STATE DEPARTMENT CONGRESSIONAL TESTIMONY ON NORMALIZATION OF U.S.-RUSSIA TRADE RELATIONS

Photo Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
Russia's Accession to the World Trade Organization and Granting Russia Permanent Normal Trade Relations
Testimony William J. Burns
Deputy Secretary Statement before the Ways and Means Committee of the United States House of Representatives
Washington, DC
June 20, 2012
Chairman Camp, Ranking Member Levin, Distinguished Members of the Committee: thank you for inviting me to appear before you today.
This hearing comes at an opportune moment. This summer, Russia will become a member of the World Trade Organization. Before this happens, Congress has a choice: it can extend Permanent Normal Trade Relations (PNTR) to Russia, giving American exporters and workers a level the playing field in one of the fastest growing markets in the world; or it can keep Jackson-Vanik in place, preventing American companies from reaping the benefits of an unprecedented opportunity to boost trade in a large and growing market.
Terminating the Jackson-Vanik Amendment’s application is not a favor to Russia. It is a step to help create American jobs. And, as Russia’s aspiring democrats have made clear, it is a smart, strategic investment in the kind of country Russia’s emerging middle class is striving for -- a Russia that promotes a strong rule of law. This step is in the Russian people’s own self-interest and to the practical benefit of American companies and workers.

I. The Economic Stakes
At a time when the economic needs of the American people are great, U.S. foreign policy must help American workers and businesses connect to markets abroad to drive our economic recovery at home.
The upside of opening Russian markets to American exporters is clear. From 2009 to 2011, U.S. exports to Russia rose 57 percent, and total U.S.-Russia trade rose over 80 percent. However, U.S. trade with Russia still totals less than one percent of our global trade. Russia may be the world’s seventh-largest economy, but it is our 20th largest trading partner.

Lifting Jackson-Vanik and extending PNTR does not require the United States to change any of its tariffs, services, market access, or other World Trade Organization (WTO) commitments. It simply makes permanent the treatment we have already extended to imports from Russia every year since 1992 and ensures that the WTO Agreement will apply between us. If the WTO Agreement does not apply between us American companies will be at a disadvantage. While America’s competitors will enjoy more liberal treatment for exports of goods and services and stronger commitments on protection of intellectual property rights, American companies will not. Russia will not have an obligation to apply science-based food safety standards to U.S. exports of meat and poultry or WTO rules on antidumping, leaving American companies vulnerable. Worse still, when our economic competitors from Brazil, Europe and China have grievances in Russia, their governments will be able to turn to a binding WTO dispute mechanism. The United States will not.

II. The Strategic Backdrop
Beyond the benefits to immediate U.S. economic interests, extending PNTR to Russia is a strategic investment in our long-term relationship. Our strategic interests around the world demand that we cooperate with Russia in a number of areas. Russia is a permanent member of the Security Council and a member of the P5+1. Together Russia and the United States hold 90 percent of the world’s nuclear weapons. Russia is the single largest source of the world’s hydrocarbons. Russia sits astride Europe, Asia, and the broader Middle East, three regions whose geostrategic importance will continue to shape American interests for years to come.

By working together with Russia over the last three and a half years, we have shown that we can achieve tangible results that matter to our own self-interest and national security. We are implementing the New START Treaty. Together, we are disposing of enough weapons-grade plutonium for 17,000 nuclear warheads. Russia joined with other members of the United Nations (UN) Security Council in supporting Security Council Resolution 1929 and voluntarily cancelled the sale of a sophisticated air defense system to Iran, a contract worth over a billion dollars. This week, Moscow hosted international talks to press Iran to comply with its international obligations regarding its nuclear program. Russia also provides critical logistical support to international forces in Afghanistan: many of the supplies that transit the Northern Distribution Network go through Russia and a majority of our troops traveling to Afghanistan transit through Russian airspace -- over 370,000 military personnel in all.

The United States and Russia have achieved gains that extend beyond security and global politics to touch the daily lives of Americans and Russians. Last July, Secretary Clinton and Foreign Minister Lavrov signed an agreement to build trust and transparency on the sensitive issue of inter-country adoption. They also approved a reciprocal visa agreement to makes it easier for business people and tourists to travel between our countries. And through the U.S.-Russia Bilateral Presidential Commission and its 20 working groups, we have built new partnerships and engaged our citizens, businesses and non-governmental organizations in areas such as health care and energy efficiency.

Even as we seek progress on areas of mutual interest, there are also areas of real difference between our countries on issues ranging from missile defense and Georgia to Syria and human rights. We continue to believe that cooperation with Russia on missile defense can enhance the security of the United States, our allies in Europe, and Russia. In pursuing cooperation on missile defense, the United States will not agree to constrain or limit our missile defenses. U.S. support for Georgia’s sovereignty and territorial integrity within its internationally recognized borders will not change. On Syria, our message to our Russian colleagues has been clear and consistent. Assad’s campaign of terror against his own people is unconscionable. It is past time for action to meet our obligations as UN Security Council members to protect peace and security and allow the Syrian people to pull their country back from the brink and embark on a political transition.

We have serious concerns about democracy and human rights in Russia -- including the unsolved murders of journalists like Paul Klebnikov and the tragic death of Sergey Magnitskiy. In these instances and many others, we have not hesitated to voice our concerns publicly and directly with Russia’s leadership. We have also taken action. Thanks to existing authorities and the President’s Proclamation on Human Rights last August, we have taken steps to deny visas to those who have committed serious human rights abuses, including those involved in the Magnitskiy case. Through U.S. assistance programs, we are also supporting the Russian people in their efforts to promote transparency, accountable government, and the fair application of the rule of law.

Today, a deeper economic partnership represents one of our greatest opportunities to work to build trust and pursue common interests with Russia. The removal of Jackson-Vanik would give ballast to our overall relationship with Russia and strengthen the case of those who argue that greater cooperation with America is good for the Russian people.

Jackson-Vanik has served a noble and historic purpose. It put American law firmly behind the liberation of hundreds of thousands of Soviet Jews trapped on the wrong side of the Iron Curtain and achieved its goal. Years ago, the National Conference on Soviet Jewry began advocating for an end to Jackson-Vanik. The American Jewish Committee, echoing statements of other Jewish groups, joined Russian democrats in reaffirming its "support for Russia's graduation from the Jackson-Vanik amendment, a Cold War relic which remains one of the thorns in the side of ties between the U.S. and Russia."

Keeping Jackson-Vanik in place for Russia also provides political ammunition for those in Russia who argue that the United States is stuck in a Cold War mentality. It puts our companies at a competitive disadvantage and diminishes our ability to hold Russia to its commitments to transparency and increased market access.

III. Russia’s Changing Landscape
Two decades ago, many were overly optimistic about how quickly change would come to Russia. The reality is that real political and economic transition in Russia is likely to take decades to complete. However, change is already happening, and the pace is increasing. After a decade of growth, an emerging generation of Russians aspires not just to see their country as a wealthy great power -- but a modern nation in which they have the opportunity to compete and innovate in the global marketplace; a nation in which they have a say in how they are governed and how their taxes are spent.

Young Russians’ connections to the world are growing and irreversible: half of Russians over age eighteen are on the Internet today. Three million Russians are blogging. Russians made over thirty-six million trips abroad last year. More Russians received visas to travel to the United States than ever before -- twice as many as came just seven years ago. Russians have become accustomed to and expect basic personal freedoms: the freedom to travel, to shift jobs and residence, to own and convey property, and to express themselves in cyberspace.

The fact that, beginning last December, tens of thousands of Russians have taken to the streets repeatedly to carry out peaceful demonstrations is a vivid reminder that Russians want a political voice and want to help shape their own future. They are a reminder that an empowered middle class, with a demand for accountability and transparency, can also drive political and economic change.

Our goal is to be supportive of efforts made by Russians themselves to modernize their economic and political systems. Russian civil society activists argue that increased trade with the United States would help strengthen this new middle class. They argue that greater transparency and accountability in rules will help attract the investment needed to move Russia’s economy away from its dependence on hydrocarbons and generate new sources of economic growth. They argue that a level playing field, including better legal protections and transparent, predictable rules applied uniformly across Russia’s territory, will help provide a hedge against corruption and monopolistic control. Refusing to lift Jackson-Vanik and extend PNTR gives America no leverage over Russia in the areas where we differ. This is why leaders of Russia’s political opposition have called on the U.S. to terminate Jackson-Vanik, notwithstanding their concerns about human rights and the Magnitskiy case -- concerns which we share. Similarly, Georgia recognized the benefits of increased trade and, notwithstanding its disagreements with Russia, joined a consensus agreement to support Russia’s WTO accession.

Over time, extending PNTR can help Russians achieve their goal of building a modern, successful and prosperous nation. Upon accession to the WTO, Russia will join the United States and others in taking on obligations to increase transparency and predictability in laws and regulations. WTO membership and PNTR alone will not cut the Russian economy free from what Russia’s own leadership recognizes are the crippling effects of corruption and weak rule of law. Other complementary measures such as beginning negotiations on a new Bilateral Investment Treaty and Russia’s progress toward OECD accession are also important to continue to support Russia’s modernization and openness to free trade. While challenges will remain for a long time to come, this long-term strategy of greater economic engagement, grounded in a rules-based system, can help to open up Russia’s economy and society and to reinforce rule of law.

Ultimately, the Russian people themselves will have to choose their country’s direction. In the meantime, we will support Russians’ own efforts to create the kind of country they strive for: an open society that protects fundamental freedoms, property rights, transparency, competition and free trade; and a modern Russia that partners with the United States to promote global security and prosperity.

Navigating relations with Russia in the months and years ahead will not be easy. It will involve a complicated mix of managing cooperation and differences. However, as Russia prepares to join the World Trade Organization, the economic needs of the American people and the Russian people’s vision for their own future both point us in the same direction: toward an end to the application of the decades-old Jackson-Vanik Amendment and the beginning of a new chapter in our economic and trade relationship with Russia.

DETROIT-AREA CLINIC OWNER PLEADS GUILTY TO $16 MILLION MEDICARE FRAUD

FROM:  U.S. DEPARTMENT OF JUSTICE
Wednesday, June 20, 2012
Detroit-Area Clinic Owner Pleads Guilty to $16 Million Psychotherapy Fraud Scheme
WASHINGTON – Detroit-area resident Louisa Thompson pleaded guilty today for her role in a $16 million fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

Thompson, 63, pleaded guilty today before U.S. District Judge Nancy D. Edmunds in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Oct. 18, 2012, Thompson faces a maximum penalty of 10 years in prison and a $250,000 fine.

According to the plea documents, in approximately January 2006, Thompson began billing Medicare for psychotherapy services through two companies, TGW Medical Inc. and Caldwell Thompson Manor Inc.  The services billed by Thompson at TGW and Caldwell Thompson were never performed or were performed by unlicensed staff who were not authorized to perform services reimbursed by Medicare.  The unlicensed staff members also fabricated therapy notes for patients that were never seen and billed Medicare using document templates created by Thompson.

According to court documents, Thompson also received payments from the owner of P&C Adult Day Care Inc., a psychotherapy clinic.  Those payments to Thompson were, in part, for the use of Thompson’s provider number by P&C.  Thompson also admitted signing therapy documents for P&C patients she never saw or treated.  P&C, like TGW and Caldwell Thompson, billed for psychotherapy services that were either not performed or performed by unlicensed staff.  Caldwell Thompson and P&C shared Medicare beneficiaries and/or beneficiary information.

Thompson admitted to submitting or causing to be submitted approximately $15.9 million in fraudulent psychotherapy claims on behalf of TGW, Caldwell Thompson and P&C.  Medicare paid approximately $4.9 million of those claims.

The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Acting Special Agent in Charge of the FBI’s Detroit Field Office Edward J. Hanko; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG), Chicago Regional Office.

The case is being prosecuted by Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section and Assistant U.S. Attorney for the Eastern District of Michigan Philip A. Ross.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,330 individuals and organizations that collectively have billed the Medicare program for more than $4 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Celebrating Title IX

Celebrating Title IX

PHOTO OF DWARF GALAXY UGC-5497

The NASA/ESA Hubble Space Telescope has captured this view of the dwarf galaxy UGC 5497, which looks a bit like salt sprinkled on black velvet in this image. The object is a compact blue dwarf galaxy that is infused with newly formed clusters of stars. The bright, blue stars that arise in these clusters help to give the galaxy an overall bluish appearance that lasts for several million years until these fast-burning stars explode as supernovae. UGC 5497 is considered part of the M 81 group of galaxies, which is located about 12 million light-years away in the constellation Ursa Major (The Great Bear). UGC 5497 turned up in a ground-based telescope survey back in 2008 looking for new dwarf galaxy candidates associated with Messier 81. Image Credit: ESA/NASA

ESA Portal - France - Grâce à Artemis, maintien de la connexion via l’espace

ESA Portal - France - Grâce à Artemis, maintien de la connexion via l’espace

TRIBUTE PAID TO WWII HERO MARINE CORPS SGT. AUDIE MURPHY

FROM:  AMERICAN FORCES PRESS SERVICE
An honor guard soldier places a wreath next to the grave of Medal of Honor recipient Army Maj. Audie L. Murphy as Marine Corps Sgt. Maj. Bryan B. Battaglia, far left, senior enlisted advisor to the chairman of the Joint Chiefs of Staff, and the Military District of Washington chapter of the Sgt. Audie L. Murphy Club, pay tribute on the World War II hero's birthday at Arlington National Cemetery, Va., June 20, 2012. DOD photo by Army Sgt. 1st Class Tyrone C. Marshall Jr.  

Senior Enlisted Leader, Namesake Club Honor Audie Murphy
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
ARLINGTON, Va., June 21, 2012 - The military's top enlisted member joined a local chapter of the Sgt. Audie L. Murphy Club here yesterday in honoring the club's namesake on his birthday.
Marine Corps Sgt. Maj. Bryan B. Battaglia, senior enlisted advisor to the chairman of the Joint Chiefs of Staff, joined the Military District of Washington Sergeant Audie L. Murphy Club in a wreath-laying ceremony to pay tribute to the American war hero, a Medal of Honor recipient, who is buried at Arlington National Cemetery.

"Eighty-eight years ago today," Battaglia said at the event, "we see a young man like Audie Leon Murphy who would become such a great American hero ... through his life – especially the life he served protecting our nation. [It's] quite impressive."

Battaglia noted that Murphy attained the rank of staff sergeant just a year and a half after joining the Army. He received a battlefield commission in October 1944, and rose to the rank of major.

"[But] Sergeant Audie Murphy wasn't someone about awards," Battaglia said. "He was about taking care of his men and women and getting the mission accomplished. And that's why I say ... it's befitting of me to ... recognize Sergeant Audie Murphy on his birthday, a very monumental date in the history of our ... armed forces. But [I'm also here to] thank the members of his club and the loyal and dedicated soldiers that continue to serve honorably and with distinguished contributions and volunteerism throughout their communities and neighborhoods."

Battaglia was joined by Army Sgt. 1st Class Jessica Taylor, president of the local chapter, who serves in the Office of the Secretary of Defense Mess.

"It is my honor today to honor the leader of our charge in the Sgt. Audie Murphy Club – Audie Leon Murphy," she said. "Today would be his 88th birthday. We welcome you all."
Other club members played prominent roles during the ceremony, including treasurer Army Staff Sgt. Tanner Welch, who recited Murphy's biography.

"Audie Murphy was killed in a plane crash on a mountain top in Roanoke, Va., May 28, 1971," Welch said. "Fittingly, his body was recovered two days later on Memorial Day."
"Audie may have been the last American war hero," he added. "He was the best combat soldier in the 200-plus year history of the United States."

Battaglia said Audie Murphy is buried next to "thousands and thousands of great American service men and women," but is special in his own right.

"I think his service in the Army goes beyond just that in the Army," he said after the ceremony, reflecting on what he has read about Murphy. "I'd like it to resonate throughout all the services. He wasn't worried about awards and decorations. The man was there to accomplish a mission, he was there to protect his country, and he was there to protect his men and women. And that's all he really cared about."

Club member Army Master Sgt. Flora McKnight, operations officer for the Military District of Washington, agreed with the sergeant major.

"We do this in order to honor Sergeant Audie Murphy," she said. "Through his abilities as a noncommissioned officer, he took care of soldiers, and that's what we do – we take care of soldiers and give back to the community.

"Through selflessness ... we have an opportunity to give back to others and to show others the correct way doing that," McKnight continued. "The selflessness comes from us giving back to our community – not only the military community, but our civilian community -- because we all form a bond."

Battaglia noted a personal connection. He served a year-long deployment in Iraq, starting in February 2007, with one of the 3rd Infantry Division brigades to which Murphy was assigned.

"He set a legacy that carries on today. ... I think all of our service members, not just soldiers ... can use Audie Murphy as an example to emulate," Battaglia said.

186 BALES OF MARIJUANA SIZED WITH EFFORTS COORDINATED BY USS NIMITZ

FROM:  U.S. NAVY
120616-N-ZZ999-032 PACIFIC OCEAN (June 16, 2012) Sailors in a rigid-hull inflatable boat from the guided-missile cruiser USS Princeton (CG 59) retrieve 186 bales of marijuana, June 16, which were apparently destined for the United States. The counter narcotics effort was coordinated with crew from the aircraft carrier USS Nimitz (CVN 68), USS Princeton (CG 59), Helicopter Sea Combat Squadron (HSC) 6, Helicopter Maritime Squadron (HSM) 75 and the Mexican navy. (U.S. Navy photo/Released)June 19, 2012 

USS Nimitz Coordinates Counter Narcotics Seizure
By Mass Communication Specialist 2nd Class Robert Winn, USS Nimitz Public Affairs
PACIFIC OCEAN (NNS) -- The crew of the aircraft carrier USS Nimitz (CVN 68) coordinated efforts with USS Princeton (CG 59), Helicopter Sea Combat Squadron (HSC) 6, Helicopter Maritime Squadron (HSM) 75 and the Mexican navy to retrieve 186 bales of marijuana, June 16, which were apparently destined for the United States.

"The coordinated response of all hands involved was phenomenal," remarked Nimitz Strike Group Commander Rear Adm. Pete Gumataotao. "The combined efforts of each of our strike group components demonstrated the flexibility and capability that defines how we conduct business."

"This crew's response was amazing," said USS Nimitz Commanding Officer Capt. Jeff Ruth. "To operationally shift gears quickly and safely from carrier qualifications to a real-world response shows what true professionals work here."

At approximately 1:50 p.m., USS Nimitz starboard lookouts, spotted two surface vessels, or contacts, approximately four nautical miles away and reported the contacts up the chain of command. The USS Nimitz crew then coordinated with HSC-6 to send MH-60S Seahawk helicopter 613 to perform a visual identification (VID) on the vessels.

"The [helicopter] was already in the air acting as plane guard for flight ops," said USS Nimitz' tactical action officer at the time. "When the Seahawk got overhead, they reported two white single engine boats about 25 feet in length, which immediately began dumping black hefty bags over the side. The small boats raced up to about 25 knots and fled to the east."

As the two small vessels fled at 2:22 p.m., USS Princeton, part of Carrier Strike Group 11, sent their rigid hull inflatable boats (RHIB) to investigate and retrieve the bags as evidence.

Eighty bales of marijuana, each weighing approximately 100 pounds, were recovered at that time.

At 5:05 p.m. USS Nimitz' officer of the deck spotted a small craft at approximately three nautical miles, which also appeared to be dumping in the sea. The USS Princeton positioned HSM-75's Lone Wolf 722, which is assigned to the USS Princeton, flying as a spotter for the rigid hull inflatable boats, or RHIBs, for further investigation. This caused those craft to flee as well.

"I thought it was pretty cool," said an HSC-6 pilot in the air at the time of the second spotting. "Most of the time we're a just-in-case asset. It was cool to be part of a situation where none of our guys got hurt and we were able to be a part of something bigger."
USS Princeton and a Mexican naval ship that came on scene retrieved more than 186 bales. The bales were then transferred to the Coast Guard Cutter Edisto for transport to shore.

The USS Nimitz Strike Group is operating in the Pacific Ocean off the coast of California conducting carrier qualification operations.

