tv Key Capitol Hill Hearings CSPAN December 18, 2014 7:30pm-9:31pm EST
into money or if it is some sort of distraction, the company has to put a dollar amount to the data that is been destroyed. so as we look at the evolution of cybercrime i would say from a private industry perspective when it is our thinking about how we can articulate the impact to us and our business it is easy to say a credit credit card is worth $500 or whatever it is. hope is that worth to you? start thinking internally. data will be the currency.
in the the shift that monetary -based crime, the traditional activism to cause the victim pain, the service attacks for their data through a public data but add crypto where to that tool belt and you can now lock up your data, you can't even touch it anymore. it is kind of a scary proposition. >> it is almost time to turn it over to the audience so that they can ask questions, but questions, but before i do that i just want to give everybody a chance. we talked about a lot of things that we think may happen. what is the one most important thing that we can do to be prepared?
>> all start with you. >> how to be prepared. symposium's like this are some of the most important things we can do. if you have this conversation with your family my wife rolls rise up in her head. my mother-in-law thinks him an idiot. so we have to find ways to make these kinds of conversations easy to understand for the normal person who does not think car internet connections are interesting. so having these conversations is an important thing. >> i would say keep your eye on the attacks that are being demonstrated as part of research today because how it happens, and attack. those will those will often become the widespread crimes five to ten years after. the earlier trends affect in my community a lot of people who just hack other white hat hackers because everyone you know knows how to do
these things. those sort of attacks then start happening to celebrities, and then this might happen to other people. so there is a pipeline trend >> i agree with the panel so far, but also continuing the awareness and getting more people to help demystify the problem and using tools to make sure that not only as consumers are we informed but as business owners and leaders that we can measure risk and understand the world around us. us. how does the world of cyber apply to us?
because i think it is nice to talk about where the world will be and look everything on a global scale, but at the end of the day we have to focus locally and look at how it impacts me and what i can do. having the education to inform the consumer and their personal life and also executives, business decisions,, making complex global problems of having a platform to make the education possible so that the masses can consume it is important. >> i'm going to be a little contrary. let's say we have the standard 15 years ago and you pointed out correctly that on average we have a one and 50 chance of ending her life as a result of a car accident and then you pose the question. and we all have a lot of interesting ideas on how to drive more safely. now fast-forward to today. your chances of ending your life as a result of a car accident car accident or four times lower, roughly one in 200. is that because we were four
times better drivers? the answer is no. it no. it is seatbelt, interstate highways, ems, a lot of different things. we sold the traffic accident problem not through personal action although personal action is important. by the way, we solved it by passing regulations. some of them are happy accidents or probably the only happy accidents. but regardless, we solved it systemically. don't blame my mother for the internet. if we build a system where everyone has to be constantly aware and sophisticated as we think we are, you're not going to get there. you have to build the system made for average people so that average people can get online and do average things and not worry
so much as they do now. >> the problem we have is the tools used to solve the car safety program's mandate seatbelts. lawmakers can keep ahead of the internet because it changes so fast. we have not come up with a good solution. i agree that we want consumer products to be better protected. if we can find a way to make that enticing for the people that build those things that we will be a way to do it. >> not making consumers liable. that burden onto the financial system and it is in their financial interest to solve the problem. >> that's good. >> we want to invite the audience to cop and talk. we do have microphones out in the audience.
everyone can here the questions. so we have already got our first one. >> an example, the biggest thing in the news right now, a little bit different. activist and data has been released. how much do you guys subscribe? >> well, so no one here has personal experience. i am going to 5i think you are probably not going to be able to speak directly to that. the threat that they may be exported or otherwise --
>> okay. there is a difference. one of the of the things that they did was sent a message. you need to pay the ransom by such and such a time. that made for tv operations. that is pretty innovative. so i will address the north koreans. all these demand capabilities. we like to play in china, russia. and this is just speculation but it seems to be that our industry has said there is no way i defended against those guys. one of the things we are bad at in our industry is just doing basic blocking and tackling. i have been around the world
they have not really configured that device they bought last year for a gazillion dollars directly. i have not spent the time to do that. i believe we can be better. there will always be a way for hackers to get in. , the private data being released. they had that data accessible, but in my experience that is not terribly different. we just we just don't have the tools to protect employee data so that if someone is able to get in and wants to deliver the pound of hurt that these communities people did they could do some more things. >> i just want to ask one follow-up. some criticism that perhaps there was some weak passwords being used in a data breach.
are we still going to be using passwords to mac. >> i don't see them going away. >> something different. i think is still going to be used. by two factors. what you mean by that? >> multiple forms. we spent a lot of time. being able to leverage data to do analytics. one one of the things that is interesting about what we're talking about, created big data solution that helps -- big data analytics. the more data being generated to do -- that can be stolen can be leveraged to do analytics.
i think it is important. preventing fraud, authentication purposes. >> we. >> we make it so hard to do these kinds of things. to turn to factor authentication on on facebook, how many of you turn to factor out the dictation on? a couple of you. it is hard. you don't even understand it. i tried to explain that to my mother-in-law. she doesn't even want to talk about it. we have to rely on the people that make the software. >> that is another example. we pushed that effort onto the consumer or as we could use things like big data analytics machine learning to identify or login patterns and say, say, you don't usually login from south korea at three in the morning us time. why don't we ask you for a two factor now and every
other time not because you're logging in from home on your computer at a normal time. these are not computer science heart problems. >> another question coming. >> first of all, i think judge poster would appreciate your economic analysis to solving the situation, but going back to something you said earlier with regard to sometimes law is political. and i think that in some instances that is true. free speech year is not necessarily the same thing in europe. but that this theft. stealing is stealing. when it was tangible devices they had to make it to the extradition country or non-expiration company -- country to escape prosecution. what prosecution. what can the state department, what can the department of justice, what can our us infrastructure due to kind of leverage and
post these countries into extraditing these criminals back to the us prosecution? >> i'm going to start off with theft is theft. there is such such a thing as copyright. if i appropriate a book made in 1930 have violated copyright. if it it was made in 1920 i have. that wasn't the question you asked. the question you asked is how do we put pressure on the chinese to stop stealing intellectual property? the first thing we have to do is figure out what we are losing. i find it ironic that the people's people who spend the most time complaining about the chinese and the department of defense and when you go to the department of treasury they pay lip service.
we have a very complicated relationship with china. we have to make wise choices where we put that kind of pressure vis-à-vis everything else. i was a little surprised that that was number one. there was news that it would be number one at the most recent summit. they ended up with an environmental deal which probably was not about allocation of resources. but at the risk of being wrong which is risk i take every day, i assure you, i am not sure the chinese have the interesting intellectual property that we thought they did. somebody correct me if i'm wrong -- and i am sure one of you will, so i will stay after, but when i took a look at the department of justice is listing of what the chinese have taken, almost all of it, perhaps 100 percent was what i would call business proprietary data, relatively short-term information that the chinese could use either in a
political, legal, or business or business negotiation vis-à-vis the people that they took from. the amount of stuff which could be clearly intellectual property was not very high on the list. i asked myself why that was selling there are three answers. answers. it is a statistical artifact. five or six companies in western pennsylvania which in all deference to my friends is not the most innovative part of the united states. another possibility is they stole it and the department of justice did not want to talk about it. i have no way of knowing whether that is true. a third possibility is that the chinese have stolen so much electoral property that they don't no what to do with that it that is not what they are interested in a more. those of the questions we have to think through before we make a political issue with the chinese and put other things at risk to gain
that and it might be a good idea and it might be a bad idea, but we have to think it through. .. what you said is theft is theft and it's illegal and immoral and all that stuff and what incentives can we bring closer to what it should be in the world and that's a question that we happen not to scratch the surface on yet.
