Statement of Robert W. Daniel, Jr. Director, Office of Intelligence Department of Energy FY 1993 Appropriations Hearings INTRODUCTION Mr. Chairman and Members of the Committee, 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 1993 budget request. The nature and scope of DOE intelligence activities are influenced by a variety of international events and trends. Recent events in the former Soviet republics and the increased emphasis being placed on monitoring of activities of potential proliferant nations have driven a reassessment of the Department's top intelligence requirements. Accordingly, proliferation intelligence activities will be increased to strengthen the Intelligence Community's assessments of worldwide nuclear weapons proliferation and the Department's role in export controls and other policy countermeasures. Events in the former Soviet republics will continue to be monitored for impact to U.S. national security and foreign and economic policies with special focus on the security of Commonwealth of Independent States' nuclear weapons and issues related to their dismantlement. MISSION The primary mission of the Office of Intelligence is to ensure that intelligence information requirements of the Secretary and senior policy makers are met. This is accomplished by the production of finished intelligence products covering a broad range of issues from national defense and energy security issues to nuclear reactor safety and science and technology. In addition to. Departmental support, 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. PROGRAM ORGANIZATION AND KEY ACTIVITIES The Department's intelligence and intelligence-related activities are accomplished by four organizational elements-- the Office of Foreign Intelligence, the Office of Counterintelligence, the Office of Threat Assessment, and the Office of Intelligence Support and Security. The Office of Foreign Intelligence is responsible for providing senior policy makers and program officials with timely, accurate foreign intelligence in the areas of proliferation intelligence, national energy security, scientific and technological intelligence, and nuclear weapons program capabilities and intentions with emphasis on the former Soviet republics and the Peoples Republic of China. The proliferation intelligence program coordinates the resources of the national laboratory complex and intelligence complex to develop a multidisciplinary analysis of foreign efforts that could lead to the development of nuclear weapons. It also provides proliferation intelligence training to the rest of the Intelligence Community. The energy security program provides for the DOE needs for information on the prospects for disruption of energy supplies due to worldwide political, economic, and social instabilities'. The scientific and technological intelligence program provides for identification and analysis of energy technologies that may have dual uses (civil and military), and supports the foreign availability studies related to the DOE Militarily Critical Technologies List which provides government-wide guidance for executing export control policy. The weapons intelligence program monitors the breakup of the former Soviet republics and its political and economic reconfiguration and ramifications, Deleted To fulfill its requirements under Executive Order 12333, Office of Foreign Intelligence staff represent the Department on various national-level bodies, such as the National Foreign intelligence Board, the Director of Central Intelligence Non-Proliferation Center, the Joint Atomic Energy Intelligence Committee, and the Scientific and Technical Intelligence Committee. The Office of Counterintelligence conducts a DOE-wide program designed to detect, deter, and defeat foreign intelligence service actions to acquire classified or sensitive DOE information or materials. This program differs from the activities carried out by the DOE Office of Security Affairs which is responsible for personnel, physical, document, and communication security programs. Counterintelligence activities are carried out in cooperation with the DOE Office of Security Affairs, the Federal Bureau of Investigation, and the Central Intelligence Agency. Office of Counterintelligence staff represent the Department on the Interagency Advisory Group for Counterintelligence, The Office of Threat Assessment provides assessments of actual or potential adversaries and adversarial actions that could impact the security of DOE's facilities and activities. 'It also supports the total U.S. Government by providing technical capability to evaluate threats Deleted Threat Assessment activities are primarily carried out in support of the Office of Security Affairs and strengthen the-DOE'S security by providing specially tailored threat-related information. The Office of Threat Assessment also manages the Special Technologies Program Deleted the Department on the Interagency Intelligence Committee on Terrorism and the Policy Coordinating Committee on Terrorism. The office or intelligence Support and security provides general technical support to the Office of Intelligence. Key activities include automation and telecommunications functions, control and accountability of Sensitive Compartmented Information for the Department of Energy and its field components, and development and conduct of specialized intelligence training for DOE, intelligence, and law enforcement personnel. SIGNIFICANT ACCOMPLISHMENTS During FY 1991, and continuing in FY 1992, the office of Intelligence had significant accomplishments in the areas of foreign intelligence, counterintelligence, and threat assessment. Some of the accomplish- ments were national in-scope and others contributed to the mission of other DOE program elements, such as arms control policy, physical protection of DOE facilities, and safeguard of classified information. Significant foreign intelligence accomplishments include: Deleted o Major inputs to Intelligence Community assessments of nuclear weapons programs of high priority proliferant countries Deleted Deleted o Participation in Intelligence Community assessment of issues related to dismantlement of nuclear weapons Deleted o Specialized technical and resource support to the Iraq Task Force and the United Nations (UN) Special Commission for UN Security Council Resolution 687. Significant Counterintelligence accomplishments include: o Conduct of analysis for identification of specific espionage threats to DOE personnel and activities (i.e., most active foreign intelligence services). Deleted o Conduct of counterintelligence awareness training for DOE and contractor employees. o Cooperation with the Federal Bureau of Investigation (FBI) Deleted o Support to the FBI at the Nevada Test Site on activities associated with implementation of the Threshold Test Ban Treaty. Significant Threat Assessment accomplishments include: o Completion of comprehensive study updating the terrorist threat to DOE facilities. Deleted o Conduct of special exhibition., at Sandia National Laboratories, of DOE technologies which could potentially be of use to other U.S. Government agencies in their counterterrorism and counternarcotic activities. PRIORITIES FOR THE FUTURE The Office of Intelligence will continue to strengthen its role in Intelligence Community assessments Deleted The Energy Security Program of the office of Intelligence will focus on assessing the stability of world and regional economies; potential foreign markets for U.S. energy technologies, equipment, fuels, and other products and services; and Deleted The Counterintelligence program will continue to be a top priority and Threat Assessment support to the safeguard and security of DOE facilities will be maintained. FY 1993 FUNDING REQUEST Deleted FOREIGN INTELLIGENCE The increased funding request Deleted covers inflation and supports additional foreign intelligence activities at the national laboratories in the Proliferation Intelligence Program and the Energy Security Program. As a result of recent revelations concerning the Iraqi nuclear program, the scope of activities concerning the assessment of capabilities and intentions of proliferant or possible proliferant nations has been expanded to place greater emphasis on: (1) integrated country assessments of emerging proliferant nations; (2) the role of nuclear supplier nations; and (3) global technology development initiatives. Deleted In addition, finished intelligence products will support the policy initiatives of the Department's newly established Office of Arms Control and Non-Proliferation Technology Support. Deleted COUNTERINTELLIGENCE The increased funding request Deleted covers inflation and provides for the continued strengthening of the counterintelligence program. Deleted THREAT ASSESSMENT The increased funding request Deleted will cover inflation for continued threat assessment activities carried out in support of the Department's operational security efforts in the field and Headquarters. TECHNICAL SUPPORT The increased funding request Deleted will allow the Office of Intelligence to fully correct identified material weaknesses associated with findings stemming from the inspection and evaluation of its Sensitive Compartmented Information Facility by the Office of Security Evaluations. Approximately $800,000 is required in operating funds to maintain the classified document control and accountability system. The increased funding will also cover administrative support requirements based on revised DOE policy on FTE-dependent costs for space, supplies, and telecommunications. While these funds are contained in the Office of Intelligence request, the funds will be transferred to the Departmental Administration account during the execution year. PROGRAM DIRECTION Deleted CAPITAL EQUIPMENT Capital Equipment funding will remain at the FY 1992 level and will provide for Headquarters and laboratory Deleted communications and classified information control requirements.