FROM: FEDERAL DEPOSIT INSURANCE CORPORATION
Statement of Federal Deposit Insurance Corporation by James R. Wigand, Director, Office Of Complex Financial Institutions And Richard J. Osterman, Jr., Acting General Counsel on Who Is Too Big To Fail? Examining the Application of Title I of the Dodd-Frank Act before the Subcommittee on Oversight and Investigations; Committee on Financial Services; U.S. House of Representatives; 2128 Rayburn House Office Building
April 16, 2013
Chairman McHenry, Ranking Member Green, and members of the Subcommittee, thank you for the opportunity to testify on behalf of the Federal Deposit Insurance Corporation (FDIC) on Sections 165 and 121 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Our testimony will focus on the FDIC's role and progress in implementing Section 165, including the resolution plan requirements and the requirements for stress testing by certain financial institutions.
Section 165 of the Dodd-Frank Act
Resolution Plans
Under the Dodd-Frank Act, bankruptcy is the preferred resolution framework in the event of a systemic financial company's failure. To make this prospect achievable, Title I of the Dodd-Frank Act requires that all large, systemic financial companies prepare resolution plans, or "living wills", to demonstrate how the company would be resolved in a rapid and orderly manner under the Bankruptcy Code in the event of the company's material financial distress or failure. This requirement enables both the firm and the firm's regulators to understand and address the parts of the business that could create systemic consequences in a bankruptcy.
The FDIC intends to make the living will process under Title I of the Dodd-Frank Act both timely and meaningful. The living will process is a necessary and significant tool in ensuring that large financial institutions can be resolved through the bankruptcy system.
The FDIC and the Federal Reserve Board issued a joint rule to implement Section 165(d) requirements for resolution plans – (the 165(d) Rule) – in November 2011. The 165(d) Rule requires systemically important financial institutions (SIFIs) -- bank holding companies with total consolidated assets of $50 billion or more, and nonbank financial companies that the Financial Stability Oversight Council (FSOC) determines could pose a threat to the financial stability of the United States -- to develop, maintain, and periodically submit resolution plans to regulators.
In addition to the resolution plan requirements under the Dodd-Frank Act, the FDIC issued a separate rule which requires all insured depository institutions (IDIs) with greater than $50 billion in assets to submit resolution plans to the FDIC for their orderly resolution under the Federal Deposit Insurance Act. The 165(d) Rule and the IDI resolution plan rule are designed to work in tandem by covering the full range of business lines, legal entities and capital-structure combinations within a large financial firm.
The 165(d) Rule establishes a schedule for staggered annual filings. The first group of filers -- bank holding companies and foreign banking organizations with $250 billion or more in non-bank assets ("first wave" filers) -- submitted their initial resolution plans on July 1, 2012. Financial companies with less than $250 billion, but more than $100 billion in non-bank assets ("second wave" filers), will file their initial plans by July 1, 2013, and all other bank holding companies – those with assets over $50 billion – ("third wave" filers) are scheduled to file by December 31, 2013. While the general expectation is that firms will file annually, regulators may require that a plan be updated on a more frequent schedule, and a firm must provide notice to regulators of any event that may have a material effect on its resolution plan.
Eleven firms comprised the first wave of filers. The nine firms that submitted plans on July 1, 2012, were Bank of America Corporation, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS, Credit Suisse, and Barclays. The two other first wave filers, Bank of New York Mellon Corporation and State Street Corporation, submitted plans on October 1, 2012. The second wave filers include Wells Fargo, BNP Paribas, HSBC, and RBS. The third wave filers include approximately 115 firms, the large majority being foreign financial companies conducting business in the U.S.
The 165(d) Rule sets out the information to be included in a firm's resolution plan. The key objectives laid out in the Rule for the initial resolution plans submitted by first wave filers are identifying each firm's critical operations and core business lines, mapping those operations and core business lines to each firm's material legal entities, and identifying the key obstacles to a rapid and orderly resolution in bankruptcy. With regard to key obstacles, these might include such areas as a firm's internal organizational structure, interconnections of the firm to other systemic financial companies, management information system limitations, default and termination provisions of certain types of financial contracts, cross-jurisdictional operations, and funding mechanisms.
The 165(d) Rule provides that smaller, less complex financial institutions subject to the filing requirements may be eligible to file a less detailed, tailored resolution plan, for which the information requirements generally are limited to the firm's nonbanking operations, and the interconnections between the nonbanking operations and its IDI operations.
Section 165(d) of the Dodd-Frank Act requires the FDIC and the Federal Reserve Board to review each resolution plan. If, as a result of their review, the FDIC and the Federal Reserve Board jointly determine that the resolution plan is not credible or would not facilitate an orderly resolution of the firm under the Bankruptcy Code, then the company must resubmit the plan with revisions, including, if necessary, proposed changes in business operations or corporate structure. If the company fails to resubmit a credible plan that would result in orderly resolution under the Bankruptcy Code, the FDIC and the Federal Reserve may jointly impose more stringent capital, leverage, or liquidity requirements; growth, activities, or operations restrictions; or, after two years and in consultation with the FSOC, divestiture requirements.
Federal Reserve Board and FDIC staff reviewed the first wave filers' plans for informational completeness to ensure that all information requirements of the Rule were addressed in the plans. The initial plan submissions for the first wave filers were created using an assumption of the individual firm's failure under "baseline" economic conditions as a starting point. Subsequent submissions are required to take into account "adverse" and "severely adverse" economic conditions.
The eleven firms that submitted initial plans in 2012 will be expected to revise and update their submissions in their subsequent 2013 versions, pursuant to guidance that the FDIC and the Federal Reserve Board will provide to these companies. Resolution plans submitted in 2013 will be subject to informational completeness reviews and reviews for creditability or resolvability under the Bankruptcy Code. Going forward, the FDIC and the Federal Reserve Board expect the revised plans to focus on key issues and obstacles to an orderly resolution in bankruptcy, including global cooperation and the risk of ring-fencing or other precipitous actions. To assess this potential risk, the firms will need to provide a jurisdiction-by-jurisdiction analysis of the actions each would need to take in a resolution, as well as the actions to be taken by host authorities, including supervisory and resolution authorities. Other key issues expected to be addressed in the plans include: the risk of multiple, competing insolvency proceedings; the continuity of critical operations -- particularly maintaining access to shared services and payment and clearing systems; the potential systemic consequences of counterparty actions; and global liquidity and funding with an emphasis on providing a detailed understanding of the firm's funding operations and cash flows.
Stress Testing
Section 165 of the Dodd-Frank Act requires the FDIC to issue regulations for FDIC-supervised banks with total consolidated assets of more than $10 billion to conduct annual stress tests. The banks must report their respective stress test results to the FDIC and the Federal Reserve Board and these results also are summarized in a public document. The FDIC views the stress tests as an important source of forward-looking analysis that will enhance the supervisory process for these institutions. Furthermore, these stress tests will support ongoing improvement in a bank's internal assessments of capital adequacy and overall capital planning.
The Dodd-Frank Act requires the FDIC to coordinate with the other supervisory agencies to issue regulations that are consistent and comparable. While each banking agency issued separate final rules with respect to their supervised entities, the final rules were nearly identical across the agencies. The FDIC finalized its rule on annual stress tests on October 15, 2012. Complementing this rulemaking, the FDIC also issued proposed reporting templates that were developed jointly with the other agencies. Lastly, the agencies are working closely on proposed guidance to ensure consistent treatment for all covered financial institutions under the final rule.
Certain insured institutions and bank holding companies with assets of $50 billion or more comprised the first set of companies to conduct stress tests, which were completed in March 2013. Using September 30, 2012 financial data, institutions developed financial projections under defined stress scenarios provided by the agencies in November 2012. Each company publicly disclosed the results of their stress tests on or before March 31st of this year.
Institutions with assets greater than $10 billion, but less than $50 billion, and larger institutions that have not had previously conducted stress tests, will conduct their first round of stress tests later this fall.
Section 121 of the Dodd-Frank Act
Section 121 authorizes the Federal Reserve Board, with the concurrence of two-thirds of the voting members of the Financial Stability Oversight Council (FSOC), to take various actions with respect to a bank holding company with assets of $50 billion or more or a nonbank financial company supervised by the Federal Reserve Board, if it is determined that company poses a grave threat to the financial stability of the United States. Section 121 also grants the company, upon its request, the opportunity to request a written or oral hearing before the Federal Reserve Board to contest proposed actions.
As a voting member of the FSOC, the FDIC would participate in any discussions involving findings made by the Federal Reserve Board under this section and would carefully weigh the case and its merit in exercising our FSOC vote. To date, the FSOC has not heard any matters involving the use of this "grave threat" authority.
Conclusion
The FDIC has made significant progress in the implementation of Section 165 of the Dodd-Frank Act. Our goal is to ensure that firms that could pose a systemic risk to the financial system develop and maintain resolution plans that identify each firm's critical operations and core business lines, map those operations and core business lines to each firm's material legal entities, and identify and address the key obstacles to a rapid and orderly resolution in bankruptcy. Ensuring that any institution, regardless of size or complexity, can be effectively resolved through the bankruptcy process will contribute to the stability of our financial system and will avoid many of the difficult choices regulators faced in dealing with systemic institutions during the last crisis.
Monday, April 22, 2013
CDC SAYS TWO FOODBORNE GERM CAUSED INFECTIONS INCREASED IN 2012
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION
Infections from some foodborne germs increased, while others remained unchanged in 2012
The nation’s annual food safety report card is out and it shows that 2012 rates of infections from two germs spread commonly through food have increased significantly when compared to a baseline period of 2006-2008, while rates of most others have not changed during the same period. The data are part of the Foodborne Diseases Active Surveillance Network (FoodNet) report released today by the Centers for Disease Control and Prevention (CDC). Infections from campylobacter -- which is linked to many foods, including poultry, raw milk and produce – has risen up to 14 percent in 2012 compared to 2006-2008. They were at their highest level since 2000. Vibrio infections as a whole were up 43 percent when compared with the rates observed in 2006-2008. Vibrio vulnificus, the most severe strain, has not increased. Foodborne vibrio infections are most often associated with eating raw shellfish.
"The U.S. food supply remains one of the safest in the world," said CDC Director Tom Frieden, M.D., M.P.H. "However, some foodborne diseases continue to pose a challenge. We have the ability, through investments in emerging technologies, to identify outbreaks even more quickly and implement interventions even faster to protect people from the dangers posed by contaminated food."
While progress had been made in the past few years in reducing infections from a dangerous type of E. coli, Shiga toxin-producing E. coli (STEC) O157, rates in 2012 went back up. Incidence of STEC O157 infection had decreased to 0.95 per 100,000 population in 2010, but last year went back up to 1.12 per 100,000 population. FoodNet, a collaboration among CDC, ten state health departments, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS), and the U.S. Food and Drug Administration (FDA), tracks whether selected infections are increasing or decreasing. Overall in 2012, FoodNet’s 10 sites reported 19,531 illnesses, 4,563 hospitalizations and 68 deaths from nine germs commonly spread through foods.
Campylobacter is associated with eating raw or undercooked poultry, raw milk dairy products, contaminated produce and contaminated water. It is also acquired through contact with infected animals. Campylobacter usually causes diarrhea, stomach pain and fever that resolve in about a week. Vibrio lives naturally in sea water and foodborne vibrio infection is most often linked to eating raw oysters. It is rare, but can cause serious, life-threatening infection, especially in people with liver disease.
In 2011, FSIS implemented new and revised industry performance standards for campylobacter and salmonella, respectively, to decrease the presence of these pathogens in broiler chickens and turkeys.
"The performance standards FSIS implemented are an important consumer protection measure," said USDA Under Secretary for Food Safety Elisabeth Hagen, M.D. "These standards are at the core of USDA’s mission. While tough, they are achievable and a critical tool in our effort to drive down illnesses from these pathogens in Americans each year."
FDA is working closely with its federal and state partners to better understand the root causes of the increase in Vibrio. In addition, the Agency is implementing the Food Safety Modernization Act.
"New prevention-based rules under the Food Safety Modernization Act will help to reduce foodborne illness in general and new enforcement authorities allow us to take action to keep harmful foods out of the marketplace," said Michael Taylor, Deputy Commissioner for Foods and Veterinary Medicine at FDA.
People who want to reduce their risk of foodborne illness should assume raw chicken and other meat carry bacteria that can cause illness, and should not allow these foods to cross-contaminate surfaces and other foods. People should also cook chicken and other meat well, avoid consuming unpasteurized milk and unpasteurized soft cheeses. It is always best to cook seafood thoroughly. People at greater risk for foodborne illness with the most severe outcomes, such as pregnant women and people with weakened immune systems, should not eat raw or partially cooked seafood, including oysters that have been treated after harvest.
About FoodNet
FoodNet collects information to track rates and determine trends in laboratory-confirmed illnesses caused by nine pathogens transmitted commonly by food: campylobacter, cryptosporidium, cyclospora, listeria, salmonella, STEC O157 and non-O157, shigella, vibrio and yersinia. Annual data are compared with data from a recent period (2006-2008) and with data from the first years of surveillance (1996-1998) to measure progress. FoodNet is a collaboration among CDC, ten state health departments, the USDA’s Food Safety and Inspection Service, and the FDA. FoodNet covers 48 million people, encompassing about 15 percent of the American population. The sites are the states of Connecticut, Georgia, Maryland, Minnesota, New Mexico, Oregon, and Tennessee, and selected counties in California, Colorado, and New York.
