Category: Aviation

  • MIL-OSI Europe: Answer to a written question – Poor treatment of airline passengers – E-001628/2024(ASW)

    Source: European Parliament

    The Commission would like to underline that, in accordance with the Air Services Regulation 1008/2008[1], airlines are free to set their own airfares.

    However, air carriers must also provide information to passengers on the elements of those fares, particularly as regards optional price supplements such as ‘priority boarding’ services.

    As regards the boarding process, it is up to air carriers and airports to design and implement it. It should be however emphasised that accordingly to EU rules on consumer protection and a common principle of consumer contract law, the customer can request a refund if a service has been paid for but is not provided.

    Furthermore, if an airline expects that the flight will be delayed beyond the scheduled departure time, passengers are entitled to assistance depending on the length of the delay and distance of the flight.

    Finally, while the Commission has no power to intervene in individual disputes between passengers and air carriers, passengers who believe their rights under the regulation have not been respected can contact the body in the country where the incident took place[2] or contact a European Consumer centre when it comes to general consumer rights[3].

    • [1] https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32008R1008
    • [2] List of National Enforcement Bodies : https://transport.ec.europa.eu/document/download/d7b5dd33-4083-4faa-8132-b6dc8b3a1c07_en?filename=2004_261_national_enforcement_bodies.pdf
    • [3] List of European Consumer Centres Network : https://commission.europa.eu/live-work-travel-eu/consumer-rights-and-complaints/resolve-your-consumer-complaint/european-consumer-centres-network-ecc-net_en
    Last updated: 24 October 2024

    MIL OSI Europe News

  • MIL-OSI USA: CHP recovers more than 2,000 stolen vehicles in Oakland since February

    Source: US State of California 2

    Oct 23, 2024

    What you need to know: California Highway Patrol officers conducted blitz operations this weekend, targeting sideshows that led to 22 arrests and the seizure of 36 vehicles. These actions are part of the state’s ongoing enforcement surge in the region, in partnership with the city, which has resulted in 1,125 arrests, and the seizure of 2,213 stolen vehicles and 110 illegal guns since February 2024. 

    OAKLAND – The California Highway Patrol cracked down on sideshows in Oakland this weekend as part of Governor Newsom’s enforcement surge to improve public safety in Alameda County and the East Bay. This week, CHP responded to and subsequently conducted investigations arising from multiple sideshows in the region, arresting 22 individuals and seizing 36 vehicles.

    Governor Newsom launched the CHP operation in February in partnership with the City of Oakland, in response to increased public safety needs in the region, including organized retail theft and sideshows. He then again quadrupled the shifts of CHP officers in Alameda County in July to provide CHP support to the city seven days per week. The most recent surge in officers has led to a 57% increase in arrests, a 44% increase in stolen vehicles recovered, and a 188% increase in guns seized compared to the previous three-month period.

    This builds on CHP’s ongoing work in the region, which has led to the arrest of 1,125 suspects, the seizure of 2,123 stolen vehicles, and the seizure of 110 illegal firearms since February.

    “California has provided robust investments to support the Oakland community by cracking down on crime and uplifting programs that help prevent it. Our recent work in Oakland should send a strong message that lawlessness and crime will not be tolerated in our state. I thank our CHP officers for their work on the ground to help make the East Bay safer for all its residents.”

    Governor Gavin Newsom

    According to the California Department of Justice’s most recent verified data, unlike most communities in California, crime spiked considerably in Alameda County last year. Alameda County had the highest homicide, violent crime, and property crime rates of California’s 10 largest counties in 2023. While new verified data will not be available until next year, local reporting indicates that crime appears to be going down in 2024.

     In July, Governor Newsom announced the state was ramping up efforts to crack down on crime in the East Bay by increasing the deployment of CHP officers in Oakland, quadrupling the number of CHP officer shifts over four months to help local agencies target organized crime, sideshows, carjacking, and other criminal activity seven days a week.

    In just the three months since Governor Newsom announced the deployment of additional officers to the area, CHP has made 524 arrests and seized 920 stolen vehicles, and taken 52 firearms off the street. 

