Amid increased interdependence between U.S. natural gas and electric systems, lawmakers and members of the Federal Energy Regulatory Commission questioned whether the gas pipeline sector, like the power sector, should face mandatory federal cybersecurity standards.
U.S. Rep. Fred Upton, R-Mich., posed the possibility during a June 12 oversight hearing on FERC held by the House Energy and Commerce Committee's energy and power panel, and two FERC commissioners answered in the affirmative.
Commissioner Cheryl LaFleur said she was in the electricity industry when mandatory standards were first handed down after the Energy Policy Act of 2005. "Our attitude was, 'we already do this right; why do we need mandatory standards?'" she said. But she said such standards have improved grid reliability and security, and she suggested it would be worthwhile for Congress to require "some sort of mandatory authority" for the pipeline industry.
Structure with teeth
"I do think a structure with some teeth to it would be very helpful," LaFleur said. She added that it would be up to Congress to decide which agency takes the lead, and the body might consider U.S. Department of Homeland Security and U.S. Department of Energy agencies in addition to FERC.
Commissioner Richard Glick noted his concern about Transportation Safety Administration testimony at a recent FERC technical conference that the safety agency hoped for an 80% success rate through a voluntary program for pipeline cybersecurity.
"Eighty percent doesn't cut it," Glick said. "We need to have a success rate of 100%."
Instead, he envisioned a role for the Department of Energy, the lead energy sector agency for cybersecurity, in overseeing mandatory standards. "TSA does a great job on airports," he said after the hearing. "But this is just not their bailiwick."
FERC Commissioner Neil Chatterjee sounded more optimistic about the current situation. Chatterjee said he has seen progress from both TSA and pipeline industry, with both promising to commit more resources, although he also said he would like to see a greater focus at TSA.
"Both TSA and industry need to follow through on commitments that they're making, and if they don't, I think it's incumbent on us and you all to keep the pressure on," Chatterjee told lawmakers.
Upton expressed frustration that TSA had not sent a witness to a prior hearing, despite bipartisan requests, and worried that TSA has "less than a handful of folks" that oversee pipelines out of 51,000 employees.
Environmental reviews
Several lawmakers pressed FERC commissioners on environmental reviews of gas infrastructure projects, including the degree to which climate considerations are a part of the commission's decision making.
The full committee chairman, Rep. Frank Pallone, D-N.J., said a U.S. Appeals Court for the D.C. Circuit decision on the Sabal Trail Transmission pipeline means FERC cannot ignore indirect climate impacts of pipelines.
"I know FERC has great analysts who are up to the task of accounting for greenhouse gas emissions but they need to be empowered to ensure these impacts are considered fully," Pallone said. He also cast FERC's approach as looking at each pipeline in a vacuum, "without regard to any other application."
Most of the questions over climate considerations in gas project reviews were directed to Glick and LaFleur, who reiterated views from recent dissents or concurring statements that FERC should go further in its climate analysis.
Rep. Bill Flores, R-Texas, pressed Glick about the costs of project delays or lost jobs that could arise from greenhouse gas emissions mitigation that Glick has referenced in his dissents. Flores also asked Glick whether he had a mitigation standard by which future energy projects could earn his approval.
Glick said possible options include buying renewable energy credits, or using renewable energy or zero-emissions nuclear power to liquefy natural gas.
Maya Weber is a reporter with S&P Global Platts. Platts and S&P Global Market Intelligence are owned by S&P Global Inc.