Cybersecurity

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* Meg Heyse is a 2021 summer associate at Troutman Pepper. She is not admitted to practice law.

In April 2021, the Department of Energy (DOE) launched a 100-day initiative to strengthen cybersecurity protections in the energy sector. Just one month later, the Transportation Security Administration (TSA), an agency under the purview of the Department of Homeland Security (DHS), issued Security Directive Pipeline 2021-1 (Security Directive or Directive) to implement — for the first time — mandatory requirements for certain pipeline operators with respect to cybersecurity. The Security Directive became effective the day it was issued on May 28, 2021. Although the Security Directive was issued in final, TSA is accepting public comments on the Directive and has indicated that it may amend the Directive based on those comments.

The Security Directive mandates that owners and operators of “critical” hazardous liquid and natural gas pipeline infrastructure comply with certain portions of the DOE’s April 2021 initiative. As defined by the Directive, “critical” pipeline facilities are those that have been previously identified by the TSA as critical pursuant to the Implementing Recommendations of the 9/11 Commission Act of 2007 and as outlined in TSA’s pipeline security guidelines. For these owners and operators, the Directive has three broad mandates.
Continue Reading Mandatory Homeland Security Cybersecurity Directive

The Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Transportation Security Administration (TSA) recently finalized an Annex to a longstanding Memorandum of Understanding (MOU) regarding pipeline safety and security. This Annex comes just weeks after a publicized natural gas pipeline cybersecurity intrusion and responds to several recommendations from the Government Accountability Office (GAO) discussed in our earlier alert to update the prior Annex which had not been reviewed or revised since its inception over 14 years ago. The updated Annex emphasizes information-sharing and coordination between the agencies and signals that the agencies are moving forward on satisfying outstanding GAO recommendations. While this is a step in the right direction, questions remain whether TSA is the appropriate agency to oversee pipeline security and whether existing voluntary standards should be mandatory.
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Continue Reading As Cyberthreats Continue, PHMSA and TSA MOU Stresses Information Sharing and Coordination

The federal Pipeline Safety Act (PSA or the Act) mandates minimum safety standards for pipelines and certain associated storage and facilities (including LNG and other terminals). Congress should take up legislation to reauthorize the Act this year. Since the last reauthorization in 2016, there have been several noteworthy developments that have affected the industry, the…

Since 9/11, no new rules or regulations have been promulgated to address pipeline or LNG facility security or cybersecurity. Although the Transportation Security Administration (TSA) recently released an updated version of its “Pipeline Security Guidelines” (Guidelines) that were last issued in 2011, those Guidelines remain advisory.  And both the Department of Homeland Security (DHS) and the Federal Bureau of Investigation (FBI) have made only informal outreach to pipeline and LNG industry as issues have arisen.  As the threat of both cyber and physical attacks on critical energy infrastructure continues, however, some question whether minimal standards for prevention of threats should be in place.  In particular, there has been recent attention by the U.S. Government Accountability Office (GAO), members of Congress, and at least one Federal Energy Regulatory Commission (FERC) commissioner. (See E&E News Article of May 29, 2018).  These discussions, along with recent proposed legislation in the House and the fact that the Pipeline Safety Act is up for reauthorization later this year, are likely to bring these issues into sharper focus.
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Continue Reading Pipeline Security and Cybersecurity: Are Guidelines Enough to Protect Critical Infrastructure?