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Industry requirement guide

Utilities

Water, gas, and electric utilities and the public-utility critical-infrastructure sector.

How to use this industry guide

Use this guide to identify when pipeline work is more than ordinary IT services. A contractor that supports scheduling software, ticketing, or administrative systems may have one risk profile. A contractor that maintains SCADA, remote telemetry, control-room systems, cyber monitoring, communications, or emergency response systems may face much more specific obligations.

What usually drives cybersecurity obligations in this sector

Pipeline obligations are usually driven by operational role, critical infrastructure status, remote access, and security directives. Contractors may support control systems, monitoring tools, vulnerability assessment, incident response, physical security systems, cloud logging, or communications infrastructure.

Government work can add federal contract clauses, CUI handling, agency-specific cybersecurity requirements, and reporting duties. Critical infrastructure status can also make incident reporting, continuity, backup, restoration, and operational resilience central to the compliance program.

Requirements to review for this sector

Review these areas first:

  • FAR 52.204-21 for federal contract information.
  • NIST SP 800-171 where CUI is handled.
  • FISMA/NIST SP 800-53 where the contractor operates a federal system.
  • TSA pipeline cybersecurity directives or customer-imposed equivalents where applicable.
  • CIRCIA-readiness for covered critical infrastructure entities once final rule obligations apply.
  • Agency-specific requirements from TSA, DHS/CISA, DOT, DOE, or state/local critical infrastructure customers.
  • Contract clauses governing remote access, vulnerability disclosure, incident response, backups, and operational continuity.

Implementation focus areas

Pipeline contractors should document the difference between corporate IT access and operational access. Evidence should include remote-access approvals, privileged-account controls, MFA, logging, vulnerability remediation, secure configuration records, incident escalation contacts, backup and restoration procedures, change approvals, and customer coordination rules for cyber events affecting operations.

The most important practical control is often accountable access. Pipeline customers need to know which contractor personnel can reach operational environments, how access is approved, how sessions are logged, and how access is terminated.

This page is an index. The actionable items are the requirements below.

Standards and frameworks commonly adopted

  • Utilities

    Water, gas, and electric utilities and the public-utility critical-infrastructure sector.

    Adopts: NERC CIPElectric utilities / BES assetsAdopts: NISTSector cyber risk management

Mapped requirements and controls

Data-Type / Sector-Specific Safeguards

medium

Requirement

Protect Critical Energy/Electric Infrastructure Information in accordance with 18 CFR 388.113.

Plain-English explanation

Critical Energy/Electric Infrastructure Information is energy-sector information that could aid an attack on the grid. 18 CFR 388.113 sets FERC's rules for designating and releasing CEII. Energy contractors and their vendors should treat CEII as restricted and follow FERC's access process.

Implementation examples

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Protecting CEII:

  • Identify documents that meet FERC's CEII definition and mark them accordingly.
  • Restrict access to authorized requesters via FERC's CEII process.
  • Apply need-to-know and secure storage controls.
  • Coordinate with the asset owner before sharing CEII.

Required by

18 CFR 388.113
medium

Requirement

Decontrol CUI When Safeguarding Is No Longer Required in accordance with 32 CFR 2002.18.

Plain-English explanation

CUI status is not permanent. 32 CFR 2002.18 lets the designating agency decontrol information when safeguarding is no longer required, and contractors should not keep treating decontrolled data as CUI. Decontrol is an agency decision — contractors follow it rather than make it.

Implementation examples

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Handling decontrol:

  • Follow agency decontrol instructions and remove or update CUI markings accordingly.
  • Note the decontrol decision and date in your records.
  • Do not unilaterally decontrol CUI you received; confirm with the designating agency.
  • Update access controls once data is decontrolled.

Required by

32 CFR Part 2002

32 CFR 2002.14(f); NIST SP 800-88

Destroy CUI Using Approved Methods

DESTROY

medium

Requirement

Destroy CUI Using Approved Methods in accordance with 32 CFR 2002.14(f); NIST SP 800-88.