Infections from some foodborne germs increased, while others remained unchanged in 2012
The nation’s annual food safety report card is out and it shows that 2012 rates of infections from two germs spread commonly through food have increased significantly when compared to a baseline period of 2006-2008, while rates of most others have not changed during the same period. The data are part of the Foodborne Diseases Active Surveillance Network (FoodNet) report released today by the Centers for Disease Control and Prevention (CDC). Infections from campylobacter -- which is linked to many foods, including poultry, raw milk and produce – has risen up to 14 percent in 2012 compared to 2006-2008. They were at their highest level since 2000. Vibrio infections as a whole were up 43 percent when compared with the rates observed in 2006-2008. Vibrio vulnificus, the most severe strain, has not increased. Foodborne vibrio infections are most often associated with eating raw shellfish.
"The U.S. food supply remains one of the safest in the world," said CDC Director Tom Frieden, M.D., M.P.H. "However, some foodborne diseases continue to pose a challenge. We have the ability, through investments in emerging technologies, to identify outbreaks even more quickly and implement interventions even faster to protect people from the dangers posed by contaminated food."
While progress had been made in the past few years in reducing infections from a dangerous type of E. coli, Shiga toxin-producing E. coli (STEC) O157, rates in 2012 went back up. Incidence of STEC O157 infection had decreased to 0.95 per 100,000 population in 2010, but last year went back up to 1.12 per 100,000 population. FoodNet, a collaboration among CDC, ten state health departments, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS), and the U.S. Food and Drug Administration (FDA), tracks whether selected infections are increasing or decreasing. Overall in 2012, FoodNet’s 10 sites reported 19,531 illnesses, 4,563 hospitalizations and 68 deaths from nine germs commonly spread through foods.
Campylobacter is associated with eating raw or undercooked poultry, raw milk dairy products, contaminated produce and contaminated water. It is also acquired through contact with infected animals. Campylobacter usually causes diarrhea, stomach pain and fever that resolve in about a week. Vibrio lives naturally in sea water and foodborne vibrio infection is most often linked to eating raw oysters. It is rare, but can cause serious, life-threatening infection, especially in people with liver disease.
In 2011, FSIS implemented new and revised industry performance standards for campylobacter and salmonella, respectively, to decrease the presence of these pathogens in broiler chickens and turkeys.
"The performance standards FSIS implemented are an important consumer protection measure," said USDA Under Secretary for Food Safety Elisabeth Hagen, M.D. "These standards are at the core of USDA’s mission. While tough, they are achievable and a critical tool in our effort to drive down illnesses from these pathogens in Americans each year."
FDA is working closely with its federal and state partners to better understand the root causes of the increase in Vibrio. In addition, the Agency is implementing the Food Safety Modernization Act.
"New prevention-based rules under the Food Safety Modernization Act will help to reduce foodborne illness in general and new enforcement authorities allow us to take action to keep harmful foods out of the marketplace," said Michael Taylor, Deputy Commissioner for Foods and Veterinary Medicine at FDA.
People who want to reduce their risk of foodborne illness should assume raw chicken and other meat carry bacteria that can cause illness, and should not allow these foods to cross-contaminate surfaces and other foods. People should also cook chicken and other meat well, avoid consuming unpasteurized milk and unpasteurized soft cheeses. It is always best to cook seafood thoroughly. People at greater risk for foodborne illness with the most severe outcomes, such as pregnant women and people with weakened immune systems, should not eat raw or partially cooked seafood, including oysters that have been treated after harvest.
About FoodNet
FoodNet collects information to track rates and determine trends in laboratory-confirmed illnesses caused by nine pathogens transmitted commonly by food: campylobacter, cryptosporidium, cyclospora, listeria, salmonella, STEC O157 and non-O157, shigella, vibrio and yersinia. Annual data are compared with data from a recent period (2006-2008) and with data from the first years of surveillance (1996-1998) to measure progress. FoodNet is a collaboration among CDC, ten state health departments, the USDA’s Food Safety and Inspection Service, and the FDA. FoodNet covers 48 million people, encompassing about 15 percent of the American population. The sites are the states of Connecticut, Georgia, Maryland, Minnesota, New Mexico, Oregon, and Tennessee, and selected counties in California, Colorado, and New York.
SUPERNOVA REMNANT SN 1006
FROM: NASA
This year, astronomers around the world have been celebrating the 50th anniversary of X-ray astronomy. Few objects better illustrate the progress of the field in the past half-century than the supernova remnant known as SN 1006.
When the object we now call SN 1006 first appeared on May 1, 1006 A.D., it was far brighter than Venus and visible during the daytime for weeks. Astronomers in China, Japan, Europe, and the Arab world all documented this spectacular sight. With the advent of the Space Age in the 1960s, scientists were able to launch instruments and detectors above Earth's atmosphere to observe the universe in wavelengths that are blocked from the ground, including X-rays. SN 1006 was one of the faintest X-ray sources detected by the first generation of X-ray satellites.
A new image of SN 1006 from NASA's Chandra X-ray Observatory reveals this supernova remnant in exquisite detail. By overlapping ten different pointings of Chandra's field-of-view, astronomers have stitched together a cosmic tapestry of the debris field that was created when a white dwarf star exploded, sending its material hurtling into space. In this new Chandra image, low, medium, and higher-energy X-rays are colored red, green, and blue respectively.
The new Chandra image provides new insight into the nature of SN 1006, which is the remnant of a so-called Type Ia supernova. This class of supernova is caused when a white dwarf pulls too much mass from a companion star and explodes, or when two white dwarfs merge and explode. Understanding Type Ia supernovas is especially important because astronomers use observations of these explosions in distant galaxies as mileposts to mark the expansion of the universe.
The new SN 1006 image represents the most spatially detailed map yet of the material ejected during a Type Ia supernova. By examining the different elements in the debris field -- such as silicon, oxygen, and magnesium -- the researchers may be able to piece together how the star looked before it exploded and the order that the layers of the star were ejected, and constrain theoretical models for the explosion.
Scientists are also able to study just how fast specific knots of material are moving away from the original explosion. The fastest knots are moving outward at almost eleven million miles per hour, while those in other areas are moving at a more leisurely seven million miles per hour. SN 1006 is located about 7,000 light years from Earth. The new Chandra image of SN 1006 contains over eight days worth of observing time by the telescope. These results were presented at a meeting of High Energy Astrophysics Division of the American Astronomical Society in Monterey, CA.
NASA's Marshall Space Flight Center in Huntsville, Ala., manages the Chandra program for NASA's Science Mission Directorate in Washington. The Smithsonian Astrophysical Observatory controls Chandra's science and flight operations from Cambridge, Mass.
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Credits: NASA/CXC/Middlebury College/F.Winklerch |
FROM: NASA
This year, astronomers around the world have been celebrating the 50th anniversary of X-ray astronomy. Few objects better illustrate the progress of the field in the past half-century than the supernova remnant known as SN 1006.
When the object we now call SN 1006 first appeared on May 1, 1006 A.D., it was far brighter than Venus and visible during the daytime for weeks. Astronomers in China, Japan, Europe, and the Arab world all documented this spectacular sight. With the advent of the Space Age in the 1960s, scientists were able to launch instruments and detectors above Earth's atmosphere to observe the universe in wavelengths that are blocked from the ground, including X-rays. SN 1006 was one of the faintest X-ray sources detected by the first generation of X-ray satellites.
A new image of SN 1006 from NASA's Chandra X-ray Observatory reveals this supernova remnant in exquisite detail. By overlapping ten different pointings of Chandra's field-of-view, astronomers have stitched together a cosmic tapestry of the debris field that was created when a white dwarf star exploded, sending its material hurtling into space. In this new Chandra image, low, medium, and higher-energy X-rays are colored red, green, and blue respectively.
The new Chandra image provides new insight into the nature of SN 1006, which is the remnant of a so-called Type Ia supernova. This class of supernova is caused when a white dwarf pulls too much mass from a companion star and explodes, or when two white dwarfs merge and explode. Understanding Type Ia supernovas is especially important because astronomers use observations of these explosions in distant galaxies as mileposts to mark the expansion of the universe.
The new SN 1006 image represents the most spatially detailed map yet of the material ejected during a Type Ia supernova. By examining the different elements in the debris field -- such as silicon, oxygen, and magnesium -- the researchers may be able to piece together how the star looked before it exploded and the order that the layers of the star were ejected, and constrain theoretical models for the explosion.
Scientists are also able to study just how fast specific knots of material are moving away from the original explosion. The fastest knots are moving outward at almost eleven million miles per hour, while those in other areas are moving at a more leisurely seven million miles per hour. SN 1006 is located about 7,000 light years from Earth. The new Chandra image of SN 1006 contains over eight days worth of observing time by the telescope. These results were presented at a meeting of High Energy Astrophysics Division of the American Astronomical Society in Monterey, CA.
NASA's Marshall Space Flight Center in Huntsville, Ala., manages the Chandra program for NASA's Science Mission Directorate in Washington. The Smithsonian Astrophysical Observatory controls Chandra's science and flight operations from Cambridge, Mass.
Sunday, April 21, 2013
DOJ SETTLES WITH CHILDREN'S CENTER OVER ALLEGED AMERICANS WITH DISABILITIES ACT VIOLATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 17, 2013
Justice Department Settles with Apple Tree Children’s Center in Norwalk, Iowa
The Justice Department announced today that it reached a settlement with Apple Tree Children’s Center of Norwalk, Iowa, to remedy alleged violations of the Americans with Disabilities Act (ADA). The agreement resolves allegations that Apple Tree Children’s Center failed to ensure that children with disabilities, including children with Down syndrome, have a full and equal opportunity to participate in and benefit from its private pre-school programs.
Under the settlement agreement, Apple Tree Children’s Center will pay $2,500 to the child’s parents and will make reasonable modifications in policies, practices and procedures to ensure that its programs and services are accessible to children with disabilities. Apple Tree will also provide training on its obligations under Title III of the ADA to all staff who participate in the admissions process, enrollment decisions and consideration of requests for reasonable modifications of any of its policies, practices or procedures. In addition, Apple Tree will designate a staff member as its ADA compliance officer to ensure its compliance with Title III of the ADA and to review proposed decisions to exclude children with disabilities from enrollment or proposed denials of any requested reasonable modifications.
"Children with disabilities, including those with Down syndrome, have the right to full and equal participation in pre-school educational programs. The department is committed to upholding civil rights for all people with disabilities," said Eve Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division.
The ADA requires that public accommodations, including pre-school programs, provide children with disabilities, including those with Down syndrome, full and equal enjoyment of the public accommodation’s goods, services and facilities.
Wednesday, April 17, 2013
Justice Department Settles with Apple Tree Children’s Center in Norwalk, Iowa
The Justice Department announced today that it reached a settlement with Apple Tree Children’s Center of Norwalk, Iowa, to remedy alleged violations of the Americans with Disabilities Act (ADA). The agreement resolves allegations that Apple Tree Children’s Center failed to ensure that children with disabilities, including children with Down syndrome, have a full and equal opportunity to participate in and benefit from its private pre-school programs.
Under the settlement agreement, Apple Tree Children’s Center will pay $2,500 to the child’s parents and will make reasonable modifications in policies, practices and procedures to ensure that its programs and services are accessible to children with disabilities. Apple Tree will also provide training on its obligations under Title III of the ADA to all staff who participate in the admissions process, enrollment decisions and consideration of requests for reasonable modifications of any of its policies, practices or procedures. In addition, Apple Tree will designate a staff member as its ADA compliance officer to ensure its compliance with Title III of the ADA and to review proposed decisions to exclude children with disabilities from enrollment or proposed denials of any requested reasonable modifications.
"Children with disabilities, including those with Down syndrome, have the right to full and equal participation in pre-school educational programs. The department is committed to upholding civil rights for all people with disabilities," said Eve Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division.
The ADA requires that public accommodations, including pre-school programs, provide children with disabilities, including those with Down syndrome, full and equal enjoyment of the public accommodation’s goods, services and facilities.
INFOMERCIAL "TEACH ME TO TRADE" SALESWOMAN SETTLES FRAUD CHARGES WITH SEC
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Former "Teach Me to Trade" Saleswoman and Infomercial Personality Linda (Knudsen) Woolf Agrees to Settle Securities Fraud Charges and Pay a $225,000 Penalty
The Securities and Exchange Commission announced that on April 16, 2013 the United States District Court for the Eastern District of Virginia entered settled final judgments against Linda (Knudsen) Woolf and Hands On Capital, Inc. Securities and Exchange Commission v. Linda Woolf, Hands On Capital, Inc., et al, Civil Action No. 1:08cv235 (E.D.Va. filed March 11, 2008). The final judgments resolve the Commission’s case against Woolf and Hands On Capital.
Woolf sold securities trading products and services such as classes, mentoring, and software called "Teach Me to Trade" to investors who wanted to learn how to trade securities. The Commission’s complaint alleges that Woolf told investors at Teach Me to Trade workshops that she had purchased mentoring, classes and software to learn to trade and had quickly turned profits by trading securities using Teach Me to Trade methods. The Commission alleges that Woolf’s tales of making money by trading were untrue; she was not a successful securities trader. Woolf sold the products and services pursuant to an independent contractor agreement between Hands On Capital and Teach Me to Trade
Under the terms of the settlement, Woolf (who filed for bankruptcy while this action was pending) agreed to pay a civil penalty of $225,000. Without admitting or denying the Commission’s allegations, Woolf and Hands On Capital also consented to the entry of final judgments permanently enjoining them from future violations of Section 10(b) of the Securities Exchange Act of 1934. Additionally, the final judgments will permanently enjoin Woolf and Hands On Capital from receiving compensation for participating in the development, presentation, promotion, marketing, or sale of any classes, workshops, or seminars (and from receiving compensation for any sales of connected products or services) given to actual or prospective securities investors concerning securities trading.