U.S. SUPPORTS SUSTAINABLE GLOBAL ENERGY ACTION AGENDA

Photo Credit:  Wikimedia. 
FROM:  U.S. DEPARTMENT OF STATE
U.S. Support for the Sustainable Energy for All Global Action Agenda
Fact Sheet Office of the Spokesperson Washington, DC
June 20, 2012
The UN Secretary General’s Sustainable Energy for All (SE4ALL) initiative represents an important opportunity for the international community to address issues critical to the future of sustainable development, energy access, and economic growth. Expanding the use of efficient and clean energy technologies is a priority of the Obama Administration, domestically and internationally, and increasing energy access is a central challenge facing the world.

The United States supports the principles of the Global Action Agenda developed by the SE4ALL High Level Group through existing and planned activities across a broad range of U.S. Government agencies. As reported elsewhere in official documents, the U.S. is providing substantial grant, loan and loan guarantee resources, from both Congressionally-appropriated funds and under loan and loan guarantee authorities, of about $2 billion in FY11 for clean energy. The Administration looks forward to working with the Congress on activities in FY12 that will build on and sustain this USG priority. These funds are helping to create a sound policy, regulatory and institutional framework for project investment and financing from private and international sources as well as directly leveraging investment. Support for innovation and energy technology partnerships is also an important focus. In building viable and sustainable energy markets, U.S. support helps create opportunities for American exports in renewable energy, power generation and energy efficiency technologies.

Below are specific examples of on-going and planned U.S. Government support for the SE4All Global Action Agenda:

1. Technical Assistance for Improving the Enabling Environment
Sustainable Clean Energy Development: Within this overall U.S. effort, the U.S. Agency for International Development (USAID) and the State Department are promoting sustainable, low emissions development through a range of clean energy activities that have national, regional, and global components. One major activity involves cooperation with up to 20 countries in developing and implementing low emissions development strategies (LEDS) that emphasize energy efficiency and renewable energy. Other activities include supporting regional energy efficiency and power grid interconnection and market development efforts; promoting regulatory and business policies that create conditions for renewable and clean energy investment; and promoting global efforts to advance new, efficient energy technologies.

 2. Participation in Clean Energy Technology Partnerships
Clean Energy Ministerial (CEM): The U.S. Department of Energy (DOE), supported by funding from the Department of State, serves as the Secretariat for the Clean Energy Ministerial (CEM), a high-level global forum to promote policies and programs that advance clean energy technology, to share lessons learned and best practices, and to encourage the transition to a global clean energy economy. Participating governments account for 80 percent of global greenhouse gas emissions and 90 percent of global clean energy investment. The CEM’s 12 initiatives build on Technology Action Plans that were released by the Major Economies Forum Global Partnership in December 2009, which laid out best practice blueprints for action in key technology areas. Three of these initiatives are components of the SE4ALL Action Agenda. The Super-efficient Appliance and Equipment Deployment (SEAD) initiative creates a common technical foundation to allow governments to more easily adopt cost-effective appliance efficiency policies and programs. The Clean Energy Solutions Center serves as a first-stop clearinghouse of online clean energy resources, including policy best practices, data, and analysis tools, and shares these resources with a global forum of energy experts, policy makers, and other stakeholders. The Solutions Center offers online training, "live" ask-an-expert assistance to help countries tailor solutions to their needs and foster international collaboration on policy innovations. Global LEAP is a voluntary forum that brings together donor governments and development partners to share knowledge and best practices under a set of commonly held principles that encourage self-sustaining commercial markets for energy access solutions, with a particular focus on energy-efficient off-grid lighting. Funding commitments for these three initiatives in FY 10 and 11 total over $16 million.

Powering Agriculture: An Energy Grand Challenge for Development: The U.S. Agency for International Development (USAID), in partnership with the Swedish International Development Cooperation Agency (SIDA), Duke Energy, the African Development Bank (AfDB), the Overseas Private Investment Corporation (OPIC), and the U.S. Department of Agriculture (USDA), has launched a new program to develop and scale appropriate, clean energy solutions for farmers and agri-businesses in the developing world. The program will focus on technology and business model innovation and commercialization of solutions.

Global Alliance for Clean Cookstoves: The United States is a founding member of this Alliance, an innovative initiative led by the United Nations Foundation and with over 400 public and private partners, including 34 countries, to save lives, improve livelihoods, empower women, and combat climate change by creating a thriving global market for clean and efficient household cooking solutions. Roughly half of the U.S. contribution supports applied research on topics such as health benefits, technology development, stove testing, and adoption. The other half targets debt financing or insurance to support the manufacture, sale, and purchase of cookstoves. The Alliance’s ‘100 by 20’ goal calls for 100 million homes to adopt clean and efficient stoves and fuels by 2020.

3. Financing and Mobilization of Private Capital
OPIC: The U.S. Overseas Private Investment Corporation offers a number of products to help investors finance projects in the developing world, including debt financing, risk insurance, and new coverage for power purchase agreements. OPIC lending for renewable energy reached $1.1 billion in FY11. The OPIC commitments normally leverage at least twice as much in private investments.

MCC: The Millennium Challenge Corporation enters into Compacts with a limited number of countries that provide grant assistance to support their reform efforts in key sectors. Electrification and clean energy is a focus in several of the current and planned Compacts.
TDA: The U.S. Trade and Development Agency supports project feasibility and related technical assessment work that support exports by U.S. companies. TDA helps to ensure project soundness and often addresses key regulatory constraints developing a project financing package.

USAID/DCA: USAID has a unique loan guarantee program called the Development Credit Authority that provides partial credit guarantees on a project or portfolio basis with local banks, municipal authorities, or private companies. DCA guarantees support USAID’s development priorities across all sectors including energy, and some specific mechanisms/windows for clean energy have been established. In 2011, DCA completed 37 transactions in 21 countries, which will result in $197 million in private capital for local loans. The leveraging impact of these guarantees on local lending was 16 to 1 in FY11.

Treasury: The U.S. Department of Treasury is the lead USG agency in the provision of clean energy finance to multilateral climate and clean energy funds including the Clean Technology Fund and the Program for Scaling Up Renewable Energy in Low Income Countries. The U.S. contribution to these funds in FY11 was approximately $195 million for clean energy activities. In addition, approximately $23.4 million of the Treasury FY2011 GEF contribution went toward clean energy activities.

