I 

112TH CONGRESS 

1ST SESSION H. R. 174 

To enhance homeland security, including domestic preparedness and collective 

response to terrorism, by amending the Homeland Security Act of 2002 

to establish the Cybersecurity Compliance Division and provide authorities to the Department of Homeland Security to enhance the security 

and resiliency of the Nation’s cyber and physical infrastructure against 

terrorism and other cyber attacks, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 5, 2011 

Mr. THOMPSON of Mississippi introduced the following bill; which was referred 

to the Committee on Homeland Security, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To enhance homeland security, including domestic preparedness and collective response to terrorism, by amending 

the Homeland Security Act of 2002 to establish the 

Cybersecurity Compliance Division and provide authorities to the Department of Homeland Security to enhance 

the security and resiliency of the Nation’s cyber and 

physical infrastructure against terrorism and other cyber 

attacks, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Homeland Security 

3 Cyber and Physical Infrastructure Protection Act of 

4 2011’’. 

5 SEC. 2. OFFICE OF CYBERSECURITY AND COMMUNICA6 TIONS AND CYBERSECURITY COMPLIANCE 

7 DIVISION. 

8 (a) IN GENERAL.—Subtitle C of title II of the Home9 land Security Act of 2002 (6 U.S.C. 141 et seq.) is amend10 ed by redesignating sections 221 through 225 in order as 

11 section 226 through 229, respectively, and by inserting be12 fore section 222 (as so redesignated) the following: 

13 ‘‘SEC. 221. DEFINITIONS. 

14 ‘‘In this subtitle: 

15 ‘‘(1) COMMON CRITERIA FOR INFORMATION

16 TECHNOLOGY SECURITY EVALUATION.—The term 

17 ‘common criteria for information technology security 

18 evaluation’ means international standard for com19 puter security codified in the International Organi20 zation for Standardization and the International 

21 Electrotechnical Commission standard 15408 (ISO/ 

22 IEC 15408). 

23 ‘‘(2) COVERED CRITICAL INFRASTRUCTURE.— 

24 The term ‘covered critical infrastructure’ means sys25 tems and assets designated by the Director under 

26 section 224(e). 


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1 ‘‘(3) CYBER INCIDENT.—The term ‘cyber inci2 dent’ means an occurrence that jeopardizes the secu3 rity of data or the physical security of a computer 

4 network owned or operated by a Federal agency or 

5 covered critical infrastructure. 

6 ‘‘(4) FIRST-PARTY REGULATORY AGENCY.—The 

7 term ‘first-party regulatory agency’ means a Federal 

8 agency that is not a sector-specific agency but that 

9 has primary regulatory authority for a specific crit10 ical infrastructure sector or sub-sector. 

11 ‘‘(5) SECTOR-SPECIFIC AGENCY.—The term 

12 ‘sector-specific agency’ means the agency that, as of 

13 the date of enactment of this section, is designated 

14 under Homeland Security Presidential Directive 7 as 

15 the lead Federal agency responsible for securing a 

16 specific critical infrastructure sector. 

17 ‘‘SEC. 222. OFFICE OF CYBERSECURITY AND COMMUNICA18 TIONS. 

19 ‘‘(a) ESTABLISHMENT.— 

20 ‘‘(1) IN GENERAL.—There shall be in the De21 partment an Office of Cybersecurity and Commu22 nications. 

23 ‘‘(2) ASSISTANT SECRETARY FOR CYBERSECU24 RITY AND COMMUNICATIONS.—The Assistant SecVerDate Mar 15 2010 22:05 Jan 11, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H174.IH H174

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1 retary for Cybersecurity and Communications shall 

2 be the head of the Office. 

3 ‘‘(3) COMPONENTS.—The Office shall include— 

4 ‘‘(A) the United States Computer Emer5 gency Readiness Team, as in effect on the date 

6 of enactment of this section; 

7 ‘‘(B) the Cybersecurity Compliance Divi8 sion established by subsection (b); and 

9 ‘‘(C) other components of the Department 

10 that have primary responsibilities for emergency 

11 or national communications or cybersecurity. 

