along the great lakes region. guest: the national flood insurance program is a program to allow participating communities to purchase flood insurance through this federal program, which provides flood insurance protection to property owners as well as renters and businesses can purchase flood insurance through this program. host: orice williams brown with the gao. thank you for joining us here run c-span budget think you for joining us here on c-span. the president is in ireland today. the meeting will include a session with the irish prime minister and a speech on u.s.- irish relations. that will take place at 12:30 will be -- and we

bringing that to you on c-span. the queen will be hosting a dinner tomorrow night. the president will be at the g-8 summit. people talk about the middle east. then they'll stop at poland. available on c-span and our website, c-span.org. thank you for joining us. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] cable satellite corp. 2011] ♪

>> thank you for joining us this morning. the white house has released a cyber security plan and could online @ c-span.org. this morning, in less than half an hour, we will be live with the senate committee hearing on the plan. cyber security officials will be testifying on capitol hill. president obama is in your call this week. today is the first day of his trip and he is in ireland. at two o'clock 30 eastern, c- span 2 will have live coverage of the speech from college green in dublin and he will be joined by the first lady and the irish prime minister. congress gavels in this afternoon at 2:00 eastern and the agenda includes bills on veterans' programs. the senate also meets at 2:00 eastern for an hour of speeches before they turn to debate and whether to expand expiring -- expand expiring provisions of

the patriot act. you are watching c-span, bringing politics and politics affairs every morning, it is "washington journal," about the news of the day, connected with politicians, and watch live coverage of the u.s. house and congressional hearings and policy forums and supreme court oral arguments for it on the weekend, you concede our signature interview programs. on saturday,"the communicator's." you could also watch our programming any time at c- span.org and it is all searchable at our cspan video library. cspan, washington your way, a public service credit by america's cable companies. -- created by america's cable companies. former utah republican governor jon huntsman wraps up a five-day trip to new hampshire today. he is asking for that state

support in his run for the presidential nomination for republicans. he visited a house party yesterday. this event is about half an hour. >> how are you? it is a real pleasure. thank you for coming out. we are honored by your presence. >> my sister was a big fan of yours when she was in singapore theme that was a long time ago. 20 years ago, what was she doing in singapore?

>> she was an executive with shearson lehman. >> we did a lot of work with financial companies and i would like to reconnect with her. >> of like t -- i would like you to meet the mayor. >> ever wasted a perfectly good sunday to be with us. -- thank you for wasting a partly good send it to be with us. >> have you enjoyed your trip so far? >> it has been accelerating. >> -- exhilarating. thank you for taking the time to be here. how are you? a pleasure to see you. thank you for coming out.

>> this is my daughter, sarah. >> how are you? hello, how are you? good to see you. thank you for being here. we appreciate that. how are you? >> is to meet you. >> it is a pleasure. how do you guys coexist in the same spare? west point were you? >> 1980, while ago. >> i went to west africa. >> where were you in west africa? >> cameron, somalia, rwanda, burundi.

there was a lot going on. it was a smaller theater. once the wall fell in east germany, all the money went north. there was less resources to go around. >> thank you for your great service. >> she was chairman of the school board and we want to get around this thing in franklin. >> this is better than i found it. >> that's all you can say in life. thank you for your good service. thank you, it is an honor to be with you. thank you for your great service. >> this is an air force academy graduate. >> you have all the branches represented here. >> it was nice. >> what year at the air force academy? .> i flew for 12 years an

>> what did you fly? c-141? what was it called? it was the star left thelifter? i was a passenger a couple of times. you had the cockpit and a couple of bombs behind the cockpit. i occupy one or two of those banks. bunks. they face those out in favor of the c-17, pretty much. thank you for your service. how are you? good to be you. >> he is a board member and

doing god's work. >> thank you reminder. tell me about you. >> i may state representative for franklin. >> that is part of the 400 + state reps in new hampshire? how do you enjoy your service is so far? >> i love it so far i love the berlin olympics to have to do. -- of the brain olympics to have to do. .> thank you v we could do that. would you like to do it right up here? i promise i will not bore you for too long. that is my promise.

do we have a microphone to use? i think we have a microphone here. hi the end of the day, the voice is shot. thanks anyway. >> [inaudible] >> i have a microphone if you think you need it. >> definitely. >> it will only go so far. >> let's see if we can plug into this one over here. >> ok, bill. >> do you want to say something? >> sure. see if you can get that to work.

>> it is a little higher. >> there we go. that is life. >> thank you for coming this afternoon. i know a lot of people of indicated they like to be here but the weather is probably an issue. sonny at -- sunday afternoons are tough but i am happy you are here. i know just about everybody here pretty well. i think that we really need to check the track our country is on. there's a concern we are going in the wrong direction in certain areas. it boils down to what kind of legacy want to leave to our kids. can we really do something better? the governor knows about

leadership. we need people to get this. thank you very much for coming to franklin today and we wish you the best. >> thank you. thanks very much. then we get this turned on? let me take this opportunity. bill and pat, where is that? thank you for being in your backyard and your hospitality for this majestic venue. this is incredible. this is the u.s. naval academy class of 1969. thank you for their service. we have somebody from west point. we have somebody here from the air force academy. if we can get along in this set of circumstances, can the nation get along for heaven's sake? we are in franklin. we are reminded of daniel

webster was a great senator. the only story about daniel webster that comes to mind at this moment that i think is relevant who served in a distinguished way in the united states senate is when william henry harrison was elected our ninth president of united states in the early 1840's, he was preparing for an order of speech recalled in his good friend daniel webster to edit his speech from whatever number of words it was -- i heard was 3000 -- down to a more manageable number, william henry harrison delivered his inaugural speech and died 31 days later because he spoke too long and the weather was not so good. if we combine dead webster -- if we combine daniel webster, we feel his presence today with his contribution to history. that means you don't speak too long. the weather is fabulous here. i want to introduce my family. and here with my wife, mary

kay, who is the finest human beings i have ever known. [applause] we have been married 28 years. we are here with two of our seven kids, elizabeth, raise your hand and gracie, come here gracie. i want to show you what good political work consists of. gracie was not much familiar with south new hampshire university and was there yesterday as her dad gave the commencement speech. she was celebrating her birthday. as she was celebrating her 12th birthday,right? they gave her a great sweatshirt and she put it on gratuitously as she toured new hampshire as it is suggested she is a local, right? have you enjoyed it so far today? thank you, gracie. grace is a wonderful girl.

