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2018年7月11日 星期三

Overnight Energy: New EPA head looks to reassure staff | New round of ex-Pruitt staffers leave | House votes to overhaul fisheries law | Trump rips Germany for pipeline deal with Russia

 
 
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ACTING EPA CHIEF LOOKS TO REASSURE STAFF: In his first major appearance since taking the Environmental Protection Agency's (EPA) helm on Monday, new acting Administrator Andrew Wheeler sought to reassure the agency's more than 14,000 staffers that he has their back, despite turbulence within the EPA.

Wheeler on Wednesday addressed dozens of staffers at EPA's headquarters and thousands watching around the country, recognizing the tumultuous climate at the nation's environmental agency and trying to dispel any concerns of ongoing turmoil.

"I do understand first-hand the stress that goes along with a change in management or a reorganization, and we are going through that change now. And I understand how stressful that can be," Wheeler said, referring to his predecessor, Scott Pruitt, who stepped down last week amid months of growing spending and ethics scandals.

"And I want you to know that I understand that and I will try to minimize the stress that you all deal with on a daily basis as employees here at the agency."

Wheeler allowed dozens of journalists into EPA headquarters to watch the speech, breaking with Pruitt, who rarely let reporters attend his appearances.

Read more about Wheeler's first press hearing here.

 

Happy Wednesday! Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news.

Want an environmental issue solved? Consider tweeting at Silicon Valley giant Elon Musk who committed today to funding the Flint, Mich. drinking water crisis during a Twitter spat.

Also give a round of applause to Miranda, filing this newsletter from Tampa Bay, who put her reporter skills to the test today *scooping* up this scaled friend on her first fishing trip.

Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill.

 

MORE FORMER PRUITT STAFFERS OUT AT AGENCY: Three more aides to former Environmental Protection Agency (EPA) Administrator Scott Pruitt are leaving the agency following his resignation.

Lincoln Ferguson, a communications aide and speechwriter, and Hayley Ford, the EPA's deputy White House liaison, announced their departures in the days since Pruitt resigned last week.

Kelsi Daniell, another press staffer, is also leaving, though she tendered her resignation before Pruitt left. The news follows the Tuesday announcement by Jahan Wilcox, a top spokesman, that he would leave.

Numerous other Pruitt staffers decided to leave during the former administrator's months of spending and ethics scandals, including top spokeswoman Liz Bowman, Superfund program adviser Albert "Kell" Kelly and senior counsel Sarah Greenwalt.

"I thank all those who are moving on to new endeavors for their service to EPA," Ryan Jackson, chief of staff to acting Administrator Andrew Wheeler, said in a statement.

Ferguson, Ford and Wilcox had all been at the EPA since the early days of Pruitt's tenure.

Ferguson had been Pruitt's spokesman in his last job as Oklahoma's attorney general.

Read more here.

And read up on yesterday's employment change up at EPA.

 

HOUSE PASSES BILL TO OVERHAUL FISHERY MANAGEMENT LAW: The House on Wednesday passed controversial legislation that aims to overhaul how the federal government manages the nation's fisheries.

The measure would make significant changes to a 1976 law that's been credited with boosting fish stocks through restrictions on overfishing, among other successes.

The GOP-backed bill would give more authority to local fishery councils to set fishing standards such as limits and seasons. It would allow for longer timelines for species recovery, or no timelines at all in some circumstances, and let fishery councils use alternative standards for measuring the health of a fishery.

The legislation, which passed in a 222-193 vote, is supported by recreational fishing groups and opposed by conservationists and major commercial fishing organizations who argue that it would threaten sustainable fishing practices that have helped revitalize many important species.

"I'm proud to say that my bill protects our commercial and recreational fisheries' interests and allow councils to do their jobs in a more streamlined and effective manner," Rep. Don Young (R-Alaska), the bill's sponsor, said on the House floor.

"This legislation is written for fishermen, to ensure that they are able to catch sustainable yields of fish for the communities," he added. "It is critical for the protection of coastal communities and for allowing the stakeholders to be part of the management of fisheries."

