Pipeline Security Act

— 410 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. Sean Michael Kerner, “Colonial Pipeline Hack Explained: Everything You Need to Know,” TechTarget, April, 26, 2022, https://www.techtarget.com/whatis/feature/Colonial-Pipeline-hack-explained-Everything-you-need-to- know (accessed February 13, 2023). 2. Jacob Knutson, “N.C. Power Company: Substation Repairs Complete After Alleged Attack,” Axios, December 7, 2022, https://www.axios.com/2022/12/07/duke-energy-moore-county-substation-attack (accessed February 13, 2023). 3. H.R. 3684, Infrastructure Investment and Jobs Act, Public Law No. 117-58, 117th Congress, November 15, 2021, https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf (accessed February 13, 2023). 4. H.R. 5376, Inflation Reduction Act of 2022, Public Law No. 117-169, August 16, 2022, https://www.congress. gov/117/plaws/publ169/PLAW-117publ169.pdf (accessed February 13, 2023). 5. S. 826, Department of Energy Organization Act, Public Law 95-91, 95th Congress, August 4, 1977, https://www. congress.gov/95/statute/STATUTE-91/STATUTE-91-Pg565.pdf (accessed February 13, 2023). 6. DOE also promotes domestic energy security by providing research and coordination between government and the private sector on physical and cyber-related threats to energy security. This work should continue and be enhanced under the next Administration. 7. Elimination of OE, NE, FE, and EERE might also be considered; however, there are benefits from having political appointees run separate offices. Specifically, separate program offices can focus on threats that are unique to their energy areas, and having political appointees run separate offices helps to ensure focused, unobstructed pursuit of policy objectives. 8. H.R. 6586, Natural Gas Act, Public Law No. 75-688, 75th Congress, June 21, 1938, https://govtrackus. s3.amazonaws.com/legislink/pdf/stat/52/STATUTE-52-Pg821a.pdf (accessed February 24, 2023). 9. U.S. Department of Energy, “Promoting Energy Justice,” https://www.energy.gov/promoting-energy-justice (accessed February 13, 2023). 10. U.S. Department of Energy, Office of Economic Impact and Diversity, “Justice40 Initiative,” https://www. energy.gov/diversity/justice40-initiative (accessed February 13, 2023). 11. Press release, “DOE Releases First-Ever Plan to Advance Diversity, Equity, Inclusion and Accessibility,” U.S. Department of Energy, September 1, 2022, https://www.energy.gov/articles/doe-releases-first-ever-plan- advance-diversity-equity-inclusion-and-accessibility (accessed February 14, 2023). 12. Including the National Aeronautics and Space Administration, National Science Foundation, Defense Advanced Research Projects Agency, Department of Homeland Security Science and Technology Directorate, National Oceanic and Atmospheric Administration, etc. 13. Table, “Environmental Management: Lifecycle Cost by Project Baseline Summary (PBS) ($M),” in U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Volume 6, Environmental Management, April 2022, p. 53, https://www.energy.gov/sites/default/ files/2022-09/doe-fy2023-budget-volume-6-em-v3.pd (accessed February 13, 2023). 14. KPMG, “Independent Auditor’s Report, United States Department of Energy Nuclear Waste Fund Annual Financial Report as of and for the Years Ended September 30, 2022 and 2021,” November 8, 2022, p. 8, in U.S. Department of Energy, Office of Inspector General, Office of Cyber Assessments and Data Analytics, Audit Report: The Department of Energy Nuclear Waste Fund’s Fiscal Year 2022 Financial Statement Audit, DOE- OIG-23-05, November 2022, p. 10, https://www.energy.gov/sites/default/files/2022-11/DOE-OIG-23-05.pdf (accessed February 13, 2023). 15. See Patty-Jane Geller, “U.S. Nuclear Weapons,” in 2023 Index of U.S. Military Strength, ed. Dakota L. Wood (Washington: The Heritage Foundation, 2023), pp. 481–506, http://thf_media.s3.amazonaws.com/2022/ Military_Index/2023_IndexOfUSMilitaryStrength.pdf. 16. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, March 2022, pp. 9, 21, 23, and 43, https://www.energy.gov/sites/default/ files/2022-03/doe-fy2023-budget-in-brief-v2.pdf (accessed February 13, 2023). 17. H.R. 4346, CHIPS and Science Act, Public Law No. 117-167, 117th Congress, August 9, 2022, https://www. congress.gov/117/plaws/publ167/PLAW-117publ167.pdf (accessed February 13, 2023). 18. U.S. Department of Energy, Office of Cybersecurity, Energy Security, and Emergency Response, “About Us,” https://www.energy.gov/ceser/ceser-mission (accessed February 27, 2023).