she has had a most remarkable life. when we come back, we hope in the future for a second, third, and for the engagement of we get to that point, we understand that what it takes in new hampshire, we hope you'll get a better understanding and appreciation of this little girl. and indeed our entire family some of whom you might like. it is a great honor to be back after having served our nation the last two years in beijing. if you want to get a sense of where this world is going and a sense of what the 21st century will look like, drop yourself in beijing for a couple of years. you get a sense of where china is going and the trajectory economically that china has taken and what the implications are for the united states. reflecting back from 10,000 miles away in beijing, looking here: while living in a country where everyone is rather excited and giddy and euphoric about economic growth there, you can't help but reflect back on our own

country and you see we are in a funk. people are down. they are depressed. they are dispirited because they know we can be doing a whole lot more in this country. i am here to tell you that i believe the 2012 election cycle will be about two or three important things. i believe number 1 that it will be about $14 trillion. every american knows that $14 trillion and ejector rate -- and the trajectory are spending is on will have an overwhelmingly negative impact on the value of our dollar ultimately. impacts every family in this country and impact the quality of our life, the value of our goods, and the relative competitive position in the world. i think people care about that. the on the $40 trade in debt, this nation has -- despite the $14 trillion in debt, this

country has about $51 trillion. we have to be smart about how we move going forward. second, i think the discussion around 2012 will be about the revenue side of the balance sheet. what do i mean by that? i have no doubt about where we will be in terms of finding fixes on the spending side. congressman ryan has offered a proposal that i think is a very good one. the debt commission came forward with some recommendations that were all very good. before long, we as a country will rally around some good solid recommendations that will address spending. on the other side of the balance sheet, we have to grow. we've got to get our economic engines re-fired in this country. is one thing to deal with debt and spending and it is another thing to look at the revenue side of the balance sheet and how we grow and how we build. how will launch an industrial

revolution. i don't know any other way to put it. this nation has had industrial revolutions in the past. we had won after independence. we had one after the civil war in 1865 and beyond. everybody knows what i am talking about when refer to an industrial revolution. it is creating the right environment that is conducive to innovation and entrepreneurship and making this country great. we have been there before and we can do it again but it is all about whether our public and political will are there. i believe they are. i believe we don't have a choice. we have no choice other than to seriously consider and industrial revolution as we go forward. if we are going to take that idea seriously, we have to have an environment that is conducive to growth. bill, i would tell you that part of that is going to be about reforming our tax code. it will be about looking seriously at whether or not our

corporate tax which is the highest in the oecd, all the developed countries, is conducive to attracting capital and a world where we know that capital flees wherever it perceived risk in the marketplace. it will go somewhere that is welcome to capital. i believe the income-tax will need a review. regulatory reform is going to have to be part of anything we do that speaks to a new industrial revolution. if businesses today are not willing to deploy capital expenditures and invest in there tomorrow and the expansion of plant, property, and equipment because the kids around the corner, why deploy the capitol? you have a problem. we've got to look at regulatory issues. 3, the lowest of low hanging fruit economically has got to be the opportunity before us for an energy revolution. we have raw material

domestically here, we have sources of supply and the fact that we're bringing in 60% of our oil from abroad is a crying shame. the fact that we are not paying $5 per gallon for gasoline but when you add up what it costs to deploy troops in foreign lands and dangerous corners of the world, keeping the sea lanes open for the free flow of trade and commerce, the transportation costs in bringing it here is not $5 per gallon. it is more like $14 per gallon. taxpayers are footing the bill. we have some real opportunities ahead if we want to take the idea of an industrial revolution seriously. it is bring out the best this country has produced in generations gone by. we all know we are capable of doing it. we all know despite our competitive challenges on the other side of the world where we have lived last couple of years, they are moving into the future. they are proud of that direction. for every reason, given who we are is a country, and what we

have done in the past, and what we have before us, all the raw material would suggest we can maintain our preeminence and maintain our position as the greatest nation that ever was. it is up to us. this election cycle will put before all this, i do believe, the prospect of a lost decade of growth. do you want a lost decade? you can have that but it is up to us or do we want to on least economic magic that this country has shown the world time and time again which is completely possible? as for us, we are in that phase where you kick the tires and have conversations with a whole lot of people. we have done that for the last couple of weeks and we will continue doing that for the next couple of weeks. through it all, i would say sometime in june, we will sit down together as a little family and we will kind of digest all the information we have received that will include the experiences this weekend.

this experience in new hampshire has been extraordinary. your dropped right in the middle of somebody's neighborhood. it was right in the middle of somebody's living room, bill, with the national press there, with the neighbors like you who dropped by and you were totally expos. you either sink or swim. i guess it can be the most intimidating experience in the world or the most exhilarating american experience in the world. i am reminded that we do it differently in this country. we do it in a transparent fashion and an open fashion where you get out and develop relationships and you earn the vote ultimately. that is what new hampshire is all about. i reflected on being dropped in the middle of this open democratic process and thinking where we have been the last two years where you don't show up in somebody's living room, you don't invite the international press, and you don't have these wide-ranging discussions. we forget that this is not done in other places around the

world. this is uniquely american. it is what has made this country great. new hampshire is contribution to our american democracy is unique and extraordinary. our american democracy's influence on so many countries abroad has been profoundly important. i guess you could say it starts here in new hampshire. i would be proud of that fact. finally, let me end by this -- i i would are calcold -- tell you, i don't know about you, but i am tired of the divisiveness in this country. i am a little bit tired of all of us americans being divided. , yelling, screaming, and finger-pointing. we all want the same thing. we all want a better tomorrow. we all want my daughter greasy pots generation to inherit a better world, a better country than we got the prospect of them getting something that is worse off, that is waist deep in

debt, that as uncertain and unpredictable conflict abroad that we have no exit strategies for and we cannot afford beyond that is not something that should be acceptable to any of us. that should be a compelling reason enough for us to come together around some common- sense solutions. we will differ around the edges. we will differ on the substance of many of the ideas that are discussed in the 2012 election cycle but let's do it with a sense of respect. let's do it with a sense that we are all in this together. we all want what is best for our country and the world is watching how this democracy plays out. as we go, so will go so many other nations that want to be like us. when we carry on our debate in a way that a civil and respectful, but gets to where we want to become a that is taken note of. one side of the world is overjoyed at where they are going economically and they are

feeling at the top of the world and we look over here and we are a little bit down and dispirited and a bit in a funk. i say those feelings are not american. that is not who we are. we are optimistic and we are hopeful people. we always think and dream about a better tomorrow. more than that, we get busy in building a better tomorrow. i think it is totally doable. as for me, i hope this election cycle whether we are in it or not and bill will make that decision soon, i hope this election cycle gets out the issues. we don't have a choice. this election cycle is a critical period in this nation's history. it is an inflection point that i think all of us are aware of where issues need to be addressed in the next couple of years in terms of where this country is going. it is critically important i know the role you play and i

respect that. in the true new hampshire this -- tradition, if we decide to make this journey, i'm feeling pretty good and confident about that. we have to sit down and a family -- as a family make that decision. i hope we have the honor of shaking your hand up to seven times, coming back and making friends and doing it the new hampshire win because it is earned. it is not given, it is earned. i totally get that part of it. tonight, we thank you for you taking your time. bill pat, you are absolutely terrific to make her backyard available. we are grateful and thankful also very much. i look forward to spending more time with you. thank you for being with us. [applause] >> when i was kidding about the air force academy graduate friend, [inaudible] >> that would be you.