12 ‘‘(b) CYBERSECURITY COMPLIANCE DIVISION.— 

13 ‘‘(1) IN GENERAL.—There is established in the 

14 Office of Cybersecurity and Communications a Cy15 bersecurity Compliance Division. 

16 ‘‘(2) DIRECTOR.—The Cybersecurity Compli17 ance Division shall be headed by a Director, who 

18 shall be appointed by the Secretary or the Sec19 retary’s designee from among individuals who pos20 sess— 

21 ‘‘(A) demonstrated knowledge and ability 

22 in cybersecurity, information technology, infra23 structure protection, and the operation, secu24 rity, and resilience of communications networks; 


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1 ‘‘(B) significant executive leadership, regu2 latory, and management experience in the pub3 lic or private sector; and 

4 ‘‘(C) other skills or attributes the Sec5 retary considers necessary. 

6 ‘‘(3) DUTIES AND RESPONSIBILITIES.—The Di7 rector— 

8 ‘‘(A) shall issue risk-based, performance9 based regulations, after notice and comment, in 

10 accordance with section 224; 

11 ‘‘(B) shall serve as the first-party regu12 latory agency to enforce regulations under sec13 tion 224 for computer networks and assets in 

14 critical infrastructure sectors for which the Of15 fice of Cybersecurity and Communications or 

16 any of its components is the designated sector17 specific agency; 

18 ‘‘(C) may require a first-party regulatory 

19 agency or sector-specific agency to coordinate 

20 with the Director to— 

21 ‘‘(i) develop and publish, for covered 

22 critical infrastructure sectors or subsec23 tors, risk-based and performance-based 

24 regulations after notice and comment in 

25 accordance with paragraph (1), with any 


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1 appropriate modifications, as identified by 

2 the Director, necessary for application to a 

3 specific critical infrastructure sector or 

4 subsector; and 

5 ‘‘(ii) enforce the regulations promul6 gated under paragraph (1); and 

7 ‘‘(D) may delegate part or all of the re8 sponsibilities and authorities for securing pri9 vate sector networks under this section to an 

10 appropriate first-party regulatory agency or sec11 tor-specific agency, which shall report to the Di12 rector all activities it carries out pursuant to 

13 such delegation. 

14 ‘‘(4) RESOURCES.—There is authorized to be 

15 appropriated such sums as may be necessary for the 

16 operations of the Cybersecurity Compliance Division 

17 for each of fiscal years 2012, 2013, and 2014. 

18 ‘‘SEC. 223. DEPARTMENT RESPONSIBILITIES AND AUTHORI19 TIES FOR SECURING FEDERAL GOVERNMENT 

20 NETWORKS. 

21 ‘‘(a) IN GENERAL.—The Secretary, acting through 

22 the Assistant Secretary for Cybersecurity and Commu23 nications or the Director of the Cybersecurity Compliance 

24 Division pursuant to subparagraphs (B), (C), and (D) of 

25 subsection (b)(2), shall establish and enforce cybersecurity 


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1 requirements for civilian nonmilitary and nonintelligence 

2 community Federal systems to prevent, deter, prepare for, 

3 detect, report, attribute, mitigate, respond to, and recover 

4 from cyber attacks and other cyber incidents. 

5 ‘‘(b) INTERAGENCY WORKING GROUP.— 

6 ‘‘(1) IN GENERAL.—The Assistant Secretary for 

7 Cybersecurity and Communications shall establish 

8 and chair an interagency working group that shall 

9 include, at a minimum, representation of all chief in10 formation officers from all Federal civilian agencies, 

11 the Director of the Cybersecurity Compliance divi12 sion, the Assistant Secretary for Infrastructure Pro13 tection, and the White House Cybersecurity Coordi14 nator. The Assistant Secretary shall invite the Sec15 retary of Defense, the Director of the National Secu16 rity Agency, and the Director of National Intel17 ligence to participate as nonvoting representatives 

18 for purposes of advising the interagency working 

19 group. 

20 ‘‘(2) FUNCTIONS.—The interagency working 

21 group shall— 

22 ‘‘(A) meet at the call of the Chair; 

23 ‘‘(B) develop and adopt risk-based, per24 formance-based cybersecurity requirements for 


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1 civilian Federal agency computer networks and 

2 federally owned critical infrastructure; 

3 ‘‘(C) develop and adopt a range of rem4 edies, including penalties, for noncompliance of 

5 the requirements adopted under paragraph (2), 

6 each agency having one vote; 

7 ‘‘(D) develop recommended budgets for se8 curity of the civilian nonmilitary and non-intel9 ligence community Federal agency computer 

10 networks; and 

11 ‘‘(E) propose updates, as necessary, for the 

12 Common Criteria for Information Technology 

13 Security Evaluation as part of a supply chain 

14 risk management strategy designed to ensure 

15 the security and resilience of the Federal infor16 mation infrastructure, including protection 

17 against unauthorized access to, alteration of in18 formation in, disruption of operations of, inter19 ruption of communications or services of, and 

20 insertion of malicious software, engineering 

21 vulnerabilities, or otherwise corrupting soft22 ware, hardware, services, or products intended 

23 for use in Federal information infrastructure. 