>> can i follow-up on that? if you are talking about the geopolitical landscape at the end of the day it's the human aspect to this. if i'm a citizen in another country and i want to travel i'm going to travel. that's how it's going to be and unless the government prohibits me from doing so. but if you look at the actions at law enforcement at law and force many niceties and the relationships they have built around the world and myself having been fortunate enough to play that role for the u.s. government was in building those relationships and partnerships with international law enforcement to not only learn from them but to empower them as much as they have empowered us to work together to solve this problem. we saw cooperation i think we still do and that's why we see more arrests happening around the world in the frequency of arrests. it's actually happening. it may not be happening, it may not be changing in another country necessarily but the actual operational tactical mission is moving forward and you are seeing more frequently
from transnational cyber criminals than you have before. i think what gets lost in the translation sometimes is we as a general public don't understand the impact those arrests have. we don't have a real good perspective on it. if we arrested that one person or those five people somewhere in the world who they really were in the ecosystem of the cybercrime and the impact that those arrests have in the underground in the evolution for them. like i said before i could mask the specific law enforcement arrest to changes in data breach protocol. the efforts that are being taken with international law enforcement is definitely growing, definitely impactful and is having a lot of impact on the u.s.. >> so this is the financially motivated data beaches --
breaches. we recognize they are incapable of protecting the data. the internet's genesis is sharing and you can't have sharing without criminals exploiting and we have built this entire system on that foundation which is crumbling. jpmorgan chase, 250 million insecurity. they have got to act so plan will industry focus not so much on trying to protect the data and to not build a castle big enough tall enough and strong enough to keep the theft down. i want you to focus on how they data is used to transact in business and to give you a quick example. the gonzález case. he is locked up for 20 years and will probably be out in 20 years. he is off the streets but there
is not a lack of people going back into this. at the time it was open wi-fi. payment data was encrypted but in transit data wasn't. it's encrypted now so what do we have? we have rim malware. target in every of the merger was advised of this and even after target home depot knew about this. it was in the papers. they got hacked. they didn't know that from april to august. verizon wireless company and you don't need two-factor authentication. we have seen the swing move from one to another frictionless. in the 90s we wanted the government to prosecute access to devices and they got the legislation. that didn't do it so what are the industry due? they encrypted the identifiers. they built a system and to recognize two phones in the system it would kick them off. if my phone is uniquely
protected better than me why can industry protect me? >> how i would answer that question as you will start to it first in small pieces and then larger so what to look for our technology companies who are opting not to collect data and now the perception may be extra work and they don't want to monetize it and then they have to protected. the example comments to my mind is apple pay. all that data is not something they need to protect. it's not aggregated on the systems. it's just pushed out and as we see more companies if we see this scene collected data that might be sensitive as a potential liability is the cost to their responsibility to protect it so they take actions in design to not collected or to encrypt it on the client system
phone or web browser before they receive it. and we will start seeing them being able to reduce their cost there. that is what i would keep my add-on to see what's happening. >> my name is tanya and i'm with the national intelligence council. my question has to do with the actors, the cybercriminals. currently in an effort with experts from the transnational organized crime and cybercrime communities looking at cybercrime and the broader context of the illusion of transnational organized crime which also is becoming flatter more networks less hierarchical and more adaptive and so we talked to some folks in the cybercommunity who will say that cybercriminals are not quote unquote organize. they are more specialized and they come together in ad hoc ways with activities and then disperse and they can't be understood as organizations but i also hear you and some others
speak about the consolidated marketplaces, the customer service the business models their methods of operating so could you speak a little bit about how you look at the actors and where you see their evolution going forward? >> martin i think you address some of these topics in the hacker's bizarre. >> we did. i think your observations are correct. organizations overall are starting to look more networks and i would imagine organizations of cybercriminals are more networks. one of the things you know oftentimes it's the dog that doesn't bark that looks interesting and one of the things i found interesting about those underground markets is we didn't see much traffic and in intellectual property and we didn't see much traffic in zero day tools. i think in both of these industries it's a market and you handle these in a different way than you handle mass items.
>> again i'm going to bring my mother-in-law up everyone everyone i say organized crime to my mother-in-law she is thinking the godfather and that is not what is going on here. so loosely connected federated group of specialists. it's like a lincoln log or legos where they connect things that they need to connect to but it's not like there's one giant person running the entire thing. it's a bunch of loosely connected actors. so get away from the godfather metaphor and just talk about organized crime that way. >> i think the connection is trust. credibility within the space and as caldwell spoke at the beginning of the conference she talked about the cash cow crews that exist. think about that you have a hacker that hacks into a bank who takes away security controls and inflates limits and then tells the partners around the world whom they have never met who they don't know in real life here's the information need to go to an atm take up the money and you physically have the
money in their possession. you are working for with a group of people you don't know when you have the money in your hand. how does the hacker benefit from you the cybercriminal having the money in your hands than a hired -- cyberattacker somewhere in the world that you have got to send, the bad guy has to send the money to the hacker could if they don't they are going to complain to everyone else that they are working with at it that one person took this money out of the atm and didn't hold up their end of the garden -- bargain and they are out of the picture. they will have to re-invite -- reinvent themselves under another nickname but they will be cut because they are not trusted. i think that's the piece when you talk about organized they are committing crimes that are highly sophisticated based on trust. the attack methodology may not be sophisticated but at the end of the day the discipline that they apply to their craft and the trust that's embedded in the community is similar to an
organized crime group group that would have to earn trust if that makes sense. >> recognizing we only have one person who is former law enforcement to their former government what does that mean for law enforcement? the godfather model was you work your way up the chain but your ultimate goal was taking out the top. in a different structure for organized crime today where does the focus need to be to have the greatest impact? >> i think the goals for commercial organizations like mine verses a law enforcement is to put the bad guys in jail. because of that i like going after the infrastructure. i don't care if i don't arrest somebody but i dismantle their ability to do it. i would like to see a lot more resources permit data make it hard for organized crime
organizations to do what they do. i would like to see that. >> one more from the audience. >> nevertheless you talk about the godfather model. so many of the remarks led into that model because over and over you talked about the eastern european criminality russians working language. clearly these east europeans from the standpoint of criminal organizations have been there for decades. some of the people are extremely famous in the top head was arrested in russia. i'm still unclear how you want to do that because within the u.s. some organized crime try to take on the mafia at some point
and have organizational charts so presumably decades from now you are going to have that same criminal organization and now they have adapted themselves but not into the lucrative cyberworld. again we will hear about this more today. are you just going to accept the existence of that organized crime so to speak and try just to take down people individually without addressing the organized culture? >> that's a great question and let me clarify. organized crime does exist and they do leverage cybercrime. they use lots of things to make money but when we associate organized crime with cyber and when i talk to normal people they assume some godfather is good technically and has this big organization but that is not really the way it works. >> take the example of max butler. he tried to be that but it
didn't work. criminals realize that. max got arrested because even though he had the whole undercover operation was dark market that didn't matter. people got arrested and his crew in los angeles in the world and they knew him personally and they knew where his operation was in california. they brought us to him. that model doesn't work in this space entirely and with the internet you have the ability to take away the human interaction which minimizes your risk. language is also a barrier. it's a countermeasure. we talked about russian speaking infrastructure and threat acto actors. if i don't speak russian potentially that could be a countermeasure that russian speaking criminals could use to alleviate anyone from access in there for structure and having access to the things that they do. i think it's important when you talk about the organized crime model in the space they have
the u.s. has special envoys for sudan and south sudan and for israeli-palestinian negotiations among others. the u.s. institute of peace is hosting a discussion tomorrow on if using special envoys works in addressing international complex and what should be done to bolster the effectiveness of these envoys.