    Technology to investigate illegal sideshows

    As part of this work, California installed a network of cameras on state highways, completed in September. The new cameras, announced by Governor Newsom in April, improve vehicle identification, allowing law enforcement agencies to search for vehicles suspected to be linked to crimes and receive real-time alerts about their movement. These cameras have contributed to multiple investigations of sideshows in the area, including the following operations:

    On October 20 at approximately 3:15 a.m., a CHP airplane observed a sideshow in progress at the intersection of 98th Avenue and Edes Avenue in Oakland. A vehicle was identified as a participant, and when an enforcement stop was attempted, the suspect fled from the officers. With constant aerial surveillance and assistance from cameras near the sideshow, ground units safely pursued the suspect and successfully arrested two individuals for attempting to evade law enforcement and impounded the vehicle for 30 days.

    CHP video footage of sideshow on 98th and Edes Avenue 

    CHP video footage of arrest of individual after pursuit on the Bay Bridge

    • Later that evening, at approximately 9:30 p.m., a CHP helicopter observed a sideshow in progress on West Grand Avenue under I-880 in Oakland. Spectators were shining laser lights at the law enforcement aircraft, and upon breaking up the sideshow, 14 individuals were arrested for being spectators at a sideshow and six vehicles were towed.

    Today, CHP conducted investigations into the recent sideshows, issuing a number of search warrants that will result in the seizure of additional vehicles owned by participants and spectators of the sideshows that occurred over the weekend.
     

    “The dedicated men and women of the CHP are working tirelessly to combat crime, improve public safety, and hold sideshow participants accountable for their reckless actions,” said CHP Commissioner Sean Duryee. “We remain committed to ensuring the streets of Oakland are safer for everyone, and we will continue to use every tool at our disposal to uphold the law and protect our residents.”

    Stronger enforcement. Serious penalties. Real consequences.

    Recently, the Governor signed into law a bipartisan package of bills to impose stricter penalties, increase accountability, and strengthen law enforcement’s ability to combat sideshows and deter illegal activities such as drifting, street racing, and blocking intersections. The new laws expand vehicle impoundment authority for law enforcement, including for spectators and those aiding in illegal speed contests and sideshows, standardize terminology for “sideshows” and “street takeovers” statewide, and target reckless driving activities on highways and parking lots.

    The Governor also recently signed into law the most significant bipartisan legislation to crack down on property crime in modern California. Building on the state’s robust laws and record public safety funding, these bipartisan bills establish tough new penalties for repeat offenders, provide additional tools for felony prosecutions, and crack down on serial shoplifters, retail thieves, and auto burglars. 

    Supporting and investing in Oakland 

    In March, the Governor released Caltrans’ 10-Point Action Plan to support the city’s efforts to improve street safety and beautification. The comprehensive plan outlines actionable steps the state is taking to further support the city through blight abatement efforts, homeless encampment resolutions, community outreach initiatives, employment opportunities, and other beautification and safety efforts. A detailed overview of the state’s investments in Oakland and Alameda County is available here.

    California has invested in violence intervention and prevention efforts in the city — including through CalVIP, which provides funding for cities and community-based organizations with the goal of reducing violence in the city and adjacent areas. The state has also expanded opportunities for youth by transforming Oakland’s schools into community schools, mandating and funding after-school programs, awarding Oakland grants for youth coaches, establishing targeted college and career savings accounts, and providing tuition-free community college for students at Oakland community colleges. 

    Videos above may be attributed to the California Highway Patrol. 

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    MIL OSI USA News

  • MIL-OSI Security: Abraham Lincoln Carrier Strike Group Conducts Second Multi-Large Deck Event with Italian ITS Cavour CSG

    Source: United States Naval Central Command

    U.S. CENTRAL COMMAND AREA OF RESPONSIBILITY —

    The Abraham Lincoln Carrier Strike Group (CSG) conducted a Multi-Large Deck Event (MLDE) with the Italian Navy’s ITS Cavour CSG, Oct. 18.

    MLDE provide the ships and aircrafts of the two naval forces, comprised of more than 7,500 U.S. and Italian Sailors and Marines, an opportunity to advance interoperability by carrying out integrated planning and coordination, communications, cross-deck leadership exchanges, a fast-roping exercise, and an air defense exercise to strengthen combined maritime operations and combat readiness.

    “The opportunity to exercise our interoperability with our Cavour CSG counterparts for a second time in our deployment, highlights our strategic advantage inherent to our network of strong alliances,” said Rear Adm. Adan Cruz, commander, Carrier Strike Group (CSG) 3. “We have seized every opportunity to fly and sail with our Italian counterparts to deepen our combined operational capacity anywhere in international waters.”  