24 ‘‘(3) ADOPTION BY VOTE.—Adoption of require25 ments and remedies under subparagraphs (B) and 


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1 (C) of paragraph (2) shall be by a majority vote of 

2 the members of the interagency working group, in 

3 which each agency with a voting representative on 

4 the interagency working group has one vote. 

5 ‘‘(c) CODIFICATION OF AGREEMENTS.—All measures 

6 adopted under subsection (b) shall be submitted by the 

7 Secretary to the Office of Management and Budget for 

8 establishment in a binding Governmentwide memo or cir9 cular. 

10 ‘‘(d) ENFORCEMENT OF CYBERSECURITY REQUIRE11 MENTS FOR FEDERAL GOVERNMENT NETWORKS.—The 

12 Assistant Secretary, acting through the Director of the 

13 Cybersecurity Compliance Division, may enforce all re14 quirements adopted under subsection (b)(2)(B). 

15 ‘‘(e) CERTIFICATIONS, AUDITS, AND INSPECTIONS.— 

16 The Director of the Cybersecurity Compliance Division, in 

17 carrying out the Assistant Secretary for Cybersecurity and 

18 Communications’ enforcement authority under subsection 

19 (d), shall require a certification of compliance from the 

20 head of each civilian Federal agency that is subject to the 

21 requirements under subsection (b)(2)(B), and may con22 duct announced or unannounced audits and inspections of 

23 any network owned, operated, or used by a Federal civilian 

24 agency. 


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1 ‘‘(f) ENFORCEMENT.—If a certification, audit, or in2 spection carried out under subsection (e) shows non3 compliance with a requirement under subsection 

4 (b)(2)(B), Assistant Secretary, acting through the Direc5 tor of the Cybersecurity Compliance Division, may identify 

6 the appropriate remedies, including penalties, under sub7 section (b)(2)(C). 

8 ‘‘(g) EXECUTION OF PENALTIES BY OMB.—The Di9 rector of the Office of Management and Budget shall exe10 cute each remedy identified by the Director of the Cyber11 security Compliance Division under subsection (f) on be12 half of the Assistant Secretary. 

13 ‘‘(h) REPORTING OF CYBER INCIDENTS ON FEDERAL

14 NETWORKS.—The requirements under subsection 

15 (b)(2)(B) shall include a requirement that all Federal enti16 ties report any cyber incidents on their computer networks 

17 to the Director and to the United States Computer Emer18 gency Readiness Team. 

19 ‘‘(i) RESPONDING TO CYBER INCIDENTS ON FED20 ERAL NETWORKS.—If an incident is reported under sub21 section (h), the United States Computer Emergency Read22 iness Team shall, in coordination with the reporting agen23 cy, research the incident to determine and report to the 

24 Director and the reporting agency— 

25 ‘‘(1) the extent of any compromise; 


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1 ‘‘(2) an identification of any attackers, includ2 ing any affiliations with terrorists, terrorist organi3 zations, criminal organizations, state entities, and 

4 nonstate entities; 

5 ‘‘(3) the method of penetration; 

6 ‘‘(4) ramifications of any such compromise on 

7 future operations; 

8 ‘‘(5) secondary ramifications of any such com9 promise on other Federal or non-Federal networks; 

10 ‘‘(6) ramifications of any such compromise on 

11 national security, including war fighting capability; 

12 and 

13 ‘‘(7) recommended mitigation activities. 

14 ‘‘SEC. 224. DEPARTMENT RESPONSIBILITIES AND AUTHORI15 TIES FOR SECURING PRIVATE SECTOR NET16 WORKS. 

17 ‘‘(a) FINDINGS.—Congress finds that— 

18 ‘‘(1) pursuant to Homeland Security Presi19 dential Directive 7 the Department established pub20 lic-private partnerships including Government Co21 ordinating Councils (GCCs) and Sector Coordinating 

22 Councils (SCCs) to aid in the task of protecting the 

23 Nation’s critical infrastructures; 


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1 ‘‘(2) as part of this structure, each critical in2 frastructure sector has a designated sector-specific 

3 agency; 

4 ‘‘(3) the designated sector-specific agency for 

5 the Information Technology sector is the Office of 

6 Cybersecurity and Communications, and the des7 ignated sector-specific agency for the communica8 tions sector is the National Communications System, 

9 which resides within the Office of Cybersecurity and 

10 Communications; 

11 ‘‘(4) if cybersecurity regulation are necessary, 

12 the Department, consistent with the entire GCC/ 

13 SCC structure, as the sector-specific agency, will be 

14 the regulator for cybersecurity requirements within 

15 the information technology and communications sec16 tors; and 

17 ‘‘(5) in other critical infrastructure sectors, en18 forcement of cybersecurity regulations should be ac19 complished through appropriate first-party regu20 latory agencies or sector-specific agencies. 