— 410 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. Sean Michael Kerner, “Colonial Pipeline Hack Explained: Everything You Need to Know,” TechTarget, April, 26, 2022, https://www.techtarget.com/whatis/feature/Colonial-Pipeline-hack-explained-Everything-you-need-to- know (accessed February 13, 2023). 2. Jacob Knutson, “N.C. Power Company: Substation Repairs Complete After Alleged Attack,” Axios, December 7, 2022, https://www.axios.com/2022/12/07/duke-energy-moore-county-substation-attack (accessed February 13, 2023). 3. H.R. 3684, Infrastructure Investment and Jobs Act, Public Law No. 117-58, 117th Congress, November 15, 2021, https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf (accessed February 13, 2023). 4. H.R. 5376, Inflation Reduction Act of 2022, Public Law No. 117-169, August 16, 2022, https://www.congress. gov/117/plaws/publ169/PLAW-117publ169.pdf (accessed February 13, 2023). 5. S. 826, Department of Energy Organization Act, Public Law 95-91, 95th Congress, August 4, 1977, https://www. congress.gov/95/statute/STATUTE-91/STATUTE-91-Pg565.pdf (accessed February 13, 2023). 6. DOE also promotes domestic energy security by providing research and coordination between government and the private sector on physical and cyber-related threats to energy security. This work should continue and be enhanced under the next Administration. 7. Elimination of OE, NE, FE, and EERE might also be considered; however, there are benefits from having political appointees run separate offices. Specifically, separate program offices can focus on threats that are unique to their energy areas, and having political appointees run separate offices helps to ensure focused, unobstructed pursuit of policy objectives. 8. H.R. 6586, Natural Gas Act, Public Law No. 75-688, 75th Congress, June 21, 1938, https://govtrackus. s3.amazonaws.com/legislink/pdf/stat/52/STATUTE-52-Pg821a.pdf (accessed February 24, 2023). 9. U.S. Department of Energy, “Promoting Energy Justice,” https://www.energy.gov/promoting-energy-justice (accessed February 13, 2023). 10. U.S. Department of Energy, Office of Economic Impact and Diversity, “Justice40 Initiative,” https://www. energy.gov/diversity/justice40-initiative (accessed February 13, 2023). 11. Press release, “DOE Releases First-Ever Plan to Advance Diversity, Equity, Inclusion and Accessibility,” U.S. Department of Energy, September 1, 2022, https://www.energy.gov/articles/doe-releases-first-ever-plan- advance-diversity-equity-inclusion-and-accessibility (accessed February 14, 2023). 12. Including the National Aeronautics and Space Administration, National Science Foundation, Defense Advanced Research Projects Agency, Department of Homeland Security Science and Technology Directorate, National Oceanic and Atmospheric Administration, etc. 13. Table, “Environmental Management: Lifecycle Cost by Project Baseline Summary (PBS) ($M),” in U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Volume 6, Environmental Management, April 2022, p. 53, https://www.energy.gov/sites/default/ files/2022-09/doe-fy2023-budget-volume-6-em-v3.pd (accessed February 13, 2023). 14. KPMG, “Independent Auditor’s Report, United States Department of Energy Nuclear Waste Fund Annual Financial Report as of and for the Years Ended September 30, 2022 and 2021,” November 8, 2022, p. 8, in U.S. Department of Energy, Office of Inspector General, Office of Cyber Assessments and Data Analytics, Audit Report: The Department of Energy Nuclear Waste Fund’s Fiscal Year 2022 Financial Statement Audit, DOE- OIG-23-05, November 2022, p. 10, https://www.energy.gov/sites/default/files/2022-11/DOE-OIG-23-05.pdf (accessed February 13, 2023). 15. See Patty-Jane Geller, “U.S. Nuclear Weapons,” in 2023 Index of U.S. Military Strength, ed. Dakota L. Wood (Washington: The Heritage Foundation, 2023), pp. 481–506, http://thf_media.s3.amazonaws.com/2022/ Military_Index/2023_IndexOfUSMilitaryStrength.pdf. 16. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, March 2022, pp. 9, 21, 23, and 43, https://www.energy.gov/sites/default/ files/2022-03/doe-fy2023-budget-in-brief-v2.pdf (accessed February 13, 2023). 17. H.R. 4346, CHIPS and Science Act, Public Law No. 117-167, 117th Congress, August 9, 2022, https://www. congress.gov/117/plaws/publ167/PLAW-117publ167.pdf (accessed February 13, 2023). 