1991 Congressional Hearings
Intelligence and Security

FY92 APPROPRIATIONS HEARING - IN, 03/11/1991, Testimony

Basis Date:
T. Bevill
House Appropriation Committee
Docfile Number:
Hearing Date:
DOE Lead Office:
Energy and Water
Hearing Subject:
Witness Name:
R. Daniel, Jr.
Hearing Text:

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