Former "Teach Me to Trade" Saleswoman and Infomercial Personality Linda (Knudsen) Woolf Agrees to Settle Securities Fraud Charges and Pay a $225,000 Penalty
The Securities and Exchange Commission announced that on April 16, 2013 the United States District Court for the Eastern District of Virginia entered settled final judgments against Linda (Knudsen) Woolf and Hands On Capital, Inc. Securities and Exchange Commission v. Linda Woolf, Hands On Capital, Inc., et al, Civil Action No. 1:08cv235 (E.D.Va. filed March 11, 2008). The final judgments resolve the Commission’s case against Woolf and Hands On Capital.
Woolf sold securities trading products and services such as classes, mentoring, and software called "Teach Me to Trade" to investors who wanted to learn how to trade securities. The Commission’s complaint alleges that Woolf told investors at Teach Me to Trade workshops that she had purchased mentoring, classes and software to learn to trade and had quickly turned profits by trading securities using Teach Me to Trade methods. The Commission alleges that Woolf’s tales of making money by trading were untrue; she was not a successful securities trader. Woolf sold the products and services pursuant to an independent contractor agreement between Hands On Capital and Teach Me to Trade
Under the terms of the settlement, Woolf (who filed for bankruptcy while this action was pending) agreed to pay a civil penalty of $225,000. Without admitting or denying the Commission’s allegations, Woolf and Hands On Capital also consented to the entry of final judgments permanently enjoining them from future violations of Section 10(b) of the Securities Exchange Act of 1934. Additionally, the final judgments will permanently enjoin Woolf and Hands On Capital from receiving compensation for participating in the development, presentation, promotion, marketing, or sale of any classes, workshops, or seminars (and from receiving compensation for any sales of connected products or services) given to actual or prospective securities investors concerning securities trading.
THE TASK FORCE THAT WORKS FOR TRANSITION IN AFGHANISTAN
FROM: U.S. DEPARTMENT OF DEFENSE
Task Force Works Toward Successful Transition in Afghanistan
By Donna Miles
American Forces Press Service
WASHINGTON, April 19, 2013 - With an eye toward 2014 and lessons learned from the drawdown in Iraq, a new task force in Afghanistan is working to ensure a smooth transition of responsibilities that will set the Afghan government and security forces up for future success, the task force commander reported.
The NATO-Afghanistan Transformation Task Force stood up in January as part of the International Security Assistance Force staff, Air Force Maj. Gen. Michael J. Kingsley told American Forces Press Service during a telephone interview from the Afghan capital of Kabul.
Its goal, he explained, is to ensure the well-coordinated transfer or termination of hundreds of tasks being carried out by NATO or U.S. Forces Afghanistan. This includes about 20 tasks identified for transfer to ministries within the Afghan government by December 2014.
Marine Corps Gen. John R. Allen, who recently retired as the ISAF and U.S. Forces Afghanistan commander, recognized that the transition process in Iraq had started too late, Kingsley said. This overwhelmed both Iraqi government and U.S. interagency capacities, a problem exacerbated when failure to reach a bilateral security agreement speeded up the drawdown timetable.
"This task force was born from the lessons from Iraq," Kingsley said. "General Allen knew the importance of getting ahead of this game to understand what tasks needed to be transferred to which agency, and the need to start that process early."
Building on groundwork laid by a U.S.-headed Interagency Operational Planning Team, the NATTF includes staff from eight ISAF nations and across the interagency spectrum.
One of its first missions was to evaluate 977 tasks ISAF and U.S. forces were carrying out and identify which could be eliminated or had overlap. Based on guidance from the North Atlantic Council about what specific roles NATO will and won't play in Afghanistan in 2015 and beyond, the task force then prioritized what they deemed the 371 tasks critical for transition, Kingsley said.
It's an exercise that's never been done, he acknowledged, noting that it's laying groundwork that can be applied to future missions around the world.
Top priority through the team's paring-down process went to tasks that, if not successfully transferred, would have a negative impact on the success of the entire Afghanistan campaign, Kingsley said. This includes capabilities required for the Afghanistan government's long-term viability, many that need to be built incrementally.
"What we are dealing with is infrastructure and civil-military tasks that have a pretty large consequence to the success of this country," Kingsley said, pointing to aviation and telecommunications as examples.
Seven members of the task force team are dedicated exclusively to the transfer of airport navigational aids and control of civilian airspace and other aviation assets to Afghanistan's Ministry of Transportation and Civil Aviation.
It's a complex issue, Kingsley explained, involving not just the transfer of assets and infrastructure, but also the development of laws, policies and expertise to run the aviation enterprise. Another part of the equation is getting Afghanistan's three airlines, all now blacklisted by the European Union, up to safety and credibility standards for accreditation.
"All of that has to be developed by the Afghans, because right now they have almost zero capability," Kingsley said. "But aviation transition is vital, because in a landlocked country like this, it is a primary means of commerce."
Meanwhile, a U.S. team is helping the Afghans develop a fiber-optic network around Afghanistan. "The potential for their income revenue is amazing," Kingsley said. "It could reach a potential $1.5 billion per year, if we can successfully transfer that task to the Afghans."
While helping the Afghans build capacity in these and other vital areas, Kingsley acknowledged that it's not likely to be completed and fully operational by December 2014. "So the second part of what we are doing is to enable them to contract that capability to bridge the gap until they gain the capacity," he said.
The task force also is working with the Afghans to ensure a smooth transfer of tasks related to the NATO and U.S. mission in Afghanistan to build up the Afghan national security forces. This covers the gamut, Kingsley said, from medical evacuation and logistics capabilities, to the ability to conduct operations, intelligence and security and provide mobility.
Throughout the process, Kingsley called communication -- across the international community, the interagency and with Afghanistan government leaders -- a vital part of the effort. That helps lay out a timetable for what needs to be done, and when, and to identify shortfalls early on so they don't become surprises later in the drawdown process, Kingsley said.
The carefully planned process not only builds Afghan capacity, he said, but also enables Afghanistan to step up and demonstrate its sovereignty. That, he said, helps allay concern in Afghanistan and among the international community about the country's post-2014 future, he said.
"To me, the biggest challenge is ensuring that [the Afghanistan government] and the Afghans understand and are able to accomplish the tasks that we are going to transfer to them," Kingsley said. "Through this process, we want to ensure they are set up for success."
The successful transfer of civil-military tasks is the next logistical step in the strategic partnership the United States and Afghanistan are building for the future, he said.
"This is big part of building that long-term strategic partnership," Kingsley said.
Task Force Works Toward Successful Transition in Afghanistan
By Donna Miles
American Forces Press Service
WASHINGTON, April 19, 2013 - With an eye toward 2014 and lessons learned from the drawdown in Iraq, a new task force in Afghanistan is working to ensure a smooth transition of responsibilities that will set the Afghan government and security forces up for future success, the task force commander reported.
The NATO-Afghanistan Transformation Task Force stood up in January as part of the International Security Assistance Force staff, Air Force Maj. Gen. Michael J. Kingsley told American Forces Press Service during a telephone interview from the Afghan capital of Kabul.
Its goal, he explained, is to ensure the well-coordinated transfer or termination of hundreds of tasks being carried out by NATO or U.S. Forces Afghanistan. This includes about 20 tasks identified for transfer to ministries within the Afghan government by December 2014.
Marine Corps Gen. John R. Allen, who recently retired as the ISAF and U.S. Forces Afghanistan commander, recognized that the transition process in Iraq had started too late, Kingsley said. This overwhelmed both Iraqi government and U.S. interagency capacities, a problem exacerbated when failure to reach a bilateral security agreement speeded up the drawdown timetable.
"This task force was born from the lessons from Iraq," Kingsley said. "General Allen knew the importance of getting ahead of this game to understand what tasks needed to be transferred to which agency, and the need to start that process early."
Building on groundwork laid by a U.S.-headed Interagency Operational Planning Team, the NATTF includes staff from eight ISAF nations and across the interagency spectrum.
One of its first missions was to evaluate 977 tasks ISAF and U.S. forces were carrying out and identify which could be eliminated or had overlap. Based on guidance from the North Atlantic Council about what specific roles NATO will and won't play in Afghanistan in 2015 and beyond, the task force then prioritized what they deemed the 371 tasks critical for transition, Kingsley said.
It's an exercise that's never been done, he acknowledged, noting that it's laying groundwork that can be applied to future missions around the world.
Top priority through the team's paring-down process went to tasks that, if not successfully transferred, would have a negative impact on the success of the entire Afghanistan campaign, Kingsley said. This includes capabilities required for the Afghanistan government's long-term viability, many that need to be built incrementally.
"What we are dealing with is infrastructure and civil-military tasks that have a pretty large consequence to the success of this country," Kingsley said, pointing to aviation and telecommunications as examples.
Seven members of the task force team are dedicated exclusively to the transfer of airport navigational aids and control of civilian airspace and other aviation assets to Afghanistan's Ministry of Transportation and Civil Aviation.
It's a complex issue, Kingsley explained, involving not just the transfer of assets and infrastructure, but also the development of laws, policies and expertise to run the aviation enterprise. Another part of the equation is getting Afghanistan's three airlines, all now blacklisted by the European Union, up to safety and credibility standards for accreditation.
"All of that has to be developed by the Afghans, because right now they have almost zero capability," Kingsley said. "But aviation transition is vital, because in a landlocked country like this, it is a primary means of commerce."
Meanwhile, a U.S. team is helping the Afghans develop a fiber-optic network around Afghanistan. "The potential for their income revenue is amazing," Kingsley said. "It could reach a potential $1.5 billion per year, if we can successfully transfer that task to the Afghans."
While helping the Afghans build capacity in these and other vital areas, Kingsley acknowledged that it's not likely to be completed and fully operational by December 2014. "So the second part of what we are doing is to enable them to contract that capability to bridge the gap until they gain the capacity," he said.
The task force also is working with the Afghans to ensure a smooth transfer of tasks related to the NATO and U.S. mission in Afghanistan to build up the Afghan national security forces. This covers the gamut, Kingsley said, from medical evacuation and logistics capabilities, to the ability to conduct operations, intelligence and security and provide mobility.
Throughout the process, Kingsley called communication -- across the international community, the interagency and with Afghanistan government leaders -- a vital part of the effort. That helps lay out a timetable for what needs to be done, and when, and to identify shortfalls early on so they don't become surprises later in the drawdown process, Kingsley said.
The carefully planned process not only builds Afghan capacity, he said, but also enables Afghanistan to step up and demonstrate its sovereignty. That, he said, helps allay concern in Afghanistan and among the international community about the country's post-2014 future, he said.
"To me, the biggest challenge is ensuring that [the Afghanistan government] and the Afghans understand and are able to accomplish the tasks that we are going to transfer to them," Kingsley said. "Through this process, we want to ensure they are set up for success."
The successful transfer of civil-military tasks is the next logistical step in the strategic partnership the United States and Afghanistan are building for the future, he said.
"This is big part of building that long-term strategic partnership," Kingsley said.
DOL OBTAINS $35 MILLION IN BACK WAGES FOR PUERTO RICAN CORRECTIONS AND REHABILITATION WORKERS
FROM: U.S. DEPARTMENT OF LABOR
US Department of Labor obtains more than $35 million in back wages for nearly 5,000 workers in the commonwealth of Puerto Rico
Recovery is among largest in department's history
SAN JUAN, Puerto Rico — Following an investigation by the U.S. Department of Labor's Wage and Hour Division that found violations of the federal Fair Labor Standards Act's overtime and record-keeping provisions, the commonwealth of Puerto Rico has agreed to pay $35,037,586 in back wages and interest to 4,490 current and former employees of the territory's Department of Corrections and Rehabilitation. This is one of the largest settlements in the Wage and Hour Division's history.
The agreement is a part of a consent judgment approved today by Judge Juan M. Pérez Giménez of the U.S. District Court for the Commonwealth of Puerto Rico. Officials representing the commonwealth and the Department of Corrections and Rehabilitation also have agreed to take significant steps to ensure future compliance with the law, including installing an electronic timekeeping system at its facilities, training supervisors in the use of the new system, hiring additional staff to reduce the need for overtime and adjusting daily tours of duty for guards.
The commonwealth government already has restored more than $15 million in back wages due to employees for overtime hours worked since November 2011. The remaining back wages will be paid on an installment basis, and distributed to current and former employees as scheduled through 2016.
"We are pleased that the commonwealth of Puerto Rico has been our partner, through a long and arduous process, in correcting the improper payment of back wages," said acting Secretary of Labor Seth D. Harris. "This agreement returns hard-earned wages to workers and underscores the U.S. Department of Labor's commitment to ensuring that workers receive the wages they earn, as mandated by federal law."
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular hourly rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. In general, "hours worked" includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained.
Under certain conditions, employees of state or local government agencies may receive compensatory time off, at a rate of not less than one and one-half hours for each overtime hour worked, instead of cash overtime pay. Law enforcement personnel may accrue or "bank" up to 480 hours of comp time. In this case, the Department of Corrections and Rehabilitation regularly allowed employees' comp time "banks" to greatly exceed 480 hours. The back wages found due for the employees are the cash amounts of unpaid comp time accrued in excess of the limit.
"The Labor Department has been working tirelessly with the commonwealth of Puerto Rico to reach this agreement," said Mary Beth Maxwell, acting deputy administrator of the Wage and Hour Division. "I am very pleased that staff in our Caribbean region persevered, ensured these employees will be paid the back wages they are owed and brought this case to conclusion. Thanks to this resolution, thousands of employees will see money put back into their pockets – and into their local economies."
U.S. ANNOUNCES NEW $123 MILLION IN NON-LETHAL ASSISTANCE TO SYRIAN PEOPLE
FROM: U.S. DEPARTMENT OF STATE
Secretary Kerry Announces Doubling of U.S. Non-lethal Assistance to the Syrian Opposition and New Humanitarian Aid for the Syrian Crisis
Fact Sheet
Office of the Spokesperson
Washington, DC
April 20, 2013
Following his meetings with Syrian Coalition President al-Khatib, members of the Coalition’s leadership, and international partners supporting the Syrian opposition, Secretary of State John Kerry announced the United States’ intention to double non-lethal assistance to the Syrian opposition, as well as provide additional humanitarian aid to Syrians in need.
The new non-lethal assistance underscores the United States’ firm support for a political solution to the crisis in Syria and for the opposition’s advancement of an inclusive, tolerant vision for a post-Assad Syria. The United States will work with the Syrian Coalition and other opposition representatives to determine how the new $123 million in non-lethal assistance can best support their efforts to meet the needs of the Syrian people and lead the way to a political transition that will bring an end to this conflict, and build the inclusive, democratic Syria that its people deserve. This new pledge brings our total non-lethal assistance to the Syrian opposition and civil society groups to $250 million.
The United States will also use a portion of this non-lethal assistance to implement President Obama’s directive to provide an expanded range of support to the Supreme Military Council (SMC). We intend to expand this new support beyond military food rations and medical kits to include other types of non-lethal supplies, which would be determined in collaboration with SMC leadership.
Secretary Kerry urged international partners gathered in Istanbul, as well as all Friends of the Syrian People, to make similar pledges of assistance to the Coalition and the Supreme Military Council with the goal of reaching $1 billion in total international support for the opposition.
In recognition of the devastating humanitarian situation as a result of the crisis in Syria, Secretary Kerry also announced nearly $25 million in additional food assistance for the Syrian people. This aid will provide 25,500 metric tons of wheat – providing four months’ supply of flour to over one million people – as well as food rations for those inside Syria and refugees in Jordan affected by the violence. The United Nations World Food Program will begin distributing the wheat to those in need in all 14 Syrian governorates as quickly as possible. The United States is the largest donor of food assistance both within Syria and for refugees in the affected neighboring countries and is providing a total of over $409 million in humanitarian assistance for the Syrian crisis.
Secretary Kerry Announces Doubling of U.S. Non-lethal Assistance to the Syrian Opposition and New Humanitarian Aid for the Syrian Crisis
Fact Sheet
Office of the Spokesperson
Washington, DC
April 20, 2013
Following his meetings with Syrian Coalition President al-Khatib, members of the Coalition’s leadership, and international partners supporting the Syrian opposition, Secretary of State John Kerry announced the United States’ intention to double non-lethal assistance to the Syrian opposition, as well as provide additional humanitarian aid to Syrians in need.
The new non-lethal assistance underscores the United States’ firm support for a political solution to the crisis in Syria and for the opposition’s advancement of an inclusive, tolerant vision for a post-Assad Syria. The United States will work with the Syrian Coalition and other opposition representatives to determine how the new $123 million in non-lethal assistance can best support their efforts to meet the needs of the Syrian people and lead the way to a political transition that will bring an end to this conflict, and build the inclusive, democratic Syria that its people deserve. This new pledge brings our total non-lethal assistance to the Syrian opposition and civil society groups to $250 million.
The United States will also use a portion of this non-lethal assistance to implement President Obama’s directive to provide an expanded range of support to the Supreme Military Council (SMC). We intend to expand this new support beyond military food rations and medical kits to include other types of non-lethal supplies, which would be determined in collaboration with SMC leadership.
Secretary Kerry urged international partners gathered in Istanbul, as well as all Friends of the Syrian People, to make similar pledges of assistance to the Coalition and the Supreme Military Council with the goal of reaching $1 billion in total international support for the opposition.
In recognition of the devastating humanitarian situation as a result of the crisis in Syria, Secretary Kerry also announced nearly $25 million in additional food assistance for the Syrian people. This aid will provide 25,500 metric tons of wheat – providing four months’ supply of flour to over one million people – as well as food rations for those inside Syria and refugees in Jordan affected by the violence. The United Nations World Food Program will begin distributing the wheat to those in need in all 14 Syrian governorates as quickly as possible. The United States is the largest donor of food assistance both within Syria and for refugees in the affected neighboring countries and is providing a total of over $409 million in humanitarian assistance for the Syrian crisis.
SECRETARY OF STATE KERRY AND MEXICAN FOREIGN SECRETARY MEADE MAKE COMMENTS AFTER MEETING
FROM: U.S. DEPARTMENT OF STATE
Remarks With Mexican Foreign Secretary Jose Antonio Meade After Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
April 19, 2013
Good morning, everybody. Before we begin (cough) – excuse me, allergy season. Before we begin, I just want to say that, as a father and a grandfather, my thoughts are, of course, in my hometown right now, Boston, where events are still unfolding and the entire city is on lockdown. We’re continuing to learn more every moment about the terror attack on Monday and the pursuit of justice that is following it. I think it’s fair to say that for this entire week, we’ve been in a pretty direct confrontation with evil, and I want to congratulate and thank all the law enforcement authorities for the extraordinary job that they have been doing on behalf of our citizens. In the past few days, we’ve seen the best and we’ve seen the worst of human behavior, and it’s the best that all of us really want to focus on. Like everyone, we’re going to keep watching, and we’ll await word from the law enforcement officers before commenting further.
It’s a huge pleasure for me and an important moment to welcome one of our most important partners, our close neighbor, and our friend. And I want to welcome my friend, the Foreign Secretary. One of the first phone calls I made when I became Secretary of State was to Jose, and I’m really honored to see him here today. We share an alma mater together. He was a graduate student, and I was an undergraduate, and so whatever we don’t say right today, you can blame it on him. (laughter)
We obviously share much, much more than an alma mater. Both of us are privileged to represent our extraordinary countries, and we share a remarkable friendship and a very, very strong partnership that is growing stronger all the time. For generations, we’ve lived side by side as families and neighbors sharing geography and sharing common interests and sharing hopes and dreams. The Foreign Secretary and I share a firm commitment to the unique components of our relationship, and we share a common vision for what we can achieve through even greater cooperation and partnership.
We share a friendship and an open line of communication starting with, as I said, the earliest conversations that I had when I assumed this office. So we intend to remain in close contact with each other. We talked about that today. We have a lot of things to continue to cooperate on. We want to increase the economic growth of both of our countries. We want to expand economic opportunity for our people, and we want to provide greater security for the people of the United States and of Mexico.
Our countries share one of the most successful and interconnected economic partnerships in the world, and it’s based on mutual respect and shared responsibility. Bilateral trade amounted to nearly $500 billion last year. That’s more than four times what it was only 20 years ago. High-level economic delegations have already been meeting in the course of this year, and we are exploring ways to strengthen our existing partnership, avenues for increased economic cooperation. I’m convinced we’re going to find them.
The people of the United States at this moment are also intently focused on the immigration debate. So let me note that the two countries have made significant progress in building and strengthening our security over the course of the last 10 years. Almost one million people legally cross the U.S.-Mexico border every single day, and more than 1.25 billion in trade passes between our two countries every single day. And you can’t do that without major cooperation, but also without providing major opportunities for both of our countries.
The Foreign Secretary and I agree that if we’re going to sustain these gains, we have to expand the educational opportunities for our young people. Already thousands of Mexicans and American students study in each other’s countries every single year, and we are developing cross-cultural understanding and 21st century skills that make North America’s platform for innovation and economic growth stand out from countries all around the world. President Obama’s 100,000 Strong in the Americas Initiative will create even more opportunity for students over the course of the next years.
And finally, we know we have a responsibility to continue to address our security challenges. We’re going to continue to effect close security cooperation, ensuring respect for human and civil rights, and I think we all understand those are both deeply enshrined in both U.S. and Mexican constitutions. We know that citizen security is critical to the people of both of our countries.
So Mr. Secretary, it’s really good to welcome you here to Washington. I look forward to our conversation. I know President Obama is very much looking forward to his trip to Mexico in May and meeting with President Peña Nieto. I think there we will be able to solidify some of the things we’re talking about here today, so welcome to Washington, and thank you very, very much for the extraordinary partnership that we share.
FOREIGN SECRETARY MEADE: Thank you. Thank you, sir. Well, good morning, ladies and gentlemen. Allow me first to express once again the solidarity of the people and Government of Mexico with the United States for the horrific incidents that took place last Monday in Boston. We stand beside you. We have you in our hearts and in our prayers. I also want once again to (inaudible) our condolences to those affected by the explosion at a fertilizer plant in the town of West in Texas. I want to take this opportunity today this morning to commend the FBI, the law enforcement community, the Boston police for their outstanding work in facing with this issue in, as you have said, a very heroic fashion.
Secretary Kerry and myself have just concluded a very productive meeting. We identified priorities for our work in the coming weeks and months on many of the key components of a broad bilateral agenda. We touched upon education, investment, infrastructure, border security. We talked about the importance of security cooperation. We talked and identified and welcomed many of the issues that are now being discussed in the U.S. Congress. We welcomed the introduction of the immigration reform bill in the U.S. Senate. We welcomed the fact that that concept be debated seriously and something constructively could at some point be achieved. That’s an issue that’s relevant for Mexico as well.
Mexico and the United States have a very strong relationship. Translating Secretary Kerry’s numbers in a more dramatic fashion, we trade more than $1 million per minute. That is, I think, a number that is a testament to the health of our relationship, to the importance of that relationship. Mexico is the most important export market for 22 of the 50 United States’ states. Mexico – the U.S. exports to Mexico more than it does to China and Japan combined. The U.S. exports to Mexico more than it does to many European countries, taken as a group. And I think that the success that we can tell in terms of trade is something that should be built upon so that we can look at the relationship through a North American perspective, and through that perspective, find common answers to global problems and problems that are common to our bilateral regions.
I can think of no better partner to work with than Secretary Kerry. His personal leadership of some of the world’s best causes have long been recognized, from peace and security to climate change, democracy, immigration, human rights. As I told him a few minutes ago, our bilateral partnership projects, both regionally and global issues as well, I think are going to be in good hands, and we are very, very grateful for that relationship and for that work that we will do together.
As you all know, in a couple of weeks we will receive President Obama in Mexico. We are honored by his decision to travel to our country to meet with President Peña Nieto. This will be the second face-to-face conversation between them in just over five months, a testament to the commitment to advance our economic agenda, to deepen the ties between our societies, to ensuring the security of our citizens. They have instructed both of us, both our governments, to continue working together as responsible neighbors.
Thank you again, Secretary Kerry. Thank you all for your attention.
SECRETARY KERRY: Thank you very much Jose. I appreciate it.
MS. PSAKI: We’ll take two questions, and the first will be from Brad Klapper with the Associated Press.
QUESTION: Thank you. Mr. Secretary, what does the Boston attack say about the threat to the U.S. posed by Chechen extremists? Have you been in touch with Russia or any other country on the matter? Wouldn’t the Russians see this as a validation of their arguments on Chechnya, and maybe even Syria, regarding terrorism? And then just lastly, what role did State specifically play in the investigation into the bombings? Thank you.
SECRETARY KERRY: Well, Brad, look, at this point law enforcement officers are carrying out an ongoing investigation, and frankly they’re at some critical stages here and it would just be entirely inappropriate for me to be commenting on the tick-tock or on the larger issues outside of it. The FBI is the lead entity with respect to this investigation and they will lay out the details of contacts and information at the appropriate moment.
The important thing right now is, the President has said, we’re going to find those responsible and bring them to justice. We are part of the way there, and the President intends to finish that job.
QUESTION: And just on the question of Syria, wouldn’t an event like this, if it has any connection to Chechnya or separatists in southern Russia, wouldn’t this strengthen the Russian --
SECRETARY KERRY: Well, let’s – I’m not going to get into speculation. I’m not going to deal with a hypothetical. Let’s wait and see what the FBI details at the appropriate time. The one thing I will say is terror is terror, and this underscores the importance of all of us maintaining vigilance and cooperating together internationally. That’s part of what we’re talking about here. Terror anywhere in the world against any country is unacceptable, and we need to continue to stand up and fight against it in the way that we are. It strengthens, actually, my resolve and my sense that we’re on the right track, but there’s more we can do and we’re going to continue to do it. President Obama has made this a critical component of his foreign policy, and obviously this just emphasizes that.
MS. PSAKI: The next question will come from Jose Lopez Zamorano from Notimex.
QUESTION: Thank you. Secretary Meade, the Mexican government has expressed its interest in broadening the agenda with the U.S. beyond security issues. In that regard, and due to the upcoming visit of President Obama to Mexico, what kind of new initiatives or programs can we expect along the road?
And Secretary Kerry, after 9/11 attacks, obviously security became center stage for the U.S., but at the same time some countries in Latin America saw that the relationship with them was put in the back burner for several years. Do you anticipate that this event in Boston could derail your intent, express intent, to reach out to the region?
FOREIGN SECRETARY MEADE: We have agreed to enlarge our agenda and we are going to be talking about initiatives that have to do with high-level engagement in terms of an economic dialogue. We will be talking and we will find a mechanism to continue to talk in terms of education and research and innovation. So those issues and a structure around them will be center point in the agendas and the talks and issues discussed by President Obama and President Peña Nieto.
SECRETARY KERRY: The answer is profoundly yes, we do intend – I intend to personally. And in fact, I had intended to try to travel to the region next week, but because of the events this week and because of some other things happening, I’ve had to postpone that just temporarily. And I mean temporarily. I will be getting to the region very shortly. President Obama is traveling to the region. President Obama feels very strongly and has asked me to focus on how we can strengthen our economic partnerships in Latin America and Central America, and I intend to do that.
We talked today – I think the beginning of our conversation today, the very first thing out of my mouth was we don’t want to define this relationship with Mexico or with other countries in the context of security or counternarcotics trafficking. We want to define it much larger in the context of our citizens’ economic needs and our capacity to do more on the economic frontier. I am convinced we’re going to growth that relationship.
In terms of jobs, we talked about ways to link up perhaps ultimately with the Transatlantic Investment Trade and Partnership Program. In the long run it may be possible to find ways to strengthen both of us through those kinds of initiatives. And of course, Mexico is a partner in the Trans-Pacific Partnership. So we are already growing this relationship. We’re going to continue to grow
Remarks With Mexican Foreign Secretary Jose Antonio Meade After Their Meeting
Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
April 19, 2013
Good morning, everybody. Before we begin (cough) – excuse me, allergy season. Before we begin, I just want to say that, as a father and a grandfather, my thoughts are, of course, in my hometown right now, Boston, where events are still unfolding and the entire city is on lockdown. We’re continuing to learn more every moment about the terror attack on Monday and the pursuit of justice that is following it. I think it’s fair to say that for this entire week, we’ve been in a pretty direct confrontation with evil, and I want to congratulate and thank all the law enforcement authorities for the extraordinary job that they have been doing on behalf of our citizens. In the past few days, we’ve seen the best and we’ve seen the worst of human behavior, and it’s the best that all of us really want to focus on. Like everyone, we’re going to keep watching, and we’ll await word from the law enforcement officers before commenting further.
It’s a huge pleasure for me and an important moment to welcome one of our most important partners, our close neighbor, and our friend. And I want to welcome my friend, the Foreign Secretary. One of the first phone calls I made when I became Secretary of State was to Jose, and I’m really honored to see him here today. We share an alma mater together. He was a graduate student, and I was an undergraduate, and so whatever we don’t say right today, you can blame it on him. (laughter)
We obviously share much, much more than an alma mater. Both of us are privileged to represent our extraordinary countries, and we share a remarkable friendship and a very, very strong partnership that is growing stronger all the time. For generations, we’ve lived side by side as families and neighbors sharing geography and sharing common interests and sharing hopes and dreams. The Foreign Secretary and I share a firm commitment to the unique components of our relationship, and we share a common vision for what we can achieve through even greater cooperation and partnership.
We share a friendship and an open line of communication starting with, as I said, the earliest conversations that I had when I assumed this office. So we intend to remain in close contact with each other. We talked about that today. We have a lot of things to continue to cooperate on. We want to increase the economic growth of both of our countries. We want to expand economic opportunity for our people, and we want to provide greater security for the people of the United States and of Mexico.
Our countries share one of the most successful and interconnected economic partnerships in the world, and it’s based on mutual respect and shared responsibility. Bilateral trade amounted to nearly $500 billion last year. That’s more than four times what it was only 20 years ago. High-level economic delegations have already been meeting in the course of this year, and we are exploring ways to strengthen our existing partnership, avenues for increased economic cooperation. I’m convinced we’re going to find them.
The people of the United States at this moment are also intently focused on the immigration debate. So let me note that the two countries have made significant progress in building and strengthening our security over the course of the last 10 years. Almost one million people legally cross the U.S.-Mexico border every single day, and more than 1.25 billion in trade passes between our two countries every single day. And you can’t do that without major cooperation, but also without providing major opportunities for both of our countries.
The Foreign Secretary and I agree that if we’re going to sustain these gains, we have to expand the educational opportunities for our young people. Already thousands of Mexicans and American students study in each other’s countries every single year, and we are developing cross-cultural understanding and 21st century skills that make North America’s platform for innovation and economic growth stand out from countries all around the world. President Obama’s 100,000 Strong in the Americas Initiative will create even more opportunity for students over the course of the next years.
And finally, we know we have a responsibility to continue to address our security challenges. We’re going to continue to effect close security cooperation, ensuring respect for human and civil rights, and I think we all understand those are both deeply enshrined in both U.S. and Mexican constitutions. We know that citizen security is critical to the people of both of our countries.
So Mr. Secretary, it’s really good to welcome you here to Washington. I look forward to our conversation. I know President Obama is very much looking forward to his trip to Mexico in May and meeting with President Peña Nieto. I think there we will be able to solidify some of the things we’re talking about here today, so welcome to Washington, and thank you very, very much for the extraordinary partnership that we share.
FOREIGN SECRETARY MEADE: Thank you. Thank you, sir. Well, good morning, ladies and gentlemen. Allow me first to express once again the solidarity of the people and Government of Mexico with the United States for the horrific incidents that took place last Monday in Boston. We stand beside you. We have you in our hearts and in our prayers. I also want once again to (inaudible) our condolences to those affected by the explosion at a fertilizer plant in the town of West in Texas. I want to take this opportunity today this morning to commend the FBI, the law enforcement community, the Boston police for their outstanding work in facing with this issue in, as you have said, a very heroic fashion.
Secretary Kerry and myself have just concluded a very productive meeting. We identified priorities for our work in the coming weeks and months on many of the key components of a broad bilateral agenda. We touched upon education, investment, infrastructure, border security. We talked about the importance of security cooperation. We talked and identified and welcomed many of the issues that are now being discussed in the U.S. Congress. We welcomed the introduction of the immigration reform bill in the U.S. Senate. We welcomed the fact that that concept be debated seriously and something constructively could at some point be achieved. That’s an issue that’s relevant for Mexico as well.
Mexico and the United States have a very strong relationship. Translating Secretary Kerry’s numbers in a more dramatic fashion, we trade more than $1 million per minute. That is, I think, a number that is a testament to the health of our relationship, to the importance of that relationship. Mexico is the most important export market for 22 of the 50 United States’ states. Mexico – the U.S. exports to Mexico more than it does to China and Japan combined. The U.S. exports to Mexico more than it does to many European countries, taken as a group. And I think that the success that we can tell in terms of trade is something that should be built upon so that we can look at the relationship through a North American perspective, and through that perspective, find common answers to global problems and problems that are common to our bilateral regions.
I can think of no better partner to work with than Secretary Kerry. His personal leadership of some of the world’s best causes have long been recognized, from peace and security to climate change, democracy, immigration, human rights. As I told him a few minutes ago, our bilateral partnership projects, both regionally and global issues as well, I think are going to be in good hands, and we are very, very grateful for that relationship and for that work that we will do together.
As you all know, in a couple of weeks we will receive President Obama in Mexico. We are honored by his decision to travel to our country to meet with President Peña Nieto. This will be the second face-to-face conversation between them in just over five months, a testament to the commitment to advance our economic agenda, to deepen the ties between our societies, to ensuring the security of our citizens. They have instructed both of us, both our governments, to continue working together as responsible neighbors.
Thank you again, Secretary Kerry. Thank you all for your attention.
SECRETARY KERRY: Thank you very much Jose. I appreciate it.
MS. PSAKI: We’ll take two questions, and the first will be from Brad Klapper with the Associated Press.
QUESTION: Thank you. Mr. Secretary, what does the Boston attack say about the threat to the U.S. posed by Chechen extremists? Have you been in touch with Russia or any other country on the matter? Wouldn’t the Russians see this as a validation of their arguments on Chechnya, and maybe even Syria, regarding terrorism? And then just lastly, what role did State specifically play in the investigation into the bombings? Thank you.
SECRETARY KERRY: Well, Brad, look, at this point law enforcement officers are carrying out an ongoing investigation, and frankly they’re at some critical stages here and it would just be entirely inappropriate for me to be commenting on the tick-tock or on the larger issues outside of it. The FBI is the lead entity with respect to this investigation and they will lay out the details of contacts and information at the appropriate moment.
The important thing right now is, the President has said, we’re going to find those responsible and bring them to justice. We are part of the way there, and the President intends to finish that job.
QUESTION: And just on the question of Syria, wouldn’t an event like this, if it has any connection to Chechnya or separatists in southern Russia, wouldn’t this strengthen the Russian --
SECRETARY KERRY: Well, let’s – I’m not going to get into speculation. I’m not going to deal with a hypothetical. Let’s wait and see what the FBI details at the appropriate time. The one thing I will say is terror is terror, and this underscores the importance of all of us maintaining vigilance and cooperating together internationally. That’s part of what we’re talking about here. Terror anywhere in the world against any country is unacceptable, and we need to continue to stand up and fight against it in the way that we are. It strengthens, actually, my resolve and my sense that we’re on the right track, but there’s more we can do and we’re going to continue to do it. President Obama has made this a critical component of his foreign policy, and obviously this just emphasizes that.
MS. PSAKI: The next question will come from Jose Lopez Zamorano from Notimex.
QUESTION: Thank you. Secretary Meade, the Mexican government has expressed its interest in broadening the agenda with the U.S. beyond security issues. In that regard, and due to the upcoming visit of President Obama to Mexico, what kind of new initiatives or programs can we expect along the road?
And Secretary Kerry, after 9/11 attacks, obviously security became center stage for the U.S., but at the same time some countries in Latin America saw that the relationship with them was put in the back burner for several years. Do you anticipate that this event in Boston could derail your intent, express intent, to reach out to the region?
FOREIGN SECRETARY MEADE: We have agreed to enlarge our agenda and we are going to be talking about initiatives that have to do with high-level engagement in terms of an economic dialogue. We will be talking and we will find a mechanism to continue to talk in terms of education and research and innovation. So those issues and a structure around them will be center point in the agendas and the talks and issues discussed by President Obama and President Peña Nieto.
SECRETARY KERRY: The answer is profoundly yes, we do intend – I intend to personally. And in fact, I had intended to try to travel to the region next week, but because of the events this week and because of some other things happening, I’ve had to postpone that just temporarily. And I mean temporarily. I will be getting to the region very shortly. President Obama is traveling to the region. President Obama feels very strongly and has asked me to focus on how we can strengthen our economic partnerships in Latin America and Central America, and I intend to do that.
We talked today – I think the beginning of our conversation today, the very first thing out of my mouth was we don’t want to define this relationship with Mexico or with other countries in the context of security or counternarcotics trafficking. We want to define it much larger in the context of our citizens’ economic needs and our capacity to do more on the economic frontier. I am convinced we’re going to growth that relationship.
In terms of jobs, we talked about ways to link up perhaps ultimately with the Transatlantic Investment Trade and Partnership Program. In the long run it may be possible to find ways to strengthen both of us through those kinds of initiatives. And of course, Mexico is a partner in the Trans-Pacific Partnership. So we are already growing this relationship. We’re going to continue to grow
JUSTICE SETTLES COMPETITION SUIT WITH ANHEUSER-BUSH INBEV AND GRUPO MODELO
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| Ceditr: Wikimedia. |
Friday, April 19, 2013
Justice Department Reaches Settlement with Anheuser-Busch InBev and Grupo Modelo in Beer Case
Divestitures of Piedras Negras Brewery, Perpetual Licenses to Modelo Beer Brands, and Other Assets Will Maintain Competition in the Beer Industry Nationwide
WASHINGTON – The Department of Justice announced today that it has reached a settlement with Anheuser-Busch InBev SA/NV (ABI) and Grupo Modelo S.A.B. de C.V. that requires the companies to divest Modelo’s entire U.S. business – including licenses of Modelo brand beers, its most advanced brewery, Piedras Negras, its interest in Crown Imports LLC and other assets – to Constellation Brands Inc., in order to go forward with their merger. The department said the proposed settlement will maintain competition in the beer industry nationwide, benefitting consumers.
Today’s proposed settlement was filed in the U.S. District Court for the District of Columbia. If approved by the court, the settlement will resolve the department’s competitive concerns.
On Jan. 31, 2013, the department filed an antitrust lawsuit against ABI and Modelo alleging that ABI’s $20.1 billion acquisition of the remaining interest in Modelo that ABI did not already own, as originally proposed, would substantially lessen competition in the market for beer in the United States as a whole and in at least 26 metropolitan areas across the United States. The department alleged that the transaction would result in consumers paying more for beer and would limit innovation in the beer market.
"Before the merger, there were two competitors – Modelo and ABI – and ABI owned a substantial stake in Modelo. The companies’ proposed merger would have reduced those two competitors to one – ABI. The proposed settlement announced today will create an independent, fully integrated and economically viable competitor to ABI. This is a win for the $80 billion U.S. beer market and consumers," said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "If this settlement makes just a one percent difference in prices, U.S. consumers will save almost $1 billion a year."
The settlement requires ABI and Modelo to divest Modelo’s entire U.S. business to Constellation or to an alternative purchaser if for some reason the transaction with Constellation cannot be completed. Specifically, the settlement requires ABI and Modelo to divest: the Piedras Negras brewery, Modelo’s newest, most technologically advanced brewery; perpetual and exclusive licenses of the Modelo brand beers for distribution and sale in the United States; Modelo’s current interest in Crown – the joint venture established by Modelo and Constellation to import, market and sell certain Modelo beers into the United States; and other assets, rights and interests necessary to ensure that Constellation is able to compete in the U.S. beer market using the Modelo brand beers, independent of a relationship to ABI and Modelo.
The licensed brands include all seven brands that Modelo currently offers (through its distributor, Crown) in the United States – Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Modelo Light, Pacifico and Victoria – as well as three brands not yet offered in the United States, but currently sold by Modelo in Mexico – Pacifico Light, Barrilito and León. The licenses include rights that will give Constellation the ability to adapt to changing market conditions in the United States.
Constellation has committed to expand the capacity of Piedras Negras in order to meet current and future demand for the Modelo brands in the United States, and that commitment is a condition of the proposed settlement. The settlement also sets milestones for the expansion of the Piedras Negras brewery. In order to enable Constellation to compete in the United States during the time it takes to expand the Piedras Negras brewery’s capacity to brew and bottle beer, the settlement requires ABI to enter into interim supply and transition services agreements with Constellation. These agreements are time-limited to ensure that Constellation will become a fully independent competitor to ABI as soon as practicable.
ABI and Modelo originally proposed selling Modelo’s stake in Crown to Constellation and entering into a 10-year supply agreement to provide Modelo beer to Constellation to import into the United States. The department rejected that purported fix because it would have eliminated the Modelo brands as an independent competitive force in the United States beer market. Unlike the companies’ original proposal, which left Constellation with no brewing assets and beholden to ABI for the supply of beer, the proposed settlement ensures that Constellation, or an alternative purchaser, will have independent brewing assets and the ownership of the Modelo beer brands for sale in the United States in perpetuity. As a result, Constellation will fully replace Modelo as a competitor in the United States.
ABI is a corporation organized and existing under the laws of Belgium, with headquarters in Leuven, Belgium. ABI brews and markets more beer sold in the United States than any other firm, with a 39 percent market share nationally. ABI owns and operates 125 breweries worldwide, including 12 in the United States. It owns more than 200 different beer brands, including Bud Light – the best-selling brand in the United States – and other popular brands such as Budweiser, Busch, Michelob, Natural Light, Stella Artois, Goose Island and Beck’s.
Modelo is a corporation organized and existing under the laws of Mexico, with headquarters in Mexico City. Modelo is the third-largest brewer of beer sold in the United States, with a seven percent market share nationally. Modelo owns Corona Extra–the top-selling beer imported into the United States. Its other popular brands sold in the United States include Corona Light, Modelo Especial, Negra Modelo, Victoria and Pacifico. Crown imports, markets and sells Modelo’s brands into the United States. ABI currently holds a 35.3 percent direct interest in Modelo and a 23.3 percent direct interest in Modelo’s operating subsidiary Diblo.
Constellation, headquartered in Victor, N.Y, is a beer, wine and spirits company with a portfolio of more than 100 products, including Robert Mondavi, Clos du Bois, Ruffino and SVEDKA Vodka. It produces wine and distilled spirits, with more than 40 facilities worldwide.
The proposed settlement, along with the department's competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James Tierney, Chief, Networks and Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7100, Washington, D.C. 20530. The comments will be published in the Federal Register. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
CEMEX, INC., AGREES TO REDUCE HARMFUL AIR EMISSIONS AT COLORADO PLANT
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
Cement Manufacturer Agrees to Reduce Harmful Air Emissions at Colorado Plant
WASHINGTON— The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) announced today that CEMEX, Inc., the owner and operator of a Portland cement manufacturing facility in Lyons, Colo., has agreed to operate advanced pollution controls on its kiln and pay a $1 million civil penalty to resolve alleged violations of the Clean Air Act (CAA).
"Today’s settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado’s Front Range," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "Cutting these emissions will also help improve environmental quality and visibility in places like Rocky Mountain National Park."
"This agreement will mean cleaner air for Colorado residents downwind of the CEMEX facility and will contribute to improved air quality in the Rocky Mountain National Park, which is one of our nation’s most cherished public spaces," said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. "The settlement is part of the Justice Department’s continuing efforts, along with the EPA, to bring significant sources of air pollution within the cement manufacturing sector into compliance with the Clean Air Act."
The Department of Justice , on behalf of EPA, filed a complaint against CEMEX alleging that between 1997—2000, the company unlawfully made modifications at its Lyons plant that resulted in significant net increases of nitrogen oxide and particulate matter (PM) emissions. The complaint further alleges that these increased emissions violated the CAA’s Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.
As part of the settlement, CEMEX will install "Selective Non-Catalytic Reduction" (SNCR) technology at their Lyons facility, which is an advanced pollution control technology designed to reduce nitrogen oxide emissions. This will reduce their nitrogen oxide emissions by approximately 870 to 1,200 tons of nitrigen oxide per year. The initial capital cost for installing SNCR is approximately $600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about $1.5 million per year.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including Portland cement manufacturing facilities.
Nitrogen Oxide emissions may cause severe respiratory problems and contribute to childhood asthma. These emissions also contribute to acid rain, smog, and haze which impair visibility in national parks. CEMEX’s facility is located within 20 miles of Rocky Mountain National Park, and its emissions may contribute to visibility impairment and to the nitrogen pollution problem that is affecting the park’s vegetation, water quality, and trout populations. Air pollution from Portland cement manufacturing facilities can also travel significant distances downwind, crossing state lines and creating region-wide health problems.
The proposed consent decree will be lodged with the Federal District Court for the District of Colorado, and will be subject to a 30-day public comment period.
Cement Manufacturer Agrees to Reduce Harmful Air Emissions at Colorado Plant
WASHINGTON— The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) announced today that CEMEX, Inc., the owner and operator of a Portland cement manufacturing facility in Lyons, Colo., has agreed to operate advanced pollution controls on its kiln and pay a $1 million civil penalty to resolve alleged violations of the Clean Air Act (CAA).
"Today’s settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado’s Front Range," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "Cutting these emissions will also help improve environmental quality and visibility in places like Rocky Mountain National Park."
"This agreement will mean cleaner air for Colorado residents downwind of the CEMEX facility and will contribute to improved air quality in the Rocky Mountain National Park, which is one of our nation’s most cherished public spaces," said Ignacia S. Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division. "The settlement is part of the Justice Department’s continuing efforts, along with the EPA, to bring significant sources of air pollution within the cement manufacturing sector into compliance with the Clean Air Act."
The Department of Justice , on behalf of EPA, filed a complaint against CEMEX alleging that between 1997—2000, the company unlawfully made modifications at its Lyons plant that resulted in significant net increases of nitrogen oxide and particulate matter (PM) emissions. The complaint further alleges that these increased emissions violated the CAA’s Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.
As part of the settlement, CEMEX will install "Selective Non-Catalytic Reduction" (SNCR) technology at their Lyons facility, which is an advanced pollution control technology designed to reduce nitrogen oxide emissions. This will reduce their nitrogen oxide emissions by approximately 870 to 1,200 tons of nitrigen oxide per year. The initial capital cost for installing SNCR is approximately $600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about $1.5 million per year.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including Portland cement manufacturing facilities.
Nitrogen Oxide emissions may cause severe respiratory problems and contribute to childhood asthma. These emissions also contribute to acid rain, smog, and haze which impair visibility in national parks. CEMEX’s facility is located within 20 miles of Rocky Mountain National Park, and its emissions may contribute to visibility impairment and to the nitrogen pollution problem that is affecting the park’s vegetation, water quality, and trout populations. Air pollution from Portland cement manufacturing facilities can also travel significant distances downwind, crossing state lines and creating region-wide health problems.
The proposed consent decree will be lodged with the Federal District Court for the District of Colorado, and will be subject to a 30-day public comment period.
Saturday, April 20, 2013
STATE DEPARTMENT BRIEFING ON COUNTRY REPORTS OF HUMAN RIGHTS PRACTICES 2012
FROM: U.S. STATE DEPARTMENT
Remarks on the Release of the Country Reports on Human Rights Practices for 2012
Special Briefing
Uzra Zeya
Acting Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Washington, DC
April 19, 2013
MS. ZEYA: Thank you very much, Mr. Secretary. I’d like to say a few words about how we use the Annual Human Rights Reports to inform our diplomacy around the world and give you a quick overview of some of the major developments they describe over the past year, then I’d be happy to take your questions.
As the Secretary said, human rights are central to America’s global diplomatic engagement, and these reports are the factual foundation upon which we build and shape our policies. Human rights are on the agenda in all our bilateral relations, such as during the recent U.S.-Vietnam Human Rights Dialogue where we urged the release of all political prisoners including Le Quoc Quan, Dr. Vu and others. We advocate on behalf of those imprisoned for their activism or beliefs, including Chinese Nobel Laureate Liu Xiaobo and human rights lawyer Gao Zhisheng and Pastor Saeed Abedini in Iran, among many others all over the world.
The individual reports stand alone and they speak for themselves, so I commend them to you for detailed information on specific countries or regions. At the same time, I’d like to highlight some key developments from 2012.
First, as the Secretary noted, we continue to see a shrinking space for civil society in a growing number of countries – China, Egypt, and Russia, to name just a few. 2012 saw new laws impeding or preventing the exercise of freedoms of expression, assembly, association, and religion; heightened restrictions on organizations receiving funding from abroad; and the harassment, arrest, and killing of political human rights and labor activists.
Regardless of the means, the result is the same: When government stifles civil society, their countries are deprived of ideas, energy, and the ingenuity of their people that are needed for long-term stability and success in the 21st century.
We also saw freedom of the media under increasing threat in 2012. Record numbers of journalists were killed in the line of duty or as a consequence of their reporting. A number of governments took steps to stifle the press through the use of overly broad counterterrorism laws, burdensome regulatory requirements, and harassment or imprisonment of journalists. In Ethiopia, Eskinder Nega remains behind bars, and Calixto Ramon Martinez Arias spent six months in a Cuban prison for writing about a cholera outbreak. Some governments specifically targeted freedom of expression on the internet through new restrictive legislation, denial of service attacks, and the harassment of online bloggers, journalists, and activists. In Egypt, for example, blogger Alaa Abdel Fattah has been repeatedly arrested and harassed by the government.
Throughout the Middle East in 2012, men and women continue to organize and advocate for dignity, economic opportunity, and a stake in their political future. There were historic elections in Egypt and Libya but also troubling setbacks, including the erosion of protections for civil society, sexual violence against women, and violence and repression towards religious minorities across the region. Bashar al-Assad escalated unrelenting attacks against his own people in Syria; inter-communal tensions and political violence continued in Iraq, Bahrain, and Yemen; and governments throughout the Gulf took steps to restrict freedom of expression both online and off.
These struggles are not confined to the Middle East, especially the issue of violence against the most marginalized groups in society. The 2012 reports document discrimination against and persecution of members of religious and ethnic minorities, including Jews, Roma, Coptic Christians, Ahmadis, Baha’is, Uighurs, and Tibetans; as well as against other vulnerable populations such as persons with disabilities and lesbian, gay, bisexual, and transgender people in every region of the globe.
Women and girls continue to be at risk around the world, facing abuses ranging from sexual violence to harmful traditional practices. From Afghanistan to the Democratic Republic of Congo, women and girls were the targets of repression while trying to live their daily lives, change their societies for the better, and exercise the fundamental freedoms that are the birthright of all human beings.
Thankfully, not all news from 2012 was discouraging. As the Secretary said, we’re encouraging – we’re encouraged by what’s happening in Burma. The Burmese government has released more than 700 political prisoners since 2011, many of whom have been in prison for more than a decade. Aung San Suu Kyi and 42 members of the National League for Democracy were elected to parliament in largely transparent and inclusive bi-elections. The government is relaxing some press censorship and allowing trade unions to form and register. However, many elements of the country’s authoritarian structure remain intact. And as the Secretary noted, we’re also very concerned by the conflict in Kachin state and communal violence in Rhakine state in central Burma.
In addition to the elections that I mentioned in the Middle East and Burma, Georgia held parliamentary elections that resulted in the first peaceful democratic transfer of power in that country since independence in 1992. And throughout the world every day, courageous men and women took selfless risk to stand up for universal human rights and better the lives of others.
Finally, I’d like to echo the Secretary’s thanks to our colleagues overseas and throughout the Department, including our senior editor Steve Eisenbraun, who have all worked tirelessly to put these reports together. This is truly a massive undertaking, and every year we strive to do better. This year, as the Secretary mentioned, we’ve included more comprehensive information on prison conditions, corruption within governments, workers’ rights, and the rights of women and girls.
We hope that the reports will shed light on human rights conditions around the world, and we’re committed to working with governments and civil society to stop abuses and support universal rights for all.
So I’ll stop there on that note, and I’m happy to take your questions.
MS. PSAKI: I’m just going to call on folks. We have time for a few questions.
Brad.
QUESTION: Yes. You and the Secretary both mentioned that you bring up human rights issues during all your visits, these hard truths, as you call them. Yet, recently when Secretary Kerry went to China we barely heard a word about human rights. So could you tell us the hard truths that would have been pushed during that visit?
MS. ZEYA: Sure. I’d just like to reiterate that promoting human rights is absolutely part of our bilateral agenda with China. We repeatedly raise specific human rights cases with the Chinese government in bilateral dialogues and in high-level discussions. And during the Secretary’s visit, as he made clear, he raised specific cases with the Chinese government to include the case of Chen Kegui, who is the nephew of Mr. Chen Guangcheng. He raised the allegations of abuse during his imprisonment and the harassment of his family.
Some of the other cases that we raise regularly I mentioned in my remarks, but that would include Mr. Gao Zhisheng, Liu Xiaobo, and, as I mentioned, Chen Kegui. But that is just a few of the many political prisoners in China. I’d refer you to our reports, which have much more detail on this issue.
QUESTION: And did you make any progress regarding their conditions?
MS. ZEYA: I think it’s part of our ongoing dialogue.
MS. PSAKI: Said.
QUESTION: Thank you, ma’am. My name’s Said Arikat from Al Quds Daily newspaper. I wanted to ask you about the Palestinian prisoners.
MS. ZEYA: Sure.
QUESTION: There are 4,500 of them in prison. There are about 280 between the ages of 12 and 15, and I wonder, in your current, sort of, increased activities trying to kick-off the new talks, that if you bring that issue to bear with the Israeli government.
MS. ZEYA: Right. I’d just like to reiterate that the United States raises human rights issues at the highest levels with the Israeli government. I’d commend to you our report this year on the occupied territories. Some of the major human rights problems that we identify are arbitrary arrest and associated torture and abuse, often with impunity, by multiple actors; restrictions on civil liberties; and the inability of residents to hold their government accountable. And this is taking place in areas under Hamas, PA, and Israeli control.
MS. PSAKI: In the back. Go ahead.
QUESTION: Well, this year’s report on Turkey seems to be a bit harsher than last year. Has the Secretary raised any of these issues with the Turkish officials? He’s been in regular contact with them. He’ll see them this weekend. Which issues has he been underlining?
MS. ZEYA: Sure. Sure. With respect to Turkey, Turkey is a vital NATO ally and an American strategic partner, and human rights are a part of our broader engagement on a range of areas. Some of the issues of concern noted in the report are freedom of expression, the status of minorities and vulnerable populations, and legal reform. And what we think is Turkey’s constitutional reform process presents an opportunity to improve the protection of minorities, women and children, as well as expand freedom of expression.
