CIPC Executive Comittee Update

1. CIPC Confidentiality - Public CIPC Executive Comittee Update CIPC Conference Call September 16, 2004 Stuart Brindley CIPC Chair

2. CIPC Executive Committee Activities • Support to NERC Board • 2005 Business Plan • Strategic retreat • CIPC Roles • Work flow - developing security guidelines • Monitor progress and resources of WG/TFs • Seiki Harada replaces John Maguire on Standards & Guidelines WG • Relationship with governments • Opportunities...

3. NERC 2005 Business Plan • Recognizes need to increase scope and intensity of CIPC efforts • Identified CIPC strategic objectives and major work items • Includes additional NERC staff person dedicated to CIPC • Request approval at October NERC Board meeting

4. CIPC Strategic Objectives - 2005 • Further develop ISAC capability • Improve coordination and relationships with governments • Develop National Infrastructure Protection Plan • Develop methods to deter, mitigate and respond to attack • Enhance SCADA and process control security • Address cyber & physical security Blackout recommendations

5. NERC Board Strategic Retreat • From NERC Readiness Audits, develop a plan for identifying and communicating: • Best practices • Commonly identified areas for improvement • Update NERC’s response plan in the event of a significant system disturbance or emergency event • Coordinate NERC and FERC operator training studies • Increase the intensity and commitment of stakeholder contributions to Committees • Clarify the role of the Regions • More proactive with governments - regulatory, security

6. Electricity Sector - Critical Infrastructure Protection Risk Assessments Threats Early Warning Operational Response CIP Committee * Executive Committee ESISAC Subcommittee Security Planning Subcommittee Working Groups & Task Forces Electricity Industry Associations: • North American Electric Reliability Council • Edison Electric Institute • American Public Power Assoc. • National Rural Electric Co-op Assoc. • Canadian Electricity Association Executive Committee: • Identify strategic objectives and priorities • Respond to requests from NERC leadership, governments and industry associations • Identify needs to Working Groups/Task Forces • Seek active contribution of CIPC members. • Schedule and lead CIPC meetings • Support NERC President as Sector Coordinator Subcommittee Working Groups & Task Forces: • Define scope, deliverables, milestones and resource requirements • Provide periodic status of milestones, deliverables to Executive Committee • Conduct Working Group/Task Force meetings. • Assign tasks to Committee members NERC Staff: • Arrange meeting facilities such as physical space or conference calls • Provide administrative support • Act as primary contact with governments, decide responses with Executive Committee • Operate the ESISAC CIPC Relationships & Roles 14 ISACs Sector Coordinators & ISAC Council Federal, Provincial and State Governments US: Department of Homeland Security (DHS) Department of Energy (DOE) Federal Energy Regulatory Commission (FERC) Canada: Public Safety & Emergency Preparedness Canada (PSEPC) Natural Resources Canada (NRCan) NERC Leadership Technical Steering Ctee Other NERC Standing Ctees OC, PC, MC, etc ELECTRICITY SECTOR ENTITIES Utilities, Transmitters, Generators, Distributors, Independent System/Market Operators OPERATIONS PHYSICAL AND CYBER SECURITY EMERGENCY MANAGEMENT CRITICAL INFRASTRUCTURE PROTECTION ELECTRIC POWER INFORMATION PHYSICAL PUBLIC HEALTH & SYSTEM TECHNOLOGY INFRASTRUCTURE SAFETY OPERATION CIP Committee Roles *

7. CIPC Work Flow - Security Guidelines CIPC Members Executive Committee Working Group/Task Force Standards & Guidelines WG NERC Staff Identify need Prioritize & assign to Working Group/Task Force Within days Prepare scope and identify resources 1 week Within days Approve scope & resources Review scope As versions developed Facilitate meetings & conference calls Prepare “content draft” Review “content draft” Scope-dependent Coordinate review of other NERC Committees as appropriate Submit “content draft” for CIPC approval Scope-dependent CIPC approval of “content draft” Forward “content draft” to Standards & Guidelines WG for: • consistency with existing Standards & Guidelines • final format 1 week 1 week Prepare “final draft” CIPC review and approval to forward to NERC Board 2 weeks 2 weeks Post “final document” for public review Prepare “final document”