USS DWIGHT D. EISENHOWER LEAVES PORT

FROM:  U.S. NAVY
The Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) departs Naval Station Norfolk for a regularly scheduled deployment in support of maritime security operations and theater security cooperation efforts in the U.S. 5th and 6th Fleet areas of responsibility. The Eisenhower Carrier Strike Group includes the guided-missile cruiser USS Hue City (CG 66), the guided-missile destroyers USS Farragut (DDG 99), USS Winston S. Churchill (DDG 81), and USS Jason Dunham (DDG 109), Carrier Air Wing (CVW) 7, and Destroyer Squadron Two Eight. U.S. Navy photo by Mass Communication Specialist 2nd Class Julia A. Casper (Released) 120620-N-RY232-093

HOME CONSTRUCTION COMPANY RESOLVES CLEAN WATER ACT ALLEGED VIOLAIONS

FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY
Home-builder Toll Brothers Inc. to Pay $741,000 Clean Water Act Penalty and Implement Company-Wide Stormwater Controls 
Settlement to prevent millions of pounds of sediment and polluted stormwater runoff from entering U.S. waterways each year
WASHINGTON –The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced that Toll Brothers Inc., one of the nation’s largest homebuilders, will pay a civil penalty of $741,000 to resolve alleged Clean Water Act violations at its construction sites, including sites located in the Chesapeake Bay Watershed. Toll Brothers will also invest in a company-wide stormwater compliance program to improve employee training and increase management oversight at all current and future residential construction sites across the nation. The company is required to inspect its current and future construction sites routinely to minimize stormwater runoff from sites. Polluted stormwater runoff and sediment from construction sites can flow directly into the nearest waterway, affecting drinking water quality and damaging valuable aquatic habitats.

“Keeping contaminated stormwater runoff out of the nation’s waterways, like the Chesapeake Bay, is one of EPA’s top priorities,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance and Assurance. “Today’s settlement will improve oversight of stormwater runoff at construction sites across the country and protect America’s waters.”

“This settlement will help protect the nation’s waters from the harmful pollutants contained in stormwater runoff from construction sites,” said Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division of the Department of Justice. “The settlement requires Toll Brothers to implement system-wide management controls and training that will help prevent polluted stormwater runoff from contaminating rivers, lakes and sources of drinking water.”

EPA estimates the settlement will prevent millions of pounds of sediment from entering U.S. waterways every year, including sediment that would otherwise enter the Chesapeake Bay, North America’s largest and most biologically diverse estuary. The bay and its tidal tributaries are threatened by pollution from a variety of sources and are overburdened with nitrogen, phosphorus and sediment that can be carried by stormwater.

The complaint, filed simultaneously with the settlement agreement, alleges over 600 stormwater violations that were discovered through site inspections and by reviewing documentation submitted by Toll Brothers. The majority of the alleged violations involve Toll Brothers’ repeated failures to comply with permit requirements at its construction sites, including requirements to install and maintain adequate stormwater pollution controls.

The Clean Water Act requires permits for the discharge of stormwater runoff. In general, Toll Brothers’ permits require that construction sites have controls in place to prevent pollution from being discharged with stormwater into nearby waterways. These controls include common-sense safeguards such as silt fences, phased site grading and sediment basins to prevent construction contaminants from entering the nation’s waterways.

The settlement requires Toll Brothers to obtain all required permits, develop site-specific pollution prevention plans for each construction site, conduct additional site inspections beyond those required by stormwater regulations, and document and promptly correct any problems. The company must properly train construction managers and contractors on stormwater requirements and designate trained staff for each site. Toll Brothers must also submit national compliance summary reports to EPA based on management oversight inspections and reviews.

This settlement is the latest in a series of enforcement actions to address stormwater violations from residential construction sites around the country. Construction projects have a high potential for environmental harm because they disturb large areas of land and significantly increase the potential for erosion, and stormwater runoff from sites can pick up other pollutants, including concrete washout, paint, used oil, solvents and trash.

The state of Maryland and the commonwealth of Virginia have joined the settlement and will receive a portion of the $741,000 penalty. The settlement includes Toll Brothers sites in
Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Nevada, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia.

The consent decree, lodged in the U.S. District Court for the Eastern District of Pennsylvania, is subject to a 30-day public comment period and approval by the federal court.

More information about this settlement: http://www.epa.gov/compliance/resources/cases/civil/cwa/tollbrothers.html

Air Force officials announce milestone Atlas V launch

Air Force officials announce milestone Atlas V launch

ESA Portal - United Kingdom - Via satellite: staying in touch at sea

ESA Portal - United Kingdom - Via satellite: staying in touch at sea

FAA & NASA AGREE ON REGULATION OF COMMERCIAL SPACECRAFT

Photo:  Launch Of Commercial Spacecraft SpaceX Dragon To The ISS.    

Credit:  NASA.

FROM:  NASA
WASHINGTON -- The Federal Aviation Administration (FAA) and NASA have 
signed a historic agreement to coordinate standards for commercial 
space travel of government and non-government astronauts to and from 
low-Earth orbit and the International Space Station (ISS). The two 
agencies will collaborate to expand efforts that provide a stable 
framework for the U.S. space industry, avoid conflicting requirements 
and multiple sets of standards, and advance both public and crew 
safety. 

The Memorandum of Understanding (MOU) signed by the two agencies 
establishes policy for operational missions to the space station. 
Commercial providers will be required to obtain a license from the 
FAA for public safety. Crew safety and mission assurance will be 
NASA's responsibility. This approach allows both agencies to 
incorporate experience and lessons learned as progress is made. 

"This important agreement between the FAA and NASA will advance our 
shared goals in commercial space travel," said U.S. Transportation 
Secretary Ray LaHood. "Working together, we will assure clear, 
consistent standards for the industry." 

"This agreement is the next step in bringing the business of launching 
Americans back to American soil," Charles Bolden, NASA administrator 
said. "We are fostering private sector innovation while maintaining 
high standards of safety and reliability to re-establish U.S.-crewed 
access to low-Earth orbit, in-sourcing work to American companies and 
encouraging the development of dynamic and cost-effective spaceflight 
capabilities built to last." 

"The Obama administration recognizes the scientific, technological and 
economic benefits of maintaining the United States' leadership in 
space travel and exploration," said FAA Acting Administrator Michael 
Huerta. "This agreement between the FAA and NASA continues and 
advances those vital national interests." 

NASA's Commercial Crew Program aims to facilitate development of a 
U.S. commercial crew space transportation capability with the goal of 
achieving safe, reliable and cost-effective access to and from 
low-Earth orbit and the International Space Station. The policy 
established in the MOU clarifies for potential commercial providers 
the regulatory environment for operational missions to the orbiting 
laboratory. It also ensures that the two agencies will have 
compatible processes for ensuring public safety. 

The FAA is responsible for regulating and licensing all U.S. private 
companies and individuals involved in commercial space 
transportation. To date, the FAA Office of Commercial Space 
Transportation has licensed 207 successful launches, including two 
non-orbital commercial human space flights in 2004 and the recent 
first launch to the ISS and re-entry of a non-manned commercial 
spacecraft.

U.S.-AFGHANISTAN RELATIONS

Photo:  Sec. Of Defense Leon Panetta Meets With Hamid Karzai.  Credit:  Department Of Defense.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Afghanistan
Bureau of South and Central Asian Affairs
Fact Sheet
June 19, 2012
On May 2, 2012, President Barack Obama and Afghan President Hamid Karzai signed the Enduring Strategic Partnership Agreement between the Islamic Republic of Afghanistan and the United States of America, a 10-year strategic partnership agreement (SPA) that demonstrates the United States’ enduring commitment to strengthen Afghanistan’s sovereignty, stability, and prosperity and continue cooperation to defeat al-Qaida and its affiliates. This agreement also signals the U.S. intent to designate Afghanistan as a Major Non-NATO Ally.

