CQ's Tim Starks reports the U.S. Chamber of Commerce is opposing a bipartisan attempt to resolve the stalemate over cybersecurity legislation in the Senate. A group of senators including Sheldon Whitehouse, D-R.I., Jon Kyl, R-Ariz., Barbara Mikulski, D-Md., Lindsey Graham, R-S.C., and Roy Blunt, R-Mo., are drafting a proposal that would split the difference between the two competing cyber-bills currently up for debate. The bill championed by Senate leadership and the White House (S 2105) would authorize the Department of Homeland Security to establish new security regulations for owners of critical infrastructure, while a competing measure from Senate Republicans led by John McCain, R-Ariz., (S 2151) omits any regulations. The compromise effort would include security performance standards for critical infrastructure providers, but it wouldn't require industry to meet them. Instead, the government would dangle incentives, such as liability protection in the event of a breach, for companies that comply.

Focusing on incentives instead of penalizing critical infrastructure providers for noncompliance would seem like a path to compromise, since industry is against any security mandates and cybersecurity experts are adamant that self-regulation won't be sufficient to guard against the threat. But the Chamber opposes the draft proposal as it stands, arguing it would still impose new requirements on critical infrastructure providers that wouldn't be voluntary. For example, the new proposal would allow federal officials to publish an assessment of an organization's cybersecurity measures, which could be akin to the "name and shame" approach favored by the White House to encourage compliance. The Chamber instead supports the McCain bill and CISPA (HR 3523), an information sharing measure passed by the House earlier this year.

While the news it the most promising development we've heard in some time for advocates of cybersecurity legislation, the deal remains a long ways from done. Gaining the support of some moderate Republicans interested in supporting cybersecurity legislation for national security purposes could help Democrats invoke cloture and pass a bill, but no legislation with anything that smacks of security regulations is likely to pass the House. Even voluntary standards are easily turned into mandatory standards once established, a fact that both industry and cybersecurity experts are aware of. Cybersecurity hawks probably figure that if establishing the standards with incentives doesn't work, the first major cyberattack on U.S. networks could build enough momentum to make those requirements mandatory. Industry will be eager to prevent anything that could lead them down that road, and will strongly oppose the portions of the draft bill that aren't strictly voluntary.

We remain skeptical about the prospect of the president signing new cybersecurity laws this year, unless Democrats finally capitulate on their demands for critical infrastructure security requirements. These negotiations are a sign they are wavering, but the inclusion of mandates indicates they are still stubbornly trying to cling to some portion of their regulatory proposal. The elephant in the room is the recent news regarding the administration's aggressive use of cyberweapons to sabotage Iran's nuclear program. After warning of the potential for cyberwar over the past few years, it turns out the White House has been conducting the types of attacks it has warned may come from other nations. The revelations have undoubtedly helped increase the urgency of the cybersecurity issue, but have also prompted some public questioning of the White House. The administration is playing the national security card hard, hoping to pass new laws this year. Barring a fresh consensus in the Senate and some softening from the House, that still appears unlikely.

Senator Looks to Limit Drone Surveillance: CQ's Jennifer Scholtes reports that Rand Paul is planning to introduce a bill this month that would ensure unmanned aircraft, or drones, are subject to the same surveillance laws in the sky that currently apply on the ground. The Federal Aviation Administration has until Nov. 10 to issue a plan to integrate drones into U.S. airspace, which has prompted privacy advocates to call for surveillance guidelines up front. Those advocates are concerned about the prospect of warrantless surveillance, since many UAVs are used by the intelligence community for spying purposes. There are also safety concerns; a Navy UAV crashed on Monday in Maryland during a training flight. Former Governor Gets Cable Channel: Roll Call's Kyle Trygstad reports former Hawaii Gov. Linda Lingle (R) launched her own cable TV channel on Monday dedicated to providing information about her Senate campaign and issues facing the state. Lingle is running for the state's open Senate seat and will face the winner of the Aug. 11 Democratic primary between Rep. Mazie Hirono and former Rep. Ed Case. Broadcasters Add TV Ratings to Online Content: The broadcast networks announced Monday that starting in December, they will begin displaying ratings information for TV shows that are viewed online. The move reflects the fact that 28 percent of TV viewers watch programs on screens other than their TVs, with 17 percent using multiple screens. Rep. Edward Markey, D-Mass., commended the networks for extending the parental guidelines to the Web. Apple Unveils iOS 6, Updates MacBook Pro: Apple unveiled a host of software updates designed to distance the tech giant from rival Google at Apple's annual developer conference in San Francisco on Monday. Apple's next generation mobile operating system iOS will feature expanded use of Siri, the iPhone's "virtual assistant" that makes use of voice recognition technology, and greater integration with Facebook. Apple also unveiled  a new mapping and navigation service designed to replace Google Maps on iPhones and iPads. Apple also unveiled a new version of its MacBook Pro laptop, which is now thinner with a high-resolution display. FCC and FTC Budget Markup: The Senate Appropriations Subcommittee on Financial Services and General Government will markup the fiscal 2013 appropriations bill for agencies including the FCC and Federal Trade Commission this afternoon.