Plain-English explanation

CUI must be destroyed using methods that make it unreadable and irrecoverable. 32 CFR 2002.14(f) requires approved destruction, and NIST SP 800-88 provides the media-sanitization guidance the government relies on. Improper disposal is a common and avoidable cause of CUI loss.

Implementation examples

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Approved destruction practices:

  • Cross-cut shred or pulp paper CUI to NSA/agency-approved standards.
  • Sanitize digital media per NIST SP 800-88 (clear, purge, or destroy as appropriate).
  • Use destruction logs or certificates of destruction for accountability.
  • Include cloud and backup copies in your destruction process.

Required by

32 CFR Part 2002
medium

Requirement

Apply Limited Dissemination Controls and Lawful Government Purpose in accordance with 32 CFR 2002.16; CUI LDC Registry.

Plain-English explanation

CUI may only be shared for a lawful government purpose, and Limited Dissemination Controls (LDCs) further restrict who may receive it. 32 CFR 2002.16 and the CUI Registry's LDC list govern which controls (e.g., NOFORN, FED ONLY) can be applied and how. Applying the wrong control — or ignoring one — is a disclosure risk.

Implementation examples

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Managing dissemination:

  • Confirm a lawful government purpose before sharing CUI internally or externally.
  • Apply only LDCs listed in the CUI Registry and only when authorized by the designating agency.
  • Restrict distribution lists and shared drives to authorized recipients.
  • Document dissemination decisions for CUI Specified categories.

Required by

32 CFR Part 2002

DFARS 252.204-7012(m); proposed FAR CUI rule

Flow Down CUI Safeguarding Requirements to Subcontractors

FLOWDOWN

medium

Requirement

Flow Down CUI Safeguarding Requirements to Subcontractors in accordance with DFARS 252.204-7012(m); proposed FAR CUI rule.

Plain-English explanation

CUI obligations do not stop at the prime — they flow down to subcontractors that will handle CUI. DFARS 252.204-7012(m) requires the clause be included in covered subcontracts, and the proposed FAR CUI rule would extend flowdown government-wide. Primes remain responsible for ensuring subs are covered.

Implementation examples

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Managing flowdown:

  • Include the applicable CUI/safeguarding clause in subcontracts that involve CUI.
  • Verify subcontractors' safeguarding posture (e.g., SPRS score, SSP) before sharing CUI.
  • Track which subs receive CUI and under which categories.
  • Require subs to report incidents up the chain.

Required by

32 CFR Part 2002

EO 13556; 32 CFR Part 2002; NARA CUI Registry

Identify and Categorize CUI Using the CUI Registry

IDENTIFY

medium

Requirement

Identify and Categorize CUI Using the CUI Registry in accordance with EO 13556; 32 CFR Part 2002; NARA CUI Registry.

Plain-English explanation

Before you can protect CUI you have to recognize it. The CUI program replaced dozens of agency-specific markings with one government-wide system, and the NARA CUI Registry is the authoritative list of what qualifies and under which category. Contractors should map where covered information lives and tag it to a Registry category.

Implementation examples

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Practical steps to identify and categorize CUI:

  • Inventory systems, shares, and email that may hold government information and trace each to a contract or data flow.
  • Match each information type to a NARA CUI Registry category (e.g., Controlled Technical Information, Privacy, Procurement).
  • Confirm categorization with the contracting officer or data owner when a marking is ambiguous.
  • Re-run the inventory when new contracts, tools, or data sources are added.

Required by

32 CFR Part 2002
medium

Requirement

Apply CUI Markings (Banner, Portion, Category, and Limited Dissemination) in accordance with 32 CFR 2002.20; CUI Marking Handbook.

Plain-English explanation

CUI must carry consistent markings so everyone who handles it knows the limits. The ISOO CUI Marking Handbook prescribes banner marks, portion marks, category designators, and limited-dissemination controls. Correct marking is what makes downstream safeguarding and dissemination rules enforceable.