21 ‘‘(b) GENERAL AUTHORITY.—The Secretary, acting 

22 through the Director, may establish and enforce risk23 based cybersecurity requirements for private sector com24 puter networks within covered critical infrastructures. 


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1 ‘‘(c) RISK-BASED CYBERSECURITY REQUIREMENTS

2 FOR CRITICAL INFRASTRUCTURE.— 

3 ‘‘(1) IN GENERAL.—The Director shall promul4 gate risk-based, performance-based cybersecurity re5 quirements for covered critical infrastructures, that 

6 are designed to prevent, deter, prepare for, detect, 

7 report, attribute, mitigate, respond to and recover 

8 from cyber incidents. 

9 ‘‘(2) RISK FACTORS.—The requirements shall 

10 be based on the risk factors of threats, 

11 vulnerabilities, and consequences, as follows: 

12 ‘‘(A) THREATS.—The requirements shall 

13 be based on terrorist or other known adversary 

14 capabilities and intent, or the likelihood of a po15 tential terrorist or other adversary attacking or 

16 causing a cyber incident against critical infra17 structure, as identified by the Secretary in con18 sultation with the Director of National Intel19 ligence, including— 

20 ‘‘(i) theft, modification, compromise, 

21 damage, or destruction of data or data22 bases; 

23 ‘‘(ii) physical compromise, damage, or 

24 destruction of covered critical infrastruc25 tures; and 


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1 ‘‘(iii) national, corporate, or personal 

2 espionage. 

3 ‘‘(3) VULNERABILITIES.—The requirements 

4 shall require security measures based on— 

5 ‘‘(A) preparedness; 

6 ‘‘(B) target attractiveness; and 

7 ‘‘(C) deterrence capabilities. 

8 ‘‘(4) CONSEQUENCES.—The requirements shall 

9 require security measures based on— 

10 ‘‘(A) the potential extent and likelihood of 

11 death, injury, or serious adverse effects to 

12 human health and safety caused by a disruption 

13 of the reliable operation of covered critical in14 frastructure; 

15 ‘‘(B) the threat to or potential impact on 

16 national security caused by a disruption of the 

17 reliable operation of covered critical infrastruc18 ture; 

19 ‘‘(C) the extent to which the disruption of 

20 the reliable operation of covered critical infra21 structure will disrupt the reliable operation of 

22 other covered critical infrastructure; 

23 ‘‘(D) the potential for harm to the econ24 omy that would result from a disruption of the 


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1 reliable operation of covered critical infrastruc2 ture; and 

3 ‘‘(E) other risk-based security factors that 

4 the Director, in consultation with the head of 

5 the sector-specific agency that is the first-party 

6 regulatory agency with responsibility for the 

7 covered critical infrastructure concerned, deter8 mines to be appropriate and necessary to pro9 tect public health and safety, critical infrastruc10 ture, national security, or economic security. 

11 ‘‘(d) CONSULTATION.—In establishing security per12 formance requirements under subsection (c), the Director 

13 shall, to the maximum extent practicable, consult with— 

14 ‘‘(1) the Assistant Secretary for Infrastructure 

15 Protection of the Department; 

16 ‘‘(2) the Officer for Civil Rights and Civil Lib17 erties of the Department; 

18 ‘‘(3) the Chief Privacy Officer of the Depart19 ment; 

20 ‘‘(4) the Under Secretary for Intelligence and 

21 Analysis; 

22 ‘‘(5) the Director of National Intelligence; 

23 ‘‘(6) the Director of the National Security 

24 Agency; 


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1 ‘‘(7) the Director of the National Institute of 

2 Standards and Technology; 

3 ‘‘(8) the heads of sector-specific agencies; 

4 ‘‘(9) the heads of first-party regulatory agen5 cies; 

6 ‘‘(10) private sector companies or industry 

7 groups, including but not limited to members of ap8 propriate sector coordinating councils; 

9 ‘‘(11) State, local, and tribal agency representa10 tives; 

11 ‘‘(12) academic institutions and think tanks; 

12 ‘‘(13) private sector, government, and nonprofit 

13 entities that specialize in privacy and civil liberties; 

14 and 

15 ‘‘(14) the White House Cybersecurity Coordi16 nator. 

