115 S2873 IS: Puerto Rico Economic Empowerment Act of 2018
U.S. Senate
2018-05-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

		II
		115th CONGRESS2d Session
		S. 2873
		IN THE SENATE OF THE UNITED STATES

			May 17, 2018
			Mr. Hatch (for himself and Mr. Rubio) introduced the following bill; which was read twice and referred to the Committee on Finance

		A BILL
		To support businesses in Puerto Rico, extend child tax credits for families in Puerto Rico, and for
			 other purposes.

		1.Short title; table of contents
			(a)Short title
 This Act may be cited as the Puerto Rico Economic Empowerment Act of 2018.
 (b)Table of contentsThe table of contents of this Act is as follows:Sec. 1. Short title; table of contents. TITLE I—Tax Relief Sec. 101. Temporary employee payroll tax cut for residents of Puerto Rico. Sec. 102. Equal treatment of Puerto Rican families with 1 or more children that is currently provided to families with 3 or more children. TITLE II—Flexibility for Puerto Rico in Small Business Administration programs Sec. 201. Short title. Sec. 202. Definitions. Subtitle A—Lending Sec. 211. Microloan program for Puerto Rico small business concerns. Subtitle B—Procurement Sec. 221. Priority for surplus property transfers. Sec. 222. Subcontracting incentives for protege firms that are Puerto Rico businesses. Sec. 223. Additional mentor-protege relationships for protege firms that are Puerto Rico businesses. Subtitle C—Entrepreneurial Development Sec. 231. FAST grant program for Puerto Rico. Subtitle D—Small Business Administration Oversight Sec. 241. Requirement for the District Director of Puerto Rico. Subtitle E—Disaster Loan Program Expansion Sec. 251. Amendment to definition of disaster for 7(b) loans. Subtitle F—Amendment to the Investment Company Act of 1940 Sec. 261. Termination of exemption for companies in territories of the United States. TITLE III—Economic statistics Sec. 301. Definition. Sec. 302. Inclusion of Puerto Rico in Census surveys. Sec. 303. Federal Statistical Research Data Center. TITLE IV—Offsets Sec. 401. Prevention and Public Health Fund.  ITax Relief 101.Temporary employee payroll tax cut for residents of Puerto Rico (a)In generalNotwithstanding any other provision of law, in the case of a qualified resident of Puerto Rico—
 (1)there shall be allowed a credit against the tax imposed by section 1401(a) of the Internal Revenue Code of 1986 for any taxable year which begins in the payroll tax holiday period an amount equal to 3.1 percent of the lesser of—
 (A)the self-employment income (as defined in section 1402(b) of such Code) derived from sources within Puerto Rico (as determined under section 937(b) of such Code) for the taxable year, or
 (B)the net earnings from self-employment (as defined in section 1402(a) of such Code) for the taxable year, and
 (2)with respect to remuneration received during the payroll tax holiday period for services performed as an employee within Puerto Rico (except amounts received for services performed as an employee of the United States or any agency thereof), the rate of tax under 3101(a) of such Code shall be 3.1 percent (including for purposes of determining the applicable percentage under sections 3201(a) and 3211(a)(1) of such Code).
					(b)Special rules
 (1)Application of rule for special refundsIn the case of a qualified resident of Puerto Rico to whom subsection (a)(2) applies, the first sentence of section 6413(c)(1) of the Internal Revenue Code of 1986 shall be applied by substituting for exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base the following:

 exceeds the sum of—(1)3.1 percent of the lesser of— (A)the wages received in such year to which section 2(a)(2) of the Puerto Rico Economic Empowerment Act of 2018 applies, or
 (B)the contribution and benefit base, plus (2)6.2 percent of the lesser of—
 (A)the wages received in such year to which such section does not apply, or (B)the contribution and benefits base reduced (but not below zero) by the amount of wages taken into account under paragraph (1)..
 (2)Employer liabilityAn employer who receives an attestation from an employee, in such form and manner as directed by the Secretary of the Treasury (or the Secretary's delegate), that such employee is a qualified resident of Puerto Rico shall not be liable under section 3102 or 3202 of the Internal Revenue Code of 1986 for any failure to collect taxes in excess of the rate which applies under this section unless a reasonable person would determine that such attestation is not true and correct.
 (3)De minimis servicesFor purposes of subsection (a)(2), services performed as an employee outside of Puerto Rico shall not be taken into account if such services are de minimis.
					(c)Definitions
 (1)Qualified residentThe term qualified resident means, with respect to any calendar year, any individual— (A)who was present in Puerto Rico for at least 183 days during the preceding calendar year, and
 (B)who, as of the first day of the calendar year, does not have a tax home (determined under the principles of section 911(d)(3) of the Internal Revenue Code of 1986 without regard to the second sentence thereof) outside of Puerto Rico and does not have a closer connection (determined under the principles of section 7701(b)(3)(B)(ii) of such Code) to the United States or a foreign country than to Puerto Rico.
						For purposes of subparagraph (A), the determination of whether a person is present for any day
 shall be made under the principles of section 7701(b) of such Code.(2)Payroll tax holiday periodThe term payroll tax holiday period means the period beginning after June 30, 2018, and ending before July 1, 2020. (d)Employer notificationThe Secretary of the Treasury shall notify employers of the payroll tax holiday period in any manner the Secretary deems appropriate.
				(e)Transfers of funds
 (1)Transfers to federal old-age and survivors insurance trust fundThere are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the application of subsection (a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.
 (2)Transfers to social security equivalent benefit accountThere are hereby appropriated to the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in revenues to the Treasury by reason of the application of subsection (a)(2). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Account had such amendments not been enacted.
 (3)Coordination with other lawsFor purposes of applying any provision of law other than the provisions of the Internal Revenue Code of 1986, the rate of tax in effect under section 3101(a) of such Code shall be determined without regard to the reduction in such rate under this section.
					102.Equal treatment of Puerto Rican families with 1 or more children that is currently provided to
			 families with 3 or more children
 (a)In generalSection 24 of the Internal Revenue Code of 1986, as amended by section 11022 of Public Law 115–97, is amended by adding at the end the following new subsection:

 (i)Residents of Puerto RicoIn the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year—
 (1)subsection (d)(1)(B)(ii) shall be applied (after application of subsection (h)), by substituting 1 or more qualifying children for 3 or more qualifying children, and
 (2)for purposes of subclause (I) of such subsection, such individual's social security taxes for such taxable year shall be determined as if section 101 of the Puerto Rico Economic Empowerment Act of 2018 did not apply..
 (b)Effective dateThe amendment made by this section shall apply to taxable years beginning after December 31, 2017. IIFlexibility for Puerto Rico in Small Business Administration programs 201.Short titleThis title may be cited as the Puerto Rico Opportunity, Small Business Prosperity, and Economic Revitalization Act of 2018.
			202.Definitions
 (a)In generalIn this title: (1)Administration; AdministratorThe terms Administration and Administrator mean the Small Business Administration and the Administrator thereof.
 (2)Microloan programThe term microloan program means the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)). (3)Oversight Board termination dateThe term Oversight Board termination date means the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates.
 (4)Puerto RicoThe term Puerto Rico means the Commonwealth of Puerto Rico. (5)Puerto Rico businessThe term Puerto Rico business means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.
 (6)Small business concernThe term small business concern has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632). (b)Small Business ActSection 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:

 (ee)Puerto Rico businessIn this Act, the term Puerto Rico business means a small business concern that has its principal office located in the Commonwealth of Puerto Rico..
				ALending
				211.Microloan program for Puerto Rico small business concerns
 (a)Increase in access to capital for certain intermediariesSection 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended— (1)by inserting and except as provided in clause (ii) after subsection (a)(3);
 (2)by striking Notwithstanding and inserting the following:  (i)In generalNotwithstanding; and
 (3)by adding at the end the following:  (ii)Exception for certain Puerto Rico businesses (I)In generalNo loan shall be made under this subsection if the total amount outstanding and committed to 1 covered intermediary (excluding outstanding grants) from the business loan and investment fund established by this Act would, as a result of such loan, exceed $6,000,000 in the remaining years of the covered intermediary's participation in the program.
 (II)DefinitionIn this clause, the term covered intermediary means an intermediary that— (aa)is participating in the program; and
 (bb)submits to the Administrator a certification that not less than 20 percent of the microloans made by the intermediary under this subsection, during such period as the Administrator may specify, will be made to Puerto Rico businesses..
						(b)Waiver of 25/75 rule for microloans to Puerto Rico small business concerns
 Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended— (1)in clause (i), by striking Each and inserting Except as provided in clause (iii), each; and
 (2)by adding at the end the following:  (iii)Exception for certain intermediariesThe Administrator shall waive the requirements of clause (i) for an intermediary for which not less than 25 percent of the loans made by the intermediary are made to Puerto Rico businesses..
 (c)SBA studyNot later than 1 year after the date of enactment of this Act, the Administrator shall conduct a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the following:
 (1)The operations (including services provided, structure, size, and area of operation) of a representative sample of—
 (A)intermediaries that are eligible for participation in the microloan program and that participate in the microloan program; and
 (B)intermediaries (including those operated for profit, operated as nonprofit organizations, and affiliated with a United States institution of higher learning (as defined in section 3452 of title 38, United States Code)) that are so eligible and that do not participate in the microloan program.
 (2)The reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program.
 (3)Recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B).
 (4)Recommendations for increasing the number of intermediaries located in the territories of the United States or in economically distressed areas (as defined in section 7(m)(11)(D) of the Small Business Act (15 U.S.C. 636(m)(11)(D))) that are eligible for participation in the microloan program.
 (5)Recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.
 (d)GAO study on microloan intermediary practicesNot later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report evaluating—
 (1)oversight of the microloan program by the Administration, including oversight of intermediaries participating in the microloan program; and
 (2)the specific processes used by the Administration to ensure— (A)compliance by intermediaries participating in the microloan program; and
 (B)the overall performance of the microloan program. BProcurement 221.Priority for surplus property transfersSection 7(j)(13)(F) of the Small Business Act (15 U.S.C. 636(j)(13)(F)) is amended by adding at the end the following:

						(iii)
 (I)In this clause, the term covered period means the period beginning on the date of enactment of this clause and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates.
 (II)The Administrator may transfer technology or surplus property under clause (i) on a priority basis to a Puerto Rico business if the Puerto Rico business meets the requirements for such a transfer, without regard to whether the Puerto Rico business is a Program Participant..
 222.Subcontracting incentives for protege firms that are Puerto Rico businessesSection 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is amended by adding at the end the following:

						(3)Puerto Rico small business concerns
 (A)In generalDuring the period beginning on the date of enactment of this paragraph and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates, the Administrator shall provide additional incentives to covered mentors, including providing additional credit for subcontracts awarded to covered proteges and costs incurred for providing training to covered proteges.
 (B)DefinitionsIn this paragraph— (i)the term covered mentor means a mentor that enters into an agreement under this Act, or under any mentor-protege program approved under subsection (b)(1), with a covered protege; and
 (ii)the term covered protege means a protege— (I)of a covered mentor; and
 (II)that has its principal office located in the Commonwealth of Puerto Rico.. 223.Additional mentor-protege relationships for protege firms that are Puerto Rico businessesSection 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by inserting , except that such restrictions shall not apply to a relationship that was entered into before the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates and in which the principal office of the protege is located in the Commonwealth of Puerto Rico after each participant.
				CEntrepreneurial Development
				231.FAST grant program for Puerto Rico
 (a)In generalSection 34 of the Small Business Act (15 U.S.C. 657d) is amended by adding at the end the following:

							(j)FAST grant program for Puerto Rico
 (1)EstablishmentThe Administrator shall establish a program that shall be part of the FAST program to make awards to, or enter into cooperative agreements with, a Puerto Rico business.
 (2)Technical assistanceIf no applicant is selected to receive assistance under this subsection, the Administrator shall use amounts appropriated to carry out this subsection to provide business advice and counseling to a Puerto Rico business.
 (3)Waiver of matching requirementsThe Administrator may, upon application, waive the matching requirements under subsection (e)(2) for an applicant that receives an award or has in effect a cooperative agreement under this subsection.
 (4)FundingThere is authorized to be appropriated $100,000 for fiscal year 2019, and each fiscal year thereafter, to carry out this subsection..
 (b)Prospective repealEffective on the Oversight Board termination date, section 34 of the Small Business Act (15 U.S.C. 657d), as amended by subsection (a), is amended by striking subsection (j).
					DSmall Business Administration Oversight
				241.Requirement for the District Director of Puerto Rico
 (a)In generalDuring the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, the director of the district office of the Administration located in Puerto Rico shall submit directly to Congress and the Administrator an annual report on the activities of the Administration in Puerto Rico.
 (b)CoordinationIn preparing each report described in subsection (a), the director described in such subsection shall consult with other Federal agencies to collect data on grants, programs, and outreach activities carried out by such agencies that affect any Puerto Rico business.
					EDisaster Loan Program Expansion
				251.Amendment to definition of disaster for 7(b) loans
 (a)In generalSection 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) is amended— (1)in subparagraph (B), by striking and at the end;
 (2)in subparagraph (C), striking the period and inserting ; and; and (3)by adding at the end the following:

 (D)communicable diseases for which the Federal Government issues a travel alert or travel warning.. (b)ApplicabilityThe amendment made by subsection (a) shall apply to a communicable disease—
 (1)for which the Federal Government issues a travel alert or travel warning before, on, or after the date of enactment of this Act; and
 (2)the effects of which are experienced on or after the date of enactment of this Act. FAmendment to the Investment Company Act of 1940 261.Termination of exemption for companies in territories of the United States (a)In generalSection 6(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(a)) is amended—
 (1)by striking paragraph (1); and (2)by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively.
						(b)Effective date and safe harbor
 (1)Effective dateExcept as provided in paragraph (2), the amendment made by subsection (a) shall take effect on the date of enactment of this Act.
 (2)Safe harborWith respect to a company that is exempt under section 6(a)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(a)(1)), as in effect on the day before the date of enactment of this Act, the amendment made by subsection (a) shall take effect on the date that is 3 years after the date of enactment of this Act.
 (3)Extension of safe harborThe Securities and Exchange Commission, by rule and regulation upon its own motion, or by order upon application, may conditionally or unconditionally, under section 6(c) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(c)), further delay the effective date for a company described in paragraph (2) to be not later than the date that is 6 years after the date of enactment of this Act if, before the end of the initial 3-year period, the Commission determines that such a rule, regulation, motion, or order is necessary or appropriate in the public interest and for the protection of investors.
						IIIEconomic statistics
 301.DefinitionIn this title, the term Secretary means the Secretary of Commerce, acting through the Director of the Bureau of the Census. 302.Inclusion of Puerto Rico in Census surveys (a)Study on inclusion in Current Population SurveyThe Secretary shall study the feasibility of including Puerto Rico in the Current Population Survey conducted by the Secretary.
				(b)Interagency working group on improving data
 (1)EstablishmentThe Chief Statistician of the United States shall establish a technical interagency working group to study the most effective approach to improving the quality and availability of data about or from Puerto Rico for the purpose of Federal statistical programs.
 (2)ReportNot later than October 31, 2018, and on a quarterly basis thereafter, the technical interagency working group established under paragraph (1) shall submit a report on the activities and findings of the working group to—
 (A)the Committee on Finance of the Senate; and (B)the Committee on Ways and Means of the House of Representatives.
 (c)Inclusion in other surveys and programs of the Bureau of the CensusThe Secretary shall conduct a proof of concept for including, or expanding the inclusion of, Puerto Rico in each of the following surveys and programs conducted by the Secretary:
 (1)The Census of Governments and Related Annual Programs. (2)The Survey of Business Owners.
 (3)The Building Permits Survey. (4)The Quarterly Workforce Indicators, derived from the Longitudinal Employer-Household Dynamics Program.
 (5)The Statistics of U.S. Businesses. 303.Federal Statistical Research Data Center (a)In generalThe Secretary shall establish a facility, to be known as the Federal Statistical Research Data Center, in San Juan, Puerto Rico.
 (b)Dual capacityThe facility established under subsection (a) shall serve as both— (1)an office of the International Trade Management Division of the Bureau of the Census; and
 (2)a research data center of the Bureau of the Census. IVOffsets 401.Prevention and Public Health FundSection 4002(b) of the Patient Protection and Affordable Care Act (42 U.S.C. 300u–11(b)), as amended by section 53119 of Public Law 115–123, is amended—
 (1)in paragraph (3), by striking $900,000,000 and inserting $841,000,000; (2)in paragraph (4), by striking $900,000,000 and inserting $848,000,000;
 (3)by striking paragraphs (5) through (8); (4)by redesignating paragraph (9) as paragraph (7); and
 (5)by inserting after paragraph (4) the following new paragraphs:  (5)for fiscal year 2020, $900,000,000;
 (6)for each fiscal year during the period of fiscal years 2021 through 2027, $700,000,000; and; .


		II
		Calendar No. 538
		112th CONGRESS
		2d Session
		S. 3310
		[Report No. 112–233]
		IN THE SENATE OF THE UNITED STATES

			June 19, 2012
			Mr. Lugar (for himself
			 and Mr. Rubio) introduced the following
			 bill; which was read twice and referred to the
			 Committee on Foreign
			 Relations

			November 13, 2012
			Reported by Mr. Kerry,
			 with an amendment and an amendment to the title
			Strike out all after the enacting clause and insert
			 the part printed in italic

		A BILL
		To direct the President, in consultation with the
		  Department of State, United States Agency for International Development,
		  Millennium Challenge Corporation, and the Department of Defense, to establish
		  guidelines for United States foreign assistance programs, and for other
		  purposes.

		1.Short titleThis Act may be cited as the
			 Foreign Aid Transparency and
			 Accountability Act of 2012.
		2.Guidelines for
			 United States foreign assistance programs
			(a)PurposeThe purpose of this section is to evaluate
			 the performance of United States foreign assistance programs and their
			 contribution to policy, strategies, projects, program goals, and priorities
			 undertaken by the Federal Government, to foster and promote innovative programs
			 to improve the effectiveness of such programs, and to coordinate the monitoring
			 and evaluation processes of Federal departments and agencies that administer
			 such programs.
			(b)Establishment of
			 guidelinesThe President, in
			 consultation with the Department of State, United States Agency for
			 International Development, Millennium Challenge Corporation, and the Department
			 of Defense, shall establish guidelines regarding the establishment of
			 measurable goals, performance metrics, and monitoring and evaluation plans that
			 can be applied on a uniform basis to United States foreign assistance programs,
			 country assistance plans, and international and multilateral assistance
			 programs receiving financial assistance from the United States. Such guidelines
			 shall be established according to best practices of monitoring and evaluation