    During the event, Rear Adm. Giancarlo Ciappina, commander, Cavour Carrier Strike Group, hosted Cruz, aboard the ITS Cavour for a visit focused on building relationships.

    “We are proud to work once again alongside Lincoln Carrier Strike Group, after almost two months from our first interaction in the Pacific Ocean,” said Ciappina. “[It] has represented another precious opportunity to train together and to exchange experiences and knowledge, highlighting the versatility and flexibility of Navies operating on a global scale, wherever a presence is required to keep maritime lines of communication open and safe to strengthen our bonds and to enhance levels of cooperation with commitment to security.”

    This marks the second time the Abraham Lincoln CSG participated in an MLDE with the Italian Navy during the 2024 deployment. The previous event in August marked the first-ever MLDE between U.S. and Italian Navies in the Indo-Pacific.

    Participating ships in the MLDE included Nimitz-Class aircraft carrier USS Abraham Lincoln (CVN 72), Integrated Air and Missile Defense Commander (IAMDC) USS Frank E. Petersen, Jr. (DDG 121), Arleigh Burke-class guided-missile destroyers USS O’Kane (DDG 77) & USS Michael Murphy (DDG 111), assigned to Destroyer Squadron 21, Italian aircraft carrier ITS Cavour (CVH 550), Italian Frigate ITS Alpino (F 594), and Italian Multipurpose Combat Ship Raimondo Montecuccoli (P 432).

    Participating aircraft included MH-60S and MH-60R Sea Hawks, F/A-18E & F Super Hornets, E/A-18G Growlers, F-35C Lightning II, and E-2D Hawkeye, all assigned to Carrier Air Wing 9; and Italian F-35B Lightning II and AV-8B Harrier II assigned to Cavour CSG.

    Cruz and Ciappina conducted a conditions check via virtual teleconference prior to the commencement to ensure all participants were ready, Oct. 17. The exercise started with personnel exchanges where key Abraham Lincoln CSG leadership toured Cavour and Italian officers toured the USS Abraham Lincoln.  USS O’Kane and ITS Raimondo Montecuccoli conducted a joint live-fire exercise, while the embarked U.S. explosive ordnance disposal team conducted a subject matter expert exchange and fast rope exercise with Italian counterparts. The event concluded with a complex air defense exercise involving both CSG’s tactical aircraft.

    “It is an honor to once again have the opportunity to work jointly with our NATO Allies,” said Cruz. “I am grateful to Rear Adm. Ciappina and his entire crew of the ITS Cavour for their gracious hospitality aboard their ship. I am also grateful to continue training and operating together to drive interoperability forward.”

    Ciappina responded with his reflection on the MLDE.

    “I am very grateful to Adm. Cruz and to the whole crew of ABE CSG for their great effort and professionalism continuously shown during these challenging times for peace and international stability and that clearly confirm their strong commitment towards own common values, which are shared within the allied and partner Navies on a global scale,” concluded Ciappina.

    The Abraham Lincoln Carrier Strike Group stands ready to successfully conduct any mission essential to U.S. National security, spanning combat operations to integrated maritime operations with our allies and partners to maritime security and stability in the U.S. Central Command area of responsibility. It also operates postured to deliver unfaltering maritime force to deter, defend, and if necessary, defeat coercive behavior from those who seek to challenge the rules-based international order.

    The Abraham Lincoln Carrier Strike Group consists of USS Abraham Lincoln (CVN 72), embarked staffs of Carrier Strike Group (CSG) Three and Destroyer Squadron (DESRON) 21, squadrons of Carrier Air Wing (CVW) Nine, IAMDC USS Frank E. Petersen Jr. (DDG 121), and USS O’Kane (DDG 77), USS Spruance (DDG 111), and USS Michael Murphy (DDG 112).