8. Relationships with Governments • Canada-US Outage TF report - prioritize actions • DHS interface with NERC as Sector Coordinator, ESISAC, ISAC Council • NERC President, CIPC Chair are Sector Coordinators • Aug 31/04 meeting with senior DHS officials (NERC, EEI, AGA) • Response to large-scale emergencies (eg. Blackout, hurricanes) • Multi-national CIP initiative - assess opportunity • industry and governments • Australia, New Zealand, US, Canada

9. Canada-US Outage TF Report • High visibility by governments - life of Task Force extended by 1 year • 16 of 46 recommendations related to CIP • many require coordination with other NERC Committees (esp. Operating and Planning) • Actions underway within CIPC • many during 2004 • some through 2005… and beyond

10. Sector Coordinators/ISAC Council Mission: To advance the physical and cyber security of the critical infrastructures of North America by establishing and maintaining a framework for valuable interaction between and among the ISACs and with government

11. Sector Coordinator/ISAC Council Initiatives • Single forum for DHS to interface with all 14 critical infrastructure sectors • who’s who ? • Include Sector-Specific Agencies (eg. DoE) • Matrix project - sharing structure, scope of each ISAC • Interdependency Task Force - proposed 3 tabletop exercises to DHS • Media/Outreach - key public messages communicating what is being done • Physical/Cyber - integrating these functions • Emergency Notification System (ENS) and conference bridge in place

12. Government Coordinating Council DHS Sector-Specific Agencies (eg.DoE) Sector Coordinating Council PCIS/Sector Coordinators ISACs Opportunities... • Improved coordination with government • 2-way information sharing, risk assessment • Industry outreach to the public regarding CIP threats and incidents… as we did during the Blackout

13. Opportunities... • Growing the ESISAC • During response mode, can’t just be NERC staff • Leverage CIPC participants: • Subject matter expertise • Getting the right resources, right away • Coordinate with Operations • Timely and effective support of government

14. Building the DHS Relationship August 31, 2004 Meeting Nebraska Ave. Washington DC

15. Participants DHS: • Bob Liscouski, Al Martinez-Fonts, Jim Caverley, Bill Flynn, Taralyn Riordon Electricity, Gas Sectors: • Stuart Brindley, Bob Canada, Pat Laird, Lyman Shaffer

16. Meeting Objectives • Recognize successful initiatives with DHS • Demonstrate the commitment of asset owner/operators, and support of industry associations • NERC, EEI, AGA, others • Sector Coordinators, ESISAC, ISAC Council • Improve 2-way communication between industry and DHS

17. Recognizing Successes • NERC ESISAC project with Homeland Security Information Network (HSIN) • ES contribution to NIPP (energy annex) • Canada-US interdependency exercise • NERC Security Standards, Guidelines and Workshops • Cyber intrusion detection system pilot • Security clearances with some industry players • Regional gas reliability studies • ESISAC support during emergencies (eg. hurricanes)

18. DHS and Industry Roles • Industry sees too many CIP contacts with government agencies • Not all Sector Coordinators or ISACs reach across their entire sector • NERC is Sector Coordinator and operates ESISAC • CIPC reaches broadly across electric sector • DHS to formally recognize NERC through provisions of Federal Advisory Committee Act

19. Opportunities for Improvement • Threat assessment and info-sharing • industry decision-makers with security clearances • Early consultation to facilitate DHS initiatives • Support DHS’ National Infrastructure Coordinating Centre (NICC) • Situation-dependent • Protection of Critical Infrastructure Information (PCII) • Some time until appropriate protection is in place • DHS establishing liaison in 68 Secret Service field offices