1991 Congressional HearingsIntelligence and Security
1991 Congressional Hearings
Statement of Robert W. Daniel, Jr.
Director, Office of Intelligence
Department of Energy
FY 1992 Appropriations Hearings
Mr. Chairman and members of the subcommittee, I am Robert W. Daniel,
Jr., Director of the Office of Intelligence for the Department of Energy
(DOE). It is my pleasure to provide this statement today regarding the
Department's intelligence programs with particular focus on the FY 1992
budget request.
The Department faces daily challenges of a global nature spanning the
spectrum from national defense and energy security issues to issues
involving nuclear reactor safety and nuclear waste disposal. To meet
these challenges, the Department's intelligence element was reorganized
in April of 1990 with an expanded mission to provide special support
over a broader range of issues. The primary mission of the
reorganized element is to ensure that the intelligence information
requirements of the Secretary and senior DOE policymakers are met.
In addition, the Office of Intelligence ensures that DOE's technical,
analytical, and research expertise is made available to the Intelligence
Community in accordance with Executive Order 12333, "United States
Intelligence Activities." The Office of Intelligence also provides
threat assessment and counterintelligence support to DOE Headquarters and
field operations.
While the Office of Intelligence is a separate and distinct program
element, Deleted Delete a member organization of
the Intelligence Community in accordance with guidance provided by the
Director of Central Intelligence.
The Department traces its presence in the Intelligence Community to July
1947 when the National Intelligence Authority recognized that the
Atomic Energy Commission (AEC) had an appropriate foreign intelligence
role and authorized AEC representation on the Intelligence Advisory Board.
Following enactment of the National Security Act of 1947, the
AEC's intelligence role was affirmed by National Security Council
Intelligence Directive No. I of December 12, 1947. The Energy
Reorganization Act of 1974 transferred the AEC's intelligence
responsibilities to the Energy Research and Development
Administration and the Department of Energy Organization Act of 1977
transferred them to DOE.
The nature and scope of DOE intelligence activities are influenced by a
variety of international events and trends, particularly in the areas of
nuclear and nonnuclear energy policy and technology, strategic petroleum
reserves, defense policy, and nuclear weapons technology envelopments.
In addition, the nature and scope of the Department's intelligence
activities continue to be influenced by intelligence requirements
Deleted
Deleted Deleted
PROGRAM ORGANIZATION AND ACTIVITIES
The Office of Intelligence reports directly to the Office of the
Secretary and provides specially tailored support over a broad spectrum
of issues and programmatic areas. In addition, the Office of Intelligence
staff represent the Department through participation on
various national-level groups, Deleted Deleted
The Department's intelligence and intelligence-related activities are
accomplished by three primary organizational elements--the Office of
Foreign Intelligence, the Office of Threat Assessment, and the Office
of Counterintelligence.
FOREIGN INTELLIGENCE ACTIVITIES
During a period of rapid change in National security perspectives,
foreign intelligence has become more important in the Department's
policy A.nd decision making. DOE is involved in many issues that have
complex implications. Timely and accurate intelligence reporting is
essential to clarifying these implications.
Deleted
Deleted
Deleted Deleted
In addition to the above activities, substantial efforts are carried
out to provide the Secretary, senior DOE management and appropriate
staff pertinent information on worldwide energy developments. These
activities focus on integrated, all-source intelligence analysis of the
international developments that could affect the overall U.S. energy
posture and the Strategic Petroleum Reserve. Special analyses provide
for DOE needs for information on the prospects for disruption of energy
supplies due to worldwide political, economic, and social instabilities.
The energy resources intelligence activities also include analysis of
overall energy balances within the Soviet Union and other nations,
focusing on total energy needs that might influence global supply and
demand. Information on plans, capabilities, and deficiencies of advanced
countries to limit economic damage from petroleum supply disruption is
also provided to support the formulation of DOE policies and plans.
THREAT ASSESSMENT ACTIVITIES
The Office of Threat Assessment (OTA) Is responsible for providing the
Secretary and senior DOE officials with timely analysis of potential
and actual threats to DOE facilities and interests, analysis of
international terrorist activities that could affect DOE interests, and
information on terrorist and other subnational threats to international
energy systems.
OTA also has several other responsibilities. For domestic intelligence
and law enforcement personnel, OTA conducts threat assessment training
and awareness seminars regarding nuclear threats. In support of the
law enforcement and intelligence communities, OTA assesses subnational
nuclear threats and nuclear material black market transactions.