    CVW-9 consists of an F-35C squadron, the “Black Knights” of Marine Fighter Attack Squadron (VMFA) 314; three F/A-18E/F Super Hornet squadrons, the “Tophatters” of Strike Fighter Squadron (VFA) 14; “Black Aces” of Strike Fighter Squadron (VFA) 41, the “Vigilantes” of Strike Fighter Squadron (VFA) 151; “Wizards” of Electronic Attack Squadron (VAQ) 133, operating the EA-18G Growler; “Wallbangers” of Carrier Airborne Early Warning Squadron (VAW) 117, operating the E-2D Advanced Hawkeye; “Chargers” of Helicopter Sea Combat Squadron (HSC) 14 operating the MH-60S Sea Hawk; and “Raptors” of Helicopter Maritime Strike Squadron (HSM) 71, operating the MH-60R Sea Hawk.

    For more news from CSG-3, http://www.dvidshub.net/unit/USSAL-CVN72#

    MIL Security OSI

  • MIL-OSI China: BRICS countries enhance cooperation through close economic, trade exchanges

    Source: People’s Republic of China – State Council News

    BEIJING, Oct. 24 — Economic and trade ties among BRICS countries are becoming increasingly close, and China is playing an important role in driving mutually beneficial BRICS cooperation.

    The term BRIC was initially coined in 2001 as a concept referring to the emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

    Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade. It has become the world’s most important platform for solidarity and cooperation among emerging markets and developing countries.

    The 16th BRICS Summit, held Tuesday to Thursday in Kazan, Russia, has drawn global attention and is believed to bring new economic and trade cooperation opportunities between China and other BRICS nations.

    China’s foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1 percent, customs data showed.

    The trade growth can be attributed to a high degree of economic complementarity, as well as China’s commitment to high-level opening up and the free trade agreements between China and other BRICS countries, said Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

    In the industrial sector, China’s exports of steel and textile raw materials to other BRICS nations grew by 8.6 percent and 13.4 percent year on year in the first three quarters.

    During the same period, China’s exports of intermediate goods such as integrated circuits, tablet display modules and aircraft parts to other BRICS countries achieved double-digit growth, helping other BRICS members boost their emerging industries.

    Trade in agricultural products has also been robust. In the first three quarters, over 80 percent of poultry and frozen pollack and over 50 percent of crabs imported by China came from BRICS members.

    “For BRICS countries, trade cooperation is not only conducive to promoting technological exchanges and innovation but also to bringing more development opportunities for member countries and even the world,” Hong added.

    Regarding the financial sector, the New Development Bank is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the Shanghai-headquartered institution provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

    Funding a raft of projects ranging from India’s urban rail to Brazil’s wind power complexes, the bank has cumulatively approved loans of 35 billion U.S. dollars for more than 100 projects to date.

    Building on its commitment to multilateralism, BRICS has taken practical steps to unlock the potential of economic and trade cooperation and create new growth areas. These include policy coordination and joint initiatives to enhance trade and investment opportunities among member states.

    At the 14th BRICS Economic and Foreign Trade Ministers’ Meeting held in Moscow in July, participants agreed to step up exchanges and cooperation in emerging areas such as global value chains, digital technologies and special economic zones, conduct practical cooperation in green product standards, electronic documentation and e-commerce, and strengthen policy exchanges, capacity building and best practice sharing.

    By enhancing economic and trade exchanges, BRICS countries have capitalized on their complementary advantages, serving as an important force to oppose trade protectionism and promote global economic growth, noted Liu Ying, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.

    MIL OSI China News

  • MIL-OSI: Drones Driven by A.I. Are Taking Over Major Industries Including Agriculture, Construction, Military & More

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — FN Media Group News Commentary – Artificial intelligence (AI) and drones are a formidable combo that has the potential to transform a variety of industries. When coupled, they build intelligent and autonomous airborne systems capable of completing complicated tasks in a variety of conditions. Because of this, the combination of artificial intelligence and drone technology offers new aerial technological developments for various industries, including agriculture, construction, energy, and security, as well as a solution to many aerial imagery demands. Factors such as technological advancements, growing need for automation and efficiency, and the increasing adoption of drones in the Logistics and Delivery, Agriculture and Precision Farming, Disaster Management and Search & Rescue, Environmental Monitoring and Industrial sectors are boosting the adoption of AI solutions in the UAV landscape. A report from Knowledge Sourcing Intelligence projected that the Artificial Intelligence in drone market size is projected to show steady growth during the forecast period (2024-2029). The report said: “Booming drone adoption in the sector boosts AI in drone market growth. Drones driven by AI are taking over major sectors such as agriculture, serving as industrious field workers. They minimize human effort while monitoring crop health, accurately locating pests, and applying irrigation to maximize production and optimize resource use. The movement known as “precision agriculture” is revolutionizing the way of raising food. According to the January 2022 Press Release Bureau, the government is extending financial support under the “Sub-Mission on Agriculture Mechanization” to encourage the use of drones in agriculture. The Agriculture Ministry will give agricultural institutions grants of up to Rs. 10 lakhs so the farmers can buy drones. When it comes to drone demonstrations on farmer fields Farmer’s Producers Organizations (FPOs) can receive funds for up to 75% of the total cost of the drone. The initiatives and factors supporting agriculture enhance the drone market.” Active Tech Companies in the markets today include ZenaTech, Inc. (NASDAQ: ZENA), Palantir Technologies Inc. (NYSE: PLTR), QUALCOMM Incorporated (NASDAQ: QCOM), AgEagle Aerial Systems Inc. (NYSE: UAVS), Draganfly Inc. (NASDAQ: DPRO).