17 ‘‘(e) COVERED CRITICAL INFRASTRUCTURES.— 

18 ‘‘(1) DESIGNATION.—The Director shall— 

19 ‘‘(A) determine, in consultation with the 

20 heads of sector-specific agencies and the heads 

21 of first-party regulatory agencies, which sys22 tems or assets of critical infrastructure shall be 

23 subject to the requirements of this section and 

24 designate them as covered critical infrastruc25 tures for purposes of this section; 


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1 ‘‘(B) notify each first-party regulatory 

2 agency or sector-specific agency of each such 

3 determination; and 

4 ‘‘(C) acting through the corresponding 

5 first-party regulatory agency or sector-specific 

6 agency, notify owners or operators of covered 

7 critical infrastructure sectors of the require8 ments of this subtitle. 

9 ‘‘(2) REQUIREMENTS.—A system or asset may 

10 not be designated as covered critical infrastructure 

11 under paragraph (1) unless— 

12 ‘‘(A) the system or asset meets the re13 quirements for inclusion on the prioritized crit14 ical infrastructure list established by the Sec15 retary under section 210E(a)(2); 

16 ‘‘(B) the system or asset is a component of 

17 the national information infrastructure or the 

18 national information infrastructure is essential 

19 to the reliable operation of the system or asset; 

20 or 

21 ‘‘(C) the destruction or the disruption of 

22 the reliable operation of the system or asset 

23 would cause a national or regional catastrophe. 

24 ‘‘(3) FACTORS TO BE CONSIDERED.—In desig25 nating systems or assets under this section, the DiVerDate Mar 15 2010 22:05 Jan 11, 2011 Jkt 099200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H174.IH H174

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1 rector shall consider cyber risks and consequences by 

2 sector, including— 

3 ‘‘(A) the factors listed in section subsection 

4 (c); 

5 ‘‘(B) known cyber incidents or cyber risks 

6 identified by existing risk assessments; 

7 ‘‘(C) interdependencies between compo8 nents of covered critical infrastructure; and 

9 ‘‘(D) the potential for the destruction or 

10 disruption of the system or asset to cause— 

11 ‘‘(i) a mass casualty event with an ex12 traordinary number of fatalities; 

13 ‘‘(ii) severe economic consequences; 

14 ‘‘(iii) mass evacuations with a pro15 longed absence; or 

16 ‘‘(iv) severe degradation of national 

17 security capabilities, including intelligence 

18 and defense functions. 

19 ‘‘(4) RECONSIDERATION.—Prior to a final des20 ignation of a system or asset of critical infrastruc21 ture under this subsection, the Director shall provide 

22 the owner or operator of the system or asset an op23 portunity to appeal the determination made under 

24 paragraph (1)(A). 


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1 ‘‘(f) CYBERSECURITY PLANS.—The Director shall re2 quire entities determined under subsection (e) to be cov3 ered critical infrastructures to comply with the require4 ments under subsection (c) and to submit to the first5 party regulatory agency or sector-specific agency, a pro6 posed cybersecurity plan to satisfy the security perform7 ance requirements described in subsection (c) on a 

8 timeline determined by the Director. 

9 ‘‘(g) CYBERSECURITY PLAN REVIEW.—Upon submis10 sion of the plan, the first-party regulatory agency or sec11 tor-specific agency shall, based on guidance provided by 

12 the Director— 

13 ‘‘(1) review cybersecurity plans submitted pur14 suant to subsection (f); 

15 ‘‘(2) approve or disapprove each cybersecurity 

16 plan; 

17 ‘‘(3) notify the submitter of the cybersecurity 

18 plan of approval or disapproval; 

19 ‘‘(4) in the case of disapproval, provide a clear 

20 explanation of the reasons for disapproval, possible 

21 changes that would result in approval, and provide 

22 a timetable for resubmission for compliance; and 

23 ‘‘(5) inform the Director of any approvals or 

24 disapprovals. 


