News

USIS Washington 
File

22 June 1999

TEXT: RICHARDSON JUNE 22 SENATE TESTIMONY ON RUDMAN REPORT

(Accountability, responsibility, authority key for reform) (2310)

Washington -- The overarching principle directing efforts to improve
the Department of Energy's security procedures is that the Secretary
of Energy "must be accountable, responsible, and must have full
authority," Secretary of Energy Bill Richardson said in June 22
testimony before a joint hearing of the Senate Select Intelligence,
Armed Services, and Governmental Affairs and Natural Resources
Committees.

Richardson outlined four guidelines for current reform efforts:

-- one, ensuring that there is a clear chain of command and
accountability for implementing national security policy;

-- two, raising the profile and authority of the nuclear weapons
program to overcome the systemic and long-lived security problems
identified by both the Cox and Advisory Board reports;

-- three, ensuring that Security and Counterintelligence programs have
a senior Departmental advocate, with no conflicts of interest; and

-- four, ensuring that "Stockpile Stewardship" doesn't lose its link
to cutting edge science.

Richardson expressed strong concerns about a proposal by former
Senator Warren Rudman and the President's Foreign Intelligence
Advisory Board (PFIAB) to create a semi-autonomous agency within the
Department of Energy to oversee nuclear security.

"From my experience, the Department needs more engagement from the
Secretary of Energy and his or her office in the nuclear weapons
program. I am concerned that fencing-off the nation's nuclear weapons
program would blur the cabinet secretary's role," he said.

Richardson added that "our ability to ensure the safety and
reliability of the nuclear deterrent depends upon cutting-edge
science. An autonomous agency would partition the laboratory system
and ultimately undermine the science on which our national security
depends."

"A bureaucratic 'Berlin Wall' between the weapons labs and the science
labs would hamper the joint research they perform and weaken the
quality of basic science at the weapons labs. The nuclear weapons
program depends on unclassified, cutting-edge science; requires active
engagement with the other national laboratories and contact with the
international community; and needs overall scientific excellence to
recruit and retain the best and brightest scientific minds for the
weapons program," he said.

Following is the text of Richardson's testimony, as prepared for
delivery:

(begin text)

PREPARED WRITTEN STATEMENT OF SECRETARY BILL RICHARDSON
U.S. DEPARTMENT OF ENERGY
BEFORE THE U.S. SENATE
JUNE 22, 1999

Thank you, Mr. Chairmen and Members of the Committees, for the
opportunity to discuss how to improve security and counterintelligence
at the Department of Energy.

No mission is more important to me than taking the actions necessary
to ensure that America's nuclear secrets are well guarded. We've made
considerable progress, but I won't admit perfection. And I'm looking
forward to working with the Congress and Senator Rudman on ways to
make things better.

PRESIDENT'S FOREIGN INTELLIGENCE ADVISORY BOARD REPORT

Senator Rudman and the President's Foreign Intelligence Advisory Board
have prepared a thorough, hard-hitting report that identifies the root
causes of the long-standing security and counterintelligence problems
at the Department of Energy. A confusing organizational structure.
Lack of accountability. Unclear roles and responsibilities. And a lack
of attention to security.

I want to thank Chairman Rudman and his Panel for recognizing the
aggressive steps we've already taken to address serious and systemic
security problems at the Department's labs; and for making additional
recommendations that can help address the critical nature of the
problems.

Chairman Rudman identifies a list of attributes that must characterize
meaningful reform. I agree with virtually all of the attributes --
such as the need for leadership, clarity of mission, and streamlined
field operations.

The Presidential Decision Directive and the reforms I've undertaken
are based on some of the same basic principles -- about what is needed
to address the underlying problems. After several months of wrestling
with the problems at the Department, I think it is essential that any
reform of Departmental organization ensure that certain criteria are
met:

PRINCIPLES

The overarching principle is that the Secretary of Energy must be
accountable, responsible, and must have full authority.

First: We must ensure that there is a clear chain of command and
accountability for implementing national security policy.