While Republicans applauded the success of the existing law, they also said it is time to add more "flexibility" for local officials, and argued the bill wouldn't threaten fisheries.

Read more here.

 

TRUMP: GERMANY IS RUSSIA'S 'CAPTIVE' FOLLOWING PIPELINE DEAL: President Trump slammed Germany early Wednesday over a gas pipeline deal with Russia, claiming the agreement has made Berlin "captive to Russia" and urging NATO to assess the situation.

Trump took aim at one of America's closest allies within hours of his arrival at the NATO summit in Brussels, setting up what is expected to be an uneasy two days of meetings. He continued his long-running criticism of alliance members for what he views as a failure to contribute enough to defense spending before launching a new line of attack against Germany.

"I have to say, I think it's very sad when Germany makes a massive oil and gas deal with Russia, where you're supposed to be guarding against Russia, and Germany goes out and pays billions and billions of dollars a year to Russia," Trump said during a meeting with the NATO secretary-general.

"If you look at it, Germany is a captive of Russia because they supply," he continued. "They got rid of their coal plants. They got rid of their nuclear. They're getting so much of the oil and gas from Russia. I think it's something that NATO has to look at. I think it's very inappropriate."

The president was likely referencing the Nord Stream 2 pipeline that would deliver gas from Russia to parts of northern Germany. The deal has drawn criticism from the U.S. and some other European nations, because they fear it would give Russian leverage over Western Europe via energy supply, according to The Associated Press.

Read more here.

 

SENATORS LOOK TO EASE FEDERAL LOANS FOR INFRASTRUCTURE: Lawmakers at a hearing on Wednesday of the Senate Environment and Public Works Committee looked at ways to improve infrastructure through low-cost federal loans, reports The Hill's Wyatt Schiff

Committee Chairman John Barrasso (R-Wyo.) noted that it was the seventh hearing on the issue this year and said there was a sense of urgency because of the amount of infrastructure in need of repair.

"The sooner a project is built the sooner it can benefit the community around it," he said.

Ranking Member Tom Carper (D-Del.) said the loans were particularly important for transportation projects. And he said that the loans should encourage flexibility.

"Our goal should be to provide options for infrastructure investment," said Carper.

Testifying before the panel were Douglas Holtz-Eakin, president of the right-leaning American Action Forum; Vicente Sarmiento, director of the Orange County Water District in California; and Brian Motyl, assistant director of finance in the Delaware Department of Transportation.

 

ON TAP FOR THURSDAY:

-The House Natural Resources will hold a hearing titled "The Essential Role of Livestock Grazing on Federal Lands and Its Importance to Rural America."

-The Senate Energy and Natural Resources committee will discuss issues facing interstate networks for delivering natural gas and electricity.

 

OUTSIDE THE BELTWAY:

-California hits major greenhouse gas goal years early, The San Francisco Journal reports.

-Elon Musk appears to commit funding to fix Flint, Michigan drinking water crisis.

 

IN CASE YOU MISSED IT:

Check out Tuesday's stories ...

-House votes to overhaul fishery management law

-Acting EPA chief looks to reassure staff after Pruitt's resignation

-Poll: Record number of Americans believe in man-made climate change

-More Pruitt aides leaving EPA

-Russian mining firm places seal with Trump's face on asbestos products

-Trump: Germany 'captive' to Russia after pipeline deal

-American Airlines to stop using plastic straws

 

 
 
 
 
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On The Money — Sponsored by Prudential — Trump angers GOP, businesses with new tariffs | Liberals see Kavanaugh as mortal threat to consumer bureau | Lawmakers pitch family leave plans

 
 
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Happy Wednesday and welcome back to On The Money, where we're hoping to emerge from the great Twitter purge unscathed. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.

 

THE BIG DEAL: Lawmakers and business groups were on edge Wednesday after President Trump announced plans to impose tariffs on $200 billion more in Chinese goods.

The Trump administration said it will look at slapping tariffs of $200 billion on Chinese products over Beijing's failure to respond to U.S. efforts to get them to change their trade practices.

The new list comes days after the U.S. levied a 25 percent tariff on $34 billion in Chinese imports, which resulted in retaliatory tariffs by Beijing of the same amount against U.S. goods.

The tariffs would hit a wide range of Chinese products from tuna, cobia and swordfish, to vegetables, nuts, fruits and various minerals. The Hill's Vicki Needham tells us about what comes next here.

 

Lawmakers from both parties spoke out against the escalation of trade tensions with China, and called Trump's new tariffs an unhelpful and dangerous response to legitimate concerns with Beijing.

GOP Rep. Kevin Brady, chairman of the House Ways and Means Committee, called on Trump to meet with Chinese President Xi Jinping to work out a permanent end to the retaliation.

"It's clear the escalating trade dispute with China will go one of two ways – a long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe, or a deliberate decision by President Trump and President XI to meet and begin crafting an agreement that levels the playing field between China and the U.S. for local farmers, workers and businesses," Brady said in a statement.

 

The Trump administration said the $200 billion in tariffs on Chinese products is necessary because of Beijing's failure to change what they consider a long history of unfair trade practices.

But the fight drew ire from technology, manufacturing, agriculture and retailing groups, which argue that Trump's tariffs will hurt U.S. consumers and businesses. 

Critics such as Dean Garfield, president and CEO of the Information Technology Industry Council (ITI) that represents companies such as Apple and Google, argue they don't see a real strategy.

He faulted the administration for imposing more tariffs "without a clear objective or end in sight, threatening American jobs, stifling economic investment and increasing the prices of everyday goods."

David French, senior vice president for government relations at the National Retail Federation, said another $200 billion in tariffs "doubles down on a reckless strategy that will boomerang back to harm U.S. families and workers."

"The administration has been pursuing tariffs now for months and we still don't know what the endgame is," he said.

Vicki has more on their concerns here.

 

Reactions:

  • "The last thing America's manufacturing workers need is an escalating trade war." Jay Timmons, president and CEO of the National Association of Manufacturers.
  • "These tariffs needlessly hurt soy growers and rural communities."  American Soybean Association president John Heisdorffer.
  • "This action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy." Sen. Orrin Hatch (R-Utah), chairman of the Senate Finance Committee.
  • "If [Trump] takes his competitor to the brink and doesn't go over the brink, we're going to get a better deal. But if he goes over the brink it's going to be catastrophic." Sen. Chuck Grassley (R-Iowa.).

 

 
 

 
 

ON TAP TOMORROW

 

LEADING THE DAY

Senate takes symbolic shot at Trump tariffs: The Senate on Wednesday took a symbolic shot at President Trump's trade policy amid anxiety on Capitol Hill over his tariff strategy.

Senators voted 88-11 to instruct lawmakers hashing out a deal on a government funding bill to include language "providing a role for Congress" on tariffs implemented for national security reasons, under Section 232 of the trade laws.

The vote is nonbinding, meaning lawmakers don't have to add trade language into the funding bill. But the vote margin, with more senators supporting it than the amount needed to override a veto, underscores the depth of concern on Capitol Hill.

"I think it's significant that, as many of us have discussed with the president and his Cabinet, that there's some anxiety about ... tariffs," Senate Majority Whip John Cornyn (R-Texas) told The Hill. "I think it's just a way to make that point." The Hill's Jordain Carney explains why here.

 

Liberals view Kavanaugh as existential threat to consumer bureau: Trump's nomination of Brett Kavanaugh to the Supreme Court has alarmed progressives who fear he could contribute to the dismantling of the Consumer Financial Protection Bureau (CFPB).

Kavanaugh, who serves as a judge on the U.S. Court of Appeals for the District of Columbia Circuit, ruled in 2016 that the controversial watchdog agency's structure was unconstitutional. The 2-1 ruling provided a major boost to Republican and industry efforts to abolish the consumer watchdog.

While Kavanaugh's decision was later reversed by the court, his opinion laid the foundation for other legal challenges to the CFPB's structure that are making their way through the courts. And his confirmation could create a majority of Supreme Court justices opposed to the CFPB's design, worrying bureau allies who see Kavanaugh as an existential threat to the agency. I'll tell you why here.

 

Lawmakers pitch dueling plans for paid family leave: Democrats and Republicans came together on Wednesday at a Senate hearing to push for a paid parental leave program but remained sharply divided over the scope of the new benefit and how to pay for it.

Traditionally, Democrats have been more interested in creating a federal paid leave, as GOP lawmakers have been worried about the price tag and increasing the size of government.

But Republicans' interest is growing, particularly because the issue is a top priority for Ivanka Trump, the president's daughter and senior adviser. She attended the hearing, as did several Republican House members.

"I thought it was an excellent hearing," Trump said following the proceedings. "To make progress and advance legislation that can be signed into law, we need to bring both sides together to discuss the merit of different policy proposals and ultimately bridge the differences. And I'm hopeful this is a step in the right direction." The Hill's Niv Elis, Naomi Jagoda and Maya Lora take you there.

 

MARKET CHECK: CNBC: "Stocks closed sharply lower on Wednesday as a trade war between the U.S. and other major economies intensified, with the Trump administration unveiling new tariffs on Chinese goods.

"The Dow Jones Industrial Average fell 219.21 points to 24,700.45 with Caterpillar, DowDuPont and Chevron as the biggest decliners. The 30-stock index also snapped a four-day winning streak, its longest since June 11. The S&P 500 dropped 0.7 percent to 2,774.02 as energy plunged more than 2 percent. Energy shares fell as crude shed 5 percent. The Nasdaq Composite declined 0.6 percent to close at 7,716.61."

 
 

 
 

GOOD TO KNOW 

  • The House Financial Services Committee on Wednesday advanced eight bipartisan bills meant to help small and newly created companies access capital -- measures that could form part of a larger package heading to the Senate.
  • The Trump administration has signed an agreement with ZTE that will help the Chinese telecommunications giant move to reboot its operations, the Department of Commerce announced Wednesday.
  • Foreign direct investment in the United States dropped 32 percent, or $120 billion, in 2017 as compared to the year before, according to new figures from the Bureau of Economic Analysis.
  • China has reportedly issued updated guidelines to its news media, ordering outlets not to attack President Trump, according to Reuters.
  • Households in the top fifth of income levels have received 65 percent of the value of tax changes enacted since 2000, according to a report released Wednesday by the left-leaning Institute on Taxation and Economic Policy (ITEP).
  • Two economists at the San Francisco branch of the Federal Reserve wrote Tuesday that the Republican tax cut signed into law in December will likely have less of an effect on the economy than forecasters previously thought -- and possibly none at all.
  • Bloomberg explores how China can strike back at the U.S. economy with tools other than tariffs.

 

ODDS AND ENDS

  • A former Apple employee was arrested at the airport last week as he allegedly sought to board a flight to China with secret plans for the company's self-driving cars.
  • A group of Senate Democrats are urging the Justice Department to scrutinize Comcast's $65 billion bid to buy much of 21st Century Fox.
 
 
 
 
 
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Hillicon Valley: Hacker tried to sell military docs on dark web | Facebook fined over Cambridge Analytica | US closer to lifting ZTE ban | Trump, Obama lose followers in Twitter purge | DOJ weighs appeal on AT&T merger

 
 
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Welcome to Hillicon Valley, The Hill's newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley.

Follow the cyber team, Olivia Beavers (@olivia_beavers) and Morgan Chalfant (@mchalfant16), and the tech team, Harper Neidig (@hneidig) and Ali Breland (@alibreland).

 

HACKED MILITARY DOCS PUT UP FOR SALE ON THE DARK WEB: New research claims that a criminal hacker tried to sell files on the U.S. military's MQ-9 Reaper drones on the dark web.

The unidentified hacker harvested the documents from a U.S. Air Force captain's computer by exploiting a widely known security vulnerability in Netgear routers, according to research by threat intelligence firm Recorded Future.

How it's being handled: U.S. officials are now investigating the incident as a result of the reporting, an Air Force spokesman told The Hill.

While the documents themselves were not classified, the researchers described them as "highly sensitive" in nature and said they "could provide an adversary the ability to assess technical capabilities and weaknesses in one of the most technologically advanced aircrafts."

The analysts said they notified officials at the Department of Homeland Security (DHS) of their findings and that the hacker was ultimately blocked from selling the documents. It is unclear, however, if any of the data was copied or shared.

A Homeland Security official confirmed to The Hill that Recorded Future reached out to the department about the incident. A spokesperson for the Air Force said Wednesday that the service is "aware of the reporting and there is an investigation into the incident."

The MQ-9 Reaper is an armed unmanned aerial vehicle, or UAV, made by General Atomics and used by the Air Force and Navy and by Homeland Security to monitor the U.S. border.

What they found: Analysts at Recorded Future's Insikt Group spotted the hacker trying to sell what appeared to be U.S. Air Force documents for $150 while monitoring criminal activities on the dark web last month. Criminal actors often use the dark web to peddle stolen login credentials and sensitive personal information, like Social Security numbers, but it is much more rare to see actors trying to sell military documents online.

How they discovered it: The researchers "engaged" the hacker, who spoke English, and confirmed the validity of the stolen documents, which included MQ-9 Reaper maintenance course books and a list of airmen assigned to the Reaper's aircraft maintenance unit, the report says. The hacker also shared information with the analysts about his tactics.

Read more from our story here.

 

UK HITS FACEBOOK WITH ITS FIRST FINE OVER CAMBRIDGE ANALYTICA: Facebook on Tuesday was hit with its first fine related to the Cambridge Analytica scandal, which involved the data firm obtaining personal information on tens of millions of Facebook users without their consent.

The Information Commissioner's Office (ICO), a privacy and data watchdog in the United Kingdom, announced Tuesday that it would fine Facebook the maximum-allowed penalty of $664,000 for what it said was improperly overlooked warning signs and for lacking overall privacy protections that could have prevented Cambridge Analytica from obtaining the sensitive data, The Washington Post reported.

The office, which usually does not publish its findings, said it was doing so due to increased public interest in the subject.

Facebook's response: In a statement, Facebook responded to the findings by acknowledging it "should have done more to investigate claims about Cambridge Analytica and take action in 2015."

"We have been working closely with the ICO in their investigation of Cambridge Analytica, just as we have with authorities in the US and other countries," Facebook's chief privacy officer, Erin Egan, added in a statement reported by the Post. "We're reviewing the report and will respond to the ICO soon."

Elizabeth Denham, the Information Commissioner, wrote in her accompanying report that Facebook should have done more to explain to its users why they were targeted for specific political advertisements or messaging.

"A significant finding of the ICO investigation is the conclusion that Facebook has not been sufficiently transparent to enable users to understand how and why they might be targeted by a political party or campaign," Denham wrote. "Whilst these concerns about Facebook's advertising model exist generally in relation to its commercial use, they are heightened when these tools are used for political campaigning."

Read more here.

 

2018 RUSSIAN MEDDLING DOESN'T COMPARE TO 2016: A top official at the Department of Homeland Security said Wednesday that U.S. intelligence officials have seen no evidence of Russia trying to interfere in the 2018 midterms that "rises to the level of 2016."

However, the U.S. intelligence community continues to see Russian attempts to use social media and other avenues to identify divisive issues and sow discord among the American public, Christopher Krebs, who leads Homeland Security's cyber unit, said during congressional testimony.

"We are not seeing ... anything that rises to the level of 2016–directed, focused, robust campaign," Krebs told the House Homeland Security Committee on Wednesday. But, he added, "the intelligence community continues to see Russian activity in the sowing discord across the American public."

Krebs elaborated that intelligence shows Russia continuing to engage in information operations, though not on the scale that Moscow did in 2016. Those efforts, Krebs said, have not been directed specifically at the midterms, politicians or political campaigns, but instead have been aimed at sowing discord. Moscow is using "social media, false-flag personas, sympathetic spokesman, and other means to influence or inflame positions on opposite ends of controversial issues," he said.

Read more here.

 

BUT HOLD ON... NEW ELECTION MEDDLING OVERSEAS? Hackers believed to be linked to the Chinese government recently broke into Cambodian organizations involved in the country's upcoming elections, according to U.S.-based cybersecurity firm FireEye.

The new revelations are a sign that the Chinese espionage group is expanding operations beyond its usual targets, which have included defense and maritime organizations in the U.S. and Europe.

The hackers successfully breached multiple entities in Cambodia involved in government operations and the country's upcoming general elections, which are scheduled for July 29, according to researchers at FireEye who analyzed command and control servers used to launch malware in the attacks. The cyber firm also tracked a separate phishing email campaign targeting opposition figures in Cambodia.

"The targeting of the election commission is particularly significant, given the critical role it plays in facilitating voting," FireEye said in research published late Tuesday. "There is not yet enough information to determine why the organization was compromised – simply gathering intelligence or as part of a more complex operation."

Ben Read, senior manager of cyber espionage analysis at FireEye, said that the firm has "high confidence" the group is acting on behalf of Beijing's government.

Why this is attracting attention: The details come amid heightened awareness of foreign influence efforts targeting elections, following Russia's alleged campaign to meddle in the 2016 U.S. presidential election. As part of the effort, Moscow-linked hackers targeted state election systems, and in one case penetrated a voter database in Illinois. Read more here.

 

SENATORS PRESS ELECTION OFFICIALS ON STATE CYBERSECURITY: Senators on Wednesday pressed top officials from the U.S. Election Assistance Commission (EAC) about their efforts to boost state cybersecurity election systems, with a focus on whether each state should have a mechanism in place to audit their results.

"Many elections across the nation do not have auditable elections, they are done completely electronically," Sen. James Lankford (R-Okla.) told the panel of witnesses at a hearing on election security preparedness convened by the Senate Rules and Administration Committee.

Thomas Hicks, the head of the EAC, indicated that states decide whether they want to have auditable elections.

Sen. Angus King (I-Maine) pressed Hicks on whether there should always be a paper backup to determine accurate counts.

"It depends on the state," Hicks said. "If we can do security with paper, to make sure it is accessible to those who have disabilities, then I would say that is 100 percent right that we should have a paper backup."

Hicks said states are not required to have an auditable ballot trail, despite requirements under the Help America Vote Act (HAVA) that they must abide by in order to receive federal money.

Read more here.

 

US MOVES CLOSER TO LIFTING BAN ON ZTE: The Trump administration has signed an agreement with ZTE that will help the Chinese telecommunications giant move to reboot its operations, the Department of Commerce announced Wednesday.

The Chinese phone maker had shut down its operation in the U.S. after Commerce issued a ban in April on U.S. businesses selling equipment to ZTE, a punishment for the company violating U.S. sanctions against Iran.

The agency said in a statement on Wednesday that it had signed an agreement with ZTE to lift the ban on it doing business with U.S. companies once ZTE puts a mandated $400 million in an escrow account.

The escrow agreement is a part of a $1.4 billion penalty settlement between the Commerce Department and ZTE. Should the company not meet its side of the agreement, it will forfeit the $400 million in the escrow account.

ZTE has already paid $1 billion to the agency.

Read more here.

 

FCC WANTS TO UPGRADE ITS COMMENT SYSTEM: The Federal Communications Commission (FCC) is planning to overhaul its comment filing system following reports of widespread fake submissions during the commenting period on the net neutrality rollback last year.