QUESTION: But has the Secretary raised any of these issues with the Turkish officials so far? This will be his third time in Turkey this year.
MS. ZEYA: I mean, it’s part of our regular bilateral engagement, but for further detail I’d have to refer back to the spokesman.
MS. PSAKI: In front.
QUESTION: Hi. I wondered if you could tell us how concerned you are about the situation in Russia. Don’t you think the civil society bit has shrunk space, as you call it – has shrunk even more since you – I mean, this report covers last year.
MS. ZEYA: Right. Right.
QUESTION: And if you would just talk generally about how you see it.
MS. ZEYA: Sure. Sure.
QUESTION: Yeah, because they’re implementing the law that you complained was passed last year. Now they’re actually implementing it, yeah.
MS. ZEYA: Right. Right. No, you’re correct. The reports only cover through December 31st, 2012, but certainly the pattern that we’ve seen emerge in Russia is deeply troubling with respect to the emergence of an increasingly restrictive environment for the exercise of civil liberties. This includes the measures with respect to registration of NGOs as foreign agents, but also restrictions on press and internet freedom. So we’ve made clear our commitment to dialogue on human rights with the Russian government, but we also remain absolutely committed to open dialogue with civil society and supporting their efforts.
QUESTION: Could I do a follow-up on that?
MS. PSAKI: Sure.
QUESTION: I just wondered. I mean, in the past, I think the U.S. government has talked a lot about concern about human rights abuses in Chechnya, and I just wondered if you think the events in Boston are going to change in any way the government would see human rights in Chechnya?
MS. ZEYA: Right. With respect to the ongoing investigation in Boston, I just have to reiterate the Secretary’s comment that it would be highly inappropriate to make further comment on this time.
With respect to the situation in the Northern Caucasus, I can tell you this has been part of our human rights reporting on Russia in our country report since 1995. You’ll find quite a bit of information in this year’s report. And they note serious human rights abuses taking place and acts of human rights violations reportedly committed by both authorities and militants.
MS. PSAKI: This is going to be the last question.
QUESTION: Yes. You mentioned prisons. The State Department, I wonder if it’s concerned about Guantanamo prisoners; 56 out of 86 Guantanamo prisoners cleared for release are Yemeni nationals. Would you agree that the U.S. is engaged in collective punishment based on nationality?
MS. ZEYA: I would say on this we hold ourselves to the same standards by which we assess others. On the issue of Guantanamo, the President has made clear his commitment to closing Guantanamo, but this has to be done in accordance with U.S. law and in consultation with the Congress. So I’d have to refer you back to further statements by the White House and the spokesman on that.
MS. PSAKI: Just to reiterate for folks, Uzra will be at the – the Acting Assistant Secretary will be at the Foreign Press Center later this afternoon. What time will that be?
PARTICIPANT: (Inaudible.)
MS. ZEYA: 4:00 p.m. Yeah.
MS. PSAKI: So for people who didn’t have their questions answered, we encourage you to go over there. Thank you.
MS. ZEYA: Thanks.
Remarks on the Release of the Country Reports on Human Rights Practices for 2012
Special Briefing
Uzra Zeya
Acting Assistant Secretary, Bureau of Democracy, Human Rights, and Labor
Washington, DC
April 19, 2013
MS. ZEYA: Thank you very much, Mr. Secretary. I’d like to say a few words about how we use the Annual Human Rights Reports to inform our diplomacy around the world and give you a quick overview of some of the major developments they describe over the past year, then I’d be happy to take your questions.
As the Secretary said, human rights are central to America’s global diplomatic engagement, and these reports are the factual foundation upon which we build and shape our policies. Human rights are on the agenda in all our bilateral relations, such as during the recent U.S.-Vietnam Human Rights Dialogue where we urged the release of all political prisoners including Le Quoc Quan, Dr. Vu and others. We advocate on behalf of those imprisoned for their activism or beliefs, including Chinese Nobel Laureate Liu Xiaobo and human rights lawyer Gao Zhisheng and Pastor Saeed Abedini in Iran, among many others all over the world.
The individual reports stand alone and they speak for themselves, so I commend them to you for detailed information on specific countries or regions. At the same time, I’d like to highlight some key developments from 2012.
First, as the Secretary noted, we continue to see a shrinking space for civil society in a growing number of countries – China, Egypt, and Russia, to name just a few. 2012 saw new laws impeding or preventing the exercise of freedoms of expression, assembly, association, and religion; heightened restrictions on organizations receiving funding from abroad; and the harassment, arrest, and killing of political human rights and labor activists.
Regardless of the means, the result is the same: When government stifles civil society, their countries are deprived of ideas, energy, and the ingenuity of their people that are needed for long-term stability and success in the 21st century.
We also saw freedom of the media under increasing threat in 2012. Record numbers of journalists were killed in the line of duty or as a consequence of their reporting. A number of governments took steps to stifle the press through the use of overly broad counterterrorism laws, burdensome regulatory requirements, and harassment or imprisonment of journalists. In Ethiopia, Eskinder Nega remains behind bars, and Calixto Ramon Martinez Arias spent six months in a Cuban prison for writing about a cholera outbreak. Some governments specifically targeted freedom of expression on the internet through new restrictive legislation, denial of service attacks, and the harassment of online bloggers, journalists, and activists. In Egypt, for example, blogger Alaa Abdel Fattah has been repeatedly arrested and harassed by the government.
Throughout the Middle East in 2012, men and women continue to organize and advocate for dignity, economic opportunity, and a stake in their political future. There were historic elections in Egypt and Libya but also troubling setbacks, including the erosion of protections for civil society, sexual violence against women, and violence and repression towards religious minorities across the region. Bashar al-Assad escalated unrelenting attacks against his own people in Syria; inter-communal tensions and political violence continued in Iraq, Bahrain, and Yemen; and governments throughout the Gulf took steps to restrict freedom of expression both online and off.
These struggles are not confined to the Middle East, especially the issue of violence against the most marginalized groups in society. The 2012 reports document discrimination against and persecution of members of religious and ethnic minorities, including Jews, Roma, Coptic Christians, Ahmadis, Baha’is, Uighurs, and Tibetans; as well as against other vulnerable populations such as persons with disabilities and lesbian, gay, bisexual, and transgender people in every region of the globe.
Women and girls continue to be at risk around the world, facing abuses ranging from sexual violence to harmful traditional practices. From Afghanistan to the Democratic Republic of Congo, women and girls were the targets of repression while trying to live their daily lives, change their societies for the better, and exercise the fundamental freedoms that are the birthright of all human beings.
Thankfully, not all news from 2012 was discouraging. As the Secretary said, we’re encouraging – we’re encouraged by what’s happening in Burma. The Burmese government has released more than 700 political prisoners since 2011, many of whom have been in prison for more than a decade. Aung San Suu Kyi and 42 members of the National League for Democracy were elected to parliament in largely transparent and inclusive bi-elections. The government is relaxing some press censorship and allowing trade unions to form and register. However, many elements of the country’s authoritarian structure remain intact. And as the Secretary noted, we’re also very concerned by the conflict in Kachin state and communal violence in Rhakine state in central Burma.
In addition to the elections that I mentioned in the Middle East and Burma, Georgia held parliamentary elections that resulted in the first peaceful democratic transfer of power in that country since independence in 1992. And throughout the world every day, courageous men and women took selfless risk to stand up for universal human rights and better the lives of others.
Finally, I’d like to echo the Secretary’s thanks to our colleagues overseas and throughout the Department, including our senior editor Steve Eisenbraun, who have all worked tirelessly to put these reports together. This is truly a massive undertaking, and every year we strive to do better. This year, as the Secretary mentioned, we’ve included more comprehensive information on prison conditions, corruption within governments, workers’ rights, and the rights of women and girls.
We hope that the reports will shed light on human rights conditions around the world, and we’re committed to working with governments and civil society to stop abuses and support universal rights for all.
So I’ll stop there on that note, and I’m happy to take your questions.
MS. PSAKI: I’m just going to call on folks. We have time for a few questions.
Brad.
QUESTION: Yes. You and the Secretary both mentioned that you bring up human rights issues during all your visits, these hard truths, as you call them. Yet, recently when Secretary Kerry went to China we barely heard a word about human rights. So could you tell us the hard truths that would have been pushed during that visit?
MS. ZEYA: Sure. I’d just like to reiterate that promoting human rights is absolutely part of our bilateral agenda with China. We repeatedly raise specific human rights cases with the Chinese government in bilateral dialogues and in high-level discussions. And during the Secretary’s visit, as he made clear, he raised specific cases with the Chinese government to include the case of Chen Kegui, who is the nephew of Mr. Chen Guangcheng. He raised the allegations of abuse during his imprisonment and the harassment of his family.
Some of the other cases that we raise regularly I mentioned in my remarks, but that would include Mr. Gao Zhisheng, Liu Xiaobo, and, as I mentioned, Chen Kegui. But that is just a few of the many political prisoners in China. I’d refer you to our reports, which have much more detail on this issue.
QUESTION: And did you make any progress regarding their conditions?
MS. ZEYA: I think it’s part of our ongoing dialogue.
MS. PSAKI: Said.
QUESTION: Thank you, ma’am. My name’s Said Arikat from Al Quds Daily newspaper. I wanted to ask you about the Palestinian prisoners.
MS. ZEYA: Sure.
QUESTION: There are 4,500 of them in prison. There are about 280 between the ages of 12 and 15, and I wonder, in your current, sort of, increased activities trying to kick-off the new talks, that if you bring that issue to bear with the Israeli government.
MS. ZEYA: Right. I’d just like to reiterate that the United States raises human rights issues at the highest levels with the Israeli government. I’d commend to you our report this year on the occupied territories. Some of the major human rights problems that we identify are arbitrary arrest and associated torture and abuse, often with impunity, by multiple actors; restrictions on civil liberties; and the inability of residents to hold their government accountable. And this is taking place in areas under Hamas, PA, and Israeli control.
MS. PSAKI: In the back. Go ahead.
QUESTION: Well, this year’s report on Turkey seems to be a bit harsher than last year. Has the Secretary raised any of these issues with the Turkish officials? He’s been in regular contact with them. He’ll see them this weekend. Which issues has he been underlining?
MS. ZEYA: Sure. Sure. With respect to Turkey, Turkey is a vital NATO ally and an American strategic partner, and human rights are a part of our broader engagement on a range of areas. Some of the issues of concern noted in the report are freedom of expression, the status of minorities and vulnerable populations, and legal reform. And what we think is Turkey’s constitutional reform process presents an opportunity to improve the protection of minorities, women and children, as well as expand freedom of expression.
QUESTION: But has the Secretary raised any of these issues with the Turkish officials so far? This will be his third time in Turkey this year.
MS. ZEYA: I mean, it’s part of our regular bilateral engagement, but for further detail I’d have to refer back to the spokesman.
MS. PSAKI: In front.
QUESTION: Hi. I wondered if you could tell us how concerned you are about the situation in Russia. Don’t you think the civil society bit has shrunk space, as you call it – has shrunk even more since you – I mean, this report covers last year.
MS. ZEYA: Right. Right.
QUESTION: And if you would just talk generally about how you see it.
MS. ZEYA: Sure. Sure.
QUESTION: Yeah, because they’re implementing the law that you complained was passed last year. Now they’re actually implementing it, yeah.
MS. ZEYA: Right. Right. No, you’re correct. The reports only cover through December 31st, 2012, but certainly the pattern that we’ve seen emerge in Russia is deeply troubling with respect to the emergence of an increasingly restrictive environment for the exercise of civil liberties. This includes the measures with respect to registration of NGOs as foreign agents, but also restrictions on press and internet freedom. So we’ve made clear our commitment to dialogue on human rights with the Russian government, but we also remain absolutely committed to open dialogue with civil society and supporting their efforts.
QUESTION: Could I do a follow-up on that?
MS. PSAKI: Sure.
QUESTION: I just wondered. I mean, in the past, I think the U.S. government has talked a lot about concern about human rights abuses in Chechnya, and I just wondered if you think the events in Boston are going to change in any way the government would see human rights in Chechnya?
MS. ZEYA: Right. With respect to the ongoing investigation in Boston, I just have to reiterate the Secretary’s comment that it would be highly inappropriate to make further comment on this time.
With respect to the situation in the Northern Caucasus, I can tell you this has been part of our human rights reporting on Russia in our country report since 1995. You’ll find quite a bit of information in this year’s report. And they note serious human rights abuses taking place and acts of human rights violations reportedly committed by both authorities and militants.
MS. PSAKI: This is going to be the last question.
QUESTION: Yes. You mentioned prisons. The State Department, I wonder if it’s concerned about Guantanamo prisoners; 56 out of 86 Guantanamo prisoners cleared for release are Yemeni nationals. Would you agree that the U.S. is engaged in collective punishment based on nationality?
MS. ZEYA: I would say on this we hold ourselves to the same standards by which we assess others. On the issue of Guantanamo, the President has made clear his commitment to closing Guantanamo, but this has to be done in accordance with U.S. law and in consultation with the Congress. So I’d have to refer you back to further statements by the White House and the spokesman on that.
MS. PSAKI: Just to reiterate for folks, Uzra will be at the – the Acting Assistant Secretary will be at the Foreign Press Center later this afternoon. What time will that be?
PARTICIPANT: (Inaudible.)
MS. ZEYA: 4:00 p.m. Yeah.
MS. PSAKI: So for people who didn’t have their questions answered, we encourage you to go over there. Thank you.
MS. ZEYA: Thanks.