The signing of the SPA marks the culmination of over 10 years of U.S. involvement in Afghanistan, supporting the elected government, providing development aid, and stabilizing the country. During that time, the core U.S. goal in Afghanistan has been to disrupt, dismantle, and defeat al-Qaida and its affiliates, and to prevent their return to Afghanistan.

At the December 2011 Bonn Conference, the U.S. and other international partners committed to assisting in Afghanistan’s development through 2024. The U.S. continues to support a broad-based government in Afghanistan, representative of all Afghans. Afghan forces have begun taking the lead for security in many areas of the country, and the transition of full security responsibility for Afghanistan from the International Security Assistance Force (ISAF) to Afghan forces will be completed by the end of 2014.

U.S. Assistance to Afghanistan
The U.S. has made a long-term commitment to help Afghanistan rebuild itself after years of war. While the U.S. combat mission in Afghanistan is transitioning primary security responsibility to Afghan National Security Forces, the United States plans to remain politically, diplomatically, and economically engaged in Afghanistan for the long term. The U.S. and others in the international community currently provide resources and expertise to Afghanistan in a variety of areas, including humanitarian relief and assistance, capacity-building, security needs, counter-narcotic programs, and infrastructure projects.

The United States supports the Afghan Government's goals of focusing on reintegration and reconciliation, economic development, improving relations with Afghanistan’s regional partners, and steadily increasing the security capability of Afghan security forces. The U.S. encourages the Afghan Government to take strong actions to combat corruption and improve governance, and to provide better services for the people of Afghanistan, while maintaining and expanding on the important democratic reforms and advances in women’s rights that have been made since 2001.

Bilateral Economic Relations
Afghanistan has signed a Trade and Investment Framework Agreement with the United States, but a Bilateral Investment Treaty has not been negotiated. There is no Bilateral Taxation Treaty between Afghanistan and the United States.

For 2011, U.S. goods imports from Afghanistan amounted to less than 1% of U.S. goods exports to the country. Efforts are underway to encourage improvements in the business climate to attract foreign trade and investment as well as to stimulate additional trade with the United States through trade capacity development, including through World Trade Organization (WTO) accession.

Afghanistan's Membership in International Organizations
Afghanistan and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, and World Bank. Afghanistan also is a Partner for Cooperation with the Organization for Security and Cooperation in Europe and is working toward accession to the WTO.

GSA SHEDS REAL ESTATE TO SAVE MONEY

FROM:  U.S. GENERAL SERVICES ADMINISTRATION
The Georgetown Heating Plant.  Credit:  GSA
GSA Tackles Excess Property, Saves Taxpayer Dollars
Posted by Linda Chero, Acting Commissioner, GSA’s Public Building Service on June 19th, 2012
The Georgetown Heating Plant is one of the excess properties that GSA will auction this year. :  
Today, GSA’s Deputy Assistant Commissioner for Real Property Utilization and Disposal Flavio Peres updated Congress on our agency’s efforts to dispose of excess property and save taxpayer dollars. The meeting took place at the Georgetown Heating Plant in Washington, DC, which GSA will auction off this year, saving taxpayer dollars and allowing the property to be returned to productive use for the community. Auctioning this property is just one example of GSA’s ongoing efforts to better manage federal real property.  The Obama Administration is moving aggressively on disposing excess properties to save money and make more efficient use of the government’s real estate assets.

Two years ago, President Obama called on his Administration to save taxpayers billions of dollars by consolidating operations and selling excess federal properties. Recently the White House announced that agencies are on track to save $8 billion in real estate costs by the end of this year.  In fact, Agencies have already achieved more than $5.6 billion in savings, and GSA alone has contributed more than $317 million in savings so far.

In the past year alone, the federal government has sold or transferred 97 properties valued at $82 million.  GSA recently sold the Nome Federal Building in downtown Nome, Alaska, for $1.68 million.  The 27,000-square-foot, two-story building, built in 1958, will now be used as commercial office space.  At the opposite end of the country in Moscow, Maine, GSA auctioned off a 1,425 acre Cold War-era radar site for around $750,000.

GSA has been working tirelessly with all federal landholding agencies to dispose of unneeded properties and since 2002 more than 3,355 federal properties have been taken off the government’s rolls.  But more still needs to be done. Our mission at GSA is to make government more efficient and save money, and as the federal government’s landlord, we will continue to do that by working with agencies to identify and dispose of buildings and facilities that are no longer needed.

NOT ALL PLASTIC IS SAFE FOR THE MICROWAVE

FROM:  U.S. AIR FORCE SPACE COMMAND
By Capt. Tamara Fischer-Carter
AFSPC/PA
6/20/2012 - PETERSON AIR FORCE BASE, Colo. --  -- If it doesn't clearly say "microwave-safe", it probably isn't.

According to the National Sanitation Foundation International webpage, placing certain plastics into the microwave can be harmful to your health.

Many white paper towels are fabricated with plastics, and are not microwave safe. Even some paper plates can be harmful. Plain paper is safe, but plastic coated paper is generally not microwave-safe.

The NSF is a World Health Organization recognized for its scientific and technical expertise in the health and environmental sciences and recommends never using plastic storage containers such as margarine tubs, take-out containers, whipped topping bowls and other one-time use containers for cooking or reheating food in your microwave. These containers are not heat resistant and can melt, possibly leaching harmful chemicals into your food. When eaten, these chemicals can disrupt the endocrine system, increasing risk for certain cancers, diabetes and early puberty, according to the NSF.

To minimize risk, the NSF also recommends using non-plastic dishes in the microwave; glass and ceramic are preferred for use in a microwave oven. When that's not possible, only use microwave-safe plastics.

How do you know? Check the triangle.

Just what is in a triangle? On the bottom of most plastic containers, you will find a small triangle made of arrows with a number inside of it. This number indicates the type of plastic that the product is made out of. By understanding this number, consumers can better understand if and how they can recycle the product and more importantly if it is safe to place in the microwave.

Plastics marked with a "Type 1" are the easiest to recycle and are in high demand by re-manufacturers. This plastic is widely accepted by recycling facilities and curbside recycling programs. These plastics are made of polyethylene terephthalate, also known as PETE or PET. Some common plastics marked with a number one include soda and water bottles, some medicine containers, mouthwash bottles, peanut butter containers, salad dressing bottles and vegetable oil containers.

Type 1 and Type 2, which contain mostly high density polyethylene (HDPE), may be safe if marked "microwave safe"; however, some recommend against food contact when microwaving.

Type 5 plastics contain polypropylene (PP) and are used to make food storage containers like ketchup and syrup bottles, straws and plastic bottle caps. This type of plastic is most commonly labeled "microwave safe" although some still recommend against food contact when microwaving.