			 studies and analyses.
			(c)Objectives of
			 guidelines
				(1)In
			 generalSuch guidelines shall provide direction to Federal
			 departments and agencies that administer United States foreign assistance
			 programs on how to develop the complete range of activities relating to the
			 monitoring of resources, the evaluation of projects, the evaluation of program
			 impacts, and analysis that is necessary for the identification of findings,
			 generalizations that can be derived from those findings, and their
			 applicability to proposed project and program design.
				(2)ObjectivesSpecifically,
			 the guidelines shall provide direction on how to achieve the following
			 objectives for monitoring and evaluation programs:
					(A)Building
			 measurable goals, performance metrics and monitoring and evaluation into
			 program design at the outset, including the provision of sufficient program
			 resources to conduct monitoring and evaluation.
					(B)Disseminating
			 guidelines for the development and implementation of monitoring and evaluation
			 programs to all personnel, especially in the field, who are responsible for the
			 design, implementation and management of foreign assistance programs.
					(C)Developing a
			 clearinghouse capacity for the dissemination of knowledge and lessons learned
			 to United States development professionals, implementing partners, the
			 international aid community, and aid recipient governments, and as a repository
			 of knowledge on lessons learned.
					(D)Distributing
			 evaluation reports internally and making this material available online to the
			 public. Furthermore, providing a summary including a description of methods,
			 key findings and recommendations to the public on-line in a fully searchable
			 form within 90 days after the completion of the evaluation. Principled
			 exceptions will be made in cases of classified or proprietary material.
					(E)Establishing
			 annual monitoring and evaluation agendas and objectives that are responsive to
			 policy and programmatic priorities.
					(F)Applying rigorous
			 monitoring and evaluation methodologies, choosing from among a wide variety of
			 qualitative and quantitative methods common in the field of social scientific
			 inquiry.
					(G)Partnering with
			 the academic community, implementing partners, and national and international
			 institutions that have expertise in monitoring and evaluation and analysis when
			 such partnerships will provide needed expertise or will significantly improve
			 the evaluation and analysis.
					(H)Developing and
			 implementing a training plan for aid personnel on the proper conduct of
			 monitoring and evaluation programs.
					(d)Role of other
			 Federal departments and agenciesThe President shall carry out this section
			 in conjunction with the heads of Federal departments and agencies that
			 administer United States foreign assistance programs.
			(e)ReportNot
			 later than one year after the date of the enactment of this Act, the President
			 shall submit to Congress a report that contains a detailed description of the
			 guidelines that have been developed on measurable goals, performance metrics,
			 and monitoring and evaluation plans for United States foreign assistance
			 programs established under this section.
			(f)Evaluation
			 definedIn this section, the
			 term evaluation means, with respect to a United States foreign
			 assistance program, the systematic collection and analysis of information about
			 the characteristics and outcomes of the program and projects under the program
			 as a basis for judgments, to improve effectiveness, and to inform decisions
			 about current and future programming.
			3.Internet Web site to
			 make publicly available comprehensive, timely, comparable, and accessible
			 information on United States foreign assistance programs
			(a)Establishment;
			 publication and updatesNot
			 later than 2 years after the date of the enactment of this Act, the President
			 shall establish and maintain an Internet Web site to make publicly available
			 comprehensive, timely, comparable, and accessible information on United States
			 foreign assistance programs. The head of each Federal department or agency that
			 administers such programs shall on a regular basis publish and update on the
			 Web site such information with respect to the programs of the department or
			 agency.
			(b)Matters To be
			 included
				(1)In
			 generalSuch information shall be published on a detailed
			 program-by-program basis and country-by-country basis.
				(2)Types of
			 informationTo ensure transparency, accountability, and
			 effectiveness of United States foreign assistance programs, the information
			 shall include country assistance strategies, annual budget documents,
			 congressional budget justifications, actual expenditures, and reports and
			 evaluations for such programs and projects under such programs. Each type of
			 information described in this paragraph shall be published on the Web site not
			 later than 30 days after the date of issuance of the information and shall be
			 continuously updated.
				(3)Report in lieu
			 of inclusionIf the head of a
			 Federal department or agency makes a determination that the inclusion of a
			 required item of information on the Web site would jeopardize the health or
			 security of an implementing partner or program beneficiary or would be
			 detrimental to the national interests of the United States, such item of
			 information may be submitted to Congress in a written report in lieu of
			 including it on the Web site, along with the reasons for not including it in
			 the database required under subsection (c)(2).
				(c)Scope of
			 information
				(1)In
			 generalThe Web site shall contain such information relating to
			 the current fiscal year and the immediately preceding 5 fiscal years.
				(2)Database
					(A)In
			 generalSubject to subparagraph (B), the Web site shall also
			 contain a link to a searchable database available to the public containing such
			 information relating to fiscal years prior to the current fiscal year and the
			 immediately preceding 5 fiscal years.
					(B)LimitationThe
			 database shall not contain such information relating to fiscal years prior to
			 fiscal year 2006.
					(d)FormSuch
			 information shall be published on the Web site in unclassified form. Any
			 information determined to be classified information may be submitted to
			 Congress in classified form and an unclassified summary of such information
			 shall be published on the Web site.