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1 ‘‘(h) IMPLEMENTATION OF CYBERSECURITY

2 PLANS.— 

3 ‘‘(1) IN GENERAL.—The owners and operators 

4 of covered critical infrastructure shall have flexibility 

5 in their cybersecurity plans to implement any cyber6 security measure, or combination thereof, to satisfy 

7 the cybersecurity performance requirements de8 scribed in subsection (c) and the first-party regu9 latory agency or sector-specific agency may not dis10 approve under this section any proposed cybersecu11 rity measures, or combination thereof, based on the 

12 presence or absence of any particular cybersecurity 

13 measure if the proposed cybersecurity measures, or 

14 combination thereof, satisfy the cybersecurity per15 formance requirements established by the Director 

16 under subsection (c). 

17 ‘‘(2) RECOMMENDED CYBERSECURITY MEAS18 URES.—The Assistant Secretary for Cybersecurity 

19 and Communications may, at the request of an 

20 owner and operator of covered critical infrastructure, 

21 recommend a specific cybersecurity measure, or com22 bination thereof, that will satisfy the cybersecurity 

23 performance requirements established by the Direc24 tor. The absence of the recommended security meas25 ures, or combination thereof, may not serve as the 


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1 basis for a disapproval of the security measure, or 

2 combination thereof, proposed by the owner or oper3 ator of covered critical infrastructure if the proposed 

4 security measure, or combination thereof, otherwise 

5 satisfies the security performance requirements es6 tablished by the Director under (c). 

7 ‘‘(i) ENFORCEMENT CERTIFICATIONS, AUDITS AND

8 INSPECTIONS.—The sector-specific agency or first-party 

9 regulatory agency, in enforcing the requirements under 

10 subsection (c), shall require an entity with a cybersecurity 

11 plan approved under subsection (g) to certify that the cy12 bersecurity plan has been implemented, and may conduct 

13 announced or unannounced audits and inspections of any 

14 such entity to determine compliance. 

15 ‘‘(j) REPORTING OF CYBER INCIDENTS ON COVERED

16 CRITICAL INFRASTRUCTURE NETWORKS.—The require17 ments under subsection (c) shall include a requirement 

18 that each covered critical infrastructure entity report any 

19 cyber incidents on its networks to the first-party regu20 latory agency for the entity or to the sector-specific agency 

21 for the entity (if there is no first-party regulatory agency), 

22 and to US CERT. 

23 ‘‘(k) RESPONDING TO CYBER INCIDENTS ON PRI24 VATE NETWORKS.—If an incident is reported under sub25 section (j), the United States Computer Emergency ReadiVerDate Mar 15 2010 22:05 Jan 11, 2011 Jkt 099200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H174.IH H174

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1 ness Team may, at the invitation of and in coordination 

2 with the reporting entity, investigate the incident to deter3 mine and report to the Director and the reporting entity— 

4 ‘‘(1) the extent of any compromise; 

5 ‘‘(2) an identification of any attackers, includ6 ing any affiliations with terrorists, terrorist organi7 zations, state entities, and nonstate entities; 

8 ‘‘(3) the method of penetration; 

9 ‘‘(4) ramifications of any such compromise on 

10 future operations; 

11 ‘‘(5) secondary ramifications of any such com12 promise on other Federal or non-Federal networks; 

13 ‘‘(6) ramifications of any such compromise on 

14 national security, including war fighting capability; 

15 and 

16 ‘‘(7) recommended mitigation activities. 

17 ‘‘(l) SAFETY ACT INCENTIVES.—The Director may 

18 recommend SAFETY Act designation and certification to 

19 entities determined under subsections (g) and (i) to be in 

20 compliance with the requirements of this section. 

21 ‘‘(m) PENALTIES.—In the case of noncompliance 

22 with the requirements of this section the Director may rec23 ommend recision or suspension of SAFETY Act designa24 tion and certification during the period of noncompliance, 


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1 and may levy civil penalties, not to exceed $100,000 per 

2 day, for each instance of noncompliance.’’. 

3 (b) DEADLINES.—The Cybersecurity Compliance Di4 vision of the Department of Homeland Security shall— 

5 (1) not later than six months after such date of 

6 enactment of this Act, publish a notice of proposed 

7 rulemaking for regulations required under section 

8 224 of the Homeland Security Act of 2002, as 

9 amended by this section; and 

10 (2) not later than one year after such date of 

11 enactment of this Act, promulgate final regulations 

12 required under such section. 

13 (c) RULE OF CONSTRUCTION.—Nothing in this sec14 tion shall be construed to provide authority to any sector15 specific agency or first-party regulatory agency to estab16 lish standards or other measures outside of the require17 ments of this Act except as required by this Act and the 

18 amendments made by this Act. 