Implementation examples

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Ways to apply CUI markings correctly:

  • Add a CUI banner at the top (and bottom) of documents and a designation indicator identifying the source.
  • Use category markings (e.g., CUI//SP-CTI) for CUI Specified.
  • Apply portion marks where required and add Limited Dissemination Control markings (e.g., NOFORN, FED ONLY) when authorized.
  • Configure templates, email footers, and DLP labels so markings are applied by default.

Required by

32 CFR Part 2002

NIST SP 800-171 Rev 3; 32 CFR 2002.14(g)

Protect CUI on Nonfederal Systems per NIST SP 800-171

NIST171

high

Requirement

Protect CUI on Nonfederal Systems per NIST SP 800-171 in accordance with NIST SP 800-171 Rev 3; 32 CFR 2002.14(g).

Plain-English explanation

For CUI on nonfederal information systems, NIST SP 800-171 is the control set the government expects. Revision 3 (2024) reorganized the families and tightened several controls; DFARS 252.204-7012 and 32 CFR 2002.14(g) make it contractually and regulatorily binding for many contractors. A System Security Plan and POA&M are the core evidence artifacts.

Implementation examples

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Implementing NIST SP 800-171:

  • Maintain a current System Security Plan (SSP) describing how each control is met.
  • Track gaps in a Plan of Action & Milestones (POA&M) with owners and dates.
  • Implement the access-control, MFA, logging, configuration, and incident-response families.
  • Confirm which revision (Rev 2 vs Rev 3) your contract requires before scoping work.

Required by

32 CFR Part 2002
medium

Requirement

Protect Protected Critical Infrastructure Information in accordance with 6 CFR Part 29.

Plain-English explanation

Protected Critical Infrastructure Information is private-sector infrastructure information voluntarily shared with DHS under PCII protections. 6 CFR Part 29 limits its use and disclosure and requires trained, authorized users. PCII carries specific access and safeguarding obligations enforced by the PCII Program.

Implementation examples

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Handling PCII:

  • Ensure only trained, authorized PCII users access the information.
  • Store PCII per the PCII Program's safeguarding requirements.
  • Do not disclose PCII outside authorized uses (e.g., not in FOIA releases).
  • Mark PCII with the required cover sheet and statements.

Required by

6 CFR Part 29
medium

Requirement

Protect Proprietary Business Information / Trade Secrets in accordance with 18 USC 1905; FOIA Exemption 4.

Plain-English explanation

Proprietary business information and trade secrets shared with or generated for the government are protected from improper disclosure. 18 USC 1905 (Trade Secrets Act) and FOIA Exemption 4 limit government release of confidential commercial information. Contractors should mark and segregate proprietary data.

Implementation examples

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Protecting proprietary information:

  • Mark proprietary/trade-secret data with appropriate restrictive legends.
  • Segregate it and limit access to a need-to-know basis.
  • Assert confidentiality when submitting data the government might disclose.
  • Track where proprietary data is shared and stored.

Required by

18 USC 1905; FOIA Exemption 4
high

Requirement

Safeguard CUI at the 32 CFR 2002 Baseline in accordance with 32 CFR 2002.14.

Plain-English explanation

This is the baseline duty to protect CUI at rest, in transit, and in use. 32 CFR 2002.14 sets the floor for all CUI; for CUI on nonfederal systems that floor is implemented through NIST SP 800-171. Treat it as the minimum standard every CUI handler owes regardless of category.

Implementation examples

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Baseline safeguarding measures:

  • Limit access to CUI to people with a lawful government purpose and a need to know.
  • Encrypt CUI in transit and at rest using FIPS-validated cryptography.
  • Control physical access to printed CUI and CUI media.
  • Log access and review it; train staff on handling rules.

Required by

32 CFR Part 2002

32 CFR Part 2002 (CUI Specified)

Apply Category-Specific (CUI Specified) Handling Controls

SPECIFIED

medium

Requirement

Apply Category-Specific (CUI Specified) Handling Controls in accordance with 32 CFR Part 2002 (CUI Specified).