>> energy secretary ernest moniz review the white house's energy agenda at the bipartisan policy center saying that the administration is committed to and all-of-the-above approach to energy independence. the international energy agency also released its report card on u.s. energy policy at this hour-long event. [inaudible conversations] >> good afternoon everybody. i am jason and the president of the bipartisan policy center and we are delighted today to have the opportunity to host this discussion on behalf of the u.s. department of energy and the international energy agency. as i think many of you know about every four years the ie iea -- iea conducts a peer review of the member countries
energy policies and the broader energy landscape and today we are looking forward to the iea unveiling its latest in-depth review of the united states energy policy, a friendly audit is how we like to imagine it. the last of these reviews happened in 2007 where the focus was on the energy policy act of 2005 and a number of significant policy changes that we are benefiting from greatly. it would be an understatement to suggest that some things have changed since 2005 and so very eager today to hear from that iea its views on how we are doing, how we managed the remarkable transition from scarcity to abundance, what are the impacts and improvements in our energy efficiency in our significant increase in renewable energy and efforts to address fuel economy standards and climate change in a host of issues that are of interest to all of you. it is my great pleasure to
introduce our two speakers, first secretary ernie moniz as i can safely say everybody knows. secretary moniz joined the administration in may 2013. he has eyes they knew his way around the building which is no small feat. he served as the undersecretary in the clinton administration. he also served at the office of science and technology policy and in his leadership positions he has been a professor at the massachusetts institute of technology. director maria van der hoeven has been the executive director of iea since 2011. she hails from the netherlands and has a remarkable for eddie of leadership positions from the minister of economic affairs and minister of education science has twice served in the there house of representatives.
margot will then moderate our conversation. >> thanks jason and thanks to the bbc for hosting this event. it's a great organization and one that is always a pleasure to be here with. i want to give my greetings to the executive director van der hoeven whom i have worked closely now for several years but i must say this in-depth review took me a little time to get used to as a career academic. i was accustomed to giving the grades and so now we will see how this goes. i will say a few words to open this up in terms of the few things we are doing and am look forward to hearing maria's presentation. the iea that maria heads i think you are also very familiar with,
an organization born in the time of energy security concerns around oil and remains extremely engaged in the energy security discussion but now it is a much broader discussion than it was four decades ago at the founding of the iea and i am sure mario will touch on that theme as well. we all know about as jason alluded the enormous changes that we have had not only in the four decades but in the six years since the last in-depth review was carried out so i'm not going to try to review all of those but let me just say a few words about what are clearly some of the priorities of the administration and the president
of the administration and the department of energy. first let me say a few words on climate policy. obviously in terms of the president's approach we talk often and in a quite committed way about pursuing and all-of-the-above approach which really means making investments to enable all fuels, all pathways to a clean energy future to be part of a low-carbon future that had that is certainly what we are doing and most recently the big news was the joint announcement in china. the united states committing to pretty ambitious target of 26 to 28% reduction by 2025 and china moving forward on what is also ambitious plan.
i want to emphasize the one major part obviously is the statement on co2 in the 2030 timeframe and that is extremely significant in terms of the commitment of the chinese government to pursuing a carbon strategy to clearly take responsibility to be part of the solution. i do want to call attention to the other part of the commitment that they made, the one about 20% fossil energy. you start working the numbers on that and that is very ambitious. that is a gigawatt technically a gigawatt year per year, that is a gigawatt of energy production equivalent laid. a gigawatt will lead to 2030. if you put in reasonable capacity factors that is every
month a gigawatt of nuclear, two gigawatts of hydro 2.5 gigawatts of wind and five gigawatts of solar every month until 2030. so i think this really was ambitious. then when you add the e.u.'s commitment and their ambitious commitment to 2030 i think we have, certainly i feel and an optimism in terms of the road to paris that we can move the ball forward. we always want more but i think we have a good foundation for the road to paris in iea country and one of the things that maria and i have discussed is the critical world of continued technology evolution specifically continued cost
reduction of clean energy alternatives to address the issues and then frankly to encourage policymakers to be aggressive in the path forward. so we will continue to keep that focus on technology on cost reduction and we will do so as i said looking across-the-board in terms of fuels and technologies. i want to say a few words about energy security. i mentioned that earlier. i will talk about one of the specific initiatives that we are engaged with what they iea and the european commission. the clearly stimulated by the ukraine russia situation, the g7 with the e.u. with direct
support and collaboration with the iea started a process looking at energy security and coming pretty rapidly to the conclusion that perhaps we don't say it enough that the energy security is a collective responsibility on allies and friends as opposed to a purely national activity so the united states with our dramatically increased oil and gas production rose by 26% increase in oil production in two years from 2012 to 2014 so we are talking pretty big numbers. even with our enormous gas supplies etc. we should not be complacent in thinking energy security is not something we have a stake in. we remain coupled to the global
oil price but secondly the energy and security of any of our allies is an issue for us. that i thought was in and of itself incredibly important focal point of a new discussion around energy security. furthermore none of this is perhaps new but putting it together i think we understand energy security is not in the discussion at the time iea was founded with the first oil embargo. clearly it does involve diversification of supplies and supply routes, there's no question about that in right now in europe the discussion on that is principally focused on natural gas as opposed to oil but it's a broader statement. in addition the development of transparent competitive markets is an important part of energy security.
