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(For other news from Reuters Cybersecurity Summit, click on http://www.reuters.com/summit/Cyber13)

* White House, lawmakers talking

* Lawmakers more educated this time around

* Cyber attacks, espionage major threat to U.S.

By Deborah Charles and Alina Selyukh

WASHINGTON, May 16 (Reuters) – Six months after a U.S.

cybersecurity bill died in the Senate, some Obama administration

officials and lawmakers are optimistic they can get a new law

passed amid heightened public awareness of hacking attacks and

cyber espionage.

With top intelligence officials warning that cyber attacks

have replaced terrorism as the leading threat against the United

States, the White House and lawmakers have spent months

discussing how to improve the flow of information between the

government and the private sector.

A second go-around for the Cyber Intelligence Sharing and

Protection Act (CISPA) was approved by the Republican-controlled

House of Representatives in a bipartisan vote on April 18,

though the White House has again threatened to veto the bill

unless more protections for privacy and civil liberties are

added.

Still, senior Obama administration officials say

behind-the-scenes talks with lawmakers this time around are

constant, more serious and more productive.

“I actually think that the outlook is significantly better

than it was last year,” the White House cybersecurity policy

coordinator, Michael Daniel, told the Reuters Cybersecurity

Summit in Washington this week. “What has impressed me has been

the willingness of everybody involved to actually continue

having those discussions and to continue that extensive level of

dialogue trying to find some solutions.”

While Daniel cautioned that it is never easy to get the

divided House and Senate to agree to anything, he predicted that

final cyber legislation might be seen by the fall.

“A lot of us are concerned about getting a good piece of

cybersecurity legislation before something really bad happens.

As a general rule, legislation that is produced immediately

after a crisis is not as good as the stuff that can be done when

it’s more thought-out,” he said.

Last year, the Senate failed to pass a comprehensive

cybersecurity bill that combined information-sharing provisions

similar to those in the current CISPA with voluntary

cybersecurity standards for businesses that control critical

U.S. infrastructure.

Since then, President Barack Obama has signed an executive

order that directs government officials to set voluntary

standards to reduce cybersecurity risk and offer incentives to

private companies to adopt them.

A series of high-profile cyber attacks – such as repeated

disruptions of the online banking sites of major U.S. banks, or

markets plunging on a fake message on the AP Twitter feed about

a White House bombing that never happened – have built momentum

behind cyber legislation.

SEPARATE BILLS

The Senate does not plan to vote on CISPA, but is expected

instead to take up its own cyber-related bills. On Wednesday,

Senate Intelligence Committee Chairman Dianne Feinstein, a

California Democrat, said her panel was drafting a version of an

information-sharing bill.

Congressional aides said staff and lawmakers from both sides

of the aisle are constantly meeting on the issue. One Senate

aide said it was a collaborative process to agree on multiple

key elements to make the overall law stronger.

Representative Mike Rogers, chairman of the House

intelligence committee and CISPA co-author, said key senators

including Feinstein were “completely all in” on the need to pass

a cybersecurity law. The Michigan Republican predicted that

House and Senate lawmakers could work out an agreement on at

least an information-sharing bill.

“I think we’re finally coming to the consensus here that

hey, let’s pass what we can pass and take another bite. This

isn’t the end-all cure-all,” Rogers told the summit.

He said a meeting was scheduled this week – with more to

come – between the House and the Senate to discuss in detail the

elements of cyber legislation and see where compromise could be

reached, without starting completely from scratch.

Rogers predicted that if a bill could pass through both

houses of Congress, Obama would sign it despite the veto threat.

URGENT NEED

Top administration officials have underscored the urgent

need for laws that would complement Obama’s executive order and

help ensure the government and the private sector are on the

same page when it comes to threats posed to critical U.S.

infrastructure.

Homeland Security Secretary Janet Napolitano said many

lawmakers received classified briefings last year on cyber

threats, and better education on cyber risks means “we’re

starting from a much better base” on legislation.

“There’s a lot of work going on behind the scenes,”

Napolitano told the summit. “There are many fewer concerns than

there were last time around.”

But officials acknowledge that hurdles remain. For example,

some senators, like Homeland Security Committee Chairman Tom

Carper, prefer a more comprehensive bill.

“While information sharing is an important part of our

efforts, it is only one of many elements needed to properly

bolster our cyber defenses,” Carper, a Delaware Democrat, said

in a statement.

Other issues he says he would like to address in legislation

include protections for critical infrastructure, security of

federal agency networks, cyber workforce development and

notification of data breaches.

Some private industry security experts were skeptical about

the prospects for broad legislation, as well as the

effectiveness of such laws in preventing cyber attacks. Shane

Shook, chief knowledge officer at cybersecurity services company

Cylance Inc, suggested the private sector should organize

information sharing itself.

“Comprehensive legislation is never going to happen that can

be effective over all 18 sectors,” Shook told the summit.

Ira Winkler, president of the Information Systems Security

Association, said he was skeptical that any meaningful

legislation would pass this year, barring a major cyber attack

that damaged U.S. infrastructure.

“We hear about wake-up calls, but people keep hitting the

snooze button,” he said.

(Additional reporting by Andrea Shalal-Esa and Thomas Ferraro;

Editing by Tiffany Wu and Mohammad Zargham)