The White House

Office of the Press Secretary

FACT SHEET: Increasing Investment in U.S. Roads, Ports and Drinking Water Systems Through Innovative Financing

Building a 21st-century infrastructure is a critical component of the Administration’s efforts to accelerate economic growth, expand opportunity, create jobs and improve the competitiveness of the American economy. As part of this effort, President Obama launched the Build America Investment Initiative in July 2014, calling on federal agencies to find new ways to increase investment in ports, roads, bridges, broadband networks, drinking water and sewer systems and other projects by facilitating partnerships between federal, state and local governments and private sector investors.

Today, the Obama Administration is announcing new steps that federal agencies are taking to bring private sector capital and expertise to bear on improving our nation’s roads, bridges, and broadband networks. First, the Administration is launching a new Water Finance Center at the Environmental Protection Agency and highlighting the progress of the Rural Opportunity Investment Initiative at the Department of Agriculture. These efforts will help local and state governments access federal loan and grant programs to get more projects off the ground. The Administration is also announcing a new set of infrastructure tax proposals that will level the playing field for projects that combine public and private investment so that local and state governments can more easily work with the private sector to advance the public interest.

At an event at the Anacostia River Tunnel Project Site in Washington, DC later today, the Vice President—joined by Environmental Protection Agency Administrator Gina McCarthy and USDA Secretary Tom Vilsack— will stress the importance of these critical investments. Today’s event is part of the Vice President’s ongoing work to highlight the importance of doing more to invest in our nation’s infrastructure to create jobs, help American businesses, and grow our economy.

Additional information about the new Build America initiatives is provided below:

  • Investing in Drinking Water and Wastewater Systems through a new Center at EPA. To help address more than $600 billion in needs for drinking water and wastewater management over the next 20 years, today the Administration is launching a new Water Finance Center at EPA. The Center will work closely with municipal and state governments, utilities and private sector partners to use federal grants to attract more private capital into projects and promote models of public private collaboration that can address the real needs of cities and towns to provide safe water, rebuild sewer systems and keep streams and rivers clean.
  • Driving Investment to Rural America via a New USDA Rural Opportunity Investment Initiative. The Administration is announcing the Rural Opportunity Investment Initiative at the U.S. Department of Agriculture, which will identify opportunities for investment in promising rural water, energy, and broadband projects, reduce barriers to investment and connect projects with investors.
  • Leveling the Playing Field for Public-Private Partnerships. Today the Administration is leveling the playing field for municipalities seeking public private partnerships by proposing the creation of an innovative new kind of municipal bond, Qualified Public Infrastructure Bonds (QPIB).
  • In addition, the Administration is advancing major highway and port projects through the Transportation Investment Center at the Department of Transportation, working with local and state governments to improve project planning, and attracting investors for U.S. projects from around the world through the SelectUSA Program.

Investing in a 21st-century American infrastructure

Investing in a 21st-century American infrastructure is an important part of the Obama Administration’s plan to build on the progress our economy is making by creating jobs and expanding opportunity for all hardworking Americans. Infrastructure like roads, bridges, ports, water purification plants and reservoirs provide critical services to consumers and businesses while protecting public health and the environment.

The construction project in Anacostia is an example of the benefits of investment in water management. Each year, 2 to 3 billion gallons of contaminated sewage water pour into the Anacostia River. The new tunnel will control this run-off, improving public health, protecting the environment, and giving a major boost to economic development on the Anacostia River’s banks.

But the current level of infrastructure investment in the U.S. is far too low and too many worthwhile projects go unfunded. The system of water pipes that bring drinking water to homes and businesses, for example, is rapidly aging. An estimated 237,600 water mains break every year. We also lose more than 46 billion gallons of water per day through leaking pipes – enough water to supply the 10 largest American cities for almost two weeks. And the costs for maintenance are only increasing. Over the next fifteen years, utilities will have to spend three times as much on pipe replacement as the current system continues to decline. 

The Administration’s activities through the Build America Investment Initiative will help interested local and state governments build more of these projects by bringing together the public and private sector to identify challenges and explore creative financing strategies – not only in water but in transportation, energy and broadband.

Private capital is not a substitute for public investment. That’s why the President has repeatedly called on Congress to increase public funding for our highways, bridges, and transit system. Last spring, the Administration proposed the GROW AMERICA Act, a 4-year, $302 billion surface transportation reauthorization proposal. But in the absence of Congress acting on this commonsense proposal, the President will continue to do whatever he can through his own authority to promote American economic growth where there is need or opportunity. And right now, there is a real opportunity to put private capital to work in revitalizing U.S. infrastructure.

That’s why today the Administration is announcing efforts across government including new executive actions and a new tax proposal to encourage investment across infrastructure sectors and in regions around the country.