addressing climate change because of what it inherently involves as part of energy security. enhancing energy efficiency is a part of energy security by looking on the demand side. improving infrastructure resilience is an important part of energy security and i will come back to that. putting in place emergency response systems including reserves. again one of the main functions and iea taking account of the importance of fuel substitution. all of these are elements of energy security so what we are doing in our case is the charge coming from the g7 leaders as i say viewed in a much more extensive context with europe with partners and other parts of the world like japan for example
going east of the e.u. in some cases. we need to take an integrated view and that is what we are doing as we are putting together a roadmap to what would be the medium to long-term direction that we need to plan towards as we look to a clean and secure energy future. the iea as i said is specifically doing a major effort around the gas markets and that is something we will be integrating into our energy security work. the third element i would like to mention is -- the third element i will just mention is that this monday we had a trilateral meeting of the energy
ministers of canada, the united states and the seven years have changed the energy world completely and it was certainly time, probably past time for our three countries to get together. let me say a few words about that. first of all it was an extremely positive meeting. among the initiatives, specific initiatives agreed to and enshrined and in mou is that we will have an effort on our side led by the aei to do data integration for north america. frankly we just don't have a very good handle on a lot of the data across these three countries or when we think we do it turns out we have different set of data in the country. we don't have good maps to look
at the integrated energy infrastructure and with a very impressive energy reform going on in mexico we expect not only our northern border but our southern border to see a lot more of that. i would say mr. redford from canada and i were certainly very impressed by minister caldwell's description. i would even use the word breathtaking scope and ambition of a reform plan. this is going to be very exciting and one of the first steps is to get, and integrated data approach. that will be complemented by looking more specifically at the issues of our brazilian infrastructure across our countries. finally my last word will be a little update. some of you have heard this before on the current energy
review. this was charged by the president formally in january although mentioned in the action plan of june of 2013. at its essence the goal is to integrate the equities, the concerns, the capabilities of agencies across the entire government with equities in our energy policy. that list of those with equities and energy is practically the entire administration. so under white house chairmanship the executive secretariat will carry out the analytical arm of the major effort to integrate all these threats. this year to get going we have no problem saying that a four-year process can be a series of one-year proxies so
for the first year we are focusing on energy infrastructure. the transmission storage and distribution of energy. this will be coming out in the end of january but just to give a little flavor because this is an enormous effort and we believe, we are optimistic it will be consequential as to how we pursue an integrated energy approach and how we pursue a coherent discussion to the administration and the congress in terms of the energy future tree just to give you a flavor of that, for example while we have a focus on specifically energy infrastructure pipes and wires let's say the fact is what we have found our enormous issues to what you might call associated infrastructures, rail, waterways, big challenges. certainly the waterway challenges, getting stuff onto the water has a challenge in a
dimension that i have to say i personally have not appreciated until we went through this exercise in analysis. on the other side of the coin and we will be posting some of these papers very soon the other side of the coin is in looking at the natural gas transportation infrastructure. what we have found is that at the macroscale the challenge isn't as great as we thought although there are issues that will have to be addressed. so this is just a tiny flavor of what will be a very broad study around our current challenges of infrastructure and what we need to do to have a 21st century infrastructure going forward. that gives you a little bit of a flavor of some of the issues we are looking at and i think i would like to now turn it over to maria van der hoeven to give us a report card. thank you. [applause]
>> thank you very much secretary moniz for your very kind words. i would like to thank you as assistant secretary on his thoughts on the department of energy and their cooperation during this entire process and i would also like to thank the bipartisan policy center. thank you very much. and to present the findings of our energy policy in the united states it's true and he mentioned it already. developments in the united states energy sector have both the united states and the security sustainability and economic competitiveness but of course as we all know challenges remain and there is much to be discussed from the oil and gas industry to significant steps forward and energy and efficiency and research and
develop them the main focus of our report the long-term sustainability of the electricity sector. we all know and you know and i think it's good you mentioned some of the things that we are looking forward to, long-term development requires clarity and this means predictable, effective national policies, greater coordination to encourage integration of her nobles and a common understanding of the future of nuclear power. this is something i will return to when i present our recommendations. but first let's have a look at what has changed. six years ago when they last in-depth review was published we said the united states needed a more consistent national level energy policy. in those days there was an
absence of a link of the federal level among energy and environmental security policies and as such we recommended the united states pursue closer coronation between congress administration and government. to a large extent these concerns are being addressed not only by the introduction of the quadrennial review but more recently by the climate action plan. the united states has undergone other significant changes since that time in the most obvious threat has been the resurgence of the oil and gas production. this unconventional gas production has been a real game-changer for north american markets. lower energy costs for example are making a substantial contribution to economic activity both within and outside the energy industry. energy security has also been strengthened over the past six years. as was mentioned by secretary moniz we were founded in
response to the 1974 oil crisis. our initial role was to help countries coordinate a collective response to major disruptions in oil supply to the release of emergency oil stocks in the markets and disregard -- maintaining stocks for 247 days. public stocks 106 days and commercial stocks 141 days. as well as the northeast regional service and the northeast oil service. the oil industry has had a renaissance over the past six years and resulted in the growth of oil production. that was a boom. that was a boom that was expected to continue the prices have remained at the level seen earlier this year. you have seen oil prices
continue to plunge in early november and december. that is why the short-term outlook for oil production remains unchanged good should prices -- price drops continue there will be an impact on production as marginal projects could become economical and this includes a pullback in drilling required most notably in the event of further sustained pressure. another defining feature in the united states has been the unexpected rise in shale gas production. lower revenues from shale will impact the economics of gas shale production. on average higher gas prices will be required to offset further loss of oil driven in liquid or vendor revenues so accordingly we expect lower oil prices to defeat into a higher gas prices.
the scale and time of the adjustment is of course dependent on the actual level of the oil price and the persistence of paid oil price. the united states has moved quickly from two decades of increased dependence on importing gas to being a possible energy exporter and countries for which the united states does not have a full trade agreement with. the countries are becoming one of the largest lng suppliers. higher u.s. national gas prices however alongside lower oil linked gas prices might produce the effectiveness of u.s. energy projects and cost control will prove increasingly critical. despite this boom and gas production is cold that remains the largest source of oil production.
nonetheless we have seen the share decline as it switches to less expensive than cleaner natural gas. i'm plans and environmental regulations will give rise to full capacity. there is still much low -- and the iaea sees capacity remaining at the end of the decades. let's have a look at the power sector. i know there has been increased coordination between congress and administration state governments but there are still some bridges to be built. climate increase house gas emissions remains an unsettled and disputed area of energy policy between the executive and legislative branches of government. i was in lima last week for prop 20 and i was encouraged by the level of engagement. we all know that words are worth nothing without action. in this regard in my view there
is a great opportunity for the united states along with china and other emerging economies to take a leadership role and try for real action. so we agree the recent u.s.-china announcement on climate change and clean energy cooperation which together account for over one third of greenhouse emissions from the united states. we need leadership and real policies that build on such pronouncements. the climate action plan for the next end june 2013 proposes the use of executive powers under existing laws to tackle harmful emissions. the epa has proposed that clean power plant to cut carbon pollution from existing power plants. it has proposed state pacific rate base goals for co2 commissions from the power sector as well as guidelines for states to follow developing plans in achieving state pacific
goals. these are exactly the kinds of plans that will see political climate commitments effectively realize. you mentioned energy efficiency were nobles and i would like to talk about that as well. the united states has made progress on producing energy consumption. among the oecd countries the united states has achieved the largest improvement in energy intensity in recent decades. albeit from relatively high levels for appliances and equipment and buildings are implemented. since 2008 over 1 million low income homes have improved in energy efficiency and recovery after 2009 provided more than 12 billion u.s. dollars of direct investment in energy efficiency for low-income homes public buildings along with more
than 20 billion u.s. dollars of related investments in green jobs and electric technologies. energy efficiency code standards for buildings are projected to build more than 30% improvement in energy efficiency and new homes and buildings compared with the 2006 building energy codes and standards. progress is seen on renewables. renewable energy growth has surged over the past decades. the united states has set a goal to double production by 2020 compared to 2012. however there is always a but you know. there is no explicit national policy mechanism to ensure. over many states have put in rewable standards the government has employed fiscal mechanisms among other tools to support renewable deployment.