		1.Short titleThis Act may be cited as the
			 Foreign Aid Transparency and
			 Accountability Act of 2012.
		2.Guidelines for United
			 States foreign assistance programs
			(a)PurposeThe purpose of this section is to evaluate
			 the performance of United States foreign assistance and its contribution to
			 policy, strategies, projects, program goals, and priorities undertaken by the
			 Federal Government, to foster and promote innovative programs to improve
			 effectiveness, and to coordinate the monitoring and evaluation processes of
			 Federal departments and agencies that administer foreign assistance.
			(b)Establishment of
			 guidelinesNot later than one
			 year after the date of the enactment of this Act, the President shall establish
			 guidelines regarding the establishment of measurable goals, performance
			 metrics, and monitoring and evaluation plans that can be applied on a uniform
			 basis to United States foreign assistance. Such guidelines shall be established
			 according to best practices of monitoring and evaluation studies and
			 analyses.
			(c)Objectives of
			 guidelines
				(1)In
			 generalThe guidelines established under subsection (b) shall
			 provide direction to Federal departments and agencies that administer United
			 States foreign assistance on how to develop the complete range of activities
			 relating to the monitoring of resources, the evaluation of projects, the
			 evaluation of program impacts, and analysis that is necessary for the
			 identification of findings, generalizations that can be derived from those
			 findings, and their applicability to proposed project and program
			 design.
				(2)ObjectivesSpecifically,
			 the guidelines shall provide direction on how to achieve the following
			 objectives for monitoring and evaluation programs:
					(A)Building measurable
			 goals, performance metrics and monitoring and evaluation into program design at
			 the outset, including the provision of sufficient program resources to conduct
			 monitoring and evaluation.
					(B)Disseminating guidelines
			 for the development and implementation of monitoring and evaluation programs to
			 all personnel, especially in the field, who are responsible for the design,
			 implementation and management of foreign assistance programs.
					(C)Developing a
			 clearinghouse capacity for the dissemination of knowledge and lessons learned
			 to United States development professionals, implementing partners, the
			 international aid community, and aid recipient governments, and as a repository
			 of knowledge on lessons learned.
					(D)Distributing evaluation
			 reports internally and making this material available online to the public.
			 Furthermore, providing a summary including a description of methods, key
			 findings and recommendations to the public on-line in a fully searchable form
			 within 90 days after the completion of the evaluation. Principled exceptions
			 will be made in cases of classified or proprietary material.
					(E)Establishing annual
			 monitoring and evaluation agendas and objectives that are responsive to policy
			 and programmatic priorities.
					(F)Applying rigorous
			 monitoring and evaluation methodologies, choosing from among a wide variety of
			 qualitative and quantitative methods common in the field of social scientific
			 inquiry.
					(G)Partnering with the
			 academic community, implementing partners, and national and international
			 institutions that have expertise in monitoring and evaluation and analysis when
			 such partnerships will provide needed expertise or will significantly improve
			 the evaluation and analysis.
					(H)Developing and
			 implementing a training plan for aid personnel on the proper conduct of
			 monitoring and evaluation programs.
					(d) Implementation of
			 guidelinesBeginning not
			 later than one year after the date on which the President establishes the
			 guidelines under subsection (b), the head of each Federal department or agency
			 that administers United States foreign assistance shall administer the foreign
			 assistance in accordance with the guidelines.
			(e)ReportNot
			 later than one year after the date of the enactment of this Act, the President
			 shall submit to Congress a report that contains a detailed description of the
			 guidelines that have been developed on measurable goals, performance metrics,
			 and monitoring and evaluation plans for United States foreign assistance
			 programs established under this section.
			(f)Evaluation
			 definedIn this section, the
			 term evaluation means, with respect to a United States foreign
			 assistance program, the systematic collection and analysis of information about
			 the characteristics and outcomes of the program and projects under the program
			 as a basis for judgments, to improve effectiveness, and to inform decisions
			 about current and future programming.
			3.Internet Web site to
			 make publicly available comprehensive, timely, comparable, and accessible
			 information on United States foreign assistance programs
			(a)Establishment;
			 publication and updatesNot
			 later than 30 days after the date of the enactment of this Act, the President
			 shall direct the Secretary of State to establish and maintain an Internet
			 website to make publicly available comprehensive, timely, comparable, and
			 accessible information on United States foreign assistance programs. The head
			 of each Federal department or agency that administers United States foreign
			 assistance shall, not later than three years after the date of the enactment of
			 this Act, publish and on a quarterly basis update on an Internet website such
			 information with respect to the programs of the department or agency.
			(b)Matters To be
			 included
				(1)In
			 generalSuch information shall be published on a detailed
			 program-by-program basis and country-by-country basis.
				(2)Types of
			 informationTo ensure transparency, accountability, and
			 effectiveness of United States foreign assistance programs, the information
			 shall include country assistance strategies, annual budget documents,
			 congressional budget justifications, obligations, expenditures, and reports and
			 evaluations for United States foreign assistance programs and projects under
			 such programs. Each type of information described in this paragraph shall be
			 published or updated on the Internet website not later than 90 days after the
			 date of issuance of the information.
				(3)Report in lieu of
			 inclusionIf the head of a
			 Federal department or agency makes a determination that the inclusion of a
			 required item of information on the Internet website would jeopardize the
			 health or security of an implementing partner or program beneficiary or would
			 be detrimental to the national interests of the United States, the head of the
			 Federal department or agency may provide briefings to Congress on the item of
			 information or submit to Congress the item of information in a written report
			 in lieu of including it on the Internet website, along with the reasons for not
			 including it in the database required under this section.
				(c)Scope of
			 information
				(1)In
			 generalThe Internet website shall contain the information
			 described in subsection (b) as follows:
					(A)For fiscal year 2013, the
			 information relating to such fiscal year and each of the immediately preceding
			 2 fiscal years.
					(B)For fiscal year 2014, the
			 information relating to such fiscal year and each of the immediately preceding
			 3 fiscal years.
					(C)For fiscal year 2015, the
			 information relating to such fiscal year and each of the immediately preceding
			 4 fiscal years.
					(D)For fiscal year 2016, the
			 information relating to such fiscal year and each of the immediately preceding
			 5 fiscal years.
					(2)Older
			 informationFor fiscal year 2017 and each fiscal year thereafter,
			 the Internet website shall also contain a link to a searchable database
			 available to the public containing information described in subsection (b)
			 relating to fiscal years prior to the immediately preceding 5 fiscal years but
			 subsequent to fiscal year 2010.
				(d)FormThe
			 information required under subsection (b) shall be published on the Internet
			 website in unclassified form. Any information determined to be classified or
			 particularly sensitive information may be submitted to Congress in classified
			 form. An unclassified summary of such information shall be published on the
			 Internet website unless the head of the Federal department or agency, in
			 consultation with the appropriate congressional committees, determines that
			 such publication would have a detrimental effect on national security.
			4.OffsetNotwithstanding any other provision of law,
			 the Secretary of State and the head of each other Federal department or agency
			 that administers United States foreign assistance, in consultation with the
			 appropriate congressional committees, shall—
			(1)eliminate such
			 initiatives, positions, and programs within the Department of State or such
			 other department or agency that are not otherwise required by law as the
			 Secretary or the head of such other department or agency determines to be
			 necessary to entirely offset any and all costs incurred to carry out the
			 provisions of this Act with respect to the Department of State or such other
			 department or agency;
			(2)ensure no net increases
			 in personnel are added to carry out the provisions of this Act, with any new
			 full or part time employees ore equivalents offset by eliminating an equivalent
			 number of existing staff; and
			(3)report to Congress not
			 later than 90 days after the date of the enactment of this Act the actions
			 taken to ensure compliance with paragraphs (1) and (2), including the specific
			 initiatives, positions, and programs within the Department of State or such
			 other department or agency that have been eliminated to ensure that the costs
			 of carrying out this Act will be offset.
			5.DefinitionsIn this Act:
			(1)Appropriate
			 congressional committeesThe term appropriate congressional
			 committees means—
				(A)the Committee on Foreign
			 Relations and the Committee on Appropriations of the Senate; and
				(B)the Committee on Foreign
			 Affairs and the Committee on Appropriations of the House of
			 Representatives.
				(2)United States foreign
			 assistanceThe term
			 United States foreign assistance has the meaning given the term
			 foreign assistance in section 634(b) of the Foreign Assistance Act
			 of 1961 (22 U.S.C. 2394 (b)).
			Amend the title so as to read:
	 A bill to direct the President to establish guidelines for United States
	 foreign assistance, and for other purposes..

