secretary of Energy.
    The Committee is also concerned that the effectiveness of 
the Office of Independent Oversight and Performance Assurance 
may be reduced with respect to sites falling within the new 
NNSA structure. From a security standpoint, these are the DOE 
sites with the greatest potential security risk because of the 
materials and technologies employed in the design and 
manufacture of nuclear weapons. The NNSA was established by 
title 32 of the National Defense Authorization Act for Fiscal 
Year 2000 (P.L. 106-65, 50 U.S.C. Sec. 2401 et seq.). Section 
3213 of that Act provides that employees and contractors of the 
NNSA are not subject to the authority, direction, or control of 
any officer, employee, or agent of the Department of Energy 
other than the Secretary of Energy, the Administrator of the 
NNSA, or the Administrator's designee. Effective oversight 
requires the oversight office to have full access to these 
sites and to the information, materials, and personnel located 
therein, and the ability to validate corrective actions taken 
by these sites. To the extent that such activities could be 
construed as directing or controlling NNSA employees, the law 
may raise unintended obstacles to such oversight activities. 
Legislation is needed to clarify that the Office of Independent 
Security Oversight will have unimpeded access to information 
and personnel at the NNSA sites.
    Lastly, at various times in the past there has been poor 
communications with the Congress regarding security problems at 
DOE field sites. Therefore, the Committee provides for annual 
reporting from the Office of Independent Security Oversight to 
the Secretary of Energy and transmission of those reports, 
without alteration or delay, from the Secretary to the 
Congress. The Committee also intends to provide for uncensored 
testimony and briefings to the Congress from the Director of 
the Office of Independent Security Oversight.

                                Hearings

    The Subcommittee on Energy and Power held a legislative 
hearing on H.R. 3906 on March 22, 2000. The Subcommittee 
received testimony from: Ms. Mary Anne Sullivan, General 
Counsel, Department of Energy; the Honorable Richard A. 
Meserve, Chairman, Nuclear Regulatory Commission; the Honorable 
Jerrold R. Mande, Deputy Assistant Secretary for Labor, 
Occupational Safety and Health Administration; the Honorable 
John T. Conway, Chairman, Defense Nuclear Facilities Safety 
Board; Ms. Gary Jones, Associate Director for Energy, 
Resources, and Science Issues, Government Accounting Office; 
Dr. Charles Shank, Director, Lawrence Berkeley National 
Laboratory; Mr. Robert Van Ness, Assistant Vice President for 
Laboratory Administration, University of California; Ms. 
Maureen Eldredge, Program Director, Alliance for Nuclear 
Accountability; Dr. David Adelman, Project Attorney, Natural 
Resources Defense Council; and Mr. Richard Miller, Policy 
Analyst, PACE International Union.

                        Committee Consideration

    On April 12, 2000, the Subcommittee on Energy and Power met 
in open markup session and approved H.R. 3906 for Full 
Committee consideration, as amended, by a voice vote. On May 
17, 2000, the Committee on Commerce met in open markup session 
and ordered H.R. 3906 reported to the House, as amended, by a 
voice vote, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives 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. 3906 reported. A motion by Mr. Bliley to order H.R. 3906 
reported to the House, without amendment, was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held both legislative 
and oversight hearings and made findings that are reflected in 
this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3906, a bill to strengthen internal security oversight in the 
Department of Energy, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                        Committee Cost Estimate

    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.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 6, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3906, the 
Department of Energy Security Oversight Improvement Act of 
2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3906--Department of Energy Security Oversight Improvement Act of 
        2000