and yet the durability of some existing federal incentives such as this renewable energy production tax credit ptc for wind remains a persistent -- and yet another extension contributes to the annual winds deployment. moreover lack of timely clarity of blending levels under the renewable fuel standard has created some difficulty for noble transport fuels. so this lack of long-term policy represents a challenge, challenge for investment in new projects and it has to be addressed. a more balanced approach for example would extend the ptc ptc for fixed period of 55 years while gradually reducing its level to zero on a permanent basis. this would provide greater investor certainty and spurred continued cost reductions to
spur conduct -- continued cost reduction and when paid in the transport sector the largest oil consumer new regulations have been introduced for energy consumption. 2012 federal agencies finalize the program to improve the fuel economy and cars and trucks sold in the united states. more stringent fuel economy standards for light duty model years 2012 and 2017 have been established alongside standards for heavy-duty vehicles manufactured in model years 2014 and 2018 and these have been significant accomplishments second only that the united states is serious about controlling emissions. in fact these fuel economy standards are projected to save about 6.3 billion barrels of oil
over the life of light duty vehicles built between 2012 and 2024 and heavy-duty vehicles built between 2014 and 2018. this is equivalent to almost -1/2 of oil imports in 2012. alongside the equivalent in emissions standards. to put it another way these will result in a vehicle improvement trajectory from 2014 roughly parallel to the improvements in the e.u. and china albeit from a much lower starting point. a drop in oil prices will inevitably lead to more driving a device does. the standards serve to lessen the impact of that rise. in addition the united states is the largest electric vehicle market in the world and home to approximately 43% of all electric vehicles sold worldwide today.
this vehicle deployment is supported by the federal government through incentives ranging up to 7500 u.s. dollars per vehicle as well as r&d with over 2 billion u.s. dollars spent between 2008 in 2000 alone. states have taken the lead in deploying infrastructure from tax credits for installing charging stations and we asiana and while the federal government support programs such as workplace charging challenge which aims to achieve a tenfold increase in the number of employees in the next five years we see it's a good corporation. but despite this progress electric vehicles have not yet broken through 1% of sales and in order to meet the national goal 1 million electric vehicles on the road by 2015 fiscal incentive should be maintained to support this national market.
infrastructure needs to be expanded as well as easier to find and use. all levels of government will need to build upon the successes to ensure a potential electric vehicles can be met. i mentioned research development and administration we know that is the federal government remains one of the largest funding entities for energy development and administration of the world. this has played a critical world in achieving advances and the department of energy's 2014 strategic plan provides a new path to achieving national energy goals and demonstrates the firm commitment to basic research development demonstration and deployment of clean energy technologies. the quadrennial technology review is providing a platform
to align intership technology and program abilities to achieve national energy goals and guides the priorities over a five-year horizon. the government should continue to develop approaches to secure a stable long-term funding environment which would help meet energy technology goals and avoid negative impacts on program stability. we all know that the united states is rich in co2 storage potential in oil and gas reservoirs. the united states is among the global leaders in cc is related to research administration. in 2013 there were 19 large-scale ccs projects in operation or various stages of development including eight major demonstration projects. an example of the scale of the challenges as well as raising capitol costs facing the
technology. furthermore the landscape for ccs remains unsettled and that is why a federal regulatory scheme for permitting underground storage facilities has in place. there are gaps in areas such as poor space ownership in long-term liabilities some of which are being addressed by individual states and here again leadership is the thing that is required. let me turn to the electricity market and resilience and that is the electricity cerp -- was the focus. now today 10 regional transmission organizations operate electric power systems across a large portion of the united states and canada and the structure has delivered many benefits such as efficient use of existing assets and minimization of electricity
cost. conversely in regions without this structure the electricity system remains fragmented with less efficient use of existing assets. despite the success of markets trade electricity across the borders of utilities means difficult and the balance between consolidation of system operators is needed. this will become more critical as wind and solar power continued to grow and greater access to balancing gross. electricity is no longer load balancing. climate change and extreme weather are fundamentally changing the way we view energy systems. the united states is experiencing greater than the billion dollar and whether disasters such as hurricane sandy system resiliency has become a greater priority than ever before. given the scale of challenges ahead we must increase the pay
scale and scope of combined private efforts to improve climate preparedness and resilience. thankfully regulators have begun to respond to this threat and are providing guidance to network asset owners and operators to enhance the resilience of the power system and you can imagine these efforts must continue. climate is not the only threat to the energy system in the past few decades. threats have expanded as a result of increased use of automation i.t. telecommunications and other electronic communication enabled devices. and they department of energy in collaboration with industry and other partners the federal government government has released a roadmap to achieve energy delivery systems and cybersecurity which features a strategy and related milestones for addressing cybersecurity in the energy sector.
