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As NC lawmakers fast-track legislation prohibiting ransomware payments, federal officials focus on pipeline shutdown, future attacks

If you have waited in line this week to buy gas for your vehicle, you should be familiar with how damaging a ransomware threat can be.

In the case of Colonial Pipeline, a weekend ransomware attack forced the company to shutdown its pipeline sparking panic-buying and concerns about future cyberattacks.

House Bill 813 introduced earlier this month would prohibit any state agency or local government from communicating with or submitting a payment to an entity that has engaged in a cybersecurity threat.

Rep. Harry Warren said the bill sponsored by Rep. Jason Saine was right on the mark.

(Saine’s home county faced a ransomeware attack in 2019 that took the sheriff’s office website offline.)

Rep. George Cleveland (R-Onslow)

“It also clarifies consulting and reporting requirements to the Department of Information Technology. It’s very timely,” said Warren (R-Rowan) in presenting the bill.

Rep. George Cleveland (R-Onslow) questioned whether the bill should include additional requirements.

“Something that struck me with our present problem with the fuel was that Colonial Pipeline never reported anything to the feds,” Cleveland said. “Would it be appropriate or beneficial to indicate in the bill that the feds should be notified of any cybersecurity problems?”

Legislative staff said private industry were encouraged to do that but not required.

House Bill 813 quickly passed the State Government and House Rules committees Wednesday, moving on to the full House.

In Washington, D.C., Secretary of Transportation Pete Buttigieg and EPA Administrator Michael Regan also addressed the current cyberattack on the Colonial Pipeline.

Sec. Buttigieg said the Biden administration is actively working to reduce the impact of the gas shortage.

Waivers and emergency declarations will be used to help move fuel more easily to where it is needed.

“Ten states can use existing federal disaster declarations that are currently in place to issue permits that allow drivers to temporarily carry additional gasoline that would ordinarily exceed existing weight limits on federal highways in their states,” said Buttigieg. “This decision provides them with the added flexibility to move fuel more efficiently.”

EPA Administrator Michael Regan

EPA Administrator Michael Regan said additional waivers from his agency will allow reformulated gasoline to be used in 12 states to ease the supply shortage.

Regan, a North Carolina native, also urged the public to do their part to ease the gas crunch.

“The folks should follow the advice of the governors and attorneys general. They are asking folks not to panic, not to hoard gasoline, and to watch for updates. We’re working very hard to alleviate these circumstances,” said Regan.

Colonial Pipeline, that delivers roughly 45% of the gas to the East Coast, announced late Wednesday that it had restarted the pipeline and supply would improve in the coming days.

Buttigieg said the nation must invest in infrastructure resiliency that can withstand future cyber threats.

“This is not an extra, this is not a luxury, this is option. This has to be core to how we secure our critical infrastructure and that includes infrastructure that is not owned and operated by the federal government.”

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