Congressional Notification for Proposed Bureau of Cyberspace Security and Emerging Technologies BACKGROUND ‘The Department intends to establish a new Bureau of Cyberspace Security and Emerging ‘Technologies (CSET). In considering the growing national security challenges presented by cyber space and emerging technologies, the Department has determined that is efforts in these areas are not appropriately aligned or resourced, After much consideration, the Department has det thatthe best way to more effectively addess the security, economic, and human rights aspects ofthese issues is to do the following: (1) create a ‘new bureau to consolidate resources focused on cyberspace security andthe security related aspects of emerging technologies, (2) increase the existing Bureau of Economic and Business Affsirs’ focus on the digital economy and privacy aspects of cyberspace and emerging technologies; (3) retain in the Democracy, Human Rights, and Labor ‘Bureau its important work on Intemet Freedom! (CSET would report tothe Under Secretary for Arms Control and Intemational Security, and would be led by a Coordinator and Ambassador-at-Large for Cyberspace Security and Emerging Technologies who would have a status equivalent fo an Assistant Secretary and would be subject to Senate advice and consent.? The new bureau would unify the policy functions and align national security responsibilities related to cybersecurity and ‘emerging technologies with the Department’ international security effort, facilitate coordination with fellow national security agencies, and promote the Department's long- term technical capacity in these areas. The Bureau of Economic and Business Affairs (“EB”) would continue to promote U.S. economic competitiveness through international engagement on Intemet governance, digital trade, innovative technologies, data privacy, and information and communications policy. EB would continue to interact with the private sector, international organizations, civil society, and foreign governments and regulators to advance U.S. digital economy interests, ‘To ensure thatthe Department's work on the economic, commercial and privacy aspects of cyberspace and emerging technologies continues to be appropriately prioritized, EB plans to inerease focus on: (1) developing and implementing diplomatic strategies to " Reflecting long-standing practice a the State Department, the Bureau of Democracy, Human ‘Rights, and Labor will remain chien responsible for promodng Ineme: freedom and administering related programs. * Under section (01) of the State Department Basic Authorities Act of 1956, the Department limited to total of 24 Assistant Secretary of State postions. To accommodate this limitation, the Department proposes have an Ambassador-at-Large with Assistant Secretary equivalency lead the new bureauensure tha the Intemet remains open and interoperable and protects the free ow of information; 2) encouraging international adoption of a pro-growth, pro-innovation digital regulatory landscape that is technology-neutral; (3) advocating on behalf of U.S. companies and coordinating domestic and intemational engagements to advance US. business interests in innovative technology sector; (4) promoting U.S. exports of information and communications technology equipment end services; and (5) leading State Department engagement on data privacy and EU-US, and Swiss-U S. Privacy, Shield. ‘As part ofthis effort, the Department plans to restore the rank of Ambassador-at Large to the EB official oversecing these issues. The Department will shortly provide to Congress ‘ proposal, including additional resources, as required, outlining te specific details of B's planned reorganization. KEY STAFFING AND FINANCIAL PLAN ‘The new CSET bureau would have a proposed staffing level of 80 FTE and a projected budget of $20.8 million. As set forth in the tble below, CSET would atain these staffing and budget levels in two phases. ‘+ InPhase 1, the Office of the Coordinator for Cybersecurity (S/CCI), which has 22 FTEs, would be realigned to the CSET bureau, In addition, nine (9) FTEs from ‘the Bureau of Arms Control, Verification and Compliance, Office of Emerging ‘Security Challenges (AVC/ESC), to include associated salaries and bureau- ‘managed operational and program funds and current areas of responsibility, ‘would be realigned to the CSET bureau. In Phase 1, the overall Budget impa resource neutral. At the conclusion of Phase 1, CSET would include a total of 31 ‘existing FTEs and a budget of $7 million, of which $3.9 million would be ‘American salaries and $3.1 million would be bureau-managed funds. In Phase 2, 26 FTE positions would be realigned in FY 2019 from the HR Special ‘Complement, with an additional 23 FTE to be realigned in FY 2020. The projected budget for Phase 2 would be $13.8 million, of which $7.1 million would ‘be American salaries for 49 FTEs and $6.7 million would be bureau-managed funds. ‘The following table displays Phase 1 and Phase 2 FTE and budget estimates:Planned Bureau of Cyberspace Security and Emerging Technologies (CSET) Thousands) [ Diplomatic Programs Account | Direct Funded] Centrally. ] Bureau. wacr) American | Managed Salaries | managed funds Positions Phase 1 Hee Reprogramming From: Fee A | Office of te Coordinator for Cyber | ‘Security (S/CCI) (Office of the Secretary) 22 positions 32,885 s2612 ‘Arms Conia, Verification and Compliance, Office of Emerging Security Chillenges and Defense Policy (AVC/ESC) 9 positions, $1,018 $526 Total aaieaia From: 31 $3,903 $3138 Reprogramming To: (Cyberspace Security and Emerging ‘Technologies (CSET) Bureau 31 $3,903 $3138 Phase? a ‘Realigned ffom FIR Spec roo ‘Complemen: FY2019 26 $3,761 $1,942 Realigned from HR Special ‘Complement: FY 2020 23 $3,326 $1,717 ‘Other budget items $3,035 $10,990 DESCRIPTION OF THE REORGANIZATION CSET would lead U.S. government diplomatic efforts to secure eyberspace and its technologies, reduce the likelihood of eyber conflict and prevail in strategic cyber competitcn.” CSET would be led by an Ambassador-at-Large with status equivalent to an Assistant Secretary and one Principal Deputy Coordinator who supervises two Deputy Coordinators. The three Deputy Coordinators would have status equivalent to Deputy Assistant Secretaries. The Principal Deputy Coordinator would oversee one office, while the other two Deputy Coordinators would each oversee one of CSET's two directorates as the Deruty Coordinator for Intemational Cyberspace Security and the Deputy Coordinator for Emerging Technologies and Information Infrastructure Security ‘Attached are the current organizational chats and the proposed charts with the number of FTEs shown in each office