I have already undertaken a major reorganization of the
headquarters-to-field relationship, which clarifies reporting lines
and responsibilities across the complex. In my plan, the chain of
command is clear and accountability is established for the nuclear
weapons program -- the three weapons laboratories and all of our
nuclear weapons sites and facilities throughout the complex report to
the Assistant Secretary for Defense Programs.

Second: We must raise, not lower, the profile and authority of the
nuclear weapons program to overcome the systemic and long-lived
security problems identified by both the Cox and Advisory Board
reports. From my experience, the Department needs more engagement from
the Secretary of Energy and his or her office in the nuclear weapons
program. I am concerned that fencing-off the nation's nuclear weapons
program would blur the cabinet secretary's role.

Third: We must ensure that Security and Counterintelligence programs
have a senior Departmental advocate, with no conflicts of interest.
The only way to assure that is to have a separation between the office
responsible for the nuclear weapons program and the office responsible
for establishing and monitoring security and counterintelligence
policies.
 
That's the only way you can assure that security decisions aren't
shortchanged and that they are not competing for the time and
attention of senior management, as well as budgetary resources.

And Fourth: We must ensure that Stockpile Stewardship doesn't lose its
link to cutting edge science. Our ability to ensure the safety and
reliability of the nuclear deterrent depends upon cutting-edge
science. An autonomous agency would partition the laboratory system
and ultimately undermine the science on which our national security
depends.

A bureaucratic "Berlin Wall" between the weapons labs and the science
labs would hamper the joint research they perform and weaken the
quality of basic science at the weapons labs. The nuclear weapons
program depends on unclassified, cutting-edge science; requires active
engagement with the other national laboratories and contact with the
international community; and needs overall scientific excellence to
recruit and retain the best and brightest scientific minds for the
weapons program.

REFORMS

When I went through all the recommendations that the PFIAB proposes --
43 in number -- I found that my new security plan embraces 38 of them.
That's almost 90 percent. That's a lot of common ground on which we
can work. Let me quickly run through some of the reforms we've already
put in place.

1. Counterintelligence

In February 1998, President Clinton ordered that the Department of
Energy improve its security dramatically, and implement an innovative,
comprehensive counterintelligence and cyber-security plan.

By November of last year, I approved a far-reaching, aggressive new
plan, improving background checks on visitors; document controls; use
of polygraphs; and increases in our counterintelligence budget --
which has grown by a factor of 15 since 1996.

In March, we took additional steps for counterintelligence upgrades,
security training, and threat awareness, and focused an additional $8
million dollars on further securing classified and unclassified
computer networks.

And when I was informed of the serious computer transfer issue at Los
Alamos, I ordered a complete stand-down of the classified computer
systems at our three weapons laboratories -- Los Alamos, Lawrence
Livermore, and Sandia -- to accelerate computer security measures
already underway. The systems only went back on-line only when I was
convinced that significant progress had been made.

As of today, we have implemented 85 percent of the key recommendations
in our Counterintelligence Action plan.

2. Security

I came to the Department of Energy after having served about 12 years
on the House Energy and Commerce Committee, where I came to understand
the magnitude of the security management problems facing the
Department. You see, Chairman Dingell had held a few hearings on this
subject.

One of the first steps I undertook was figure out how to untangle the
maze of illogical reporting relationships between the labs, the field
offices and headquarters to clarify chain of command and establish
accountability. That reorganization was completed April 21st. Then on
May 11th, I took the next step needed to bring about accountability
and put some teeth into the security operation with the
farthest-reaching security reorganization in the Department of
Energy's history.

We established a new, high-level Office of Security and Emergency
Operations -- gathering all Departmental security functions in one
place and answering directly to me. Last Thursday, retired four star
general Gene Habiger accepted the position as the Department's first
Director of the Office of Security and Emergency Operations.

General Habiger brings to this job his experience as the Commander in
Chief of Strategic Command where he was in charge of the U.S. nuclear
forces.

