American pipeline operators will be required for the first time to conduct a cybersecurity assessment under a Biden administration directive in response to the ransomware hack that disrupted gas supplies in several states this month. The directive will also mandate that the owners and operators of the nation’s pipelines report any cyber incidents to the federal government and have a cybersecurity coordinator available at all times to work with authorities in the event of an attack like the one that shut down Colonial Pipeline. Pipeline operators could face financial penalties that start at US$7,000 per day if they fail to comply with the directive.
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