    Summary: H.R. 3906 would direct the Secretary of Energy to 
maintain an Office of Independent Security Oversight. CBO 
estimates that implementing the bill would cost about $20 
million a year, subject to appropriation of the necessary 
funds. The office would be responsible for evaluating the 
effectiveness of security policies, programs, and practices 
(including computer security) throughout the Department of 
Energy (DOE). H.R. 3906 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.
    In addition to other duties, the office would be charged 
with evaluating the security of programs that involve 
significant amounts of nuclear material or classified 
information at least once every two years, and evaluating 
classified and unclassified computer security at least once 
every 18 months. The bill would require DOE to report the 
findings of these evaluations to the Congress every year.
    The bill would authorize an office very similar to one that 
was already established by the Secretary of Energy in May 1999, 
and which received an appropriation of $20 million for fiscal 
year 2000. This office is carrying out the activities that are 
called by the legislation. Currently, the office is organized 
under the Assistant Secretary for Environment, Safety, and 
Health, but under this legislation, it would report directly to 
the Secretary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3906 is shown in the following table. 
The costs of this legislation fall within budget functions 050 
(defense) and 270 (energy).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
Spending under current law:
    Budget authority \1\........................................      20       0       0       0       0       0
    Estimated outlays...........................................      13       6       1       0       0       0
Proposed changes:
    Estimated authorization level...............................       0      20      21      21      22      22
    Estimated outlays...........................................       0      13      20      21      22      22
Spending under H.R. 3906:
    Estimated authorization level \1\...........................      20      20      21      21      22      22
    Estimated outlays...........................................      13      19      21      21      22      22
----------------------------------------------------------------------------------------------------------------
\1\ The 2000 level is the amount appropriated for that year for DOE's existing Office of Independent Oversight
  and Performance Assurance.

    Basis of estimate: CBO estimates that the continuation of 
the security functions now performed by DOE's Office of 
Independent Oversight and Performance Assurance would cost $98 
million over the 2001-2005 period, assuming annual adjustments 
for anticipated inflation. Without such adjustments for 
anticipated inflation, we estimate that continuing the work of 
this office would cost $93 million over the next five years.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 3906 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Lisa Cash Driskill; 
impact on State, local, and tribal governments: Victoria Heid 
Hall; impact on the private sector: Natalie Tawil.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       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.

                      Advisory Committee Statement

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

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  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.

                  Exchange of Committee Correspondence

                          House of Representatives,
                                      Committee on Science,
                                     Washington, DC, June 21, 2000.
Hon. Thomas J. Bliley,
Chairman, Committee on Commerce, Rayburn House Office Building, 
        Washington, DC.
    Dear Tom: On March 14, 2000, you introduced H.R. 3906--the 
Department of Energy Security Oversight Improvement Act of 
2000. The Commerce Committee Subcommittee on Energy and Power 
helda mark-up session on the bill on April 12, and forwarded to 
the Full Committee (Amended) by Voice Vote. The Commerce Committee held 
a mark-up session on May 17 and ordered the bill reported. The bill 
contains provisions that fall within the jurisdiction of the Committee 
on Science.
    In deference to your desire to bring this legislation 
before the House in an expeditious manner, I will not exercise 
the Science Committee's right to take further action on its 
sequential referral. Despite waiving its consideration of H.R. 
3906, the Science Committee does not waive its jurisdiction 
over H.R. 3906. Additionally, the Science Committee expressly 
reserves its authority to seek conferees on any provisions that 
are within its jurisdiction during any House-Senate conference 
that may be convened on this legislation. I ask for your 
commitment to support any request by the Science Committee for 
conferees on H.R. 3906 as well as any similar or related 
legislation. Further, please ensure that the legislative 
history is clear that the Committee on Science is among the 
``appropriate committees of Congress'' to receive the report 
mandated by section 4(b) of the legislation.
    I request that you include this letter as part of the 
Congressional Record during consideration of the legislation on 
the House floor.
    Thank you for your consideration and attention regarding 
these matters.
            Sincerely,
                               F. James Sensenbrenner, Jr.,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                     Committee on Commerce,
                                     Washington, DC, June 21, 2000.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science, House of Representatives, Rayburn House 
        Office Building, Washington, DC.
    Dear Jim: Thank you for your letter regarding your 
committee's jurisdictional interest in H.R. 3906, the 
Department of Energy Security Oversight Improvement Act of 
2000.
    I acknowledge your committee's jurisdiction over portions 
of this legislation and appreciate your cooperation in moving 
the bill to the House floor expeditiously. I agree that your 
decision to forgo further action on the bill will not prejudice 
the Science Committee with respect to its jurisdictional 
prerogatives on this or similar legislation, and will support 
your request for conferees should this bill be the subject of a 
House-Senate conference. Additionally, I will ensure that the 
legislative history is clear that the Committee on Science is 
among the ``appropriate committees of Congress'' to receive the 
report mandated by section 4(b) of the legislation. I will also 
include a copy of your letter and this response in the 
Committee's report on the bill and the Congressional Record 
when the legislation is considered by the House.
    Thank you again for your cooperation.
            Sincerely,
                                                Tom Bliley,
                                                          Chairman.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides a short title for the bill, the 
``Department of Energy Security Oversight Improvement Act of 
2000.''