19 (d) CLERICAL AMENDMENT.—The table of contents 

20 in section 1(b) of such Act is amended by striking the 

21 items relating to sections 221 through 225 and inserting 

22 the following: 

‘‘Sec. 221. Definitions. 

‘‘Sec. 222. Office of Cybersecurity and Communications. 

‘‘Sec. 223. Department responsibilities and authorities for securing Federal 

Government networks. 

‘‘Sec. 224. Department responsibilities and authorities for securing private sector networks. 

‘‘Sec. 225. Procedures for sharing information. 


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‘‘Sec. 226. Privacy Officer. 

‘‘Sec. 227. Enhancement of non-Federal cybersecurity. 

‘‘Sec. 228. Net guard. 

‘‘Sec. 229. Cyber Security Enhancement Act of 2002.’’. 

1 SEC. 3. INFORMATION SHARING. 

2 The Assistant Secretary for Cybersecurity and Com3 munications of the Department of Homeland Security in 

4 coordination with the Assistant Secretary Infrastructure 

5 Protection of the Department of Homeland Security shall, 

6 to the maximum extent possible, consistent with rules for 

7 the handling of classified information, share relevant in8 formation regarding cybersecurity threats and 

9 vulnerabilities, and any proposed actions to mitigate them, 

10 with all Federal agencies, appropriate State, local, or trib11 al authority representatives, and all covered critical infra12 structure owners and operators, including by expediting 

13 necessary security clearances for designated points of con14 tact for critical infrastructures. 

15 SEC. 4. INFORMATION PROTECTION. 

16 The Assistant Secretary for Cybersecurity and Com17 munications of the Department of Homeland Security 

18 shall designate, as appropriate, information received from 

19 Federal agencies pursuant to the requirements enacted by 

20 section 2 (including the amendments made by such sec21 tion), information received from covered critical infra22 structure owners and operators pursuant to such section, 

23 and information provided to Federal agencies or covered 


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1 critical infrastructure owners and operators pursuant to 

2 this section as sensitive security information and shall re3 quire and enforce sensitive security information require4 ments for handling, storage, and dissemination of any 

5 such information. 

6 SEC. 5. CYBERSECURITY RESEARCH AND DEVELOPMENT. 

7 (a) IN GENERAL.—The Under Secretary for Science 

8 and Technology of the Department of Homeland Security 

9 shall support research, development, testing, evaluation, 

10 and transition of cybersecurity technology, including fun11 damental, long-term research to improve the ability of the 

12 United States to prevent, protect against, detect, respond 

13 to, and recover from acts of terrorism and cyber attacks, 

14 with an emphasis on research and development relevant 

15 to large-scale, high-impact attacks. 

16 (b) ACTIVITIES.—The research and development sup17 ported under subsection (a) shall include work to— 

18 (1) advance the development and accelerate the 

19 deployment of more secure versions of fundamental 

20 Internet protocols and architectures, including for 

21 the domain name system and routing protocols; 

22 (2) improve and create technologies for detect23 ing attacks or intrusions, including real-time moni24 toring and real-time analytic technologies; 


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1 (3) improve and create mitigation and recovery 

2 methodologies, including techniques and policies for 

3 real-time containment of attacks, and development 

4 of resilient networks and systems that degrade 

5 gracefully; 

6 (4) develop and support infrastructure and tools 

7 to support cybersecurity research and development 

8 efforts, including modeling, test beds, and data sets 

9 for assessment of new cybersecurity technologies; 

10 (5) assist the development and support of tech11 nologies to reduce vulnerabilities in process control 

12 systems; 

13 (6) develop and support cyber forensics and at14 tack attribution; and 

15 (7) test, evaluate, and facilitate the transfer of 

16 technologies associated with the engineering of less 

17 vulnerable software and securing the information 

18 technology software development lifecycle. 

19 (c) COORDINATION.—In carrying out this section, the 

20 Under Secretary shall coordinate activities with— 

21 (1) the Under Secretary for National Protection 

22 and Programs, the Assistant Secretary for Cyberse23 curity and Communications, and the Assistant Sec24 retary for Infrastructure Protection of the Depart25 ment of Homeland Security; and 


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1 (2) the heads of other relevant Federal depart2 ments and agencies, including the National Science 

3 Foundation, the Defense Advanced Research 

4 Projects Agency, the Information Assurance Direc5 torate of the National Security Agency, the National 

6 Institute of Standards and Technology, the Depart7 ment of Commerce, and other appropriate working 

8 groups established by the President to identify 

9 unmet needs and cooperatively support activities, as 

10 appropriate. 