no brolin on the back lawn. -- no brawling on the back lawn. >> thank you very much. >> what is your opinion looking forward of the economics between the u.s. and china? [inaudible] what about their idea is a conflicting economic strategy? what about the security ramifications? the military view and their civilian leadership that >> there's a big divide between military and civilian leadership. that is dangerous but not the

way it should be. we have not had a military relationship with china in almost two years. that is unhealthy. we need to have a dialogue even though we will not see eye to eye. we need to have exchanges of various times and do search and rescue operations to prove the point that in a time of need, we can get together and coordinate and make the region a stronger place. and that dialogue has not taken place for all kinds of complicated reason. >> you have the military and civilian leadership, they have to coexist because they depended on them. one issue was with china because remain non-asian perspective, you never really knew about whether that will g realulf or there were both in sync. you got conflicting set messages from these military side. >> i would argue that in recent

years they have not been cooperative but they have a major turnover in the 18th party congress which means they get new political leadership and will get more military leadership. with a new cast of characters nectar, it will be a different dynamic and it will be interesting to see how that plays out at what it means for u.s.-china military relations. thank you for being here. >> thank you very much. >> how is it to live in such a beautiful part of the country? >> wonderfulawesome. >> that's the word i like. thank you. >> can i get a photograph? >> of course, of course. thanks again for your time. madison county commissioner, what a treat, thank you. >> retired army air force right here no emma way. where were you stations? >> everywhere, in europe.

>> this was a military joint venture. >> it was. she married made. >> she was an army nurse at fort dix. >> it worked out. that's what's important thanks for being here. we appreciate that. i will hand this over. i was there in the 1970's when i was a teenager at the same time i wife was there. [inaudible] they are the in the same league. >> [inaudible] >> that's the way it should be.

>> good luck. >> hope to see you again. thank you for your service over the years. >> mind if i get a photograph? >> your with a?? this is a big open process. there is healthy competition. absolutely right. >> welcome aboard. >> i'll talk built into taking a

walk. >> we're going live to capitol hill to the dirksen senate office building for a hearing on cyber security. earlier this month, the obama administration unveiled its global cyborgs security plan calling for the u.s. to work with other countries and intellectual property protection and the prevention of identity theft and laid out a plan a provision for foreign law enforcement agencies on cyber crime. the committee is examining that proposal. we expect testimony today from top cyber security officials. sharing this year is the connecticut senator, joe lieberman. >> good morning, the hearing will come to order and thanks to everyone for being here. this is particularly to representatives of the administration who are before us as witnesses. if there is anyone who does not believe that we urgently need to

pass strong cyber security legislation which is the topic of our hearing today, i would tell them to look at some of the high-profile computer attacks that have happened in the past several months. these are the ones we know about. take thesony corp. as an example for it in two separate attacks, packers still the personal and billing information including some of the credit card numbers of 100 million people. when they sony web site reopened, they had not been able to close all the vulnerabilities that had been opened up in the wake of the first two attacks. and hackers could still use the information. if that does not convince skeptics, we have a real cyber security problem in america, consider the breaches that have

occurred in the cyber systems of organizations that specialize in cyber security. take our of the oak ridge national laboratory which has a very important role in the department of energy's fulfillment responsibility to secure our electric grid from cyber attack. whether by enemy nations or cyber terrorists. oak ridge national laboratory it was in itself successfully the cyber-attacked just last month. one that has been widely described in them media r,sa, whose secure identity program has been used by 40 million entities at 30,000 companies including parts of the federal government. those parts include the social security administration, the

part of defense, and the united states senate. rsa had valuable security information stolen from its computers that could compromise the systems and the used in future attacks. bottom line -- these are just a few examples. these are examples that are on the public record. if we don't do something soon, the internet will become a digital dodge city. cyberspace is just too important to modern life for us to sit back and allow that to happen. this is a place that really cries out for law. if i may continue the dodge city metaphor, it is time to say there is a new sheriff in town and we will have law and order around here. we could do that without compromising alongside a loving

liberty and privacy. the recent release of the white house's proposed cyber security legislation is an important step in that direction. i think it represents a turning point in our efforts to pass the strong measures we need to protect consumers, businesses, critical infrastructure, and our national security from cyber attack by terrorists, spies, or crooks. i am pleased, not just by the appearance of the administration cyber security legislation, but by its substance. the president's proposal is similar in many ways to legislation this committee reported out early in this session of congress. where there are differences, i think we can work together to find agreement. in this regard, i am very

grateful to the witnesses for appearing before us today. this is the first public testimony the administration has given on its cyber security proposal since it was released. an important area of agreement is the recognition that the park and homeland security must be given the job of protecting dot gov and dot com domains. a crucial part of this jobs d beforehs to identify -- a crucial part of this job will be for dhs to control things like power plants, electrical grids, and pipelines that have commandeered by our enemies and theead to haveoc death and destruction. dhs , that authority and the

ability to evaluate the risks of those systems, once the systems and risks have been identified, the owners and operators under the proposal we have made will be required to develop plans to safeguard their systems. those plans will be reviewed to insure they will actually improve security. they will be reviewed by the department homeland security. just last week, if by magic, in our role as the oversight committee of the department of, security, say that we saw an example of why this kind of planning is a necessary and why the department of homeland security has raised itself to a quality of performance that it deserves to have the job. the private researcher discovered a major security flaw in a widely used industrial

control system and plan the twos -- to present this research at a conference. when personnel at the the the part a online secure discovered this and explains to the researcher how dangerous it would be to have this information out in public before the security flaws have been patched, he voluntarily canceled his talk. this is important because there is another -- because as another cyber security experts said, this is different from simply stealing money out of someone's bank account. things could explode. besides securing critical infrastructure, our bill and the white house bill would direct the department, security to work cooperatively and on a voluntary basis with the private sector and state and local governments to share cyber security risk and best practice information. the white house proposal also

clears the way for industry to share cyber security information without having to worry about running afoul of privacy statutes that impede information sharing. the business in government communities would be free to use this advice as best suits their needs. there would be no one size fits all mandates or dictates. both the white house bill and our committee bill also contained robust privacy oversight to ensure that our broader cyber security efforts do not impact individual privacy or civil liberties. both our proposals would also reform and update the federal information security management act to require continuous monitoring and protection of our federal computer networks and to do away with the current paper- based reporting system. one key difference between our bill and the white house

proposal is that our legislation creates a white house office of cyberspace policy with a senate desk confirmed later. we believe the stakes are so high when it comes to cyber security for our country that whoever holds that position should be confirmed by the senate and therefore accountable to congress. the committee bill would also clarify the president's authority to act in the event of a true cyber emergency while at the same time ensuring that the president cannot take any action that would limit free speech or shut down the internet. in its original version, this section was, in our opinion, misconstrued and we have tried to reassure everybody about the limitations. there are limited circumstances under which the president could act.