PENTAGON OFFICIAL SAYS BUDGET CUTS LIMIT RESEARCH AND DEVELOPMENT
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| Credit: U.S. Air Force. Launch Of GPS Satellite. |
Budget Reductions Limit Science, Tech Development, Official Says
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, April 18, 2013 - The Defense Department's research and engineering department faces the same challenges the rest of the department does due to limitations caused by sequestration spending cuts, a senior Pentagon official said today.
Alan R. Shaffer, acting assistant secretary of defense for research and engineering, was joined by Arati Prabhakar, director of the Defense Advanced Research Projects Agency, before the Senate Armed Services Committee's subcommittee on emerging threats and capabilities to talk about their part of the fiscal year 2014 defense budget request.
Shaffer said he represents scientists and engineers from DOD, a group that "conceives, develops and matures systems" early in the acquisition process.
"They work with multiple partners to provide the unmatched operational advantage employed by our services' men and women," he said. "As we wind down in Afghanistan, the national security and budget environments are changing."
The president's fiscal 2014 budget request for science and technology is $12 billion -- a nominal increase from fiscal 2013's $11.9 billion, Shaffer said, noting that it isn't possible to discuss the budget without addressing the impact of sequestration, "which takes 9 percent from every single program" in research, development, testing and evaluation.
"This reduction will delay or terminate some efforts," he said. "We will reduce awards. For instance, we will reduce university grants by $200 million this year alone."
Potentially, he added, the number of new SMART Scholarships —an acronym that stands for science, mathematics and research for transformation -- could go down to zero, and sequestration cuts will cause other limitations for research and engineering departments.
"Because of the way the sequester was implemented, we will be very limited in hiring new scientists this year, and the [next] several years," he said.
Each of these actions, Shaffer said, will have a negative long-term impact on the department and to national security.
"The president and secretary of defense depend upon us to make key contributions to the defense of our nation," he said. "[Science and technology] should do three things for national security."
Shaffer said science and technology should mitigate current and emerging threats and that the budget should build affordability and affordably enable current and future weapons systems to operate.
Also necessary, he said, is developing "technology surprise" to prevent potential adversaries from threatening the United States.
"In summary, the department's research and engineering program is faced with the same challenges as the rest of the DOD and the nation," he said, "but our people are performing."
Prabhakar focused on DARPA's goals in her testimony.
"[Our] objective is a new generation of technology for national security, and to realize this new set of military capabilities and systems is going to take a lot of organizations and people," she said.
"But DARPA's role in that is to make the pivotal early investments that change what's possible," she added. "[This] really lets us take big steps forward in our capabilities for the future."
The director said DARPA is investing in a host of areas to include building a future where war fighters can have cyber as a tactical tool that's fully integrated into the kinetic fight.
"And we're building a new generation of electronic warfare that leapfrogs what others around the world are able to do with widely, globally available semiconductor technology," she said.
"It means we're investing in new technologies for position, navigation and timing, so that our people and our platforms are not critically reliant as they are today on GPS," Prabhakar said.
The director also noted DARPA is investing in a new generation of space and robotics, advanced weapon systems, new platforms, and a new "foundational" infrastructure of emerging technologies in different areas of software and electronics, and material science.
The aim, Prabhakar said, is to create real and powerful options for future commanders and leaders against whatever threats the nation faces in the years ahead.
"And that work is the driver behind all of our programs," she said. "It's the reason that the people at DARPA run to work every morning with their hair on fire. They know that they're part of a mission that really does matter for our future security as a country.
STATE DEPARTMENT DEPUTY SECRETARY BURNS MAKES REMARKS AT 'AFRICA HEALTH FORUM'
FROM: U.S. DEPARTMENT OF STATE
Remarks at the Africa Health Forum
Remarks
William J. Burns
Deputy Secretary
Dean Acheson Auditorium
Washington, DC
April 19, 2013
Thank you. Good morning. It is truly a pleasure to welcome all of you to the second day of the Africa Health Forum, and I greatly appreciate this opportunity to appear before you.
I want to thank the World Bank and Harmonization for Health in Africa for partnering with the State Department to convene this important meeting and the many distinguished ministers, bilateral and multilateral development partners, major foundations, and private sector leaders for joining us today.
I also want to thank Assistant Secretary for Global Affairs at the Department of Health and Human Services, Dr. Nils Daulaire, and Dr. Ariel Pablo-Mendez, Assistant Administrator for Global Health at USAID, for their support in organizing the U.S. contribution to the forum and for their exceptional work on health systems strengthening and health care finance reform.
Finally, please allow me to extend my deepest gratitude to my friend and colleague, Ambassador Eric Goosby, for his extraordinary lifelong service to public health and his commitment to the treatment and eradication of AIDS here in the United States and across the world.
We gather here today amidst a dramatic transformation of the African continent from a region once defined largely by its problems, to a region defined increasingly by its possibilities… from a region afflicted by conflict, crisis, and impoverishment to a region known more and more for its economic growth, expanding democratic governance, and enhanced health and human development.
Rwanda, a country devastated by genocide less than two decades ago, is today on track to meet many of the Millennium Development Goals - life expectancy has doubled, maternal mortality and annual child deaths more than halved, and deaths from HIV, TB, and malaria have dropped by 80%.
In Ghana, economic prosperity and good governance have not only led to improved health outcomes, but also important innovations in health care delivery and education that are having an impact across the region.
As the continent evolves, and as governments take on greater leadership and responsibility for their own future, the nature of assistance and cooperation from the international community should evolve as well – from a donor-recipient relationship to more of a partnership.
This partnership – based on principles of country ownership, shared responsibility, and mutual respect – allows donors and partner countries to better meet the needs of the country’s population. Where transparency, good governance, and accountability are enshrined in law and in practice – our joint investments will yield more effective, more efficient, and ultimately more sustainable outcomes.
This is why sustainability and shared responsibility are two foundational principles of President Obama’s Policy Directive on Global Development and our global health diplomacy strategy.
Let me say just a few words about each.
First, to ensure that the results and significant investments we have all made to-date are durable, governments – in partnership with civil society and the private sector – should lead, implement, and eventually pay for all aspects of their health system. Partnership between Ministries of Finance and Health are critical and I am very pleased to see ministry representatives from over two dozen African countries here today.
It is this kind of dialogue that has made possible the significant transitions underway in health assistance programs across Africa, from Namibia - where thousands of PEPFAR-funded essential health care workers are now fully financed by the Government of Namibia, to Ethiopia - where U.S.-selected partners are providing technical assistance and cooperation to local partners instead of directly implementing programs themselves.
None of us are under any illusion that these transitions are easy or risk-free. But you have shown that they are possible. And this is why we must be systematic about capturing lessons from recent successful transitions from donor dependence to country ownership, just as we continue to benefit from lessons learned in transitions in family planning that began several decades ago and documented by colleagues from USAID and UNFPA present here today.
Second, the decision to elevate shared responsibility to the core of our policy approach was conscious and deliberate. The only way we can eradicate polio, reach the goal of an AIDS-free generation, eliminate the effects of neglected tropical diseases, roll back malaria, and end preventable maternal and child deaths, is if we do it together.
Our commitment to global health remains strong. Indeed, President Obama’s budget request for a $1.65 billion contribution to the Global Fund in fiscal year 2014 maintains our historically high level of support.
Consider the enormous progress in combating HIV in South Africa.
Over the last decade, the United States provided $3.2 billion to support South Africa’s fight against this epidemic. Through our joint efforts and mutual investments, millions of South Africans received treatment for HIV, and the rate of mother-to-child transmission plummeted to 2.7%. And today, South Africa is increasing its investments so that locally generated revenues are replacing hundreds of millions of dollars in external financing for antiretroviral therapy and other elements of the AIDS response.
This vision of strengthened country capacity, leadership, and ownership, is also driving the signing of more than 20 Partnership Framework agreements that bring together governmental and nongovernmental partners around a strategy to combat HIV/AIDS. And the strategy is working.
In Zambia, when the government introduced an innovative, evidence-based program and doubled its budget for antiretroviral drugs, the United States was able to provide an additional $30 million in funding. And today, through joint investment and collaboration, the number of people receiving antiretroviral treatment each year, exceeds the number of people infected with HIV, putting Zambia solidly on the path to an AIDS-free generation.
We need to sustain and accelerate this positive momentum. To do so, it is vital that we translate the conversations here in Washington into actions in your respective capitals. To better support your efforts, we will be sure to share the results of this forum with our Ambassadors, Mission Directors, and their teams at our missions across Africa.
Like all of you, I have no illusions about the challenges ahead, but I remain optimistic about Africa’s future. The work all of you are doing -- day in and day out -- to deliver improved health outcomes across the continent only reinforces that optimism, and that sense of possibility. I want to thank all the participants at this meeting and our development partners from around the world for all that you do. I wish you every success over the rest of the day, and in the months and years ahead.
Thank you.
Remarks at the Africa Health Forum
Remarks
William J. Burns
Deputy Secretary
Dean Acheson Auditorium
Washington, DC
April 19, 2013
Thank you. Good morning. It is truly a pleasure to welcome all of you to the second day of the Africa Health Forum, and I greatly appreciate this opportunity to appear before you.
I want to thank the World Bank and Harmonization for Health in Africa for partnering with the State Department to convene this important meeting and the many distinguished ministers, bilateral and multilateral development partners, major foundations, and private sector leaders for joining us today.
I also want to thank Assistant Secretary for Global Affairs at the Department of Health and Human Services, Dr. Nils Daulaire, and Dr. Ariel Pablo-Mendez, Assistant Administrator for Global Health at USAID, for their support in organizing the U.S. contribution to the forum and for their exceptional work on health systems strengthening and health care finance reform.
Finally, please allow me to extend my deepest gratitude to my friend and colleague, Ambassador Eric Goosby, for his extraordinary lifelong service to public health and his commitment to the treatment and eradication of AIDS here in the United States and across the world.
We gather here today amidst a dramatic transformation of the African continent from a region once defined largely by its problems, to a region defined increasingly by its possibilities… from a region afflicted by conflict, crisis, and impoverishment to a region known more and more for its economic growth, expanding democratic governance, and enhanced health and human development.
Rwanda, a country devastated by genocide less than two decades ago, is today on track to meet many of the Millennium Development Goals - life expectancy has doubled, maternal mortality and annual child deaths more than halved, and deaths from HIV, TB, and malaria have dropped by 80%.
In Ghana, economic prosperity and good governance have not only led to improved health outcomes, but also important innovations in health care delivery and education that are having an impact across the region.
As the continent evolves, and as governments take on greater leadership and responsibility for their own future, the nature of assistance and cooperation from the international community should evolve as well – from a donor-recipient relationship to more of a partnership.
This partnership – based on principles of country ownership, shared responsibility, and mutual respect – allows donors and partner countries to better meet the needs of the country’s population. Where transparency, good governance, and accountability are enshrined in law and in practice – our joint investments will yield more effective, more efficient, and ultimately more sustainable outcomes.
This is why sustainability and shared responsibility are two foundational principles of President Obama’s Policy Directive on Global Development and our global health diplomacy strategy.
Let me say just a few words about each.
First, to ensure that the results and significant investments we have all made to-date are durable, governments – in partnership with civil society and the private sector – should lead, implement, and eventually pay for all aspects of their health system. Partnership between Ministries of Finance and Health are critical and I am very pleased to see ministry representatives from over two dozen African countries here today.
It is this kind of dialogue that has made possible the significant transitions underway in health assistance programs across Africa, from Namibia - where thousands of PEPFAR-funded essential health care workers are now fully financed by the Government of Namibia, to Ethiopia - where U.S.-selected partners are providing technical assistance and cooperation to local partners instead of directly implementing programs themselves.
None of us are under any illusion that these transitions are easy or risk-free. But you have shown that they are possible. And this is why we must be systematic about capturing lessons from recent successful transitions from donor dependence to country ownership, just as we continue to benefit from lessons learned in transitions in family planning that began several decades ago and documented by colleagues from USAID and UNFPA present here today.
Second, the decision to elevate shared responsibility to the core of our policy approach was conscious and deliberate. The only way we can eradicate polio, reach the goal of an AIDS-free generation, eliminate the effects of neglected tropical diseases, roll back malaria, and end preventable maternal and child deaths, is if we do it together.
Our commitment to global health remains strong. Indeed, President Obama’s budget request for a $1.65 billion contribution to the Global Fund in fiscal year 2014 maintains our historically high level of support.
Consider the enormous progress in combating HIV in South Africa.
Over the last decade, the United States provided $3.2 billion to support South Africa’s fight against this epidemic. Through our joint efforts and mutual investments, millions of South Africans received treatment for HIV, and the rate of mother-to-child transmission plummeted to 2.7%. And today, South Africa is increasing its investments so that locally generated revenues are replacing hundreds of millions of dollars in external financing for antiretroviral therapy and other elements of the AIDS response.
This vision of strengthened country capacity, leadership, and ownership, is also driving the signing of more than 20 Partnership Framework agreements that bring together governmental and nongovernmental partners around a strategy to combat HIV/AIDS. And the strategy is working.
In Zambia, when the government introduced an innovative, evidence-based program and doubled its budget for antiretroviral drugs, the United States was able to provide an additional $30 million in funding. And today, through joint investment and collaboration, the number of people receiving antiretroviral treatment each year, exceeds the number of people infected with HIV, putting Zambia solidly on the path to an AIDS-free generation.
We need to sustain and accelerate this positive momentum. To do so, it is vital that we translate the conversations here in Washington into actions in your respective capitals. To better support your efforts, we will be sure to share the results of this forum with our Ambassadors, Mission Directors, and their teams at our missions across Africa.
Like all of you, I have no illusions about the challenges ahead, but I remain optimistic about Africa’s future. The work all of you are doing -- day in and day out -- to deliver improved health outcomes across the continent only reinforces that optimism, and that sense of possibility. I want to thank all the participants at this meeting and our development partners from around the world for all that you do. I wish you every success over the rest of the day, and in the months and years ahead.
Thank you.
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