		November 13, 2012
		Reported with an amendment and an amendment to the
		  title


116 HR 5760 : Grid Security Research and Development Act
U.S. House of Representatives
2020-09-30
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

IIB116th CONGRESS2d SessionH. R. 5760IN THE SENATE OF THE UNITED STATESSeptember 30 (legislative day, September 29), 2020Received; read twice and referred to the Committee on Energy and Natural ResourcesAN ACTTo provide for a comprehensive interdisciplinary research, development, and demonstration initiative to strengthen the capacity of the energy sector to prepare for and withstand cyber and physical attacks, and for other purposes.1.Short titleThis Act may be cited as the Grid Security Research and Development Act.2.FindingsCongress finds the following:(1)The Nation, and every critical infrastructure sector, depends on reliable electricity.(2)Intelligent electronic devices, advanced analytics, and information systems used across the energy sector are essential to maintaining reliable operation of the electric grid.(3)The cybersecurity threat landscape is constantly changing and attacker capabilities are advancing rapidly, requiring ongoing modifications, advancements, and investments in technologies and procedures to maintain security.(4)It is in the national interest for Federal agencies to invest in cybersecurity research that informs and facilitates private sector investment and use of advanced cybersecurity tools and procedures to protect information systems.(5)The number of devices and systems connecting to the electric grid is increasing, and integrating cybersecurity protections into information systems when they are built is more effective than modifying products after installation to meet cybersecurity goals.(6)An understanding of human factors can be leveraged to understand the behavior of cyber threat actors, develop strategies to counter threat actors, improve cybersecurity training programs, optimize the design of human-machine interfaces and cybersecurity tools, and increase the capacity of the energy sector workforce to prevent unauthorized access to critical systems.3.Amendment to Energy Independence and Security Act of 2007Title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.) is amended by adding at the end the following:1310.Energy sector security research, development, and demonstration program(a)In generalThe Secretary, in coordination with appropriate Federal agencies, the Electricity Subsector Coordinating Council, the Electric Reliability Organization, State, tribal, local, and territorial governments, the private sector, and other relevant stakeholders, shall carry out a research, development, and demonstration program to protect the electric grid and energy systems, including assets connected to the distribution grid, from cyber and physical attacks by increasing the cyber and physical security capabilities of the energy sector and accelerating the development of relevant technologies and tools.(b)Department of energyAs part of the initiative described in subsection (a), the Secretary shall award research, development, and demonstration grants to—(1)identify cybersecurity risks to information systems within, and impacting, the electricity sector, energy systems, and energy infrastructure;(2)develop methods and tools to rapidly detect cyber intrusions and cyber incidents, including through the use of data and big data analytics techniques, such as intrusion detection, and security information and event management systems, to validate and verify system behavior;(3)assess emerging cybersecurity capabilities that could be applied to energy systems and develop technologies that integrate cybersecurity features and procedures into the design and development of existing and emerging grid technologies, including renewable energy, storage, and demand-side management technologies;(4)identify existing vulnerabilities in intelligent electronic devices, advanced analytics systems, and information systems;(5)work with relevant entities to develop technologies or concepts that build or retrofit cybersecurity features and procedures into—(A)information and energy management system devices, components, software, firmware, and hardware, including distributed control and management systems, and building management systems;(B)data storage systems, data management systems, and data analysis processes;(C)automated- and manually-controlled devices and equipment for monitoring and stabilizing the electric grid;(D)technologies used to synchronize time and develop guidance for operational contingency plans when time synchronization technologies, are compromised;(E)power system delivery and end user systems and devices that connect to the grid, including—(i)meters, phasor measurement units, and other sensors;(ii)distribution automation technologies, smart inverters, and other grid control technologies;(iii)distributed generation, energy storage, and other distributed energy technologies;(iv)demand response technologies;(v)home and building energy management and control systems;(vi)electric and plug-in hybrid vehicles and electric vehicle charging systems; and(vii)other relevant devices, software, firmware, and hardware; and(F)the supply chain of electric grid management system components;(6)develop technologies that improve the physical security of information systems, including remote assets;(7)integrate human factors research into the design and development of advanced tools and processes for dynamic monitoring, detection, protection, mitigation, response, and cyber situational awareness;(8)evaluate and understand the potential consequences of practices used to maintain the cybersecurity of information systems and intelligent electronic devices;(9)develop or expand the capabilities of existing cybersecurity test beds to simulate impacts of cyber attacks and combined cyber-physical attacks on information systems and electronic devices, including by increasing access to existing and emerging test beds for cooperative utilities, utilities owned by a political subdivision of a State, such as municipally-owned electric utilities, and other relevant stakeholders; and(10)develop technologies that reduce the cost of implementing effective cybersecurity technologies and tools, including updates to these technologies and tools, in the energy sector.(c)National science foundationThe National Science Foundation, in coordination with other Federal agencies as appropriate, shall through its cybersecurity research and development programs—(1)support basic research to advance knowledge, applications, technologies, and tools to strengthen the cybersecurity of information systems, including electric grid and energy systems, including interdisciplinary research in—(A)evolutionary systems, theories, mathematics, and models;(B)economic and financial theories, mathematics, and models; and(C)big data analytical methods, mathematics, computer coding, and algorithms; and(2)support cybersecurity education and training focused on information systems for the electric grid and energy workforce, including through the Advanced Technological Education program, the Cybercorps program, graduate research fellowships, and other appropriate programs.(d)Department of homeland security science and technology directorateThe Science and Technology Directorate of the Department of Homeland Security shall coordinate with the Department of Energy, the private sector, and other relevant stakeholders, to research existing cybersecurity technologies and tools used in the defense industry in order to—(1)identify technologies and tools that may meet civilian energy sector cybersecurity needs;(2)develop a research strategy that incorporates human factors research findings to guide the modification of defense industry cybersecurity tools for use in the civilian sector;(3)develop a strategy to accelerate efforts to bring modified defense industry cybersecurity tools to the civilian market; and(4)carry out other activities the Secretary of Homeland Security considers appropriate to meet the goals of this subsection.1311.Grid resilience and emergency response(a)In generalNot later than 180 days after the enactment of the Grid Security Research and Development Act, the Secretary shall establish a research, development, and demonstration program to enhance resilience and strengthen emergency response and management pertaining to the energy sector.(b)GrantsThe Secretary shall award grants to eligible entities under subsection (c) on a competitive basis to conduct research and development with the purpose of improving the resilience and reliability of electric grid by—(1)developing methods to improve community and governmental preparation for and emergency response to large-area, long-duration electricity interruptions, including through the use of energy efficiency, storage, and distributed generation technologies;(2)developing tools to help utilities and communities ensure the continuous delivery of electricity to critical facilities;(3)developing tools to improve coordination between utilities and relevant Federal agencies to enable communication, information-sharing, and situational awareness in the event of a physical or cyber-attack on the electric grid;(4)developing technologies and capabilities to withstand and address the current and projected impact of the changing climate on energy sector infrastructure, including extreme weather events and other natural disasters;(5)developing technologies capable of early detection of malfunctioning electrical equipment on the transmission and distribution grid, including detection of spark ignition causing wildfires and risks of vegetation contact; (6)assessing upgrades and additions needed to energy sector infrastructure due to projected changes in the energy generation mix and energy demand; and(7)upgrading tools used to estimate the costs of outages longer than 24 hours.(8)developing tools and technologies to assist with the planning, safe execution of, and safe and timely restoration of power after emergency power shut offs, such as those conducted to reduce risks of wildfires started by grid infrastructure.(c)Eligible entitiesThe entities eligible to receive grants under this section include—(1)an institution of higher education;(2)a nonprofit organization;(3)a National Laboratory;(4)a unit of State, local, or tribal government;(5)an electric utility or electric cooperative;(6)a retail service provider of electricity;(7)a private commercial entity;(8)a partnership or consortium of 2 or more entities described in subparagraphs (1) through (7); and(9)any other entities the Secretary deems appropriate.