the administration come on the other hand, believes that additional statutory authority in this regard is unnecessary because the president' has the ♪ the authority already of this existing law. the bottom line -- the internet is a thrilling new frontier of our age. we have a plug in population of almost $2 billion and that -- of two -- of 2 billion and that is growing every day. it affects every aspect of our lives. what we are seeing is that it need not be a lawless frontier. i believe with the proposals we have in front of us, we can bring about the needed change this year to make the internet safer and more secure.

senatorority leader, harry reid, has taken an active interest in this. i have said to him that i believe it is the most important piece of legislation coming out of our homeland security committee in this session. he is working owith the republican leader, senator mcconnell and senator collins and i have worked together. there are five or six different committees of the senate that claimed some part of the jurisdiction over the subject matter. i believe it is the intention of bipartisan leadership of the senate to establish a process by which all those committees can negotiate any remaining differences in the bills that have come out of committee be cut -- so we can bring it to the senate floor as quickly as possible. we have had a very successful round of negotiations with the

commerce committee which is the other committee claiming a major jurisdiction here. we resolved just about all the differences. before i yield to senator collins, once to thankphil rightinger has done a great job in a relatively short period of time, elevating the quality of the cyber security operation. dhs. he worked very productively with our committee. we thank you for that. phil has decided to move on to the next great chapter of his life. i will not put him under oath to tell -- for him to tell us what that is. whatever it is, we wish you

well. thank you for your public service which has made a real difference to our country. senator collins. >> thank you, mr. chairman. let me begin by saying that i am very pleased the administration is now fully engaged on the imperative issue of drafting and passing cyber security legislation. experts tell me that the cyber arena is where the biggest gap exists between the threat level and all my ability and our level of preparedness. virtually every week, we learned of another massive cyber breach. the companies that authenticate users seeking to access segment networks was hacked. online gaming network was

breached. this morning, we read in our newspapers that the repressive government of syria attacked the social media sites of dissidents and protesters. the truth is that that number and sophistication of cyber attacks continue to grow each and every day. the fbi reports that small and medium-sized businesses in our country lost more than $11 million over the past year in a onlinescams in which stolen banking credentials were used for fraudulent wire transfers to chinese companies. worldwide, the annual cost of cyber crime has climbed to more than $1 trillion. according to the alarming testimony last year from the

senate sergeant at arms office, on average, each month, 1.8 billion cyber attacks target the computer systems of congress and the executive branch. unfortunately, the government's overall approach to cyber security has been disjointed and uncoordinated to date. the threat is simply too great to allow this to continue. the need for congress to have comprehensive cyber security legislation is more urgent than ever. i am pleased that the white house has now joined the efforts that this committee has undertaken over the past few years to develop a bill to help safeguard the american people from may cyber 9/11. i'm also encouraged that the administration's approach is similar in many respects to our

framework. both bills call for a strong public/private partnership to improve cyber security. our bill would bolster sharing within the private sector and across government of actionable threat intelligence that would help protect the private sector from advanced cyber threats. it would also direct the department of homeland security to collaborate with the private sector to develop and promote cyber security best practices. like our bill, the white house proposal recognizes that the department of homeland security should be the appropriate agency to lead the federal effort to secure federal civilian agencies. the dot gov domain and the infrastructure is in the private sector and public

sectors against cyber threats. i believe that cyber security at dhs must be led by a strong and empowered director who can close the coordination gaps that now exist. this leadership report directly to the secretary of homeland security and also serve as the principal adviser to the president on cyber security. to me, the best constructs which is not included in the white house proposal is modeled on the national counter-terrorism center and would apply a multi- agency approach that would be a withindhs to this issue. i look forward to exploring that issue with our witnesses this morning. on a positive note, the administration's approach to securing our nation's most critical infrastructure is very

similar to the risk-based approach in our bill. our bill differs, however, in providing liability protection as an incentive for companies to maintain continuous compliance with risc-based performance requirements. we should also detail the extent of the president's authority to deal with cyber emergencies. as the chairman has pointed out, our bill has the explicit provisions preventing the president from shutting down the internet. it also places limits on the length of any emergency action, requires reporting to congress, insurers remedial actions that are the least destructive and includes privacy protections. by contrast, the administration

appears to be relying on outmoded yet potentially sweeping authority granted in the communications act of 1934. i want to emphasize that date to point out just how outmoded those authorities are. our bill explicitly calls for the development of a supply chain strategy to leverage the federal government's' buying power to drive improvement in security -- cyber security. this would have a beneficial ripple effect in a larger market. as a very large customer, the federal government can contract with companies to innovate and improve the security of theirit services and products. these innovations could lead to new security baselines for services and products offered to

the private sector and the general public without mandating specific market outcomes. in addition, our build would give dhs the ability to hire and retain highly qualified cyber security professionals. i look forward to discussing these important issues with our witnesses today but most of all, to working together to finally secure the passage of comprehensive cyber security legislation. thank you, mr. chairman. >> thank you very much. senatorcarper has been made close sponsor. i would welcome an opening statement from you at this time. >> as the clock was ticking down into this weekend that we were approaching the end of the world

-- i was thinking that we worked so hard to develop incentives on this committee, it would be a shame if it all ended. >> it could be that's why it did not end. [applause] >> good news/bad news -- the good news is we are all still here. the bad news is still are the hackers to try to get into our bank accounts and steel are secrets whether military secrets, all kinds of trade secrets, innovation secrets. if you had to choose between one out, the other, this was probably the better outcome. i want to thank both of you for helping spearhead this. i am delighted that we are moving on this proposal to improve our nation's ability to defend against cyber attacks.