18. U.S. Department of Energy, Office of Cybersecurity, Energy Security, and Emergency Response, “About Us,” https://www.energy.gov/ceser/ceser-mission (accessed February 27, 2023). — 411 — Department of Energy and Related Commissions 19. President Donald J. Trump, Executive Order 13920, “Securing the United States Bulk-Power System,” May 1, 2020, in Federal Register, Vol. 85, No. 86 (May 4, 2020), pp. 26595–26599, https://www.govinfo.gov/content/ pkg/FR-2020-05-04/pdf/2020-09695.pdf (accessed February 13, 2023). 20. 18 U.S. Code § 824a(c), https://www.law.cornell.edu/uscode/text/16/824a (accessed February 27, 2023). 21. Report No. 117-98, Energy and Water Development and Related Agencies Appropriations Bill, 2022, Committee on Appropriations, U.S. House of Representatives, 117th Cong. 1st Sess., July 20, 2021, p. 6, https:// www.congress.gov/117/crpt/hrpt98/CRPT-117hrpt98.pdf (accessed February 13, 2023). 22. H.R. 3684, Infrastructure Investment and Jobs Act, Public Law No. 11-58, 117th Congress, November 15, 2021, Division J, Title III. 23. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, p. 7. 24. Timothy Gardner, “White House Asks Congress for $500 mln to Modernize Oil Reserve,” Reuters, November 16, 2022, https://www.reuters.com/article/usa-oil-spr-idAFL1N32C36I (accessed February 13, 2023). 25. U.S. Department of Energy, Office of Electricity, “Our History,” https://www.energy.gov/oe/about-us/our- history (accessed February 13, 2023). 26. Press release, “Secretary of Energy Signs Order to Mitigate Security Risks to the Nation’s Electric Grid,” U.S. Department of Energy, December 17, 2021, https://www.energy.gov/articles/secretary-energy-signs-order- mitigate-security-risks-nations-electric-grid (accessed February 13, 2023). 27. U.S. Department of Energy, Office of Electricity, “Revocation of Prohibition Order Securing Critical Defense Facilities,” Federal Register, Vol. 86, No. 76 (April 22, 2021), pp. 21308–21309, https://www.govinfo.gov/ content/pkg/FR-2021-04-22/pdf/2021-08483.pdf (accessed February 13, 2023). 28. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 19 and 61. 29. U.S. Department of Energy, Office of Nuclear Energy, “About Us,” https://www.energy.gov/ne/about-us (accessed February 13, 2023). 30. H.R. 3809, Nuclear Waste Policy Act of 1982, Public Law No. 97-425, 97th Congress, January 7, 1983, https:// www.congress.gov/97/statute/STATUTE-96/STATUTE-96-Pg2201.pdf (accessed February 24, 2023). 31. The Heritage Foundation, “Budget Blueprint for Fiscal Year 2023: Reduce the DOE Office of Nuclear Energy,” https://www.heritage.org/budget/pages/recommendations/1.270.127.html. 32. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 23 and 58. 33. 42 USC § 16291, https://www.law.cornell.edu/uscode/text/42/16291 (accessed February 27, 2023). 34. U.S. Department of Energy, Office of Fossil Energy and Carbon Management, “About Us: Mission,” https:// www.energy.gov/fecm/mission (accessed February 13, 2023). 35. U.S. Government Accountability Office, Carbon Capture and Storage: Actions Needed to Improve DOE Management of Demonstration Projects, GAO-22-105111, December2021, https://www.gao.gov/assets/gao-22- 105111.pdf (accessed February 13, 2023). 36. International Energy Agency, The Role of Critical Minerals in Clean Energy Transitions, World Energy Outlook Special Report, revised March 2022, https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a- 52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf (accessed February 13, 2023). 37. See 42 U.S. Code § 16291. 38. 42 U.S. Code Ch. 55, §§ 4321–4347, https://www.law.cornell.edu/uscode/text/42/chapter-55 (accessed February 27, 2023). 39. Nuclear Regulatory Commission, “Categorical Exclusions from Environmental Review,” Advance Notice of Proposed Rulemaking; Request for Comment, Federal Register, Vol. 86, No. 87 (May 7, 2021), pp. 24514–24516, https://www.govinfo.gov/content/pkg/FR-2021-05-07/pdf/2021-09675.pdf (accessed February 27, 2023), and Nuclear Regulatory Commission, “Categorical Exclusions from Environmental Review,” Advance Notice of Proposed Rulemaking; Reopening of Comment Period, Federal Register, Vol. 86, No. 160 (August 23, 2021), pp. 47032–47033, https://www.govinfo.gov/content/pkg/FR-2021-08-23/pdf/2021-18058.pdf (accessed February 27, 2023). 40. U.S. Department of Energy, Office of Chief Financial Officer, Department of Energy FY 2023 Congressional Budget Request, Budget in Brief, pp. 19, 21, 23, and 52.

— 408 — Mandate for Leadership: The Conservative Promise FERC is considering policy statements that would consider GHG emissions as part of its NEPA review and its NGA determination as to whether approval of an LNG export facility is consistent with the public interest. New Policies Since Congress through the NGA has already determined that LNG exports to countries with free trade agreements are in the public interest,129 and because LNG exports help to ensure America’s ability to support our friends and allies around the world while also supporting domestic natural gas production, FERC: l Should not use environmental issues like climate change as a reason to stop LNG projects. l Should ensure that the natural gas pipelines that are needed deliver more of the product to market, both for domestic use and export, and are reviewed, developed and constructed in a timely manner. NUCLEAR REGULATORY COMMISSION Mission/Overview The Energy Reorganization Act of 1974130 created the Nuclear Regulatory Com- mission (NRC). Before then, the commercial nuclear industry was regulated by the Atomic Energy Commission (AEC), which was established by the 1954 Atomic Energy Act.131 Importantly, the AEC was responsible for encouraging and regulat- ing commercial nuclear power. Broad criticism of this dual function was a major factor in the establishment of the NRC, which held regulatory authority while the newly established Department of Energy held the advocacy function. Today, the NRC is responsible for a broad range of regulatory activities, including reactor safety, oversight of nuclear materials, and protection against radiation as well as permitting new reactors, certifying new reactor designs, and regulating nuclear waste management activities. Needed Reforms In 1989, the NRC established alternative licensing processes that were meant to provide a more predictable and efficient regulatory pathway for new Light Water Reactors (LWRs) by combining construction and operating nuclear power plant licenses, allowing for Early Site Permits, and establishing a framework for pre- approval of reactor designs. More recently, the Nuclear Energy Innovation and Modernization Act directed the NRC to establish a technology-neutral licensing process for new, advanced reactor technologies.132 Despite these efforts, the NRC remains a significant cost and regulatory barrier to new nuclear power. Especially — 409 — Department of Energy and Related Commissions frustrating is that these costs to a large extent are due to the agencies being overly prescriptive rather than outcomes-focused and fall on well-known and understood LWR reactor technologies. New Policies While refocusing its regulatory efforts on new reactor technologies, the NRC should also continue to ensure the security of radiological sources and mitigate cybersecurity risks across the industry. Applications for Combined Operating Licenses (COLs) and design certifications that rely on light-water technology should generally be completed within two years. Early Site Permits should gener- ally be issued within one year for construction on or adjacent to an existing reactor site. Additionally, the NRC should: l Expedite the review and approval of license extensions of existing reactors, which will require the NRC to streamline and focus its NEPA review process. l Set clear radiation exposure and protection standards by eliminating ALARA (“as low as reasonably achievable”) as a regulatory principle and setting clear standards according to radiological risk and dose rather than arbitrary objectives. l Work with Congress to reform its funding approach so that licensee fees are generally required for activities that are specific to a regulated entity, with other agency costs being provided through normal appropriations. Budget In FY 2022, the NRC was required to recover approximately 85 percent of its $887.7 million budget through licensee fees.133 The Nuclear Energy Innovation and Modernization Act requires the NRC to recover nearly all of its costs through fees. These reforms would likely not cost additional money but could rebalance the fee-versus-appropriations calculation. AUTHOR’S NOTE: The preparation of this chapter was the work of many individuals. All contributors to this chapter are listed at the front of this volume, but I wish to give special thanks to Brent Bennett, Willis Bixby, Travis Fisher, Ben Lieberman, Brian McCormack, Tom Pyle, Mark Robeck, Daniel Simmons, Jack Spencer, Katie Tubb, and David Walsh. Though informed by many, the author alone assumes responsibility for the content of this chapter, and no views expressed herein should be attributed to any particular individual.