CONGRESSIONAL BUDGET OFFICE COST ESTIMATE June 6 2018 H R 5175 Pipeline and LNG Facility Cybersecurity Preparedness Act As ordered reported by the House Committee on Energy and Commerce on May 9 2018 SUMMARY H R 5175 would direct the Department of Energy DOE to undertake a variety of activities aimed at improving the physical security and cybersecurity of pipelines and liquid natural gas LNG facilities CBO estimates that implementing H R 5175 would cost $86 million over the 2019-2023 period assuming appropriation of the necessary amounts Enacting the bill would not affect direct spending or revenues therefore pay-as-you-go procedures do not apply CBO estimates that enacting H R 5175 would not increase net direct spending or onbudget deficits in any of the four consecutive 10-year periods beginning in 2029 H R 5175 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act UMRA ESTIMATED COST TO THE FEDERAL GOVERNMENT The estimated budgetary effect of H R 5175 is shown in the following table The costs of the legislation fall primarily within budget function 270 energy By Fiscal Year in Millions of Dollars 2018 2019 2020 2021 2022 2023 20192023 18 20 111 86 INCREASES IN SPENDING SUBJECT TO APPROPRIATION Estimated Authorization Level Estimated Outlays 0 0 29 7 28 17 18 20 18 22 BASIS OF ESTIMATE H R 5175 would require DOE in consultation with other federal agencies states representatives of the energy sector and other stakeholders to pursue activities related to the physical security and cybersecurity of pipelines and LNG facilities The bill would direct DOE to perform pilot projects to test and demonstrate security-related technologies It also would specify DOE's role in coordinating federal state and private entities' responses to and recoveries from physical and cyber incidents that affect the energy sector H R 5175 also would authorize DOE to establish safety criteria related to workforce development and provide technical assistance to the energy sector Assuming appropriation of the necessary amounts CBO estimates that implementing H R 5175 would require appropriations totaling $111 million over the 2019-2023 period Using information from DOE about the costs of similar activities CBO expects DOE would need most of that amount--$95 million--to develop the physical infrastructure necessary to support pilot projects to test security-related technology under the bill Based on spending patterns for similar activities CBO estimates that outlays would total $70 million over the 2019-2023 period with the remainder spending after 2013 CBO also estimates that under H R 5175 DOE's administrative costs would increase by $16 million--primarily for three or four additional staff needed to meet the agency's expanded role related to the physical security of pipelines and LNG facilities added costs to establish databases and information-sharing systems and to provide additional technical assistance to the energy sector CBO estimates that all of those funds would be spent over the 2019-2023 period PAY-AS-YOU-GO CONSIDERATIONS None INCREASE IN LONG-TERM DIRECT SPENDING AND DEFICITS CBO estimates that enacting H R 5175 would not increase net direct spending or onbudget deficits in any of the four consecutive 10-year periods beginning in 2029 MANDATES H R 5175 contains no intergovernmental or private-sector mandates as defined in UMRA 2 ESTIMATE PREPARED BY Federal Costs Megan Carroll Mandates Jon Sperl ESTIMATE REVIEWED BY Kim P Cawley Chief Natural and Physical Resources Cost Estimates Unit H Samuel Papenfuss Deputy Assistant Director for Budget Analysis 3 This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu