CQ's David Harrison reports Attorney General Eric Holder told the Senate Judiciary Committee on Tuesday that he and FBI Director Robert S. Mueller III have already been interviewed by FBI investigators over the leaking of classified national security information to The New York Times and other media outlets. Holder said his Justice Department is taking the leaks very seriously and promised a full investigation by the two U.S. attorneys assigned to the case. But he resisted calls for a special prosecutor from Sen. John McCain of Arizona and other Republicans, arguing that setting up an independent counsel would take too long, and noting that the FBI has already begun conducting interviews for its probe.

McCain still chose to introduce a resolution with 18 GOP cosponsors urging Holder to appoint an outside special counsel to investigate the leaks. Some of Holder's critics suggested at the hearing that the Justice Department would face a conflict of interest, given the senior positions of those who had access to the leaked information. Holder denied that a conflict exists and noted that DOJ has prosecuted more leaks than any previous administration. With a full investigation pending, the matter of the leak investigation is now primarily a national security issue and a potential political liability for the White House, depending on what is revealed.

Aside from the blowback over the leaks, the most significant result of the revelations is the newfound urgency over cybersecurity legislation. After constant warnings of what could happen if measures aren't taken to protect U.S. networks, the leakers ended up showing us just what digital attacks are capable of in this day and age.

DOE Sensor Detects Attacks Via Network Traffic: CQ Homeland Security's Rob Margetta reports the Department of Energy's Pacific Northwest National Laboratory is working on an innovative program that could ID cyberattacks much more quickly. The Hone sensor project keeps a record of all communications and tracks exactly where they go. If a communication appears destined for a browser but goes to a different program, Hone keeps track of it. Currently, monitoring networks and identifying cyberattacks is a labor-intensive process that dominates the time of systems administrators and security personnel. Automating some of that search could dramatically slash the cost of implementing security measures for large companies and institutions. Drones Could Be Too Costly For Border: The cost of Customs and Border Protection's increased use of unmanned aircraft, or drones, is four times what Congress gave the agency, according to the Homeland Security inspector general. Rob Margetta reports Congress set aside $12.6 million for operations and maintenance over the program's lifetime, but the actual costs of the program were roughly $55.3 million. Resource and personnel shortfalls, such as a shortage of adequate ground control stations, have also hampered the agency from getting full use of the aircraft. The IG report also drew the attention of Rep. Bennie Thompson, D-Miss., who said it shows CBP is not managing the drones effectively. Google Street View Docs Raise Questions: Google released a trove of documents to The New York Times and other media outlets on Tuesday related to the FCC's investigation of the "Wi-Spy" matter, during which Google's Street View cars downloaded payload data and private information from unsecured WiFi networks. Google originally portrayed the data collection as a mistake and the work of one rogue engineer, but the documents show others at the company were informed by the engineer in question, who the Times has identified as Marius Milner of Palo Alto, Calif. Milner refused to answer questions from investigators, citing his Fifth Amendment rights. The FCC's findings that others at Google besides Milner were aware of the data collection has prompted European privacy regulators to consider re-opening their investigations; Great Britain has reportedly already done so. The FCC found the data collection did not violate U.S. law since the networks were unsecured, but it fined Google $25,000 for impeding its investigation. AT&T Interested in Buying Verizon Spectrum: The tangled web of telecom policy got a little more complicated this week, or a little clearer, depending on whom you ask. The Verge reports AT&T CEO Randall Stephenson indicated Tuesday that AT&T would likely bid on the 700 MHz A and B bands of spectrum that Verizon has agreed to relinquish if the commission approves its purchase of spectrum from a group of cable companies. The Verizon cable deal has drawn plenty of opposition, since critics are concerned that side agreements between the two parties would indicate a cessation of competition in the markets for cable and wired broadband access.

Verizon has argued the cable companies aren't using the spectrum, which could be used to upgrade their wireless network, and promised to relinquish the 700 MHz spectrum in hopes of enticing regulators at the FCC and DOJ into approving the deal. How Stephenson's comment will affect that transaction remains unclear, since critics have previously expressed concern that even if Verizon gives up some airwaves, AT&T would more than likely be the one to purchase them. AT&T and Verizon are the two largest wireless carriers and are expected to bid strongly on any spectrum that comes up for sale.

Reid Promises Action on Cyber Bill: As we mentioned yesterday, Majority Leader Harry Reid took to the Senate floor on Tuesday to promise action on cybersecurity legislation at the earliest possible juncture. The Nevada Democrat put his colleagues on notice that a bill would be moving soon, and he urged Senate Republicans to take part in the debate over what should be done about critical infrastructure. Reid once again expressed support for the Lieberman-Collins-Rockefeller bill (S 2105), which would establish regulations for critical infrastructure providers, but said he is open to other alternatives. Those could include the compromise being negotiated by Sen. Sheldon Whitehouse, D-R.I., and others, which would focus on industry incentives to adopt baseline security standards. Reid Wouldn't Mind National Boxing Commission: Slightly off-topic, but CQ's Niels Lesniewski reports Reid also took a moment to express his view that Filipino welterweight titlist Manny Pacquiao was the victim of a poor decision by Nevada boxing judges on Saturday night. Pacquiao lost his fight against unbeaten American Timothy Bradley by split decision, sparking off widespread outrage in the sporting community. Reid said he has no problem with calls for an investigation by the Nevada state attorney general by Pacquiao's promoter Top Rank. He also noted that he and fellow boxing fan Sen. John McCain have been trying to get a national boxing bill passed for years, which would establish national standards for a sport currently regulated at the state level. Reid was an amateur boxer in his youth and last year hosted Pacquiao during the Filipino congressman's visit to Washington.