it's an example of strong leadership which could be replicated. but of course we also need to have a look at investments and regarding investments to energy independence and security in 2007 made its policy of the united states to support the modernization of the electrical grid. last year the ie a energy outlook scenario will require 2.1 trillion u.s. dollars of new investments between 2014 and 2035. in addition to investing in steel and wire there needs to be a great coordination between the gas pipeline system and the high and extra high-voltage power transmission system. even though this work is started there again there's a need to better cooperate operations to better coordinate operations as well as markets and planning
rules. effective policies for planning and citing cost allocation recovery are also required in order to achieve the levels of transmission investments required to electricity consumers. great deployment of renewables managing liability will require access to balancing and flexibility sources over wider geographic areas. that means more interconnections. despite the advantages offered by investment smart grids for example integration of renewables and resilience markets have been slow. market frameworks and regulations should encourage private sector investments and these advanced technologies and practices. we expect almost 600 gigawatts of new generation capacity will be needed before 2040 and while it's up to the market to affect investment regulation also has a
role in the federal government should consider developing a policy mechanism to ensure diversity of supply and this is particularly relevant in the case of nuclear power. so now to where key recommendations. first the previous ibr highlighted the absence of a policy level among energy and fundamental policy and security policies and recommended the united states and close coronation with such policies. the quadrennial energy review processes that can tool that can address this concern and we recommend the united states complete a process leading to the quadrennial energy review and utilize its outcomes to reestablish the coordinated street t. take outlook for the energy sector. second united states has within his grasp and opportunities that is so firmly on the path to
energy security. to do so we recommend supporting the development and implementation of demand measures and energy efficiency policies with an emphasis on transportation and building sector. offering greater predictability of fiscal incentives for renewable energy in order to maintain investor confidence and continuing to enable the development and deployment of gas in storage through consistent and predictable regulatory framework. third in this concerns the focus of much of our -- we have recommendations on the sustainability of the electricity sector. develop effective coordinated national policies to reduce the uncertainties which secure electricity infrastructure including transmission, distribution smart grids
renewable energy integration and climate resilience. introduce measures to deliver greater coordination between different grid operators in order to facilitate the integration of greater shares of reliable renewables and optimize regional transmission investments and articulate a clear strategy for the future diversity of the power sector including a statement of how the federal government will provide long-term support for nuclear power. secretary moniz and ladies and gentlemen once again my sincere thanks are one that committed to -- helped in his review and there has been great progress since our last six-year review and i look forward to even greater progress in our next six-year review. thank you for your attention. [applause]
>> i am margot anderson executive director of energy project here at the bipartisan policy center but i want to make sure i recognize senator byron dorgan and pete domenici has been instrumental in the energy sector for many decades without their leadership we would not have any number of the successes we have had over the last two decades of thank you for your service. we appreciate you being here and we love working with you. i'm going to say one word and when you you do have a question with a roving would tell us who you are and what your affiliation is that will help us out a great deal. i only want to remark like everybody who has spoken here on what a difference less than a decade makes. i think about where we might be seven or eight years from now given the three big forces to which we didn't mention that we mention the forces underway in the energy sector. we have come out of the one -- one of the worst recessions on the other side let's hope that had major implications for not
only what the federal government do to help out but what the responses were on the consumption and production site. furthermore we have had an upheaval on the other end of pennsylvania avenue that has caused us to look at how we get energy policy then i think that's another huge part of this that will be in the mix over the next seven or eight years. they are the secretary say we were looking for a grade so what did we get? abe? i b? and a+? >> i have been in teaching and it was a nice grade and of course then you do something more. >> the first question. >> emily from energy intelligence and my question is to both of you. how do you move towards new sources of energy and away from
traditional sources at a time when we have 60-dollar oil and quite low gas prices? how does that work particularly in the u.s.? >> you take the question about the u.s., the same question. they are a given at the moment. when you are an oil-producing country i think you are happy by low oil price because it will help to recover their economic position faster than it is done now. that is a positive. on the other hand let's use this opportunity. there's always an opportunity. it's an opportunity for a number of countries who are now using their love of money putting money into fossil fuel subsidies. we are talking about 550 billion u.s. dollars a year.
countries like mexico but also thailand and like malaysia and indonesia want to use this opportunity to at least get rid of fossil fuel subsidies. the other thing is why not use this opportunity to put a price on carbon? i know it's not the same as the tax for gasoline. i know many people in this country if the word tax and understand that the ducati make use of this situation and putting a price on carbon is something that in 2015 should be achieved as well. now we have an opportunity to do something like that. the third thing i would like to mention on this issue we have done quite a lot and many countries in the world all the iaea has had done a lot of energy efficiency and fuel efficiency. let's not forget about that in renewables. these are assets that are more important than low oil prices at
the moment. let's not forget about that. >> i will pick that up from united states as you suggested. first of all i will make it very clear that the relatively low prices for oil and gas in the united states are real boon for consumers and i would say i think we are d.c. some of that effect coming in. certainly i'm not going to attributed entirely to that but we certainly saw a big jump up and terms of job creation for example in the last month. when we start with that, that's clearly very important and maria alluded to that in terms of economies globally as well and obviously with the soft economies in europe and china and anything that helps get that going would be good for the world economy. now having said that we still are committed to going to a
low-carbon future. a few points there. one is even as we frankly celebrate increased oil production and dramatically reduced oil imports we can't forget we are still a major oil importer number one and number two we cannot take our eyes off the ball of continuing to reduce oil dependence in three ways. efficient vehicles café standards and the technology that will allow us to meet that. alternative fuels and electrification and as maria said we are seeing it's not a huge number but we are seeing substantial increasing penetration there. next, going to renewable efficiencies for example. first of all we do have a large number of states that remain
with strong renewable portfolio standards. that is one way of continuing the deployment. we do have and it was alluded to policies which are not economy wide as the solution that maria advocated for but in different sectors. like café standards like the proposed epa rules on power plants we have a variety of mechanisms to keep pushing towards low-carbon future. finally going back to the technology issues and the cost reduction which is absolutely central. i want to emphasize it's not about those oil and gas prices. it's about driving down the cost of the alternatives. we are making tremendous progress on that across-the-board.
and now i will go to the department of energy and our technology focus. maria showed the research developments demonstration portfolio or at least the budget for that portfolio and that is clearly important for addressing that continued challenge that we will have in one year, in 10 years, in 30 years to keep driving towards lower and lower carbon. there is however a third d but i do want to forget also. deployment for addressing the much more immediate term and there are certainly marquee program is the long program. you may not all be familiar with the scale. we have $34 billion of commitments out there, all of the above and we have $40 billion of remaining commitments and the chatter of a few years ago we can be
forgetting this is a highly successful portfolio that is getting clean energy out there big time. we will continue that over the next years and this has impact and deployment and further cost reduction even in this day. >> thank you. hi margaret ryan. i was very interested in the point that you made ms. van der hoeven on integrating electricity markets. in the u.s. we have what we call the fractured electricity system state-by-state control of those systems in the markets right now. i'm curious in what you are recommending or are you recommending some kind of federal for lack of a better
word takeover or are you talking about integrating on some other level and what is practical? >> mr. secretary v-12 take the question. >> is not about taking over because that's not going to hell. what i compare for instance the united states with europe. in europe a number of states and in the united states there is a similarity. if you are not capable of having the right interconnections between the states it will be very difficult to balance the risk and see to it that you can help each other when it's needed and it's very difficult to sell those were nobles across the border of the state to sell were nobles from spain to france. it's not about taking over but it's about what the regulators can do and what the federal
government can do. maybe it's time to have something in place to encourage this cooperation city can really balance not only within your state but in on a regional basis. what richard mentioned about the electricity market between canada and the united states and mexico is exactly the same. you can have imports and exports all the time. it is what europe is doing with the northern countries having a lot of hydropower exporting it to northern europe. sometimes there's a lot of wind power in the northern countries. these kinds of mechanisms are important. >> clearly in the united states there is this set of different regulatory structures with various boundaries that do not match physical realities however