    “The growing need for automation in logistics propels AI in drone market. Industries these days need effective and automated ways to handle logistics jobs. Drones and AI together present an attractive alternative for companies looking to increase productivity and accuracy as they save labor expenses and increase productivity by automating operations that were previously done by hand. By the end of 2024, Prime Air plans to expand internationally into Italy and the UK, in addition to starting drone deliveries in the United States. Similarly, in October 2023, Amazon Pharmacy launched drone delivery of pharmaceuticals. Eligible consumers in College Station, Texas, can now have their drugs delivered to their homes via drone within 60 minutes of placing their purchase with Amazon Pharmacy.”

    ZenaTech Inc. (NASDAQ:ZENA) Issues Big Development News Today on Adding Patent Assets to the Company – Get the full details by visiting: https://www.financialnewsmedia.com/news-zena/

    Additional Groundbreaking ZenaTech Inc. Developments this week include:

    ZenaTech Announced a Software Company Acquisition Adding Significant Capabilities to Building AI Drones – ZenaTech also announced that it has entered into an agreement to acquire ZooOffice Inc., the holding company for software companies Jadian and DeskFlex, from ZenaTech’s former parent company. The acquisition of these two software companies will provide important compliance and inspection software as well as scheduling and mapping software that will be incorporated into ZenaTech’s ZenaDrone AI drone solutions. This transaction further expands ZenaTech’s portfolio of SaaS software solutions and customer base and is expected to add to recurring revenue in the government sector among others. The acquisition is subject to shareholder and regulatory approvals that may be required.

    “Adding Jadian and DeskFlex software capabilities to the ZenaTech portfolio is part of our strategy to offer full stack, integrated AI drone solutions targeted to multiple sectors such as Agriculture. Jadian’s compliance software will be integrated with ZenaDrone drone hardware and sensors to help farmers track and manage regulatory and environmental requirements such as crop traceability, fertilizer and pesticide use, water conservation, and greenhouse gas emissions. Deskflex scheduling and mapping software will add value integrated into our property management sector solutions,” said CEO Shaun Passley, Ph.D. Read this full release at: https://finance.yahoo.com/news/zenatech-announces-software-company-acquisition-113000656.html

    Other recent developments in the technology industry include:

    Edgescale AI Inc. and Palantir Technologies Inc. (NYSE: PLTR) recently announced a strategic partnership to deliver Live Edge, a groundbreaking combination of Palantir Edge AI and Edgescale AI distributed infrastructure technology, designed to operationalize artificial intelligence (AI) in manufacturing, utilities, and other complex industrial environments.

    AI is reshaping the world and transforming our relationship with technology, yet applying AI to operational technology in industries and critical infrastructure remains a challenge. So long as the complexity and operational burden of activating machines, equipment, vehicles, and sensors in physical systems remains high, we only achieve a fraction of AI’s true potential for automating our technology and improving our lives.

    QUALCOMM Incorporated (NASDAQ: QCOM) recently announced that, through its subsidiary Qualcomm Technologies, Inc., Aramco, and Saudi Arabia’s Research, Development and Innovation Authority (RDIA) are planning to launch Design in Saudi Arabia (DISA). DISA is envisaged to be an incubator program for Saudi Arabia that aims to support startups that are adopting AI, Internet of Things (IoT), and wireless technologies for industrial use cases.

    This initiative aims to support early-stage startups in the high-tech sector by guiding them from product design and development to commercialization. It aims to provide a comprehensive suite of support that includes technical assistance, business coaching, and intellectual property (IP) training, all aimed at enhancing the Kingdom’s technology ecosystem. Should this initiative materialize, startups would gain access to resources such as Qualcomm Technologies and Aramco’s industrial experience and RDIA’s strategic guidance.

    AgEagle Aerial Systems Inc. (NYSE: UAVS) a leading provider of best-in-class unmanned aerial systems (UAS), sensors and software solutions for customers worldwide in the commercial and government verticals, recently issued a Letter to Stockholders from Company CEO Bill Irby.

    Dear Stockholders: First, I want to extend my appreciation for the trust and confidence you have placed in AgEagle. Upon taking over as CEO from Grant Begley (former interim CEO and current Board Chairman), we have been evolving and advancing AgEagle toward the creation of maximum long-term shareholder value.

    To fund our aggressive growth plans, we recently completed a $6.5M capital raise. The market’s reaction was a continued decline in our stock price. It became necessary to plan and execute a 50:1 reverse stock split. Our trading was halted October 4th but has since resumed, and I am truly optimistic regarding the path ahead as I believe that the company is currently under-valued… In conclusion, through a combination of our key initiatives, growing demand, and demonstrated progress in our newest market, I believe AgEagle is on the correct path to increase long-term shareholder value. We appreciate your continued support. Sincerely, Bill Irby, CEO

    Draganfly Inc. (NASDAQ: DPRO), an award-winning, industry-leading developer of drone solutions and systems, recently announced its participation in the upcoming Wings of Saskatchewan event in Regina, from October 30 to October 31, 2024. Draganfly will showcase its latest drone technology advancements, contributing to discussions on industry trends, safety, and regulatory considerations alongside key stakeholders in the aviation sector.

    The Wings of Saskatchewan Conference, hosted by the Saskatchewan Aerial Applicators Association and the Saskatchewan Aviation Council, serves as a vital gathering for the aviation community. This year’s event will bring together leaders from both civil and commercial aviation sectors to discuss technological advancements, regulatory updates, and future trends within the industry.

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    The MIL Network

  • MIL-OSI USA: $100 Million to Expand Free and Low-Cost Afterschool Programs

    Source: US State of New York

    Governor Kathy Hochul today announced New York State has awarded about $100 million in grants to support free and low-cost afterschool programs serving nearly 40,000 children in high-need areas statewide. State officials from the Office of Children and Family Services (OCFS) also participated in the 25th Annual Lights on Afterschool initiative today by visiting programs in New York City and the Capital Region.

    “Afterschool programs give our kids outlets to explore their creativity, build their skills and thrive in a supportive environment,” Governor Hochul said. “We’re continuing to invest in free and low-cost afterschool programs and expanding access to affordable child care to help young people grow and give families the support they need.”

    The State grants announced today were awarded by OCFS through the Learning and Enrichment Afterschool Program Supports (LEAPS) initiative to help fund new or continuing afterschool programs targeted to children in high-need areas in New York State.

    These LEAPS grants were awarded to a total of 238 afterschool program sites statewide. The full list of awarded sites can be seen here.

    Site Awards by Region
    Region Number of Sites Awarded Funding Awarded
    Capital Region 22 $6,480,000
    Central New York 18 $6,400,000
    Finger Lakes 17 $5,750,000
    Long Island 20 $8,920,000
    Mid-Hudson 22 $12,340,000
    Mohawk Valley 19 $4,960,000
    New York City 74 $38,690,000
    North Country 14 $3,380,000
    Southern Tier 5 $1,530,000
    Western New York 27 $8,450,000

    As a part of the OCFS Commissioner’s participation in the Lights On Afterschool initiative, Dr. DaMiaHarris-Madden visited programs in the Bronx operated by the Committee for Hispanic Children and Families and Good Shepherd Services, while other members of the OCFS leadership team visited the Lansingburgh Boys & Girls Club in Troy. Now in its 25th year, the initiative recognizes the many ways afterschool programs support students by offering educational opportunities and the development of new skills.

    Programs eligible for LEAPS grants included State-licensed school-age child care programs – or organizations interested in becoming a licensed school-age child care provider – that serve children in high-need school districts. Per-site funding amounts were based on each program’s OCFS-licensed capacity. The grants are intended to fund the critical programming and other costs of developing and running the program. Grants are contingent on programs completing all licensing and contract requirements and therefore subject to change.