Deleted Deleted
The OTA personnel brief key senior DOE officials regularly on terrorist
threat-related intelligence.
OTA also directs the Special Technologies Program.
Deleted Deleted
COUNTERINTELLIGENCE ACTIVITIES
The primary objectives of the DOE counterintelligence program are to
identify, neutralize and prevent foreign intelligence service actions
to illegally acquire classified or sensitive DOE information.
The Office of Counterintelligence (OCI) program consists of three separate
elements--policy and oversight, field operations support, and Headquarters
operations.
Deleted
OCI is responsible for development of the Department's counterintelligence
policy and ensuring its implementation in the field.
Deleted
Deleted
Therefore, DOE maintains an active and aggressive program to protect
classified departmental assets and information.
SIGNIFICANT ACCOMPLISHMENTS
During FY 1990 the Department contributed significantly to National
intelligence activities over a broad range of areas and made significant
strides in accomplishing the goals and objectives set for its Departmental
intelligence activities.
The Department provided support to the Nation's top intelligence
priorities as identified by the President's Foreign Intelligence
Priorities Committee.
Deleted
Specific accomplishments were achieved
Deleted
During FY 1990, at Admiral Watkins' initiative, a National Intelligence
Estimate was prepared in collaboration with the Intelligence Community.
The estimate, titled "The Global Energy Environment Into the Next
Century." supported the international context of the President's National
Energy Strategy.
In addition to the above accomplishments, significant strides were made
toward Departmental management goals and objectives. Through the
reorganization of the intelligence component, more efficient use of
intelligence resources in the conduct of daily current intelligence
activities was realized. Emphasis was placed on strengthening the ties
between the Headquarters and Field intelligence elements, thereby
harnessing the full intelligence resources at the Department's disposal
in support of Departmental and national initiatives.
The Department continued the development of the Counterintelligence
Program.
Deleted
Deleted
Through its Office of Threat Assessment, the Department provided
technical support to the FBI, Customs, and other government agencies on
assessment of nuclear threats and black market activities involving
special nuclear materials. Special assessments were undertaken of the
potential threat to the Strategic Petroleum Reserve and the Trans-Alaska
Pipeline.
Deleted Deleted
In FY 1991 the Department will continue to make significant contributions
to the ongoing efforts outlined above. In addition to enhancing these
activities, the Intelligence Office will participate, with other DOE
elements,
Deleted Deleted
in the energy security arena to provide more focus on U.S.
energy-related economic competitiveness in global markets.
SUPPORT TO DESERT STORM
In addition to ongoing activities, the Office of Intelligence is involved
in providing support to Desert Storm. Special analysis and reporting of
developments in the Persian Gulf crisis have supported the Department's
efforts to deter the potential for panic in international energy and
financial markets emanating from false reports of adverse hostile impacts
on energy production, marketing and pricing.
Deleted Deleted
In addition,
Office of Intelligence staff prepare daily briefings, assessments and
situation reports for the Secretary and key policy makers.
FY 1992 FUNDING REQUEST
FY 1991/1992 Funding Profile
(dollars in thousands)
Activity FY 1991 FY 1992 Change
Deleted Deleted
Deleted Deleted
The Energy Security program supports DOE's needs for information on
the prospects of energy supply disruption due to worldwide political,
economic, and social instabilities.
Deleted Deleted
THREAT ASSESSMENTS
The increased funding request for FY 1992 provides $565,000 to cover
inflation and conduct additional Threat Assessment activities. The
request will provide for continued development of the Domestic Regional
Threat Assessment Program. The program is currently limited in scope
and does not offer comprehensive local/regional threat assessments for
determining impacts on DOE facilities and activities.
Deleted Deleted
Deleted Deleted
CONCLUSION
The Department's FY 1992 budget request for intelligence and Intelligence-
related activities is in direct support of high level Departmental
interests and Intelligence Community requirements.
Deleted Deleted
With the resources contained in this request, I am confident that the
Department can fulfill its intelligence responsibilities and satisfy
the high priority requirements of the Intelligence Community. It has
been my pleasure to provide to you this overview of the DOE intelligence
programs and to outline our FY 1992 budget request. If I can be of further
assistance in providing additional details on the DOE intelligence
programs, I will be pleased to meet with you or your appropriate staff
personnel at your convenience.