that is the system that we have. it is also i should add not only a question of state regulatory authorities that need to be addressed and i want to emphasize that. they need to be addressed. what we need our solutions within the system but of course we also have other challenges, utilities for example. we have so many different business structures if you like on utilities that even things like how would you structure incentives, simple tax incentives work well for certain class of utilities. they are irrelevant to another class of utilities so what we are doing in the quadrennial energy review is we have a strong focus on states and regions. it's one reason why we carry out 14 regional meetings going around the country on that. we have very firmly believe that
regional solutions are important. we can do some things to enable that through technology. for example a department through the recovery act funds have a massive push on deployment of phasers. now we have to integrate those and have the decision-making tools located at the regional operators to take folic vantage of that. the other thing is we do have flexibility and i will end by saying of course in the proposed epa rule for existing power plants the 111d rule gives abilities to states and regions to work together is absolutely central to the construct. again in the draft rule one has proposed ultimately sets of targets appropriate to different
states realities. but then the idea is now you have figured out a way to meet those targets and by the way you may want to find it's more efficient to work regionally so we will be doing what we can sometimes there are convening power to try to advance those sources. >> it is 3:00 in the note they secretary has a pressing appointment. one more yes or no answer. >> hi makes no with oil and gas journal. mr. secretary you mentioned your counterparts from canada and mexico were encouraging in terms of integrating energy data. are there other energy integration prospects such as financing creating a better investment climate particularly in mexico that was discussed at
the meetings? >> given the moderators rules, the answer is yes. [laughter] i will add a couple more words. first of all the reform they are carrying out in and of itself is critical for the investment environment but it's more than that. i will give you or did i already say but i will give you an example of integration, two examples of integration raised by the administration. one was integration in terms of emergency preparedness and response which is, could be a very valuable initiative. not easy, for example with superstorm sandy the canadiens absolutely stepped forward to provide important assets. there were a few problems at the
border and the issue was how you prepare for that how you pre-position waivers and stuff. another one which came up, which was raised by our mexican colleague was a strong interest in working together on human capacity development, the workforce that we all need and potentially the mobility of that workforce around what will be probably much more integrated energy sectors. >> on that note let's thank our panel. it was great. thank you so much that i want to get you out on time. thank you very much for coming, appreciate it. [applause]
from being a private law practitioner to a four-star performance and as a civilian presidential appointee in the pentagon. and i'm never forget one day when i was riding in a staff car with a two star general and i was new. i allowed him to sit in the right rear of the car and they said oh, no, you have to sit in the right because her four-star equivalent and if you do anything other than that you're integrating your own office and position, which is not fair to the people who work for you. so point taken. and so from that point on i always took careful calculation about things i would have to make adjustments on in an instant. and so this was now come a couple of years later, i met an
air force conference which the chiefs and the secretary have once or twice per year in the united states air force and we were having dinner and this was added airbase in florida, we were having dinner at this club at an officers club and we were all moving towards our cards and i was getting on the bus. the chief of staff of the earth worse said i will give you a ride in my car. and that was the lodging. and i said, okay, i'm a four-star equivalent, and he said he is four and a quarter. so it's his car so i will allow him to get into the right rear end. and so i got into the back of the car on the left-hand side
behind the driver. general ryan got into the driver's seat. [laughter] and i felt these. his executive saved me and got into the right front of the car. and so we said the pledge of allegiance here, i know that like everybody here does. there is a time when i actually got i hesitate to say this. in new york city they have this wonderful program called principles today, or at least they did. and when i was general counsel and the you get to give him a morning announcement. he was speaking. and i was giving him an announcement at ps 143 and they said now we will have mr. johnson say the pledge of allegiance and it had been, i don't know how long since i'd
simplot said the pledge of allegiance. i'm a trial lawyer. i'm not usually at a loss for words. but i now know how to say the pledge of allegiance. i want to talk to you about what is going on in the department of homeland security because there's a lot going on. and i was just on with andrea mitchell and she has so much to talk about and so much to ask me and most of us know this is the third-largest government with 230 personnel and 60 billion-dollar budget, i will come back to that in a minute. we are responsible for, among other things, counterterrorism, border security, port security, maritime security, aviation security, administration enforcement of our immigration laws and critical infrastructure
, protection against nuclear threats and protection of our national leaders in response to natural disasters and we include this which is the largest feather until federal law enforcement in the country. citizenship and immigration services, tsa, coast guard, secret service, female, the federal law enforcement training center and others. and in my view counterterrorism must remain the cornerstone of our department's mission and the reason we were formed in terms of the terrorist threat and to the homeland, it is evolving. many of the leaders of core al qaeda who are responsible for the attack on 9/11 are either
captured or killed, core al qaeda had a relatively conventional command-and-control structure that things are becoming more complicated in terms of the terrorist threat and we have seen the rise of al qaeda affiliate and we have even seen the rise of groups that they have denounced. isis being the example. isil is the most prominent on the world stage right now. it represents a serious potential threat to our homeland. they are a dangerous terrorist organization with at least 31,000 fighters on the ground in iraq and syria and acquire territory in iraq and syria, they receive millions a day in illicit revenue and they are willing to execute americans because they are anti-americans in a depraved way. they have called for attacks on the west.
so what is new about it over the last 13 years? one is the phenomenon which consist of foreign fighters or very large or very large degree, the phenomenon into their home country going to the fight in syria for very different reasons and making up with extreme ends and then returning to their home countries including this one and including other countries for which we do not require a visa to come to our country and social media and the use of the internet by terrorists organizations to recruit and inspire a relatively new but phenomenon compared to what was 13 years ago. groups now have the ability to recruit without an individual ever going to the terrorist training camps. or meeting a single other member
of the terrorist organization or being trained by that organization and excepting a direct order from someone in a command and control structure. we see the rise therefore a lone wolf attacks in various different contexts. in australia and ottawa and here in this country from time to time. in my judgment the loan will spread is one that must be taken very seriously because it is the rise of things at any moment in the homeland in the united states, the intelligence community does a pretty good job of protecting terrorists at the earliest threats from overseas, but the nature of this loan-loss attack andy independent actors is such that it can occur with little warning. and obviously there has been the military response as part of the
international coalition by this government against isil and syria. here at home we're doing more things in response to generally that region of the world including enhanced aviation security are what we call the last point of departure airports overseas. beginning in july i directed that we enhanced the aviation security at some 18 to 20 airports and we have ratcheted up that number recently where we have enhanced aviation security and people getting on airplanes bound for the united states and we screen them before they can get on the planes. we are pursuing preclearance capability with some of you may have heard about at the last point of departure airports where the custom that you normally see on arrival at jfk or to a lesser other international rival airports will now be deployed to airports
before you get on the plane. we have done this now at 15 airports overseas that want to build more of these and that want to move homeland security out beyond the borders. every chance we have to defend our borders at the 50-yard line, which is the one-yard line i want to try to improve upon. we have screamed something like 60 million people and at the abu dhabi airport earlier this year we have screamed 290,000 passengers and crew and denied boarding they are alone too 450 individuals including several on the terrorist screening database. as i announced on november 3 we are requesting more data and more information from travelers who seek to travel to this country from countries which
require a visa in the system. we have greater information sharing with our allies about individual people who seek to travel here. i have asked my staff to assess whether we can attain more from countries in this visa waiver program through the various security assurances that they provide for us in the program. here at home also we have ramped up an enhanced what we refer to as engagement. outreach to community organizations and talking to them about countering environment extremism here at home and i participate in these programs and meeting with community organizations around the country and i have done us in chicago, columbus ohio, minneapolis, and i intend to go to other places to talk to
community organizations and islamic organizations about reaching young people who have the inclination to turn to violence there could be inspired by what they read and see outside terrorist organizations. when we have these engagements we talk about a range of issues. they want to talk to me about issues that we have with the department of homeland security and profiling at airports, immigration laws, we have a conversation about a range of issues to build trust not only through my department but other opponents as well as the state and local law enforcement. and given that how it is evolving, we are engaging state and local law enforcement as well as the private sector and
if you see something, say something, in my judgment that is more than a slogan. we are putting out information bulletins about the state of homeland security as we see it. order security is closely related to homeland security and over the last 15 years we have made huge investments in border security and over the last 15 years we're not a place where there are more assets and personnel and technology on the border than there ever have been before and we have seen result in the year 2000. we rather high of 1.5 billion and 1.6 million apprehensions on our southern border. they are an indicator of total attempt to cross the border illegally and in the year 2000 it was 1.6 million.