    The grants announced today are part of Governor Hochul’s continued efforts to make high-quality child care more affordable and accessible. Other recent efforts include expanding access to the State’s Child Care Assistance Program (CCAP). Eligible families can apply online for CCAP, which currently covers free or low-cost child care for 130,000 children statewide. While eligibility is based on multiple factors, including income and family size, many families may qualify for CCAP if their household income is at or below 85 percent of the State Median Income. Currently, 85 percent of the State Median Income for a family of four is approximately $108,000. Under CCAP, most eligible families pay no more than $15 per week for child care.

    OCFS Commissioner Dr. DaMia Harris-Madden said, “We thank Governor Hochul and the afterschool providers across NYS for ensuring that are children have protective and stimulating environments during the challenging hours of 3-6 p.m. Afterschool programs are tried-and-true interventions that keep our kids safe and engaged through a variety of pro-social experiences and positive youth development opportunities to include the arts, academics, sports, and college/career exploration. Structured programming that introduces caring adults also aids in the development of children’s emotional and physical well-being and provides alternatives to unproductive use of leisure time.”

    OCFS Deputy Commissioner for the Division of Child Care Services Nora Yates said, “The new LEAPS funding will provide the high-quality afterschool academic support and enrichment vital to enabling our children and youth to reach their full potential and keep them engaged in healthy, productive activities during out-of-school time. The programs will ensure higher pay rates for staff and also help mitigate the ongoing impacts from the pandemic by expanding students’ access to social and emotional support services as well as other family and community supports.”

    New York State Alliance of Boys and Girls Clubs Executive Director Jackie Negri said, “Governor Hochul’s new streamlined LEAPS initiative demonstrates unprecedented support for community-based afterschool programs across the State and the youth they serve. After-school programs like Boys & Girls Clubs are proven to provide academic support, enrichment and a safe place for New York’s youth. This initiative will increase positive youth development programs and services for more youth and families in high-needs areas statewide.”

    New York State Network for Youth Success Chief Executive Officer Kelly McMahon said, “The NYS Network for Youth Success celebrates the transformative impact of the LEAPS grant, which is expanding access to high-quality afterschool programs across New York. With significant improvements to funding structures, including streamlined processes, added technical assistance and enhanced support per student, LEAPS addresses long-standing challenges and lays a stronger foundation for the future. This moment reinforces our commitment to meeting afterschool needs in every community and underscores the importance of achieving universal afterschool access for all.”

    New York State YMCAs Executive Director Kyle A. Stewart said, “On behalf of the 36 YMCAs and their more than 140 branches across the Empire State, the Alliance of New York State YMCAs was pleased to embrace and promote the LEAPS initiative and applauds Governor Hochul for prioritizing the development of a more streamlined and holistic school-age child care system. YMCAs are proud to serve over 25,000 youth as the largest provider of out-of-school time programs across New York State. Furthermore, the Alliance of New York State YMCAs appreciates our longstanding partnership with OCFS and their efficient LEAPS implementation process. YMCAs are poised to continue serving youth alongside other LEAPS grantees and look forward to continuing to build a robust afterschool system in New York State.”

    Governor Hochul also highlighted that the State is lighting landmarks yellow and blue tonight in recognition of Lights on Afterschool. The following landmarks will be lit yellow and blue:

    • One World Trade Center
    • Governor Mario M. Cuomo Bridge
    • Kosciuszko Bridge
    • The H. Carl McCall SUNY Building
    • State Education Building
    • Alfred E. Smith State Office Building
    • Empire State Plaza
    • State Fairgrounds – Main Gate & Expo Center
    • Niagara Falls
    • The “Franklin D. Roosevelt” Mid-Hudson Bridge
    • Albany International Airport Gateway
    • MTA LIRR – East End Gateway at Penn Station
    • Fairport Lift Bridge over the Erie Canal
    • Moynihan Train Hall
    • Walkway Over the Hudson State Historic Park

    MIL OSI USA News

  • MIL-OSI Australia: eInvoicing-enabled entities

    Source: Australian Department of Revenue

    These Australian Government entities are registered on the Peppol network. They appear on the Peppol Directory along with hundreds of state, territory and local government organisations, and thousands of other Australian businesses who can receive eInvoices.