(d)Relevant activitiesGrants awarded under subsection (b) shall include funding for research and development activities related to the purpose described in subsection (b), such as—(1)development of technologies to use distributed energy resources, such as solar photovoltaics, energy storage systems, electric vehicles, and microgrids, to improve grid and critical end-user resilience;(2)analysis of non-technical barriers to greater integration and use of technologies on the distribution grid;(3)analysis of past large-area, long-duration electricity interruptions to identify common elements and best practices for electricity restoration, mitigation, and prevention of future disruptions;(4)development of advanced monitoring, analytics, operation, and controls of electric grid systems to improve electric grid resilience;(5)analysis of technologies, methods, and concepts that can improve community resilience and survivability of frequent or long-duration power outages;(6)development of methodologies to maintain cybersecurity during restoration of energy sector infrastructure and operation;(7)development of advanced power flow control systems and components to improve electric grid resilience; and(8)any other relevant activities determined by the Secretary.(e)Technical assistance(1)In generalThe Secretary shall provide technical assistance to eligible entities for the commercial application of technologies to improve the resilience of the electric grid and commercial application of technologies to help entities develop plans for preventing and recovering from various power outage scenarios at the local, regional, and State level.(2)Technical assistance programThe commercial application technical assistance program established in paragraph (1) shall include assistance to eligible entities for—(A)the commercial application of technologies developed from the grant program established in subsection (b), including cooperative utilities and utilities owned by a political subdivision of a State, such as municipally-owned electric utilities;(B)the development of methods to strengthen or otherwise mitigate adverse impacts on electric grid infrastructure against natural hazards;(C)the use of Department data and modeling tools for various purposes; (D)a resource assessment and analysis of future demand and distribution requirements, including development of advanced grid architectures and risk analysis; and(E)the development of tools and technologies to coordinate data across relevant entities to promote resilience and wildfire prevention in the planning, design, construction, operation, and maintenance of transmission infrastructure;(F)analysis to predict the likelihood of extreme weather events to inform the planning, design, construction, operation, and maintenance of transmission infrastructure in consultation with the National Oceanic and Atmospheric Administration; and(G)the commercial application of relevant technologies, such as distributed energy resources, microgrids, or other energy technologies, to establish backup power for users or facilities affected by emergency power shutoffs.(3)Eligible entitiesThe entities eligible to receive technical assistance for commercial application of technologies under this section include—(A)representatives of all sectors of the electric power industry, including electric utilities, trade organizations, and transmission and distribution system organizations, owners, and operators;(B)State and local governments and regulatory authorities, including public utility commissions;(C)tribal and Alaska Native governmental entities;(D)partnerships among entities under subparagraphs (A) through (C);(E)regional partnerships; and(F)any other entities the Secretary deems appropriate.(4)AuthorityNothing in this section shall authorize the Secretary to require any entity to adopt any model, tool, technology, plan, analysis, or assessment.1312.Best practices and guidance documents for energy sector cybersecurity research(a)In generalThe Secretary, in coordination with appropriate Federal agencies, the Electricity Subsector Coordinating Council, standards development organizations, State, tribal, local, and territorial governments, the private sector, public utility commissions, and other relevant stakeholders, shall coordinate the development of guidance documents for research, development, and demonstration activities to improve the cybersecurity capabilities of the energy sector through participating agencies. As part of these activities, the Secretary shall—(1)facilitate stakeholder involvement to update—(A)the Roadmap to Achieve Energy Delivery Systems Cybersecurity;(B)the Cybersecurity Procurement Language for Energy Delivery Systems, including developing guidance for—(i)contracting with third parties to conduct vulnerability testing for information systems used across the energy production, delivery, storage, and end use systems;(ii)contracting with third parties that utilize transient devices to access information systems; and(iii)managing supply chain risks; and(C)the Electricity Subsector Cybersecurity Capability Maturity Model, including the development of metrics to measure changes in cybersecurity readiness; and(2)develop voluntary guidance to improve digital forensic analysis capabilities, including—(A)developing standardized terminology and monitoring processes; and(B)utilizing human factors research to develop more effective procedures for logging incident events; and(3)work with the National Science Foundation, Department of Homeland Security, and stakeholders to develop a mechanism to anonymize, aggregate, and share the testing results from cybersecurity test beds to facilitate technology improvements by public and private sector researchers.(b)Best practicesThe Secretary, in collaboration with the Director of the National Institute of Standards and Technology and other appropriate Federal agencies, shall convene relevant stakeholders and facilitate the development of—(1)consensus-based best practices to improve cybersecurity for—(A)emerging energy technologies;(B)distributed generation and storage technologies, and other distributed energy resources;(C)electric vehicles and electric vehicle charging stations; and(D)other technologies and devices that connect to the electric grid;(2)recommended cybersecurity designs and technical requirements that can be used by the private sector to design and build interoperable cybersecurity features into technologies that connect to the electric grid, including networked devices and components on distribution systems; and(3)technical analysis that can be used by the private sector in developing best practices for test beds and test bed methodologies that will enable reproducible testing of cybersecurity protections for information systems, electronic devices, and other relevant components, software, and hardware across test beds.(c)Regulatory authorityNone of the activities authorized in this section shall be construed to authorize regulatory actions. Additionally, the voluntary standards developed under this section shall not duplicate or conflict with mandatory reliability standards.1313.Vulnerability testing and technical assistance to improve cybersecurity(a)In generalThe Secretary shall—(1)coordinate with energy sector asset owners and operators, leveraging the research facilities and expertise of the National Laboratories, to assist entities in developing testing capabilities by—(A)utilizing a range of methods to identify vulnerabilities in physical and cyber systems;(B)developing cybersecurity risk assessment tools and providing analyses and recommendations to participating stakeholders; and(C)working with stakeholders to develop methods to share anonymized and aggregated test results to assist relevant stakeholders in the energy sector, researchers, and the private sector to advance cybersecurity efforts, technologies, and tools;(2)collaborate with relevant stakeholders, including public utility commissions, to—(A)identify information, research, staff training, and analytical tools needed to evaluate cybersecurity issues and challenges in the energy sector; and(B)facilitate the sharing of information and the development of tools identified under subparagraph (A);(3)collaborate with tribal governments to identify information, research, and analysis tools needed by tribal governments to increase the cybersecurity of energy assets within their jurisdiction.1314.Education and workforce training research and standards(a)In generalThe Secretary shall support the development of a cybersecurity workforce through a program that—(1)facilitates collaboration between undergraduate and graduate students, researchers at the National Laboratories, and the private sector;(2)prioritizes science and technology in areas relevant to the mission of the Department of Energy through the design and application of cybersecurity technologies;(3)develops, or facilitates private sector development of, voluntary cybersecurity training and retraining standards, lessons, and recommendations for the energy sector that minimize duplication of cybersecurity compliance training programs; and(4)maintains a public database of cybersecurity education, training, and certification programs.(b)Grid resilience technology trainingThe Secretary shall support the development of the grid workforce through a training program that prioritizes activities that enhance the resilience of the electric grid and energy sector infrastructure, including training on the use of tools, technologies, and methods developed under the grant program established in section 1311(b).(c)CollaborationIn carrying out the program authorized in subsection (a) and (b), the Secretary shall leverage programs and activities carried out across the Department of Energy, other relevant Federal agencies, institutions of higher education, and other appropriate entities best suited to provide national leadership on cybersecurity and grid resilience-related issues.1315.Interagency coordination and strategic plan for energy sector cybersecurity research(a)DutiesThe Secretary, in coordination with the Energy Sector Government Coordinating Council, shall—(1)review the most recent versions of the Roadmap to Achieve Energy Delivery Systems Cybersecurity and the Multi-Year Program Plan for Energy Sector Cybersecurity to identify crosscutting energy sector cybersecurity research needs and opportunities for collaboration among Federal agencies and other relevant stakeholders;(2)identify interdisciplinary research, technology, and tools that can be applied to cybersecurity challenges in the energy sector;(3)identify technology transfer opportunities to accelerate the development and commercial application of novel cybersecurity technologies, systems, and processes in the energy sector; and(4)develop a coordinated Interagency Strategic Plan for research to advance cybersecurity capabilities used in the energy sector that builds on the Roadmap to Achieve Energy Delivery Systems in Cybersecurity and the Multi-Year Program Plan for Energy Sector Cybersecurity.