FCC Chairman Ajit Pai said in a letter to Sens. Pat Toomey (R-Pa.) and Jeff Merkley (D-Ore.) that the commission has put in a request with the House and Senate Appropriations committees to upgrade its Electronic Comment Filing System to crack down on comments from bots, noting that the FCC "inherited" this system from the Obama administration.

"In addition to being technologically behind the times, the system that this Commission inherited from the prior Administration was designed to make it as easy as possible to file comments," Pai wrote in the letter dated July 6. "But while facilitating widespread public participation in the rulemaking process is a worthy and important goal, we believe that we can accomplish that goal while at the same time updating our system to minimize the potential for abusive behavior."

Read more here.

 

I OBJECT: The White House on Wednesday released a statement on the House version of an intelligence authorization bill for fiscal years 2018 and 2019. The statement lays out several objects to provisions in the bill, including many that are cyber-related. For instance, the White House is bucking one provision that would establish an energy infrastructure security center within the Office of Director of National Intelligence to handle cyber threats to energy infrastructure.

"The Administration has significant concerns regarding" this section, the statement says. "The proposed center would create a vast infrastructure not needed to evaluate or mitigate cyber threats to critical energy infrastructure. The Administration would instead continue to pursue activities to study, understand, and develop mitigations that address the cybersecurity threat to critical infrastructure."

 

SENATE DEMS WANT DOJ TO REVIEW COMCAST BID FOR FOX: A group of Senate Democrats are urging the Justice Department to scrutinize Comcast's $65 billion bid to buy much of 21st Century Fox.

The senators wrote to Makan Delrahim, the head of the Justice Department's antitrust division, asking him to review whether Comcast would be able to use Fox's entertainment offerings to suppress its competitors.

"In addition to horizontal concerns over local stations and regional sports programming, further consolidation that enhances and reinforces Comcast's vertically integrated status as both a distributor and creator of media poses unique challenges, especially given that the merger would provide a majority stake in the streaming service Hulu," the letter reads.

The letter was signed by Sens. Richard Blumenthal (D-Conn.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Ed Markey (D-Mass.).

Comcast declined to comment on the letter.

Read more here.

 

CAREFUL WHAT YOU SAY OVER THE PHONE: The latest filing by special counsel Robert Mueller says former Trump campaign manager Paul Manafort bragged over the phone that he is being treated like a "VIP" in prison with access to a personal phone and laptop by not having to wear a prison uniform. Federal prosecutors on Wednesday submitted files opposing Manafort's request to delay his trial for months, a filing that reveals details of Manafort's life behind bars.

Manafort had filed to delay one of his two scheduled trials, claiming that his incarceration at Virginia's Northern Neck Regional Jail over alleged witness tampering left him without adequate time to prepare for trial. But in the Wednesday filingMueller argued that Manafort's claims do not hold up because Manafort has said in multiple prison calls that he has had full access to his files and attorneys. 

Read more here.

 

DOJ PUSHING FOR AT&T APPEAL: Officials in the Justice Department's Antitrust Division are seeking to appeal a federal judge's decision to sign off on the $85 billion merger of AT&T and Time Warner, Fox Business Network reported Wednesday.

However, the plan to file an appeal is facing pushback from the U.S. Solicitor General's office, which must approve appeals from the Justice Department in any federal court or the Supreme Court, FBN reported.

One official told FBN that the office of U.S. Solicitor General Noel Francisco believes that "the government has limited capabilities of successful appeals and you don't want to squander those on cases that are borderline."

U.S. District Judge Richard Leon ruled on June 12 that AT&T could move forward with its purchase of Time Warner, giving the telecommunications giant an entry point to the content business.

 

UBER'S HR CHIEF STEPS DOWN: Uber's top human resources official resigned Tuesday after an investigation found that she had dismissed allegations of racial discrimination at the company.

Reuters reported Tuesday that Uber's chief people officer, Liane Hornsey, resigned in an email to employees but did not provide a reason for her departure.