Polypropylene, which is in Type 5, is difficult to recycle and is only occasionally accepted through curbside programs and recycling centers.

However, as new methods for recycling PP are becoming more common, an increased number of recycling centers are accepting it.

Type 7 plastics are the most difficult to recycle and should never be used in the microwave. Some of these plastics are uniquely recycled by artists who find ways to fashion the materials into new objects. This plastic can also occasionally be re-manufactured into plastic lumber. It is important to know that some nursing bottles contain Polycarbonate and should be thrown out if they have been boiled or washed more than 20 times or are badly scratched.

What about items such as coffee cups, disposable cutlery and plates, meat trays, packing peanuts, insulation, egg cartons and carryout containers? These are Type 6 plastics made from polystyrene (PS), also known as Styrofoam. They are not heat stable and are a potential human carcinogen, meaning they contain bisphenol A (BPA), and they should never be microwaved.

Type 6 plastics are difficult to recycle, but are sometimes accepted by recycling plants and curbside programs.

Type 3 plastics are also difficult to recycle and contain polyvinyl chloride (PVC). Vinyl, a Type 3 material, often contains bisphenol A (BPA) making it hard to recycle.

Type 3 plastics are used for some plastic wraps and they should never be used in a microwave with food. PVC is also used in shower curtains, baby bottle nipples and a variety of clear bottles and packaging products. Recycled PVC can be used to make decks, mud flaps, gutters, flooring and cables.

Simply knowing the meaning of the plastic type can not only help the environment but also your body. Check with your local recycling facilities and Civil Engineering squadron to find out more on the harm plastics can cause and the proper way to dispose of them.

NASA SELECTS TROPICAL STORM STUDY FOR SMALL SPACEFLIGHT INVESTIGATIONS

Photo:  Hurricane Katrina Aftermath.  Credit:  FEMA.
NASA 
WASHINGTON -- NASA has selected an ocean wind study proposal led by
the University of Michigan from among 19 submitted to the agency's
Announcement of Opportunity for small spaceflight investigations of
the Earth system. The proposed mission will make accurate
measurements of ocean surface winds throughout the life cycle of
tropical storms and hurricanes, which could help lead to better
weather forecasting.

The competitively-selected proposal, the Cyclone Global Navigation
Satellite System (CYGNSS), is led by Principal Investigator Dr. Chris
Ruf of the University of Michigan, and includes partnerships with the
Southwest Research Institute of Texas, Surrey Satellite Technology of
Colorado and NASA Ames Research Center.

It is the second award, and first award for space-based
investigations, in the Earth Venture-class series of rapidly
developed, cost-constrained projects for NASA's Earth Science
Division. The award will be funded during the next five years for
$151.7 million. The cost includes initial development, launch,
deployment and data analysis.

The mission will use a constellation of small satellites that will be
carried to orbit on a single launch vehicle. The CYGNSS data will
enable scientists, for the first time, to probe key air-sea
interaction processes that take place near the inner core of the
storms, which are rapidly changing and play large roles in the
genesis and intensification of hurricanes. The CYGNSS measurements
also may provide information to the hurricane forecast community.

Once in orbit, CYGNSS's eight micro-satellite observatories will
receive both direct and reflected signals from Global Positioning
System (GPS) satellites. The direct signals pinpoint CYGNSS
observatory positions, while the reflected signals respond to ocean
surface roughness, from which wind speed is retrieved.

"The CYGNSS mission is both a scientific and a programmatic advance
for NASA’s Earth science and applications program," said John
Grunsfeld, NASA's Science Mission Directorate associate administrator
in Washington. "CYGNSS will provide vital science data on tropical
cyclones, and the CYGNSS team will advance our ability to obtain
high-quality Earth science data through smaller, more affordable
space systems."

The Earth Venture missions are part of NASA's Earth System Science
Pathfinder program. The small, targeted science investigations
complement NASA's larger research missions. In 2007, the National
Research Council recommended NASA undertake these types of regularly
solicited, quick-turnaround projects. The previous Earth Venture
award was for five airborne investigations all of which are
progressing well with initial data being collected. The first
Announcement of Opportunity in the Earth Venture-Instruments series
was issued earlier this year, and proposals are now under review.

The Earth Venture program is expected to continue with awards at
regular intervals for investigations using cutting edge
instrumentation carried on airborne platforms, on small space
missions, or as secondary instruments or hosted payloads on larger
platforms. NASA's Langley Research Center, Hampton, Va., manages the
Earth System Science Pathfinder program for NASA's Science Mission
Directorate. The missions in this program provide an innovative
approach to address Earth science research with periodic windows of
opportunity to accommodate new scientific priorities.

FDIC ACTING CHAIRMAN'S STATEMENT BEFORE CONGRESS ON BANK SUPERVISION AND RISK MANAGEMENT IN LIGHT OF JP MORGAN CHASE LOSSES

FROM:  FEDERAL DEPOSIT INSURANCE CORPORATION
Speeches & Testimony
Statement of Martin J. Gruenberg, Acting Chairman, Federal Deposit Insurance Corporation on "Examining Bank Supervision and Risk Management In Light of JPMorgan Chase's Trading Loss" Before the Committee on Financial Services, United States House of Representatives; 2128 Rayburn House Office Building
June 19, 2012
Chairman Bachus, Representative Frank and members of the Committee, thank you for the opportunity to testify this morning on behalf of the Federal Deposit Insurance Corporation on bank supervision and risk management as it concerns recent trading losses at JPMorgan Chase.

The recent losses at JPMorgan Chase revealed certain risks that reside within large, complex financial institutions. They also highlighted the significance of effective risk controls and governance at these institutions.

The four FDIC-insured subsidiaries of JPMorgan Chase firm have nearly $2 trillion in assets and $842 billion in domestic deposits. As the deposit insurer and backup supervisor of JPMorgan Chase, the FDIC staff works through the primary federal regulators, the Comptroller of the Currency and the Federal Reserve System, to obtain information necessary to monitor the risk within the institution.

The FDIC maintains an onsite presence at the firm, which currently consists of a permanent staff of four professionals. The FDIC staff engages in risk monitoring of the firm through cooperation with the primary federal regulators. Following the disclosure of JPMorgan Chase’s losses, the FDIC has added temporary staff to assist in our current review. The team is working with the institution’s primary federal regulators to investigate both the circumstances that led to the losses and the institution’s ongoing efforts to manage the risks at the firm. The agencies are conducting an in-depth review of both the risk measurement tools used by the firm and the governance and limit structures in place within the Chief Investment Office (CIO) unit where the losses occurred.  Following this review, we will work with the primary regulators to address any inadequate risk management practices that are identified.

