Statement by the Press Secretary on Protecting the Flathead River Basin

On the margins of the Summit meetings in Canada this weekend, President Barack Obama and Prime Minister Stephen Harper noted the historic February 2010 memorandum of understanding between Premier Gordon Campbell of British Columbia and Governor Brian Schweitzer of Montana protecting the transboundary Flathead River Basin.

They discussed how relevant U.S. and Canadian agencies, including the U.S. Department of the Interior and Environment Canada, working with representatives of the Province of British Columbia and the State of Montana, could support this understanding and could help ensure the sustained protection of the Flathead River Basin.
 

The G-20 Summit in Toronto: Acting on Our Global Energy and Climate Change Challenges

At the Toronto Summit, G-20 Leaders reaffirmed their commitment to phasing out fossil fuel subsidies, a groundbreaking agreement at the Pittsburgh Summit which will encourage the conservation of energy, improve our energy security, reduce economically inefficient burdens on budgets, and provide a down-payment on our commitment to reduce greenhouse gas emissions.  The Leaders reviewed the significant work that has been done this past year to develop implementation strategies and timeframes, and committed themselves to continued and full implementation of this effort.

Background on the Pittsburgh Commitment and Implementation Process

At the Pittsburgh Summit, the G-20 Leaders committed to rationalizing and phasing out inefficient fossil fuel subsidies over the medium term.  Since Pittsburgh, the G-20 countries have focused on the following activities:

• Developed Country Strategies and Timeframes for Review:  In January 2010, the G-20 established an experts working group on energy, in which all 20 countries participate in an open and constructive manner. The G20 energy experts, under the supervision of the Finance and Energy Ministers, have taken initial steps to review fossil fuel subsidy programs in their own countries, and develop strategies and timeframes for rationalizing and phasing out inefficient fossil fuel subsidies.  
• Joint Report on the Scope and Impact of Global Fossil Fuel Subsidies: As requested by the G-20 leaders, the International Energy Agency (IEA), Organization of Petroleum Exporting Countries (OPEC), Organization for Economic Cooperation and Development (OECD), and World Bank will soon publish a Joint Report analyzing the scope of global energy subsidies and offering recommendations for rationalization and phase out.  Their report has found that fossil fuel subsidies displace important public investments and drain government finances, worsen balance of payments, lead to underinvestment in infrastructure, and can contribute to energy shortages.  The report estimates that fossil fuel consumption subsidies cost the the global economy $557 billion in 2008, and unless eliminated can be expected to impose similar costs in the future.  Additionally, the report found that subsidies do not provide meaningful, widespread benefits to low-income households, and that other types of targeted support for low-income families serve as a more effective social safety net.
• Recent Successes:  On June 25, India announced its decision to deregulate retail gasoline prices.  In addition, the government decided to raise the prices for diesel, kerosene, and liquid petroleum gases (LPG), with a further commitment to phase out the diesel subsidy over time.  This is a difficult decision in the short-run due to concerns about price inflation, but will provide long-term benefits to the country.  In Mexico the government has begun phasing out motor fuel subsidies while conducting a household-level census of fuel consumption that will allow the government to implement a well-targeted support program to compensate low-income households.  These models from India and Mexico are important examples of how the G-20, and countries around the world, can implement this pledge to the benefit of their national economies and most vulnerable citizens. 

Achieving Additional Progress

At Toronto, the G-20 Leaders welcomed the work to date of the Finance and Energy Ministers to fulfill the Pittsburgh fossil fuel subsidies pledge, and encouraged continued and full implementation of country-specific strategies.  The G-20 also committed to review progress towards this pledge at upcoming Leaders Summits. 

Global Action on Climate Change

The G-20 Leaders who have associated with the Copenhagen Accord reaffirmed their commitment to implementation of the Accord, and are working with countries around the world to carry out the Accord’s provisions on cutting emissions, promoting clean technologies, mobilizing financing, and ensuring the transparency of national efforts.  The G-20 countries are scaling up their domestic efforts to reduce emissions, and working to mobilize financing internationally so that developing countries can better adapt to climate change and invest in clean energy technologies.

President Obama Signs West Virginia Disaster Declaration

The President today declared a major disaster exists in the State of West Virginia and ordered Federal aid to supplement State and local recovery efforts in the area struck by severe storms, flooding, mudslides, and landslides beginning on June 12, 2010, and continuing.

The President's action makes Federal funding available to affected individuals in Logan, McDowell, Mingo, and Wyoming Counties.

Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.
 
Federal funding also is available to State and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storms, flooding, mudslides, and landslides in Logan, McDowell, Mingo, and Wyoming Counties.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures statewide.

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Donald L. Keldsen as the Federal Coordinating Officer for Federal recovery operations in the affected area. 

FEMA said additional designations may be made at a later date if requested by the State and warranted by the results of further damage assessments.

FEMA said that residents and business owners who sustained losses in the designated counties can begin applying for assistance tomorrow by registering online at http://www.DisasterAssistance.gov or by calling 1-800-621-FEMA(3362) or 1-800-462-7585 (TTY) for the hearing and speech impaired. The toll-free telephone numbers will operate from 7 a.m. to 10 p.m. (local time) seven days a week until further notice. 

FOR FURTHER INFORMATION CONTACT:  FEMA (202) 646-3272.