An anonymous group of Uber employees of color told Reuters that Hornsey had used discriminatory terms and that she had made demeaning comments toward Uber's Global Head of Diversity and Inclusion Bernard Coleman and former Chief Brand Officer Bozoma Saint John.

 

SINCLAIR STREAMING SERVICE? Sinclair Broadcast Group is working on a streaming news service that could launch later this year, BuzzFeed News reported Wednesday.

The company has submitted a trademark application for a free streaming app, called STIRR, BuzzFeed reported. Sources familiar with the project told the news outlet that the app would offer local and national news, as well as other on-demand programming.

A spokesperson for Sinclair declined to comment to BuzzFeed.

The app would represent the latest effort from Sinclair to expand its reach.

 

TRUMP, OBAMA HIT HARD BY TWITTER PURGE: Twitter is beginning to pull inactive and locked accounts from users' follower counts -- a move that's already costing prominent users like President Trump and former President Obama tens of thousands of followers.

Trump had lost about 100,000 of his roughly 53.4 million Twitter followers as of Tuesday night, The Washington Post reported, while Obama had lost about 400,000 of his 104 million followers during the same period of time.

The drop in followers came shortly before Twitter formally announced Wednesday that it would start removing "locked accounts" from follower counts as part of a push "to build trust and encourage healthy conversation on Twitter."

 

FBI AGENT SET FOR PUBLIC GRILLING: House Republicans are sharpening their knives for Peter Strzok and Lisa Page, the counterintelligence agent and former FBI lawyer who exchanged a series of anti-Trump text messages during the 2016 campaign.

Two powerful committees -- Judiciary and Oversight and Government Reform -- will publicly grill Strzok on Thursday. And conservatives have given Page 48 hours to comply with a subpoena that she flouted on Wednesday morning, either by appearing behind closed doors on Friday or alongside Strzok in public on Thursday.

The fight over Strzok and Page has become increasingly acrimonious. House Speaker Paul Ryan (R-Wis.) threatened to hold Page in contempt on Wednesday, while a lawyer for Page accused Republicans of "bullying" tactics in their investigation into the bureau's handling of investigations during the 2016 election.

Strzok, who is under subpoena to testify Thursday morning, has agreed to appear but has criticized House Republicans as having a "disdain for the truth." He has called for lawmakers to release the transcript of an 11-hour interview he gave investigators behind closed doors last month.

House GOP members see Strzok and Page, who were having an extramarital affair at the time they were exchanging thousands of texts, as the key to unraveling what they say was systemic anti-Trump bias at the Department of Justice during the election.

Read more here and keep reading for details on Strzok's hearing below.

 

ON TAP FOR TOMORROW:  

Strzok is expected to testify Thursday morning at 10 a.m. before the House Judiciary and House Oversight committees. He has become a key target on the right ever since an internal DOJ investigation uncovered anti-Trump texts that he had sent to then-FBI lawyer Lisa Page during the 2016 election. So, in other words: It will be lit.

The House Homeland Security Committee holds a hearing on threats to the Department of Homeland Security supply chain at 10:00 a.m.

The House Science Committee is holding a hearing on "big data challenges and advanced computing solutions" at 10:00 a.m.

The FCC is holding its monthly open meeting at 10:30 a.m.

 

A LIGHTER TWITTER CLICK: It's true. This did happen today and some of us here may have taken part...

 

SOME OP-EDS TO CHEW ON:

America's 'culture of security' imperative is here.

US, EU must work together in wake of Facebook data breach.

 

NOTABLE LINKS FROM AROUND THE WEB:

Apple fixed a glitch that caused a Taiwan flag emoji to crash iPhones in China. (The Telegraph)

Ex-Apple engineer caught fleeing to China with secrets to self-driving cars, FBI says. (USA Today)

Russian internet company had access to Facebook user data. (CNN)

Meet Robert Mueller's 'new army.' (The Daily Beast)

Broadcom is closing in on a deal to purchase CA Technologies. (Wall Street Journal)

ThreatConnect is out with a new survey on cyber threat intelligence sharing.

 
 
 
 
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