i ran into a couple of these fellows coming into the dirksen building and one of them had his fatherin tow and we welcome him and thank them for sharing his son with us. it has been 10 years since 9/11 and our country has done a tremendous amount of work in that time to defend the kind of attacks we saw that day. we started with our airports, the launching pad of the destruction of the 9/11 or terrorists. under the leadership of senator collins, which dramatically reorganize our government to better prevent attacks and prepare for the consequences of natural and man-made disasters. we'll also worked to better secure airports, the mass transit systems, chemical facilities and other key pieces of our infrastructure. the architect of 9/11 today is dead. while we face many threats, we can say that our country is

safer. i think it is much safer than it was on september 10. that does not mean we sit back and take anything easy. we face a new threat today that was not even on our radar screen 10 years ago. more and more americans live their lives and conduct their business online. this has created an attractive target for hackers and criminals looking to steal information or money or to cause mischief. an increased reliance on sophisticated technology, to keep the lights on, to keep the water clean, to run our factories, and fight wars and protect our country. terrorists with the ability to destroy the technology will depend on every day could cause serious damage potentially even a cyber 9/11. i introduce legislation with a former senator, bob bennett of utah. we want to improve the way in

which federal energies secure their networks. over the series of hearings, the subcommittee learn that agencies were relying on outdated and expensive paperwork-heavy system to secure the technology. nobody can say for sure that the system worked and our agencies were safe from cyber attack. our legislation aimed to hold accountable for monitoring their networks to ensure they are secure as possible at all time. last year, was pleased to join with you, mr. chairman and senator collins in developing comprehensive cyber security legislation that would have bettered networks while beginning the process of working with the private sector to secure the critical systems that they own. we introduced an improved version of our bill this year. as my colleagues are aware, it has proven difficult this year to find bipartisan consensus on

many issues. that what iteling might just be possible in this instance to work across the aisle like we did after 9/11 to address the serious security challenges we face as a country. it is my hope that we can act this time before the damage is done. the legislation i mentioned a moment earlier, senator bob bennett and i worked together on legislation trying to out line what the requirements for the involved. he was not my co-sponsor but back to and it is great to be here with both of you and we'll look forward to hearing from the witnesses. >> thank you. let me stress something you said -- a while back, senator reid and senator mcconnell called in the chairs of the six

committees with jurisdiction over some aspect of sired for security and the ranking republican members. it is a sad fact of life around here that i can remember the last time that happens. in this regard, it shows how seriously the bipartisan leadership of the senate takes the cyber security challenge. though there are differences that in at least one case may fall on partisan lines, this is not a partisan debate. this is a national-security debate and it is an economic growth and security debate. i am confident we will go at it with natural interest first and partisan interest way behind. this could be the last time you come before us as a witness so we will probably be brutal in our cross-examination. thanks for all you've done and we welcome your testimony now.

>> thank you very much. i would like to begin where all three of the senators -- and thank you very much the chairman labor man and -- lieberman. the leadership this committee has shown on this issue has been inspiring to me and many people i work with i like to thank you as to thank me for my efforts -- for your efforts to keep this on the front burner and move forward. clearly, where you stand depends on where you said and i said on -- in cyber security. i agree there is no room in more important issue that we need to address in the immediate future than that of cyber security. the threats are real and they are growing. the packers are getting better and better day to day. we are depending more and more on the infrastructure which they are attacking every day. this makes our risk profile more

and more significant. it is an issue of intellectual property. our intellectual property is being stolen and it is an issue of identity theft and personal information being stolen but it is much more than that is a national security issue. when you call 911, do people show up? is the power on? are the phone system's working? to have the systems we need to act as a country -- do we have the systems that we need to act as a country? this is a place where we must move forward. we must focus on outcomes.

the private sector moving forward in the right way to jointly advance of this issue. given the leadership this committee has shown, the administration worked long and hard to put together a proposal which we transmitted to congress a couple of weeks ago. in the it is a broad issue: the does not cover all the subjects that have been covered on the hill. it is the administration's been put into the subjects. we look forward strongly to the discussions that we will have with the members of this committee and with the senate and the house to make sure that we all move forward in a bipartisan way. the importance of approaching this in a bipartisan way going

forward. cyber security cuts across these issues. the work of the past administration was wrong. this began in the bush administration and enhance them so that we can move forward as a nation. this proposal is divided into three main categories. protecting the american people, critical infrastructure. i will talk about some of the proposals rather briefly and then i'm happy to explore them in the question and answer session. one of the things the bill does is gives dhs much clearer authority to work in a voluntary way with the private sector. the government has some of the answers.

dhs can help the private sector. it speeds information sharing. so we can have real situational awareness of what the threats look like. it creates a framework similar in many ways to that which the committee included in this bill that would bring private-sector efforts to bear. provide benefits to the companies that identified a set of risks, cyber security risks to be identified by dhs. a very, very similar approach. the bill does in number of things. taking the ongoing work that has

been moving forward to move policy and operational and oversight mechanism from the office of management and budget to the department of homeland security so we can unite all those things and we can observe in real time by monitoring agency networks and focus on outcomes and respond to problems in real time. creating that center of gravity that the chairman referred to, to protect federal networks. it strengthens dhs to employ more rapidly prevention and other mechanisms. resolving some of the legal questions that have slowed the deployment of einstein 2 and einstein 3 systems. it gives dhs recognize our role

with regard to civilian no worse, so we can hire people as rapidly and bring them on board as rapidly as we can in the department of defense. i would like to say that i wanted to offer my thanks to this committee. i have been with the department over two years and it has been one of the best experiences of my life. it has been a real opportunity to serve my country. i have found the work of this committee inspiring to me, an aspiring to the entire team i have, including people sitting behind me. thank you very much. i look forward to continue to work with you it whenever new role comes to me.