11 SEC. 6. CYBER WORKFORCE RECRUITMENT, DEVELOP12 MENT, AND RETENTION. 

13 (a) WORKFORCE PLAN.—Not later than 180 days 

14 after the date of enactment of this Act and in every subse15 quent year, the Assistant Secretary for Cybersecurity and 

16 Communication of the Department of Homeland Security 

17 shall develop a strategic cybersecurity workforce plan as 

18 part of the Federal agency performance plan required 

19 under section 1115 of title 31, United States Code, that 

20 includes— 

21 (1) a description of the Department’s cyberse22 curity mission; and 

23 (2) a description and analysis, relating to the 

24 specialized workforce needed by the Department to 


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1 fulfill the Federal agency’s cybersecurity mission, in2 cluding— 

3 (A) the cybersecurity workforce needs of 

4 the Department on the date of the report, and 

5 near-, mid-, and long-term projections of work6 force needs; 

7 (B) hiring projections to meet cybersecu8 rity workforce needs, including, for at least a 2- 

9 year period, specific occupation and grade lev10 els; 

11 (C) long-term and short-term strategic 

12 goals to address critical skills deficiencies, in13 cluding analysis of the numbers of and reasons 

14 for attrition of employees; 

15 (D) recruitment strategies to attract highly 

16 qualified candidates from diverse backgrounds 

17 and geographic locations; 

18 (E) an assessment of the sources and 

19 availability of individuals with needed expertise; 

20 (F) ways to streamline the hiring process; 

21 (G) the barriers to recruiting and hiring 

22 individuals qualified in cybersecurity and rec23 ommendations to overcome the barriers; and 

24 (H) a training and development plan to en25 hance and improve the knowledge of employees. 


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1 (b) TRAINING.— 

2 (1) FEDERAL GOVERNMENT EMPLOYEES AND

3 FEDERAL CONTRACTORS.—The Assistant Secretary 

4 for Cybersecurity and Communications shall estab5 lish a cybersecurity awareness and education cur6 riculum that shall be required for all Federal em7 ployees and contractors engaged in the design, devel8 opment, or operation of civilian Federal agency com9 puter networks. 

10 (2) CONTENTS.—The curriculum established 

11 under paragraph (1) may include— 

12 (A) role-based security awareness training; 

13 (B) recommended cybersecurity practices; 

14 (C) cybersecurity recommendations for 

15 traveling abroad; 

16 (D) unclassified counterintelligence infor17 mation; 

18 (E) information regarding industrial espio19 nage; 

20 (F) information regarding malicious activ21 ity online; 

22 (G) information regarding cybersecurity 

23 and law enforcement; 

24 (H) identity management information; 


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1 (I) information regarding supply chain se2 curity; 

3 (J) information security risks associated 

4 with the activities of Federal employees; and 

5 (K) the responsibilities of Federal employ6 ees in complying with policies and procedures 

7 designed to reduce information security risks 

8 identified under subparagraph (J). 

9 (c) EDUCATION OPPORTUNITIES.—The Assistant 

10 Secretary for Cybersecurity and Communications shall de11 velop and implement a strategy to provide Federal employ12 ees who work in cybersecurity-related areas with the op13 portunity to obtain additional education. 

14 (d) DIRECT HIRE AUTHORITY.—Without regard to 

15 the civil service laws (other than sections 3303 and 3328 

16 of title 5, United States Code), the Secretary, acting 

17 through the Assistant Secretary for Cybersecurity and 

18 Communications, in consultation with the Under Sec19 retary for Management, may appoint not more than 500 

20 employees under this subsection to carry out the require21 ments of this Act at a rate of pay that may not exceed 

22 the maximum rate of basic pay payable under section 

23 5376 of title 5, United States Code, upon certification to 

24 the Congress that standard Federal hiring processes have 


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1 not resulted in the required number of critical cybersecu2 rity positions being filled. 

3 (e) RETENTION BONUSES.—Notwithstanding section 

4 5754 of title 5, United States Code, the Director may pay 

5 a retention bonus under that section to any individual ap6 pointed under this section, if the Secretary, acting through 

7 Assistant Secretary for Cybersecurity and Communica8 tions, in consultation with the Under Secretary for Man9 agement, determines that, in the absence of a retention 

10 bonus, there is a high risk that the individual would likely 

11 leave employment with the Department. The Secretary 

12 shall submit a written explanation of this determination 

13 to Congress prior to announcing the use of this authority. 

Æ 


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