HR 4394 Introduced

FY 2024 EWD Spending

Late last month, Rep Fleischmann introduced HR 4394, the Energy and Water Development and Related Agencies Appropriations Act, 2024. The House Appropriations Committee published their Report on the bill. The bill only contains one cybersecurity mention, but the report discusses multiple cybersecurity issues as well as some unique chemical processing issues.

Cybersecurity Mentions in Bill

Pg 26 of the bill provides spending for the DOE’s Office of Cybersecurity, Energy Security, and Emergency Response. The bill would allocate $200 million for the purchase, construction, and acquisition of plant and capital equipment, and other expenses necessary for energy sector cybersecurity, energy security, and emergency response activities.

Cybersecurity Mentions in Report

Cybersecurity Overview

In discussing the topic of energy security on pages 6-7 of the report notes:

“The Committee also recognizes the importance of securing the energy sector against cyber threats. In addition to maintaining funding for the Office of Cybersecurity, Energy Security, and Emergency Response, the recommendation supports prioritization of cybersecurity issues across most programs of the Department.”

Further in the discussion of CESER on page 101 the report notes:

“In light of documented cyber targeting of utilities, including by state actors, the Committee encourages the Department to incorporate pilot programs with energy industry asset owners and operators able to demonstrate active defense cybersecurity protection.”

On page 102 under the Preparedness, Policy, and Risk Analysis topic, the Committee directs the Department to establish partnerships between national labs, public universities, and private industry to develop and implement a semiconductor industry workforce cybersecurity curriculum.

Cybersecurity Program Funding

On page 101 under the topic Risk Management Technology and Tools, the Report provides “to $5,000,000 for university based research and development of scalable cyber-physical platforms for resilient and secure electric power systems that are flexible, modular, self-healing, and autonomous.”

On page 102 under the same topic, the Report provides not less than $5 million to continue the establishment of a network of university-based, regional energy cybersecurity centers and an additional $5 million to enhance quantum entanglement networking research and development at a quantum ready municipal utility to research and demonstrate quantum-protected network capability for securing communications between energy systems.

On page 104 under the topic Cyber Resilient and Secure Utility Communications Networks, the report provides $10 million for the final year of the DarkNet project.

Chemical Mentions in Report

On page 97, the report provides $20,000,000 for continued research for energy efficiency improvement and emissions reduction in the chemical industry, including dynamic catalyst science coupled with data analytics.

The Carbon Utilization topic on pg 110 addresses the “unrealized opportunity for carbon use and reuse to encourage the avoidance and removal of emissions, generate valuable products, and create revenue streams and jobs.” The Committee directed DOE to significantly increase investment in the Carbon Utilization program, particularly in research, development, and demonstration activities.

Moving Forward

See my blog post “Coming FY 2024 Spending Bill Logjams” for a discussion about the potential for spending bills (including this one) to move forward. Of special interest here is the fact that the spending levels for CESER in this bill are the same as those provided in the FY 2023 bill. While this is a $45 million decrease from the Administration’s budget request, it is not a spending decrease as envisioned by fiscal conservatives.