(b)Interagency strategic plan(1)SubmittalThe Interagency Strategic Plan developed under subsection (a)(4) shall be submitted to Congress and made public within 12 months after the date of enactment of the Grid Security Research and Development Act.(2)ContentsThe Interagency Strategic Plan shall include—(A)an analysis of how existing cybersecurity research efforts across the Federal Government are advancing the goals of the Roadmap to Achieve Energy Delivery Systems Cybersecurity and the Multi-Year Program Plan for Energy Sector Cybersecurity;(B)recommendations for research areas that may advance the cybersecurity of the energy sector;(C)an overview of existing and proposed public and private sector research efforts that address the topics outlined in paragraph (3); and(D)an overview of needed support for workforce training in cybersecurity for the energy sector.(3)ConsiderationsIn developing the Interagency Strategic Plan, the Secretary, in coordination with the Energy Sector Government Coordinating Council, shall consider—(A)opportunities for human factors research to improve the design and effectiveness of cybersecurity devices, technologies, tools, processes, and training programs;(B)contributions of other disciplines to the development of innovative cybersecurity procedures, devices, components, technologies, and tools;(C)opportunities for technology transfer programs to facilitate private sector development of cybersecurity procedures, devices, components, technologies, and tools for the energy sector;(D)broader applications of the work done by relevant Federal agencies to advance the cybersecurity of information systems and data analytics systems for the energy sector; and(E)activities called for in the Federal cybersecurity research and development strategic plan required by section 201(a)(1) of the Cybersecurity Enhancement Act of 2014 (15 U.S.C. 7431(a)(1)).(c)ParticipationFor the purposes of carrying out this section, the Energy Sector Government Coordinating Council shall include representatives from Federal agencies with expertise in the energy sector, information systems, data analytics, cyber and physical systems, engineering, human factors research, human-machine interfaces, high performance computing, big data and data analytics, or other disciplines considered appropriate by the Council Chair.1316.Report to Congress(a)Balancing risks, increasing security, and improving modernization(1)StudyThe Secretary, in collaboration with the National Institute of Standards and Technology, other Federal agencies, and energy sector stakeholders, in order to provide recommendations for additional research, development, demonstration, and commercial application activities, shall—(A)analyze physical and cyber attacks on energy sector infrastructure and information systems and identify cost-effective opportunities to improve physical and cyber security; and(B)examine the risks associated with increasing penetration of digital technologies in grid networks, particularly on the distribution grid.(2)ContentThe study shall—(A)analyze processes, operational procedures, and other factors common among cyber attacks;(B)identify areas where human behavior plays a critical role in maintaining or compromising the security of a system;(C)recommend—(i)changes to the design of devices, human-machine interfaces, technologies, tools, processes, or procedures to optimize security that do not require a change in human behavior; and(ii)training techniques to increase the capacity of employees to actively identify, prevent, or neutralize the impact of cyber attacks;(D)evaluate existing engineering and technical design criteria and guidelines that incorporate human factors research findings, and recommend criteria and guidelines for cybersecurity tools that can be used to develop display systems for cybersecurity monitoring, such as alarms, user-friendly displays, and layouts;(E)evaluate the cybersecurity risks and benefits of various design and architecture options for energy sector systems, networked grid systems and components, and automation systems, including consideration of—(i)designs that include both digital and analog control devices and technologies;(ii)different communication technologies used to transfer information and data between control system devices, technologies, and system operators;(iii)automated and human-in-the-loop devices and technologies;(iv)programmable versus nonprogrammable devices and technologies;(v)increased redundancy using dissimilar cybersecurity technologies; and(vi)grid architectures that use autonomous functions to limit control vulnerabilities; and(F)recommend methods or metrics to document changes in risks associated with system designs and architectures.(3)ConsultationIn conducting the study, the Secretary shall consult with energy sector stakeholders, academic researchers, the private sector, and other relevant stakeholders.(4)ReportNot later than 24 months after the date of enactment of the Grid Security Research and Development Act, the Secretary shall submit the study to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.1317.DefinitionsIn this title:(1)Big dataThe term big data means datasets that require advanced analytical methods for their transformation into useful information.(2)CybersecurityThe term cybersecurity means protecting an information system or information that is stored on, processed by, or transiting an information system from a cybersecurity threat or security vulnerability.(3)Cybersecurity threatThe term cybersecurity threat has the meaning given the term in section 102 of the Cybersecurity Information Sharing Act of 2015 (6 U.S.C. 1501).(4)Electricity subsector coordinating councilThe term Electricity Subsector Coordinating Council means the self-organized, self-governed council consisting of senior industry representatives to serve as the principal liaison between the Federal Government and the electric power sector and to carry out the role of the Sector Coordinating Council as established in the National Infrastructure Protection Plan for the electricity subsector.(5)Energy sector government coordinating councilThe term Energy Sector Government Coordinating Council means the council consisting of representatives from relevant Federal Government agencies to provide effective coordination of energy sector efforts to ensure a secure, reliable, and resilient energy infrastructure and to carry out the role of the Government Coordinating Council as established in the National Infrastructure Protection Plan for the energy sector.(6)Human factors researchThe term human factors research means research on human performance in social and physical environments, and on the integration and interaction of humans with physical systems and computer hardware and software.(7)Human-machine interfacesThe term human-machine interfaces means technologies that present information to an operator or user about the state of a process or system, or accept human instructions to implement an action, including visualization displays such as a graphical user interface.(8)Information systemThe term information system—(A)has the meaning given the term in section 102 of the Cybersecurity Information Sharing Act of 2015 (6 U.S.C. 1501); and(B)includes operational technology, information technology, and communications.(9)National laboratoryThe term national laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).(10)Security vulnerabilityThe term security vulnerability has the meaning given the term in section 102 of the Cybersecurity Information Sharing Act of 2015 (6 U.S.C. 1501).(11)Transient devicesThe term transient devices means removable media, including floppy disks, compact disks, USB flash drives, external hard drives, mobile devices, and other devices that utilize wireless connections.1318.Authorization of appropriationsThere are authorized to be appropriated to the Secretary to carry out this Act—(1)$150,000,000 for fiscal year 2021;(2)$157,500,000 for fiscal year 2022;(3)$165,375,000 for fiscal year 2023;(4)$173,645,000 for fiscal year 2024; and(5)$182,325,000 for fiscal year 2025..4.Critical infrastructure research and construction(a)In generalThe Secretary shall carry out a program of research, development, and demonstration of technologies and tools to help ensure the resilience and security of critical integrated grid infrastructures.(b)Critical infrastructure definedThe term critical infrastructure means infrastructure that the Secretary determines to be vital to socioeconomic activities such that, if destroyed or damaged, such destruction or damage could cause substantial disruption to such socioeconomic activities.(c)CoordinationIn carrying out the program under subsection (a), the Secretary shall leverage expertise and resources of and facilitate collaboration and coordination between—(1)relevant programs and activities across the Department;(2)the Department of Defense; and(3)the Department of Homeland Security.(d)Critical infrastructure test facilityIn carrying out the program under subsection (a), the Secretary shall establish and operate a Critical Infrastructure Test Facility (referred to in this section as the Test Facility) that allows for scalable physical and cyber performance testing to be conducted on industry-scale critical infrastructure systems. This facility shall include a focus on—(1)cybersecurity test beds; and(2)electric grid test beds.(e)SelectionThe Secretary shall select the Test Facility under this section on a competitive, merit-reviewed basis. The Secretary shall consider applications from National Laboratories, institutions of higher education, multi-institutional collaborations, and other appropriate entities.(f)DurationThe Test Facility established under this section shall receive support for a period of not more than 5 years, subject to the availability of appropriations.(g)RenewalUpon the expiration of any period of support of the Test Facility, the Secretary may renew support for the Test Facility, on a merit-reviewed basis, for a period of not more than 5 years.(h)TerminationConsistent with the existing authorities of the Department, the Secretary may terminate the Test Facility for cause during the performance period.5.Conforming amendmentSection 1(b) of the Energy Independence and Security Act of 2007 is amended in the table of contents by adding after the matter relating to section 1309 the following: Sec. 1310. Energy sector security research, development, and demonstration program. Sec. 1311. Grid resilience and emergency response. Sec. 1312. Best practices and guidance documents for energy sector cybersecurity research. Sec. 1313. Vulnerability testing and technical assistance to improve cybersecurity. Sec. 1314. Education and workforce training research and standards. Sec. 1315. Interagency coordination and strategic plan for energy sector cybersecurity research. Sec. 1316. Report to Congress. Sec. 1317. Definitions. Sec. 1318. Authorization of appropriations..Passed the House of Representatives September 29, 2020.Cheryl L. Johnson,Clerk