Plain-English explanation

Some CUI categories are 'CUI Specified' — a law, regulation, or government-wide policy imposes handling controls beyond the CUI Basic baseline. 32 CFR Part 2002 directs you to the controlling authority for each Specified category. Always check whether a category is Basic or Specified before deciding how to handle it.

Implementation examples

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Handling CUI Specified:

  • Identify the category's controlling law/regulation in the CUI Registry.
  • Apply the category-specific dissemination and safeguarding rules, which may exceed the baseline.
  • Mark Specified CUI with the correct category designator.
  • Escalate questions to the contracting officer or the designating agency.

Required by

32 CFR Part 2002
medium

Requirement

Provide CUI Awareness Training to the Workforce in accordance with 32 CFR 2002.30.

Plain-English explanation

People are the front line of CUI protection, so the program expects workforce awareness training. 32 CFR 2002.30 contemplates training on identifying, marking, handling, and reporting CUI. Document that staff who touch CUI have completed it.

Implementation examples

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Building a CUI training program:

  • Deliver role-based training before staff are granted CUI access and at least annually.
  • Cover identification, marking, dissemination limits, incident reporting, and destruction.
  • Track completion and retain records as evidence.
  • Refresh content when CUI policies or contract requirements change.

Required by

32 CFR Part 2002
medium

Requirement

Protect Water-System Risk and Resilience Assessments in accordance with 42 USC 300i-2 (AWIA).

Plain-English explanation

Water-system risk and resilience information is sensitive under the America's Water Infrastructure Act. 42 USC 300i-2 requires community water systems to assess risks and protect the resulting information. Vendors supporting water utilities should treat assessment data as restricted.

Implementation examples

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Protecting water-system information:

  • Restrict access to AWIA risk/resilience assessments to authorized personnel.
  • Apply safeguarding and need-to-know controls to vulnerability data.
  • Coordinate with the utility before sharing assessment details.
  • Securely store and dispose of sensitive water-infrastructure data.

Required by

42 USC 300i-2 (AWIA)
high

Requirement

A responsible entity for Bulk Electric System (BES) Cyber Systems must comply with the mandatory NERC Critical Infrastructure Protection (CIP) standards — including asset categorization (CIP-002), security management controls, personnel and training, electronic and physical security perimeters, system security management, incident reporting, recovery, configuration and vulnerability management, and supply-chain risk management (CIP-013) — for the applicable assets it owns or operates.

Plain-English explanation

For the electric grid, NERC CIP is mandatory and enforceable law, with financial penalties. If you own, operate, or supply BES Cyber Systems, the CIP family governs them, and CIP-013 specifically pushes security obligations onto your supply chain and vendors.

Implementation examples

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Examples of meeting this requirement:

  • Categorize BES Cyber Systems (High/Medium/Low) per CIP-002 and scope controls accordingly.
  • Implement electronic/physical security perimeters and personnel risk assessments.
  • Build a CIP-013 supply-chain risk-management plan and flow vendor security terms into procurements.

Required by

CIP standards for BES Cyber Systems incl. CIP-013 supply chain

External Notification & Reporting

32 CFR 2002; agency incident-reporting policy

Report Loss or Compromise of CUI

INCIDENT

high

Requirement

Report Loss or Compromise of CUI in accordance with 32 CFR 2002; agency incident-reporting policy.

Plain-English explanation

Loss or compromise of CUI must be reported, often on tight timelines. 32 CFR Part 2002 and agency/contract incident-reporting policy (and DFARS 7012's 72-hour rule for DoD) govern when and to whom. Build the reporting path before an incident, not during one.

Implementation examples

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Incident-reporting readiness:

  • Maintain an incident-response plan with defined roles and reporting timelines.
  • Know the reporting channel (e.g., DIBNet for DoD) and required contract notifications.
  • Preserve images and affected media for the period the contract requires.
  • Run tabletop exercises so the team can meet the deadline.

Required by

32 CFR Part 2002

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