>> thank you perry will now go to robert butler -- thank you very much. we now go to robert butler. >> it is and honored to be before you today. we focused first on the threat that continues to grow against our critical information systems. it comes from malicious hackers. dod is reliant on the critical information structure. ofre dependent on all modes the transportation sector, telecommunications to perform at the missions that we have been assigned and are expected to do overseas. the threats have grown that we're facing today. the most perplexing throne is

the asymmetric perhaps -- the most perplexing threats are the asymmetric threats. the possibility of a large-scale attack that would be disruptive to our way of life. i believe that fact has been recognized and encouraged in discussion on the matter of full we're expected to deal with today. the status quo is no longer acceptable, not when there's so much at stake. the most important aspect from dod's perspective is that it is not depended upon any particular entity or party. it requires a whole american approach -- state governments and the private sector to work

together. this proposed legislation is an important step in that direction. state holders can communicate effectively. it engages the private sector's the able stakeholders and strengthens the department of homeland security to the executive branch in defending the nation against this threat. the advances us in other provisions, especially in growing the next generation work force and hiring practices. this legislation accomplishes all of this while respecting the volumes of freedom and ensuring the civil liberties that we cherish so deeply in this country. the department defense has an important role in the national security systems while providing support and technical

capabilities to help protect other critical infrastructure. dod will work hand in hand with the department's alongside of us at this table as well as the other departments in protecting our national infrastructure. we look forward to the leadership to make sure the executive branch has the appropriate authorities for cyber security and improving the overall safety of our nation. >> thank you, mr. butler. next we go to ari schwartz, a senior internet policy adviser at the department of commerce. thank you for being here. >> could to be back -- good to be back.

thank you for inviting me to testify. the main goal of the proposal is to maximize the countries effectiveness and protecting key systems that rely on the internet. at protecting the privacy of the public. quite a tall order. create a security plan, as senator collins discuss. protecting federal systems. data breach reporting. the accountability through disclosure. the illustration is promoting the use of expertise over top- down regulation. dhs would define these through a

process. take the lead in performance standards and identified cyber security risks and to help create cyber security frameworks. there will be a strong incentive. the entities will want to know their approach has been approved in developing a framework unless industry fails to act. the plans love to be signed off on -- the plants will have to be signed off on. the plans. this encourages innovation as well as improving adherence to best practice by facilitating greater transparency.

the main goal is to create a culture in which cyber security is part of everyday practice. the administration seeks to provide services that offer better security to government agencies and businesses. proposing to prevent states from requiring -- the proposal clarify the roles and responsibilities for setting security standards. the secretary of commerce will remain th-- dhs -- our working partnerships will be essential to ensure agencies receive information security requirements that are developed

with the appropriate operational and policy expertise. on the data breach reporting, the administration has learned a great deal from the states. protecting security and privacy. legislation will make easier for consumers to understand the breach notices that they receive and why they are receiving them, and they will be able to better take appropriate action. many companies have been heard from. notification will make compliance much easier for the companies that must follow 47 different legal standards today. many authorities are governed by a new privacy framework for government that we believe will enhance privacy protection for cyber security purposes.

this framework will be greeted by dhs and the attorney general and overseen by the civil liberties oversight board. thank you again for holding this important hearing and a thank you for your leadership. i look forward to your questions. >> thank you, mr. schwartz. i should welcome you to government services. the final expert on the panel witness will be jason chipman, senior counsel to the deputy eternal -- deputy attorney general, department of justice. >> it is a real pleasure to be here.

i appreciate the opportunity to testify today. this committee knows the united states confronts a serious cyber .ecurity threat cyber interest and could damage vital resources and put lives at risk. intruders have stolen confidential information and substantial amounts of money. we see cybercrime on the rise. with increasing sophistication to steal from innocent americans. these intrusions by the critic future access points stores criminal actors can compromise critical systems during a crisis or for other nefarious purposes. president obama has stated cyber threats represent a great challenge to the national

security of our country. given the scope of the problem, the president has made this a significant party for the administration -- a significant priority for the administration . prosecutors and attorneys have been establishing new units to pull together the resources that many different agencies to investigate an address cyber security threats. the problem is far from resolved. new legislation can help to improve cyber security in a number of respects. i like to take a moment to highlight two parts of the cyber legislative package in debt confronting identity theft hands and improving the tools that we used to fight computer

crimes. the administration's proposal includes a new national data breach reporting requirement. the bridges frequently involved the compromise of sense of -- personal information. right now -- the breaches frequently involved the compromise of personal information. proposalistration's would replace the state laws with a single national standard applicable to companies and institutions that meet a minimum threshold set forth in the bill. this proposal would insure their companies notify consumers when it sensitive, personal information is stolen or compromise. it would require the give the

information about what they can do in response to the theft or compromise. the proposal would empower the federal trade commission to enforce the reporting requirements and it would establish a new requirements for what must be reported to law enforcement agencies when there is a significant intrusion so that institutions like the fbi and the secret service can quickly worked to try to identify the culprits and protect others from being victimized. we believe compliance would be easier for industry. the administration's proposal includes a handful of changes to the criminal laws aimed at ensuring computer crimes and cyber intrusions' can be investigated and punished to the same extent as other similar criminal activities. the administration's proposal would clearly make it unlawful

to damage a computer system that controls critical infrastructure and it would establish minimum sensed requirements for such activities. we believe this will provide strong deterrents to these crimes. cybercrime has become a big business for organized crime groups, the proposal would make it clear that the racketeering influenced and corrupt organizations act applies to computer crimes. the proposal harmonizes the penalties for violations of the computer fraud and abuse act. acts of wire fraud carries a maximum penalty of 20 years in prison. similar violations very frequently carry a maximum of

five years in prison. that is a discrepancy we think should be corrected. this is an important topic. the country is that risk. there is a lot work to be done. i look forward to answering your questions. >> thinking, mr. chipman -- thank you, mr. chipman. i think both are necessarily comprehensive, administrative reorganization to better deal with the security threat, but also involving questions of how we protect civil liberties, privacy, and what is the role of the law? are there certain kinds of

behavior in cyberspace there should be officially designated as the legal -- as illegal? your testimony has been helpful. mr. butler, then the begin with you -- let me begin with you. in the various times, people have said that expertise is in the department of defense and national security agency. maybe dhs is not the right place to be given enhanced authorities. i take it from your testimony that there is a decision that has been made supported by the department of defense that when it comes to the .gov, the non- defense .gov and .com, it should be the department of

homeland security pension primary responsibility. >> that is correct. if you watch the department of homeland security dialogue over the last couple of years, it has grown in the areas of cooperation. one of the hallmark of events was last year's signing of a memorandum of agreement between secretary napolitano and secretary gates which led up a foundation for new ways of cooperating as we move forward in operational planning as well as capability development. the sharing of technical expertise. the formation of a joint coordination element up in fort meade, led by a dhs as part of that. the sharing of personnel within the departments.

how to best satisfy information requirements. insuring strong, strong oversight of privacy and civil liberties by having dhs very much engaged with the department of defense on looking at these issues. i think we have seen new ways of doing business together. solely from secretary gates' -- certainly from secretary gates' position, and working towards a unified vision with how we will help enable the protection of not just .gov and .com, but looking as to what we've learned from the .moil side, as well. >> what are we doing to make sure that the department homeland security in some sense

leverages on the expertise that dod and nsa have, rather than recreating them within the department of homeland security? mr. butler, why don't you start? >> a key element was an agreement between the secretaries that we would share personnel, developed a set of activities under the joint coordination element to help us understand how we could better leverage what is the department of defense today. a good example is the work being done to help put the response plan. looking at other efforts where we can share both in capability expertise as lost technology. intrusion detection, intrusion protection systems as we move forward in time.