Following the announcement of these losses in May, the FDIC joined the OCC and the New York Federal Reserve Bank in daily meetings with the firm. Initially, these meetings focused on gaining an understanding of the events leading up to the escalating losses in the CIO synthetic credit portfolio. The FDIC has continued to participate in these daily meetings between the firm and its primary regulators. We are looking at the strength of CIO’s risk management, governance and control frameworks, including the setting and monitoring of risk limits. The FDIC is also reviewing the quality of CIO risk reporting that has historically been made available to firm management and the regulators. Our discussions have also focused on the quality and consistency of the models used in the CIO as well as the approval and validation processes surrounding them. Although the focus of this review is on the circumstances that led to the losses, the FDIC is also working with JPMorgan Chase’s primary federal regulators to assess any other potential gaps within the firm’s overall risk management practices.

As a general matter, and apart from the specifics of this situation, evaluating the quality of financial institutions’ risk management practices, internal controls and governance is an important focus of safety-and-soundness examinations conducted by the federal banking agencies. Onsite examinations provide an opportunity for supervisors to evaluate the quality of the loan and securities portfolios, underwriting practices, credit review and administration, establishment of and adherence to risk limits, and other matters pertinent to the risk profile of an institution. One important element of risk management is that senior management and the board receives accurate and timely information about the risks to which a firm is exposed. Timely risk-related information is needed by institution management to support decision making and to satisfy disclosure requirements -- and it is an important element of supervisory review.

Without speaking to the specifics of the case for which a review is underway, the recent losses attest to the speed with which risks can materialize in a large, complex derivatives portfolio. The recent losses also highlight that it is important for financial regulatory agencies to have access to timely risk-related information about derivatives and other market-sensitive exposures, to analyze the data effectively, and to regularly share findings and observations.

MESQUITE CHARCOAL DISTRIBUTOR PLEADS GUILTY IN CHARCOAL BID-RIGGING SCHEME

FROM:  U.S. DEPARTMENT OF JUSTICE ANTITURST DIVISION
WASHINGTON — The owner of a southern California-based mesquite charcoal distributor pleaded guilty for his role in a customer allocation and bid-rigging conspiracy for the sale of mesquite charcoal, the Department of Justice announced today.

According to a one-count felony charge filed on May 7, 2012, in the U.S. District Court in San Francisco, William W. Lord, the owner of Carpinteria, Calif. -based Chef's Choice Mesquite Charcoal, participated in a conspiracy with competitors to refrain from competing for each other's customers and to submit noncompetitive bids for the sale of mesquite charcoal. According to the plea agreement, Lord has agreed to cooperate with the department's ongoing investigation.

"Today's charge demonstrates the Antitrust Division's commitment to prosecute bid-rigging conspiracies that involve products used in the everyday lives of consumers and businesses' daily operations," said Acting Assistant Attorney General Joseph Wayland in charge of the Department of Justice's Antitrust Division.

Chef's Choice distributes and sells mesquite charcoal throughout the United States. Mesquite charcoal, which is typically used by restaurants and individuals to grill meat, fish and poultry, is primarily produced in Mexico and then sold to distributors in the United States for eventual resale to restaurants and consumers.

According to court documents, the charged conspiracy began as early as January 2000 and lasted until about September 2010. Lord and his competitors, a Los Angeles-area mesquite charcoal distributor and a San Francisco-area mesquite charcoal distributor, entered into an agreement to refrain from competing for the sale of mesquite charcoal to each other's customers. The purpose of this agreement was to ensure that Lord and his competitors would not have to reduce mesquite charcoal prices in the face of competition in order to retain their customers. Lord and his competitors carried out the conspiracy in various ways, including: refraining from submitting bids for the sale of mesquite charcoal to each other's customers; submitting intentionally noncompetitive bids to each other's customers; and communicating with each other regarding what price to bid and then submitting agreed-upon, noncompetitive bids to each other's customers.

Lord is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime if either of those amounts is greater than the statutory maximum fine.

Today's guilty plea arose from an ongoing federal investigation of the mesquite charcoal industry in the United States. The investigation is being conducted by the Department of Justice Antitrust Division's Chicago Field Office and the FBI's San Francisco Office. Anyone with information concerning customer allocation, bid rigging or price fixing related to the mesquite charcoal industry in the United States should contact the Antitrust Division's Chicago Field Office at 312-353-7530 or visit www.justice.gov/atr/contact/newcase.htm.

EXERCISE TRADEWINDS 2012

FROM:  AMERICAN FORCES PRESS SERVICE
U.S. Marine Cpl. Aaron M. Kappler points out shot impacts to a Haitian Special Weapons and Tactics police officer at Barbados Defence Force Base Paragon, Christ Church, Barbados, during Exercise Tradewinds 2012 on June 16, 2012. U.S. Marine Corps photo by Cpl. Nana Dannsaappiah 

Face of Defense: Marines Train Caribbean Troops, Police
By Marine Corps Cpl. Nana Dannsaappiah
Marine Corps Reserve
CHRIST CHURCH, Barbados, June 19, 2012 - On a grassy hill here overlooking the Atlantic Ocean on June 16, a handful of U.S. Marine reservists from Headquarters Company, 23rd Marine Regiment, 4th Marine Division, taught law enforcement techniques to military and civilian members representing a group of Caribbean nations during Exercise Tradewinds 2012.

The San Bruno, Calif.-based Marines conducted law enforcement and human rights awareness training with the partner nations.

The U.S. Southern Command-sponsored exercise, officials said, included representatives from the Marine Corps, Coast Guard, Army, Navy, and Air Force, and other government agencies.  Law enforcement personnel from the Caribbean included Antigua-Barbuda, Barbados, the Bahamas, Belize, Canada, Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago.

"We're not so much focused on shooting, as much as the communication of shooting, teamwork, movement and reloading," said U.S. Marine Corps Staff Sgt. Joseph Neil, assigned to Headquarters Co., 23rd Marine Regiment.

Those attending will be able to integrate the law enforcement skills they learn here and teach it to their units, officials said. Throughout Tradewinds 2012, they will receive additional training on improvised explosive devices to help overcome booby traps they routinely face on counter-narcoterrorism operations.

"What we learn from here is very beneficial because we go on a lot of patrols and marijuana operations," said Lieutenant Steve Benny of the Trinidad and Tobago Army Learning Center.

The police techniques and tactics that the Caribbean troops learn will make it easier for them to work with their neighbors as they share common goals, officials said. The Caribbean military and police routinely work together in efforts to deter organized crime in the region.

"If there is standardization across the islands, it makes deployments easier," Benny said.
For the United States, the exercise is a cost effective technique to enhance abilities of allied nations to respond to a wide variety of regional security threats.
"Any opportunity to do a 'train the trainer' event is better because they can go back and continuously multiply it within their troops," said U.S. Marine Corps Lt. Col. Daniel Temple, an operations officer with the 23rd Marine Regiment.

Tradewinds 2012 is an annual interagency, multinational exercise designed to enhance the collective abilities of Caribbean partner nation defense forces and constabularies in order to counter transnational organized crime, and conduct humanitarian assistance and disaster relief operations, officials said.