As Security Czar, General Habiger will rebuild the entire Department's
security, cyber-security and counterterrorism apparatus, as well as
our emergency response operations. He will be the single focal point
for security policy and ensuring that security is rigorously
implemented across the Department complex.

We all know that any organizational structure is only as good as its
people. We should all thank General Habiger for being willing to serve
his country once more. This is itself an endorsement that the Office
of Security and Emergency Operations will succeed.

These are some of the measures that we've already undertaken. I
believe that these changes embody the attributes that the PFIAB
identifies as critical to meaningful reform and have already had a
dramatic impact on the security of the labs.

But clearly more needs to be done. And I am looking carefully at the
recommendations in the PFIAB report; I've been meeting with Senators
and Congressmen as we try to sort out what additional steps are
needed, and which of these changes or measures we should codify to
ensure that the changes are institutionalized and last beyond the
tenure of any one Secretary of Energy or Committee Chairman.

There is much common ground. I think we can work from that common
ground to build on what has already been accomplished and make even
more-sweeping Department reforms than the Advisory Board recommends.

But I do have concerns about the creation of the autonomous or
semi-autonomous entity -- especially if we're trying to solve the
security and counterintelligence problems at the Department. Security
and counterintelligence problems cut across all of the Department's
missions, and are not limited to the weapons labs and production
sites.

We need to improve security at all sites -- and fencing off the
weapons complex is not the answer. Plutonium located at our
environmental management sites demands the same level of security as
plutonium at Los Alamos.
And classified research at Argonne National Laboratory must be as
secure from espionage as classified nuclear information at Livermore
National Laboratory.

That's why we need oversight organizations -- in Counterintelligence,
Health and Safety, and Security -- that make policy to cover the
entire Department and that are separate from the office implementing
security. This is the only -- let me emphasize: the only -- effective
way for senior Department managers and Congress to get independent
information about what is going on within the Department.

This is also the exact model that NSA, NRO, DOD, CIA, and others use.

The problems we have had in the past have been directly related to the
fact that there have not been strong independent organizations whose
sole mission is counterintelligence or security. Security and
counterintelligence competed against requirements of the stockpile
stewardship program for resources and the time and attention of senior
managers. Security and counterintelligence did not have the clout to
effect change.

We've taken action to correct this situation with the creation of an
independent offices of Counterintelligence, Security and Oversight
reporting directly to me. It would be a step backward to put these
functions under the thumb of the director whose operations they are
supposed to be evaluating.

Let me illustrate this with one example. Chairman Thompson's Senate
Governmental Affairs Committee is one of the most active oversight
committees in Congress. Imagine how Department of Energy oversight
would be hurt if Chairman Thompson and Ranking member Lieberman were
my employees. I would think that was great -- no hearings, no
interviews, no document requests that I didn't support. But it
wouldn't make for good oversight.

Let me conclude by saying that organizational changes alone are not
sufficient. The Rudman report states that "even if every aspect of the
ongoing structural reforms is fully implemented, the most powerful
guarantor of security at the nation's weapons laboratories will not be
laws, regulations, or management charts. It will be the attitudes and
behavior of the men and women who are responsible for the operation of
the labs each day. These will not change overnight, and they are
likely to change only in a different cultural environment -- one that
values security as a vital and integral part of day-to-day activities
and believes it can coexist with great science."

And this is an extremely important point: I think the Rudman report
should be required reading for every employee at the Department of
Energy and its national labs. I think it's a wake-up call.

Last week, after reading the report, I ordered all managers and
employees at three nuclear defense national laboratories -- Los
Alamos, Livermore, and Sandia -- to undergo a full-scale security
immersion program.

For two days -- yesterday and today -- the labs are focusing on
training so that each and every employee knows their security
responsibilities.

Change will not occur overnight, and our goal here today should be to
focus on how we can ensure that the changes we undertake are indeed
lasting changes.

There is a large patch of common ground here. Let's work together to
find the best way to institutionalize changes that will ensure that
this department provides science and security at its best.

(end text)