it's been done down around 400,000 which is a fraction of what needs to be. last year was about 480,000 and then it ran up slightly owing principally to the spike that we saw in illegal migration and south texas in the rio grande valley sector of our southern border. everybody already saw this here of those crossing of the border. 55% of the increase is due to the rio grande valley center and we served those resources into south texas to deal with that phenomenon can be put more people on the border and we crack down on the smuggling organizations and the numbers of those coming from central america, and that is where they are all coming from and so did
the number of repatriations. the high water mark for that search that summer was june 10 of 2014 and after that point once the gate began to put in place are added resources the number declined dramatically. and a lot of it was seasonal and when the new year's comment, but illegal migration prints up and then it goes back down again. last summer in the rio grande sector it we ran up automatically and then it declined beginning on june 10 to the point where the number of those crossing was not the lowest it has been in almost two years and it is significantly lower than it was this time last year. including purposes of border security a lot of those prevent
this from happening again. and i was in a place in texas to talk about the opening of this in south texas and we have with the capability to hold up to 2400 people. we must and we should send a message and that if people come here you will be able to be sent back consistent with the laws and our values. we are also putting in place a southern border campaign strategy and illuminating this in the department where they are saying that we are now going to deal with border security in a more coordinated and strategic fashion where we are going to have taskforces and the task
force leader to coordinate the effort of border security in different parts of the country and that plan is under way and i announced on monday in texas leaders of the taskforces. everyone here knows about the executive order that the president announced on november 20. the executive action and the thing i would like to stress here is that those executive actions are comprehensive in nature and the deferred action program has received a lot of attention and in my judgment and in the judgment of the office of legal counsel we have the legal authority to fix our broken immigration system in a variety country and large amount of ways including deferred action from homeland security perspectives and we want to encourage people who are in fact have not been for years, these are people that
are simply not going to be deported because they have been here for years and we don't have the resources as they become integrated members of society and if they are not criminals, i want them -- i want to know who they are and i want them to come out of the shadows. and therefore we are offering people consistent with the legal authority the opportunity to come out of the shadows and submit to a background check and be held accountable if they have been in this country five years, they have children that are u.s. citizens and they are not criminals and they have not been convicted of serious crimes. there is a fair amount of excitement in the city about this program and i expect that we will have a lot of records from mayors, members of congress, and others who will assist in encouraging people to apply. but there other aspects of our executive action and there is an emphasis on the apprehension of
recent arrivals and those are not for those who might come here in the future are legally or who came here this year. there is an emphasis on border security, which is what i talked about a moment ago, there are ways in which we can facilitate employment in the high-tech industry which we have done and we have facilitated the issuance of green cards and we are moving some of the bureaucratic delays with the issuance of green cards within the controversial secure communities program and a number of other things as well. and in cybersecurity everyone is aware of the recent attack on sony announced on tv about two hours ago that this attack is a serious attack and at this point we are not ready to identify who we believe is responsible for this. but the u.s. government is taking this attack very
seriously and frankly it is an attack on the freedom that we enjoy in this country. freedom of the freedom of entertainment or artist to make something and so it may be controversial. and the freedom of people to go and see it as well. we are reviewing a range of options for how we will respond to this attack. i am pleased in the meantime that our congress working in bipartisan fashion has had several pieces of legislation to strengthen and bolster the department's role in cybersecurity. that is the national cybersecurity protection act to provide assistance in cybersecurity to the private sector. the federal information sharing security modernization act as well of 2014 codifies the authority to assist other
federal agencies. which also includes the ability to enhance hiring and pay within the cybersecurity work force. these bills passed just last week with the leadership of senator tom coburn, congressman mike mccaul and others and that includes the cybersecurity mission. tsa, john pistole has been the it administrator for the last 4.5 years we had his retirement ceremony yesterday and john is on a remarkable team doing a great job. they are in a better place as a result of john's good work. so did yesterday amazingly tsa
has enhance aviation security is more popular with the american public and i suspect most people in this room are members of the tsa pre-check is looking at this crowd. for a background check you get in a shorter line. and at the same time they enable us to focus on the class of travelers that we know less about. and an amazing statistic about the screening efforts, in the first 10 months of 2014, i decided that i wanted to talk about myself and the first 10 months of 2014, airports in the united states that you go to, tsa sees carry-on luggage on
commercial airplanes and fly on, 1885 firearms 1470 which were loaded and over 3000 weapons of one type or another season the first 10 months of 2014. so when you see a tsa officer after this conference, just please thank them. and fema under the leadership of craig fugate, on the ground, personally coordinating responses to various different types of disasters, tornadoes and mudslides, they do a remarkable job. today we are releasing the recommendation that an independent panel has made to me concerning the united states secret service. i appointed a panel in october to take an outside independent
look at the role of the secret service in that panel has reviewed the recommendations with me and will be releasing a summary of those recommendations later today and in my judgment the panel's recommendations are astute and thorough and fair. fundamental changes needed and they do a remarkable job of protecting the president and the first family and other national leaders and the general assembly of the u.n. every year, they are the best protection services in the world, no other protection service to do with the secret service does. it is an organization that is in need of change. and so it's incumbent upon the leadership of them.
and to bring about this change in to make sure that the change is sustained. and those include recommendations that were made that were never acted before. and on the leadership of there are a number of things we are doing and so was almost exactly a year. and we are bringing about more centralized decision-making. for more efficient and strategic acquisition and the budget process earlier on in the budget cycle, we are doing that now. the deputy secretary and myself have embarked upon an aggressive
campaign to improve morale and we are starting to see improvements already and we have brought back the secretary rewards program which has been dormant since 2008. we thank people for their work every chance we get. we are thinking our workforce for their important contribution and this morning i was out in the parking lot handing out candy canes to workers as they arrived. they were quite surprised. on november 17, i'm very proud of it. and we have seen this from outside sources. the second time in the history of the department come in the second straight year, though the department had only been in existence, we received this and i know many of you in this room, of course you expect an opinion
from your auditors and in government that is not always the case given that my department is only 11 years old with a number of financial systems and in my opinion this is remarkable and i congratulate our cfos for doing that. one point i would like to make is what was passed last week does not include the department of homeland security in my department is still operating which will expire on teaberry 22nd. that puts homeland security in a very troublesome position for the following reasons, it is disruptive and creates uncertainty in our homeland security work force and in our program. i supported the arrangement deal that was made with congress and overall it was a good thing that
we not have a government shutdown. but we need to come back to my department and its mission and i can't pay for last summer's surge of resources to deal with the spike in migration in south texas last summer. and we asked for a supplemental, we haven't received support from congress and that bill needs to be paid and we need to pay more and we open this week and we can't pay for new investments and border security technology and we have another of other individuals on