Section 2. Findings

    This section describes the security oversight deficiencies 
that the legislation is intended to correct and the 
improvements that are intended to result from implementation of 
a single, independent security oversight office for the 
Department of Energy.

Section 3. Office of Independent Security Oversight

    Subsection (a) provides for the establishment of an Office 
of Independent Security Oversight, with a Director appointed by 
the Secretary and subject to the authority of the Secretary 
only. To ensure adequate independence, this subsection 
prohibits the Secretary from interfering with the work of this 
Office in any manner. This subsection also clarifies that this 
Office cannot establish or require changes to the policies, 
practices, or programs of the Department; the Office's function 
is solely to evaluate and report.
    Subsection (b) authorizes the Director of the Office of 
Independent Security Oversight to hire outside experts and 
consultants, and also authorizes the detail of employees from 
other Federal agencies on a reimbursable basis.
    Subsection (c) defines the mission of the Office of 
Independent Security Oversight to be the independent evaluation 
of the effectiveness of safeguards and security policies, 
programs, and practices throughout the entire Department of 
Energy, including the facilities and operations of the National 
Nuclear Security Administration. This Office is to conduct 
regular inspections to identify problems in physical, 
personnel, and cyber security, make specific recommendations 
for improvement, and assess the effectiveness and timeliness of 
corrective actions.
    Subsection (d) defines the specific functions of the Office 
of Independent Security Oversight. This subsection allows the 
Secretary the flexibility to assign additional functions to the 
Office of Independent Security Oversight as appropriate to the 
overall mission of the Office.
    Subsection (e) requires that the Office conduct regular 
evaluations of safeguards and security at all key DOE sites at 
an interval of at least once every two years, but that 
evaluations of computer security must be conducted at least 
once every 18 months.
    Subsection (f) provides that the Director of the Office of 
Independent Security Oversight is to have access to all records 
and personnel of the Department of Energy in order to perform 
the Office's functions. This access extends to the records and 
personnel of the NNSA, but such access is not intended to 
undermine or otherwise alter the autonomy of the NNSA as 
defined in section 3213 of the NNSA Act.

Section 4. Reports

    Subsection (a) requires the Office to transmit to the 
Secretary of Energy an annual report by February 15th of each 
year, setting forth the significant activities of the Office 
during the prior calendar year. This report also shall include 
all significant findings of security deficiencies at Department 
sites, a description of the recommendations for corrective 
action made by the Office, and the adequacy of the actions 
taken by the Department in response to those findings. The 
report also shall contain a description of any significant 
security policy changes implemented by the Department during 
the prior calendar year, and the Director's views with respect 
to such revisions to security policy.
    Subsection (b) requires the Secretary to submit, without 
alteration, the Office's annual report to the Congress by March 
15 of each year. This annual report to Congress is to summarize 
the Secretary's response to the recommendations contained in 
the Office's annual report required by subsection 4(a) above. 
In particular, the Secretary must state whether the Department 
agrees with each significant security deficiency identified by 
the Office, and describe the actions the Department has taken 
to resolve each of these problems.
    Subsection (c) provides that the Secretary must make 
available to the public the unclassified portions of the 
reports required by sections 4(a) and 4(b) within 60 days of 
their transmission to the Congress.
    Subsection (d) requires that the Director of the Office of 
Independent Security Oversight report immediately to the 
Secretary any particularly serious security deficiency 
identified during the course of its inspections that requires 
an immediate response. The Secretary is then required to report 
to the Congress, within seven calendar days of receiving the 
Director's report under this subsection, on the corrective 
actions taken to address the identified security deficiency.
    Subsection (e) affirms the right of the Congress to timely 
and unaltered briefings and testimony from the Director, while 
ensuring that the Secretary is given advance notice of the 
subject matter of the Director's communications with the 
Congress. It provides that such testimony and briefings shall 
not be subject to review, clearance, or approval by the 
Secretary or any other Executive Branch official.

         Changes in Existing Law Made by the Bill, as Reported

    This legislation does not change any existing law or 
statute.

                                  
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