the einstein 3 efforts. >> how would do you buy with the relationship between your department and dod? part of that was building up your expertise with dod. >> thank you. that is exactly correct. i think we each print unique things to the table -- i think we each bring unique things to the table. we have built up our own expertise, predict iran control systems and how to work broadly -- particularly in control systems and how to work broadly. as a result, we're very good friends. we have built up a much stronger

partnership not only having the mla, which works to make sure we can state fully operational extinct with dod-- to nature we can stay -- to make sure we can stay fully operational. to appoint people in the threat operation center and nsa so we have full knowledge of what they're seeing from the threat perspective. elements to the national cyber security communications and integration senate to support our operations under the national cyber response plan. there will be cyber support element, a team of people at our be road.g atleat gleve

we meet regularly with dod at the deputy level to make sure we ynched.y fully sen we do not allow any delta to occur so we can move together most effectively. >> that is great to hear. that is the kind of a stove piping we were about. >> 1 additional elements. we have found ways to better clubroot with the defense cybercrime center. looking at how we can leverage forensic expertise to help with the critical of

infrastructure we're trying to protect. >> mr. schwartz, is it correct to assume that if the committee and administration came in with a proposal that puts responsibility for the .com and .gov cyberspace into the department of defense or nsa would be real concerns in the privacy community? >> if you put that primarily in defense, there would be major concerns. >> ok, thank you. and ask this question, mr. reitinger. when we come to a question of how we protect infrastructure,

we've become accustomed to saying 85% of the infrastructure of the united states is owned and operated by the private sector. what would you say that percentage is for cyberspace, if you can hazard a guess? % to 95%.hing from 75fromt i think it varies from country to country. the vast majority in the united states. in many cases, is the state and local government that is often more important on a real-time basis than the federal critical information structure. we need to work closely with our partners, our state and local territory partners. >> so the bottom line, it is clear that there is a consensus

that most of cyberspace is owned or operated by the private sector. that makes the parts of this legislation that create and authorize new ways for the department of homeland security to interact with the private cyberspace infrastructure, particularly with regard to the .com networks. my time is up in this round. senator collins. >> mr. reitinger, you testified about a year ago before our committee that action703 of the communications act -- that section 703 -- that prompted me to go read 706 of the

communications act. i'm not going to read all of it out loud today. the new just read parts of it. i think it will emphasize two points. underesident's authority this law is enormously broad. the language shows it was written for another era. the section says that when the president finds that there is war or a threat of war or a state of public peril or a disaster or any other national emergency, that the president made caused the closing of any station for radio communication. the president may remove all

the equipment and apparatus from the station. he may authorize the use and the control of the station by any department of government. in other words, under this thetion of the law, president is allowed to have the government take over any radio station in the united states, or close it down completely, or remove the equipment from it. nowadays, if that were proposed, it would create a tremendous uproar and free-speech concerns. this authority is far broader than the authority in our bill. this authority does allow a

government takeover of transmission equipment and it is clearly outdated since it is ties to traditional communication facilities and it does not reach interconnected critical infrastructure that is not covered by the communications act. we spend a lot of time and most recently revised our bill to carefully constrained and define exactly what authority the president would have. we made it very clear that the president cannot shut down the internet, the government could not take over the internet. there were a lot of theories in the internet world that perhaps we wanted that. we did not, but we made explicit in our new bill. we constrain the president's authority with reporting to

congress with time limits and privacy limitations by saying it has to be the least interested means possible. i'm very curious why the administration in your approach does not update the 1934 communications act, which clearly speaks to a different era, and defined carefully what the president's authority would be. mr. chipman, i'm going to ask you that question, as well. >> i will do my best. the statin tour of the artist that exist or written long ago -- the statutory has been written long ago. the bill does not include any

additional emergency authorities for the president. neither the committee nor the administration has sought any kind of internet kill switch. if something significant were to happen, the american people would expect us to be able to respond and respond appropriately. if something significant happen, we would use the authorities in the right way to preserve internet freedom while protecting the country. we could use the authorities that we have and processes that we have developed such as the national cyber instant response plan, which details how we would move forward. i will say this is a critical issue. this is an area where different

people have different views about how the government should be empowered. this is a key area where i would hope there would be further discussions between the administration and the congress to figure out the right set of mechanisms that were necessary to move forward. >> mr. chipman, why didn't the justice department recommend amendments to the 1934 communications act, which is clearly outmoded? and also a carefully constrained limitation carefully defined of a president could and could not do if there were a cyber emergency? >> thank you. i would echo mr. reitinger's

comments. this is an issue that merits discussion. the administration wants to engage in that discussion with you and your colleagues. the issue of what the emergency powers are needed tends to be context-driven. the answer to the question becomes fairly new wants to -- nuanced. no doubt mr. reitinger is quite right. i think the worked dhs has done to create a national cyber incentive response plan is quite a key. beyond that, in terms of the specifics of this particular act, i think it merits discussion. it is not in the administration's proposal.

>> this is an error or wish to be thinking ahead about exactly -- this is an area where we should be thinking ahead rather than leaving it ambiguous, rather than relying on a 1934 law that allows the president to take over control of radio stations. it just doesn't make sense to me. i hope you'll work further with me to define what the authorities are and to update the law. one other quick comment. i cannot help be struck with the irony is that we have four different departments represented today, and that is a good thing. it shows the administration is working across the departments.

it is ironic. the administration chose not to include -- this would bring together within dhs representatives of all of your agencies as well as the director of national intelligence and other agencies. we would institutionalize the kind of coordination and cooperation that you have describes occurring informally. it is ironic that the administration has four departments represented here. thank you. >> thank you, senator collins. i share the sense of irony about

this. i do think we would be better off if we did create some law regarding about the authority of the president to act. this can be a controversial area because people can misunderstand. an interest among those in cyberspace. god bless them. i agree. i think we want to be clear that the president has authority to act. there are limits to what we want the president to do. new statutes. i pick you up, phil, on your

suggestion where we should reason together. senator carper. >> any final words of advice? what are some of the errors we have worked still -- where we have worked that still needs to be done? >> i feel most happy about two things. we have four the partners all speaking from the same voice. we have an approach with many people in the private sector that says here is how we need to move forward as a nation. one can agree or disagree with what that approach the says, but we're cooperating across agencies and i think that is a

positive thing. i am proud of the team we've built at dhs. three years ago, dhs had about 30 or 40 people working in cyber security. we're up 2 to about60 and -- we're up to about 260 and a growing to 400. some significant expertise. we can leverage dod and the department of justice. what we have built within dhs is that which i am most proud of. i believe organizations succeed or fail based on the people. >> maybe in the category of incomplete --