  • Investing in Drinking Water and Wastewater Infrastructure through a new Center at EPA

The U.S. needs at least $600 billion in investments in water infrastructure over the next 20 years to keep our taps flowing and our rivers and lakes clean. Today, the Administration is launching a new interagency center at the Environmental Protection Agency to increase innovative financing support for water systems across the country.  The Water Finance Center will:

  • Stimulate private investment and make federal dollars go further: Around the country, towns, cities and states are exploring how to bring innovative financial tools such as public private partnerships to the water sector to get more projects off the ground. The new Center will help interested local and state governments to bring private sector investment and expertise into water system construction and management. Among other roles, the center will bring together investors and project sponsors; highlight promising deals; provide peer-to-peer learning and workshops; and develop case studies and toolkits. The Center will work with states to maximize the benefits of more than $3 billion in annual federal water investments.
  • Help attract investment to small communities. Many rural communities are served by small water utilities that lack the resources to explore financing alternatives, engage the private sector and attract investment. The new Water Center will work with on-the-ground partners to provide financial training and technical assistance to small communities and rural water systems.
  • Driving Investment to Rural America via a new USDA Rural Opportunity Investment Initiative    

Investments in rural water, energy, broadband infrastructure can create jobs and accelerate economic growth. To help rural projects attract more investment, the Administration is announcing the Rural Opportunity Investment (ROI) Initiative at USDA. In close collaboration with both public and private partners, the ROI Initiative will:

  • Connect projects to investors: The ROI Initiative will facilitate and catalyze rural investment opportunities for the public and private sectors.  The Initiative will look to generate and facilitate rural investment through USDA field staff across the country and strengthen relationships with the private sector. Public-private collaborations launched by USDA earlier this year – like the $10 billion CoBank rural infrastructure fund between CoBank and Capital Peak Asset Management and a $150 million Rural Business Investment Company – are the type of innovative financing mechanisms that the Initiative will continue to incubate in an effort to develop and finance infrastructure projects.
  • Improve access to USDA credit programs: The Initiative will also focus on opportunities to leverage private sector financing against the over $30 billion in existing USDA programs and resources to provide funding to vital rural infrastructure projects; including water and wastewater systems, energy efficiency improvements, broadband networks, and other rural infrastructure needs.
  • Leveling the Playing Field for Public Private Partnerships

The Administration is proposing the creation of an innovative new municipal bond, Qualified Public Infrastructure Bond (QPIB). Today, public private partnerships that combine public ownership with private sector management and operations expertise cannot take advantage of the benefits of municipal bonds. QPIBs will extend the benefits of municipal bonds to public private partnerships, like partnerships that involve long-term leasing and management contracts, lowering the cost of borrowing and attracting new capital.

  • A similar existing program, Private Activity Bond (PABs), has already been used to support financing of over $10 billion of roads, tunnels, and bridges. QPIBs will expand the scope of PABs to include financing for airports, ports, mass transit, solid waste disposal, sewer, and water, as well as for more surface transportation projects. Unlike PABs, the QPIB bond program will have no expiration date, no issuance caps, and interest on these bonds will not be subject to the alternative minimum tax. These modifications will increase QPIB’s impact as a permanent lower cost financing tool to increase private participation in building our nation’s public infrastructure. QPIBs would not be available for privately-owned facilities or privatizations of public facilities.

More details on QPIBs will be available in the upcoming Budget.

  • Growing Investment in Transportation Infrastructure through the DOT Transportation Investment Center

In July, the President announced the launch of a new center at the Department of Transportation to catalyze private investments in our transportation system. Since the launch of the Center, DOT has taken important steps forward, including: 

  • Facilitating access to hundreds of millions of dollars in credit assistance for vital transportation projects: In Fiscal Year 2014, DOT loaned a record $7.5 billion to 13 projects through the TIFIA program, leveraging more than $25 billion in infrastructure investments. Since the launch of the Center, DOT has accelerated high-impact projects like Portsmouth Bypass, a 16-mile, 4-lane highway in Scioto County, Ohio.
  • Expediting Project Financing and Delivery: To help get highway, port, bridge, tunnel and transit projects moving faster, the Center is providing hands-on technical assistance and facilitating efficient project delivery to projects, including adding additional projects to the Administration’s successful permitting dashboard.  The Center is also providing targeted technical assistance to support project planning for projects like the Essex County-Port Newark Container Terminal (PNCT) P3 Project – a recent TIGER grant recipient.
  • Facilitating access to hundreds of millions of dollars in credit assistance for vital transportation projects: In Fiscal Year 2014, DOT loaned a record $7.5 billion to 13 projects through the TIFIA program, leveraging more than $25 billion in infrastructure investments. Since the launch of the Center, DOT has accelerated high-impact projects like Portsmouth Bypass, a 16-mile, 4-lane highway in Scioto County, Ohio.
  • New Tools: The Center will be releasing new products, including supplemental provisions for toll concession model contracts and a new guide on incorporating Federal-aid funding into P3s. These products build on tools released over the past several months. In addition, DOT is developing model contracts that show how transportation projects can advance “high-road” labor practices that create good, middle-class jobs and benefit current and aspiring workers alike. These will be an example for other federal agencies as they work to support public private partnerships moving forward.
  • Breaking Ground on more Roads, Bridges and other Infrastructure Projects

Today, the President is signing a Presidential Memorandum to improve the early phases of infrastructure project planning and design by aligning federal funding for planning and predevelopment at the Departments of Commerce, Transportation, Homeland Security, Housing and Urban Development and Agriculture. These agencies and others will be working closely with local and state governments and other stakeholders over the coming months to ensure that the federal government is doing all it can to support critical predevelopment activities. Private foundations are also doing their part to support innovation in planning and predevelopment activities, with The John D. and Catherine T. MacArthur Foundation, Ford Foundation, and The Rockefeller Foundation announcing support for new projects around the country. 

  • Promoting Investment in U.S. Highways and Ports

For the first time, the Administration is hosting a global event with a clear US infrastructure track at the March 2015 SelectUSA Investment Summit. This Summit will bring together over 2500 leading investors and executives from around the world and connect them with US business opportunities. 

  • A high profile session focused on infrastructure to highlight the growth and diversity of the US P3 market and present day opportunities in the USA for global companies
  • A roundtable to promote the development of relationships between global investors and American partners to jointly explore US infrastructure investments.

These actions and announcements are the first steps that the Administration is taking as part of the Build America Investment Initiative’s two-year action plan, as outlined in a set of recommendations to the President.

The White House

Office of the Press Secretary

Readout of the President’s Call with Chancellor Merkel of Germany

The President spoke today with Chancellor Merkel of Germany regarding developments in Ukraine.  The two leaders discussed their support for a robust package of international financing for Ukraine as it implements an ambitious series of reforms and noted the recent United States and European Union announcements of new financial assistance for Ukraine.  They also expressed concern about the increase in separatist violence in eastern Ukraine and reiterated their agreement on the need for full and prompt implementation of the Minsk agreements in order to reach a lasting and peaceful resolution to the conflict.

The White House

Office of the Vice President

Vice President Biden Announces $25 Million in Funding for Cybersecurity Education at HBCUs

Today, Vice President Biden, Secretary of Energy Ernest Moniz, and White House Science Advisor John Holdren are traveling to Norfolk State University in Norfolk, Virginia to announce that the Department of Energy will provide a $25 million grant over the next five years to support cybersecurity education. The new grant will support the creation of a new cybersecurity consortium consisting of 13 Historically Black Colleges and Universities (HBCUs), two national labs, and a k-12 school district. 

The Vice President will make the announcement as part of a roundtable discussion with a classroom of cybersecurity leaders and students at Norfolk State University. The visit builds on the President’s announcements on cybersecurity earlier this week, focusing on the critical need to fill the growing demand for skilled cybersecurity professionals in the U.S. job market, while also diversifying the pipeline of talent in the science, technology, engineering, and mathematics (STEM) fields. The event and announcement is also an opportunity to highlight the Administration’s ongoing commitment to HBCUs.

Details on the Announcement

As highlighted by the President earlier in the week, the rapid growth of cybercrime is creating a growing need for cybersecurity professionals across a range of industries, from financial services, health care, and retail to the US government itself. By some estimates, the demand for cybersecurity workers is growing 12 times faster than the U.S. job market, and is creating well-paying jobs.

To meet this growing need, the Department of Energy is establishing the Cybersecurity Workforce Pipeline Consortium with funding from the Minority Serving Institutions Partnerships Program housed in its National Nuclear Security Administration. The Minority Service Institutions Program focuses on building a strong pipeline of talent from minority-serving institutions to DOE labs, with a mix of research collaborations, involvement of DOE scientists in mentoring, teaching and curriculum development, and direct recruitment of students.

With $25M in overall funding over five years, and with the first grants this year, the Cybersecurity Workforce Pipeline Consortium will bring together 13 HBCUs, two DOE labs, and the Charleston County School District with the goal of creating a sustainable pipeline of students focused on cybersecurity issues. The consortium has a number of core attributes:

  • It is designed as a system. This allows students that enter through any of the partner schools to have all consortia options available to them, to create career paths and degree options through collaboration between all the partners (labs and schools), and to open the doors to DOE sites and facilities.
  • It has a range of participating higher education institutions. With Norfolk State University as a the lead, the consortium includes a K-12 school district, a two-year technical college, as well as four-year public and private universities that offer graduate degrees.
  • Built to change to evolving employer needs: To be successful in the long term, this program is designed to be sufficiently flexible in its organization to reflect the unique regional priorities that Universities have in faculty research and developing STEM disciplines and skills, and DOE site targets for research and critical skill development. 
  • Diversifying the pipeline by working with leading minority-serving institutions: As the President stated in Executive Order 13532, “Promoting Excellence, Innovation, and Sustainability at Historically Black Colleges and Universities” in February 2010, America’s HBCUs, for over 150 years, have produced many of the Nation’s leaders in science, business, government, academia, and the military, and have provided generations of American men and women with hope and educational opportunity. 

The full list of participating consortium members are:

Virginia
Norfolk State University (lead)

Georgia
Clark Atlanta University
Paine College

Maryland
Bowie State University

North Carolina
North Carolina A&T State University

South Carolina
Allen University
Benedict College
Claflin University
Denmark Technical College
Morris College
South Carolina State University
Voorhees College
Charleston County School District

US Virgin Islands
University of the Virgin Islands  

California
Lawrence Livermore National Laboratory

New Mexico
Sandia National Laboratories

The White House

Office of the Press Secretary

Statement by the Press Secretary on the Publication of Regulatory Changes regarding Cuba

 Last month, President Obama announced historic changes to our Cuba policy, beginning the process of normalization between our countries, and announcing his commitment to ease restrictions on American citizens and businesses.  Today, the U.S. Departments of the Treasury and Commerce took a significant step forward in delivering on the President’s new direction by publishing regulatory amendments to existing Cuba sanctions.  These changes will immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy, and help facilitate our growing relationship with the Cuban people.
 
We firmly believe that allowing increased travel, commerce, and the flow of information to and from Cuba will allow the United States to better advance our interests and improve the lives of ordinary Cubans.  The policy of the past has not worked for over 50 years, and we believe that the best way to support our interests and our values is through openness rather than isolation.  The United States remains committed to our enduring objective of promoting the emergence of a more prosperous Cuba that respects the universal rights of all its citizens.
 

The White House

Office of the Press Secretary

FACT SHEET: White House Unveils New Steps to Strengthen Working Families Across America

Tomorrow, the President will unveil new proposals to strengthen the middle class by giving working families the flexibility to balance their families and jobs and giving all Americans the opportunity to earn sick days.  Building on the steps the Administration announced last year during the first-ever White House Summit on Working Families, tomorrow’s announcement includes:

  • Calling on Congress, as well as States and cities, to pass legislation that would allow millions of working Americans to earn up to seven days of paid sick time per year;
  • Proposing more than $2 billion in new funds to encourage states to develop paid family and medical leave programs and announcing that the Department of Labor will use $1 million in existing funds to help States and municipalities conduct feasibility studies; and
  • Modernizing the Federal workplace by signing a Presidential Memorandum directing agencies to advance up to six weeks of paid sick leave for parents with a new child and calling on Congress to pass legislation giving federal employees an additional six weeks of paid parental leave. 

The challenge of balancing work and family has grown as families have shifted so that today in most families all parents work and all parents contribute to caregiving.  Across married and single parent families, all parents are working in more than 60 percent of households with children, up from 40 percent in 1965.  And today, more than 60 percent of women with children under the age of 5 participate in the labor force, compared with around 30 percent in the 1970s.  Yet the fundamental structure of work has not kept pace with the changing American family, and many families are struggling to balance obligations at home and on the job. In fact, the United States remains the only developed country in the world that does not offer paid maternity leave.

That is why the President is announcing additional efforts to help working families that build on the steps he announced at last June’s White House Summit, including support for states to design paid leave programs and a Presidential Memorandum that established a “right to request” flexible workplace arrangements for Federal workers and directed Federal agencies to expand flexible workplace policies to the maximum possible extent. The White House Council on Economic Advisers also released a report (http://obamawhitehouse.archives.gov/sites/default/files/docs/leave_report_final.pdf) last June on the economic benefits of paid leave. From increasing the minimum wage, to equal pay for women, to workplace flexibility, to child care, to paid leave – President Obama is taking action on issues that impact America’s working families.

EXPANDING ACCESS TO EARNED SICK DAYS

When 43 million private-sector workers are without any paid sick leave, too many workers are unable to take the time they need to recover from an illness. Many workers will go to work sick, putting their coworkers and customers at risk of illness. And even if workers have access to paid sick leave for themselves, they may not be able to use it to care for sick children.  This forces many parents to choose between taking an unpaid day off work—losing much needed income and potentially threatening his or her job—and sending a child who should be home in bed to school. 

Just as importantly, a body of research shows that offering paid sick days and paid family leave can benefit employers by reducing turnover and increasing productivity.  Paid sick days would help reduce lost productivity due to the spread of illness in the workplace. And these policies can benefit our economy by fostering a more productive workforce.  Policies that better support working families can meet the needs of both employers and employees alike, and strengthen America’s economy.  For this reason, it is no surprise that many businesses see the benefit of employees earning sick days.  Two years after passage of a law requiring workers to earn paid sick days in Connecticut, more than three-quarters of employers responding to a survey indicated that they supported the new law, and employers reported that there were little or no negative effects of the new law on their bottom line.

Tomorrow, the President will:

  • Call on Congress to pass the Healthy Families Act.  The Healthy Families Act, championed by Rep. Rosa DeLauro and Sen. Patty Murray, would allow millions of working Americans to earn up to seven days per year of paid sick time.  Workers could use this time to care for themselves or a sick family member, obtain preventive care, or address the impacts of domestic violence. 

  • Call on States and cities to pass similar laws. While Congress considers the Healthy Families Act, states and localities should waste no time in passing their own laws allowing workers to earn sick leave.  In 2006, San Francisco became the first locality in the Nation to guarantee access to earned sick days.  In 2008, the District of Columbia followed suit, passing a paid sick days law that also included paid “safe” days for victims of domestic violence, sexual assault, and stalking.  In 2011, Connecticut became the first state to pass a statewide paid sick days law.  It was followed by California and this year, voters in Massachusetts supported earned sick days by overwhelming majority.  A number of cities have also recently enacted laws allowing workers to earn and accrue sick leave, including Seattle, Portland, New York City, Newark, San Diego, Eugene, and Oakland.

EXPANDING ACCESS TO PAID FAMILY AND MEDICAL LEAVE

Under the Family and Medical Leave Act (FMLA), many workers may take up to 12 weeks of unpaid time off without losing their job to care for a new child, recover from a serious illness, or care for an ill family member (roughly 60 percent  of workers are eligible for the law’s protections).  However, employers are not required to provide paid leave for these purposes and often choose to make it unpaid.  For too many Americans, unpaid leave is unaffordable. Moreover, evidence shows that mothers, who do typically take some time off in order to give birth, are more likely to return to their jobs and to stay in the workforce if they are able to take paid maternity leave. Tomorrow, the President will:

  • Outline a new plan to help more states create paid leave programs. Three states—California, New Jersey, and Rhode Island—have launched programs offering paid family and medical leave, and President Obama believes that more can be done to promote state action.  His FY 2016 Budget will propose $2.2 billion in mandatory funding to reimburse up to five states for three years for the administrative costs and roughly half of the cost of benefits associated with implementing a program.  The President’s Budget will also include $35 million in competitive grants to assist states that are still building the administrative infrastructure they would need to launch paid leave programs in the future. 

  • Provide new funding for feasibility studies.  The Department of Labor is announcing that, using existing funds this year, it will offer $1 million in new funding for its Paid Leave Analysis Grant Program, providing competitive grants to six to ten states or municipalities to conduct paid leave feasibility studies.  These grants will be administered by the Women’s Bureau and builds on the tremendous response to last year’s grant program that provided a total of $500,000 to programs in three states and the District of Columbia.

  • Propose legislation to provide paid family leave to federal workers. While Federal workers already have access to paid sick leave and vacation time, the government has fallen behind industry-leading companies and offers no paid time off specifically for family or parental leave.  In order to recruit and retain the best possible workforce to provide outstanding service to American taxpayers, the President is proposing legislation similar to the Federal Employees Paid Parental Leave Act championed by Rep. Maloney. The President’s proposal would provide Federal employees with six weeks of paid administrative leave for the birth, adoption, or foster placement of a child.  In addition, the proposal would allow parents to use sick days to care for a healthy child after a birth mother’s period of incapacitation or after an adoption.

  • Take action to modernize federal parental leave policy. Tomorrow, the President will sign a Presidential Memorandum directing agencies to allow for the advance of six weeks of paid sick leave for parents with a new child, employees caring for ill family members, and other sick leave-eligible uses.  This will allow mothers the opportunity to recuperate after child birth, even if they have not yet accrued enough sick leave.  It will also allow spouses and partners to care for mothers during their recuperation periods and will allow both parents to attend proceedings relating to the adoption of a child.  Advanced annual leave is to be made available to employees for placement of a foster child in their home.  Finally, the Presidential Memorandum directs agencies to consider a benefit some agencies already offer—help finding, and in some cases providing, emergency backup care for children, seniors, and adults with disabilities that parents can use when they need to go to work but their regular care is not available.  Some agencies provide this benefit through their Employee Assistance Program, and it can help parents with a temporary need for safe care for their children.

The White House

Office of the Press Secretary

FACT SHEET: Administration Takes Steps Forward on Climate Action Plan by Announcing Actions to Cut Methane Emissions

The Obama Administration is committed to taking responsible steps to address climate change and help ensure a cleaner, more stable environment for future generations. As part of that effort, today, the Administration is announcing a new goal to cut methane emissions from the oil and gas sector by 40 – 45 percent from 2012 levels by 2025, and a set of actions to put the U.S. on a path to achieve this ambitious goal.

U.S. oil production is at the highest level in nearly 30 years, providing important energy security and economic benefits. The U.S. is also now the largest natural gas producer in the world, providing an abundant source of clean-burning fuel to power and heat American homes and businesses. Continuing to rely on these domestic energy resources is a critical element of the President’s energy strategy. At the same time, methane – the primary component of natural gas – is a potent greenhouse gas, with 25 times the heat-trapping potential of carbon dioxide over a 100-year period.

Methane emissions accounted for nearly 10 percent of U.S. greenhouse gas emissions in 2012, of which nearly 30 percent came from the production transmission and distribution of oil and natural gas. Emissions from the oil and gas sector are down 16 percent since 1990 and current data show significant reductions from certain parts of the sector, notably well completions. Nevertheless, emissions from the oil and gas sector are projected to rise more than 25 percent by 2025 without additional steps to lower them. For these reasons, a strategy for cutting methane emissions from the oil and gas sector is an important component of efforts to address climate change.

The steps announced today are also a sound economic and public health strategy because reducing methane emissions means capturing valuable fuel that is otherwise wasted and reducing other harmful pollutants – a win for public health and the economy. Achieving the Administration’s goal would save up to 180 billion cubic feet of natural gas in 2025, enough to heat more than 2 million homes for a year and continue to support businesses that manufacture and sell cost-effective technologies to identify, quantify, and reduce methane emissions.

ADMINISTRATION ACTIONS TO REDUCE METHANE EMISSIONS

Building on prior actions by the Administration, and leadership in states and industry, today the Administration is announcing a series of steps encompassing both commonsense standards and cooperative engagement with states, tribes and industry to put us on a path toward the 2025 goal. This coordinated, cross-agency effort will ensure a harmonized approach that also considers the important role of FERC, state utility commissions and environmental agencies, and industry. Administration actions include:

Propose and Set Commonsense Standards for Methane and Ozone-Forming Emissions from New and Modified Sources

In 2012, the Environmental Protection Agency (EPA) laid a foundation for further action when it issued standards for volatile organic compounds (VOC) from the oil and natural gas industry.  These standards, when fully implemented, are expected to reduce 190,000 to 290,000 tons of VOC and decrease methane emissions in an amount equivalent to 33 million tons of carbon pollution per year. The standards not only relied on technologies and practices already in widespread use in the oil and gas sector, but also incorporated innovative regulatory flexibility.  Along with a rule to streamline permitting of oil and gas production on certain tribal lands, this approach ensured that important public health and environmental protections could be achieved while oil and gas production continued to grow and expand.

Building on five technical white papers issued last spring, the peer review and public input received on these documents, and the actions that a number of states are already taking, EPA will initiate a rulemaking effort to set standards for methane and VOC emissions from new and modified oil and gas production sources, and natural gas processing and transmission sources. EPA will issue a proposed rule in the summer of 2015 and a final rule will follow in 2016. In developing these standards, EPA will work with industry, states, tribes, and other stakeholders to consider a range of common-sense approaches that can reduce emissions from the sources discussed in the agency’s Oil and Gas White Papers, including oil well completions, pneumatic pumps, and leaks from well sites, gathering and boosting stations, and compressor stations.  As it did in the 2012 standards, the agency, in developing the proposal and final standards, will focus on in-use technologies, current industry practices, emerging innovations and streamlined and flexible regulatory approaches to ensure that emissions reductions can be achieved as oil and gas production and operations continue to grow.

New Guidelines to Reduce Volatile Organic Compounds

EPA will develop new guidelines to assist states in reducing ozone-forming pollutants from existing oil and gas systems in areas that do not meet the ozone health standard and in states in the Ozone Transport Region. These guidelines will also reduce methane emissions in these areas. The guidelines will help states that are developing clean air ozone plans by providing a ready-to-adopt control measure that they can include in those plans.

Consider Enhancing Leak Detection and Emissions Reporting

EPA will continue to promote transparency and accountability for existing sources by strengthening its Greenhouse Gas Reporting Program to require reporting in all segments of the industry. In addition to finalizing the updates to the program EPA has already proposed by the end of 2015, EPA will explore potential regulatory opportunities for applying remote sensing technologies and other innovations in measurement and monitoring technology to further improve the identification and quantification of emissions and improve the overall accuracy and transparency of reported data cost-effectively.

Lead by Example on Public Lands

The Department of Interior’s Bureau of Land Management (BLM) will update decades-old standards to reduce wasteful venting, flaring, and leaks of natural gas, which is primarily methane, from oil and gas wells.  These standards, to be proposed this spring, will address both new and existing oil and gas wells on public lands. This action will enhance our energy security and economy by boosting America’s natural gas supplies, ensuring that taxpayers receive the royalties due to them from development of public resources, and reducing emissions. BLM will work closely with EPA to ensure an integrated approach.

Reduce Methane Emissions while Improving Pipeline Safety

The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) will propose natural gas pipeline safety standards in 2015.  While the standards will focus on safety, they are expected to lower methane emissions as well.

Drive Technology to Reduce Natural Gas Losses and Improve Emissions Quantification

The President’s FY16 Budget will propose $15 million in funding for the Department of Energy (DOE) to develop and demonstrate more cost-effective technologies to detect and reduce losses from natural gas transmission and distribution systems.  This will include efforts to repair leaks and develop next generation compressors. The President’s budget will also propose $10 million to launch a program at DOE to enhance the quantification of emissions from natural gas infrastructure for inclusion in the national Greenhouse Gas Inventory in coordination with EPA.

Modernize Natural Gas Transmission and Distribution Infrastructure

DOE will continue to take steps to encourage reduced emissions, particularly from natural gas transmission and distribution, including:

  • Issuing energy efficiency standards for natural gas and air compressors;
  • Advancing research and development to bring down the cost of detecting leaks;
  • Working with FERC to modernize natural gas infrastructure; and
  • Partnering with NARUC and local distribution companies to accelerate pipeline repair and replacement at the local level.

Release a Quadrennial Energy Review (QER)

The Administration will soon release the first installment of the QER, which focuses specifically on policy actions that are needed to help modernize energy transmission, storage, and distribution infrastructure. This installment of the QER will include additional policy recommendations and analysis on the environmental, safety, and economic benefits of investments that reduce natural gas system leakage.

INDUSTRY ACTIONS TO REDUCE METHANE EMISSIONS.

The Administration’s actions represent important steps to cut methane emissions from the oil and gas sector. Fully attaining the Administration’s goal will require additional action, particularly with respect to existing sources of methane emissions. Several voluntary industry efforts to address these sources are underway, including EPA’s plans to expand on the successful Natural Gas STAR Program by launching a new partnership in collaboration with key stakeholders later in 2015.   EPA will work with DOE, DOT, and leading companies, individually and through broader initiatives such as the One Future Initiative and the Downstream Initiative, to develop and verify robust commitments to reduce methane emissions.  This new effort will encourage innovation, provide accountability and transparency, and track progress toward specific methane emission reduction activities and goals to reduce methane leakage across the natural gas value chain.

Voluntary efforts to reduce emissions in a comprehensive and transparent manner hold the potential to realize significant reductions in a quick, flexible, cost-effective way. Achieving significant methane reductions from these voluntary industry programs and state actions could reduce the need for future regulations. The Administration stands ready to collaborate with these and other voluntary efforts, including in the development of a regime for monitoring, reporting and verification. 

BUILDING ON PROGRESS

Today’s announcement builds on the “Strategy to Reduce Methane Emissions” released in March 2014. Since its release, the Administration has taken a number of actions to set us on a course to reduce methane emissions from the oil and gas sector and other sources:

  • DOE has launched a new initiative that will make up to $30 million available to develop low-cost highly sensitive technologies that can help detect and measure methane emissions from oil and gas systems. Just last month, DOE announced the 11 innovative projects selected.
  • DOE convened a series of roundtable discussions with leaders from industry, environmental organizations, state regulators, consumer groups, academia, labor unions, and other stakeholders.  The meetings culminated in July 2014, with the creation of an Initiative to Modernize Natural Gas Transmission and Distribution Infrastructure that laid out a series of executive actions, partnerships, and stakeholder commitments to help modernize the nation’s natural gas transmission and distribution systems, increase safety and energy efficiency and reduce methane emissions.
  • The US Department of Agriculture (USDA), EPA and DOE, in partnership with the dairy industry, released a Biogas Opportunities Roadmap in August 2014 highlighting voluntary actions to reduce methane emissions through the use of biodigesters.
  • BLM released an Advanced Notice of Proposed Rulemaking (ANPRM) in April 2014 to gather public input on the development of a program for the capture and sale, or disposal, of waste methane from coal mines on public lands. 
  • EPA proposed updates to its 1996 New Source Performance Standards for new municipal solid waste landfills and sought public feedback on whether EPA should update guidelines for existing landfills in June 2014, which they anticipate finalizing this year. 

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The White House

Office of the Press Secretary

President Obama Announces Presidential Delegation to the Plurinational State of Bolivia to Attend the Inauguration of His Excellency Evo Morales Ayma

President Barack Obama today announced the designation of a Presidential Delegation to La Paz, Bolivia to attend the Inauguration of His Excellency Evo Morales Ayma, President of the Plurinational State of Bolivia on January 21, 2015.

The Honorable Tom Malinowski, Assistant Secretary of State for Democracy, Human Rights, and Labor, will lead the delegation.

Members of the Presidential Delegation:

Mr. Peter M. Brennan, Chargé d’Affaires to the Plurinational State of Bolivia, Department of State

Ms. Alejandra Y. Castillo, National Director of the Minority Business Development Agency, Department of Commerce 

The White House

Office of the Vice President

Readout of the Vice President’s Call with Ukrainian Prime Minister Arseniy Yatsenyuk

Vice President Joe Biden spoke today with Ukrainian Prime Minister Arseniy Yatsenyuk regarding the situation in eastern Ukraine, additional U.S. financial assistance for Ukraine, and efforts to promote the Minsk peace process. The Vice President expressed his condolences for the civilians killed in the bombing of a passenger bus today in Donetsk Oblast, and expressed his regret at the increasing number of ceasefire violations by Russia’s proxies. The Vice President and Prime Minister also discussed progress in assembling a broad package of international financing that will support Ukraine as it takes steps to restore economic stability and unleash its economic potential. The Vice President informed the Prime Minister of the U.S. Treasury Department’s announcement regarding loan guarantees for Ukraine as part of this international package. Finally, the two leaders discussed the recent meeting of Ukrainian, Russian, French and German Foreign Ministers in Berlin, and agreed on the importance of having Russia abide by the commitments it made in the Minsk agreements, which include OSCE monitoring of the Ukrainian-Russian border, the return of hostages, and the withdrawal of arms and foreign fighters from Ukraine.

The White House

Office of the Press Secretary

FACT SHEET: Broadband That Works: Promoting Competition & Local Choice In Next-Generation Connectivity

Last November, the President outlined his plan to keep the Internet open to new competition and innovation by safeguarding net neutrality — which will help ensure no one company can act as a gatekeeper to digital content. But there is more work to do so that every American has access to a free and open internet. This is particularly true in areas where broadband competition is lacking, resulting in high prices and slow service.

Building on his net neutrality plan, tomorrow in Cedar Falls, Iowa President Obama will announce steps he will discuss in the State of the Union to help more Americans, in more communities around the country, get access to fast and affordable broadband. Communities like Cedar Falls have banded together to commit to broadband that works by bringing in new competition, leveraging municipal investments, and forming new partnerships to bring world-class Internet to places like this small Iowa town. 

High-speed, low-cost broadband is paving the way for economic revitalization not just in Cedar Falls, but in places like Chattanooga, TN, Kansas City, MO, and Lafayette, LA — all of which have Internet speeds nearly 100 times faster than the national average and deliver it at an affordable price. To help more communities achieve these results, support economic growth, and promote a level playing field for all competitors, the Obama Administration is:

  • Calling to End Laws that Harm Broadband Service Competition: Laws in 19 states — some specifically written by special interests trying to stifle new competitors — have held back broadband access and, with it, economic opportunity. Today, President Obama is announcing a new effort to support local choice in broadband, formally opposing measures that limit the range of options available to communities to spur expanded local broadband infrastructure, including ownership of networks. As a first step, the Administration is filing a letter with the Federal Communications Commission (FCC) urging it to join this effort by addressing barriers inhibiting local communities from responding to the broadband needs of their citizens. 
  • Expanding the National Movement of Local Leaders for Better Broadband: As of today, 50 cities representing over 20 million Americans have joined the Next Century Cities coalition, a nonpartisan network pledging to bring fast, community-supported broadband to their towns and cities. They join 37 research universities around the country that formed the Gig.U partnership to bring fast broadband to communities around their campuses. To recognize these remarkable individuals and the partnerships they have built, in June 2015 the White House will host a Community Broadband Summit of mayors and county commissioners from around the nation who are joining this movement for broadband solutions and economic revitalization. These efforts will also build on the US Ignite partnership, launched by White House in 2012, and which has grown to include more than 65 research universities and 35 cities in developing new next-generation gigabit applications.
  • Announcing a New Initiative to Support Community Broadband Projects: To advance this important work, the Department of Commerce is launching a new initiative, BroadbandUSA, to promote broadband deployment and adoption. Building on expertise gained from overseeing the $4.7 billion Broadband Technology Opportunities Program funded through the Recovery Act, BroadbandUSA will offer online and in-person technical assistance to communities; host a series of regional workshops around the country; and publish guides and tools that provide communities with proven solutions to address problems in broadband infrastructure planning, financing, construction, and operations across many types of business models.
  • Unveiling New Grant and Loan Opportunities for Rural Providers: The Department of Agriculture is accepting applications to its Community Connect broadband grant program and will reopen a revamped broadband loan program, which offers financing to eligible rural carriers that invest in bringing high-speed broadband to unserved and under served rural areas.
  • Removing Regulatory Barriers and Improving Investment Incentives: The President is calling for the Federal Government to remove all unnecessary regulatory and policy barriers to broadband build-out and competition, and is establishing a new Broadband Opportunity Council of over a dozen government agencies with the singular goal of speeding up broadband deployment and promoting adoption for our citizens. The Council will also solicit public comment on unnecessary regulatory barriers and opportunities to promote greater coordination with the aim of addressing those within its scope.

Background: A National Need, And Solutions That Are Working

Today, too few Americans have affordable and competitive broadband choices, but some communities around the country are choosing to change that dynamic. As a result – as outlined in a new report being issued today – cities like Lafayette, Chattanooga, and Kansas City, have broadband that is nearly one hundred times faster than the national average, yet still available at a competitive price. By welcoming new competition or building next-generation networks, these communities are pioneers in broadband that works, and tomorrow in Cedar Falls, Iowa, the President is highlighting their remarkable success stories and providing municipal leadership and entrepreneurs new tools to help replicate this success across the nation. 

Americans in even our busiest cities often find only one or two providers offering broadband service, and often none providing them with fast, fiber-optic connections — despite the fact that many of cities are already equipped with fast fiber-optic broadband. At the same time, in too many places, residents do not have access to broadband in their home, or their speeds continue to lag while their monthly bills continue to grow.

Both of these challenges are driven by the lack of broadband choice in many American markets. In fact, three out of four Americans have no competition or no service at speeds increasingly required for many online services. Rarely is the problem a lack of demand — too often, it is the capital costs of building out broadband infrastructure and a combination of laws that prevent communities from providing incentives to attract providers. Competitive markets translate to lower monthly prices, better products, and better customer service. In cities across the country, new competitors entering markets have provided consumers with new and often faster alternatives, spurring investment from incumbents and providing consumers with more choice.

Many of the communities that have taken aggressive steps to improve their broadband have residential and business Internet speeds among the fastest in the world — faster, even, than in San Francisco, New York City, or Los Angeles: 

What sets these top-performing cities apart is that they have all taken dramatic steps to bring in more competitors, and enter into new partnerships to deliver top-quality broadband. Some specific examples of how creative thinking and partnerships are delivering faster, better broadband across the country include:

Chattanooga, TNAfter investing in a visionary 1 gigabit per second broadband network, the City of Chattanooga is transforming itself into a regional center for technology and innovation. Today, Chattanooga is attracting entrepreneurs and computer programmers from around the country and boasts new business incubators and state-of-the-art public facilities. Investors have responded in kind. Since 2009, Chattanooga has gone from hosting close to zero venture capital to at least five organized funds with investable capital of over $50 million.

Wilson, NC — Through inspired leadership and the community mobilization, Wilson has been transformed from “the ‘World’s Greatest Tobacco Market’ to ‘North Carolina’s First Gigabit City,’ delivering speeds up to 100 times the national average, at a price North Carolinians can afford.  Unanimously approved by the city council, Mayor Bruce Rose believes this infrastructure “is absolutely essential to improve the economy and quality of life.”

Kansas City, MO — Kansas City was the first city to successfully compete for Google Fiber, the search giant’s entry into broadband service to homes and businesses, and today is being nationally recognized for attracting new start-ups, retaining existing business, and providing better municipal services and education as a result of this new and affordable broadband.

The new report released today by the National Economic Council and Council of Economic Advisers examines these remarkable stories in greater depth. 

The White House

Office of the Press Secretary

Presidential Nominations Sent to the Senate

NOMINATIONS SENT TO THE SENATE:

Mario Cordero, of California, to be a Federal Maritime Commissioner for the term expiring June 30, 2019.  (Reappointment)

Daniel R. Elliott, III, of Ohio, to be a Member of the Surface Transportation Board for a term expiring December 31, 2018.  (Reappointment)

Jay Neal Lerner, of Illinois, to be Inspector General, Federal Deposit Insurance Corporation, vice Jon T. Rymer, resigned.

Carlos A. Monje, Jr., of Louisiana, to be an Assistant Secretary of Transportation, vice Polly Trottenberg, resigned.

Alissa M. Starzak, of New York, to be General Counsel of the Department of the Army, vice Brad Carson, resigned.