>> sir, there are innumerable to do's. cyber security is a journey and a destination. as we get better and better, so will the bad guys. i can say that as a former prosecutor. they continue to develop new techniques. this is not a game we will win. we can do better ant it. we have the need to keep focused on this issue, to make sure it stays on the front burner, to make sure we work together to pass cyber security legislation as rapidly as possible. make sure we're doing the right things in implementation of measures and development of strategies, broadly across the

public and private sectors that insurer cyber security retains the level of importance of the we have given it very broadly across the homeland security enterprise and the national security enterprise. over a year ago, february 1 of last year, the department of defense and the department hall went to carry released their quadrennial strategist on the same day. cyber security received a new and increased level of imports for the department of defense. similarly, cyber security rose to one the top five missionaries of the entire homeland security enterprise, and that is not just dhs. we have got the right focus on the issue. it has to stay there. >> we hear a lot about these disclosures and that is probably

not a bad thing. how have things improved under the reforms that have been put in place under current law? >> we have staffing over the past year-plus. a lot of the things that are described, we have been taking significant steps to implement under administrative processes. 10-15 and 10-28, -- it is sad that i remember that. i'm working on this. >> next time i see, i will say

what was the namir name? >> to transfer the responsibility to dhs. we have been working with the department of justice in particular to expand and rollout a tool used to work more directly with the ies.cy's we have been working to roll out that a greater focus in full partnership with the department of commerce of who has the lead on the development of standards for the federal information and .ecurity manager maact we will continue that process

which will accelerate if an appropriate reform act is passed. >> thank you. i have a question for the entire panel. the question i have, to improve cyber security we'll need to attract a significant number of additional qualified people with the same skills of those who are seeking to do less harm. what kind of job you think we've done to find those people? do we need to give agencies more tools to hire people? mr. butler. >> thank you, senator carper. him?hat do you call

>> phil. >> for the department of defense, it is about today and tomorrow. secretary gates has made that a big priority. we work through pilot initiatives, state complicate -- state competitions. bute building competitions mentoring and coaching programs. those programs become the heart and soul of a we need to recruit from a national security base and the homeland security base. whether they going to the public-private sector, they are developing an aptitude and an attitude about cyber security. i was recently speaking for the

cyber picture competition about a year ago predicted a month ago. we are now noctis polling from military institutions and high schools and colleges but greeting -- we are now not just calling from military institutions but we're going across the country to inspire kids to the next level. we're working through with limited funding, different ways to continue those programs. to me, those are the important elements. >> i am out of time. >> i have been impressed with the folks we have in this. there is a great environment. the hiring authority and we of the flexible hiring that has given us the ability to hire a compete with others.

i understand where this committee comes down in terms of dhs getting similar authorities. >> thank you. chipman mr. -- mr. chipman? >> the comprehensive national cyber current initiative that mr. reitinger mentioned included cyber education as an important topic, and know that work has continued. i know the fbi has created a five- tp seven-year program for agents to deal with the threats we been talking about. r -- mr.nge

reitinger, then he asked you -- let me ask you -- most of cyberspace is in the hands of the private sector, and we understand that attacks can have a serious effect on our economy and our national security. we know that some of these are going on right now. so the question is, what is the approach in the white house proposal for making sure to the best of our ability that the private sector is taking steps to defend itself, practically the most critical parts of it

and to defend our? country -- and to defend our country? and attacked -- an attack could have a devastating affect as a conventional military attack. give us an overview. >> thank you. the approach is very similar to that that was in the bill to this committee developed last year. there are a couple of concerns. clearly, cyberspace is not an error that is amenable to extensive top-down legislation. technology moves too quickly. there are differences between the entities.

to continue to rely on innovation, to set or address the problem, and to insure that you have the right mechanisms to ensure that homeland and national security requirements are met. it is the last base where we have not seen as much progress as we all believe we should have. we need to find the right weight to set requirements in a way that rewards -- we to find the right way to set requirements and make sure that without unduly restricting innovation, that we do make sure that the power stays on, that the most critical of critical infrastructure can continue to operate. the approach is similar to the one that the committee developed.

the department of homeland security would develop a set of criteria for determining what is the most critical of critical infrastructure. this would not be a report critical infrastructure but the most important pieces. >> so eastern with parties -- so you start with priorities. >> dhs would identify in collaboration with the government and the private sector, identify a set of risks that would need to be mitigated. this would not be a thou shalt use this technology. dhs would not then say, here's a set of choices, you have to do one of them.

private sector would be responsible for putting forward frameworks of essential performance standards and performance measurements that would focus not just on particular steps that you need to do but an actual effectiveness, and measures that would indicate how effective -- on measurements on how effective the measurements were. industry would develop a plan that aligned with that framework and was evaluated for addressing the risk that's dhs identified. industry would be responsible for having itself if i'd waited by a set of certified evaluators -- for having itself evaluated by a set of certified evaluators. the district would receive those evaluations and would published the result of the

plant and a high-level description of the evaluation results. we would use that transparency to drive market activity that would enhance security and cover critical infrastructure. in addition, there could be procurement advantages or disadvantages based on how one did in the process. >> explain that a little more. the bills have a similar proposal. we give dhs the ability to evaluate the plans. is their reward and punishment -- is there report and punishment? >> there are a number of

different levels. there is a particular taxonomy that i like. the evaluation results will be publish. there is a direct -- you can take that into account. the process will start to create a standard of care that entities will need to step to overtime. dhs is directed to work with the federal acquisition council so that the results of these in the u.s. can be taken into account at federal procurements. it is intended to be a light tough approach. we believe it will move the private sector in the right way.

it will reward the companies that are doing a good job and will get us to more secure state in the future. >> the resident taxonomist. >> the key to enter these questions -- the key to answer these questions. there are a number of incentives that we put forward here. the question is getting at the right balance. the taxonomy breaks under four different areas. one is the effect of public disclosure. >> public incentive or shame. >> it is more that the note markets may act.

if they are deadly wrong, it will have a grand impact where markets exist in that space. questions about procurement. >> you can make more money and you'll have a preference in offering services to the government. .> proceed litigation risk we do not think -- within a claim to have everything in perfect alignment or balance in terms of these levers. no one can know what will happen in terms of getting this right. we can work together with you. we'reopen to happen -- open to having this discussion. >> our bill has a provision f