    If you supply to any of the entities listed below and can send eInvoices you may be paid faster. For more information visit Getting PaidExternal Link on the Department of Finance’s website or talk to your contract manager in the Government entity about any specific requirements.

    Australian Government entities able to receive eInvoices

    ABN

    Entity name

    73 147 176 148

    Administrative Review Tribunal

    80 246 994 451

    Aged Care Quality and Safety Commission

    50 802 255 175

    Asbestos and Silica Safety and Eradication Agency

    92 661 124 436

    Attorney-General’s Department

    26 331 428 522

    Australian Bureau of Statistics

    34 864 955 427

    Australian Centre for International Agriculture Research

    54 488 464 865

    Australian Charities and Not-for-profits Commission

    97 250 687 371

    Australian Commission on Safety and Quality In Health Care

    55 386 169 386

    Australian Communications and Media Authority

    94 410 483 623

    Australian Competition & Consumer Commission

    11 259 448 410

    Australian Crime Commission

    84 425 496 912

    Australian Digital Health Agency

    21 133 285 851

    Australian Electoral Commission

    17 864 931 143

    Australian Federal Police

    19 892 732 021

    Australian Film Television & Radio School

    63 384 330 717

    Australian Financial Security Authority

    81 098 497 517

    Australian Fisheries Management Authority

    69 405 937 639

    Australian Government Solicitor

    47 996 232 602

    Australian Human Rights Commission

    31 162 998 046

    Australian Industrial Chemicals Introduction Scheme

    63 257 175 248

    Australian Institute of Criminology

    64 001 053 079

    Australian Institute of Family Studies

    65 377 938 320

    Australian Maritime Safety Authority

    33 020 645 631

    Australian National Audit Office

    13 059 525 039

    Australian Office of Financial Management

    56 253 405 315

    Australian Organ & Tissue Donation and Transplantation Authority

    79 635 582 658

    Australian Prudential Regulation Authority

    99 470 863 260

    Australian Public Service Commission

    61 321 195 155

    Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

    35 931 927 899

    Australian Renewable Energy Agency

    35 201 451 156

    Australian Research Council

    86 768 265 615

    Australian Securities & Investments Commission

    37 467 566 201

    Australian Security Intelligence Organisation

    22 323 254 583

    Australian Signals Directorate

    72 581 678 650

    Australian Skills Quality Authority

    67 374 695 240

    Australian Sports Commission

    67 250 046 148

    Australian Submarine Agency

    51 824 753 556

    Australian Taxation Office

    11 764 698 227

    Australian Trade and Investment Commission

    32 770 513 371

    Australian Transaction Reports & Analysis Centre (AUSTRAC)

    65 061 156 887

    Australian Transport Safety Bureau

    64 909 221 257

    Australian War Memorial

    92 637 533 532

    Bureau of Meteorology

    21 075 951 918

    Cancer Australia

    44 808 014 470

    Civil Aviation Safety Authority

    43 669 904 352

    Clean Energy Finance Corporation

    72 321 984 210

    Clean Energy Regulator

    60 585 018 782

    Climate Change Authority

    41 640 788 304

    Comcare Australia

    64 703 642 210

    Commonwealth Grants Commission

    34 190 894 983

    Department of Agriculture, Fisheries and Forestry

    68 706 814 312

    Department of Defence

    69 289 134 420

    Department of Defence Army & Air Force Canteen Service

    12 862 898 150

    Department of Education

    96 584 957 427

    Department of Employment and Workplace Relations

    61 970 632 495

    Department of Finance

    47 065 634 525

    Department of Foreign Affairs & Trade

    83 605 426 759

    Department of Health and Aged Care

    33 380 054 835

    Department of Home Affairs

    74 599 608 295

    Department of Industry, Science and Resources

    86 267 354 017

    Department of Infrastructure, Transport, Regional Development, Communications and the Arts

    52 997 141 147

    Department of Parliamentary Services

    36 342 015 855

    Department of Social Services

    18 526 287 740

    Department of the House of Representatives

    49 775 240 532

    Department of the Parliamentary Budget Office

    23 991 641 527

    Department of the Senate

    92 802 414 793

    Department of the Treasury

    23 964 290 824

    Department of Veterans’ Affairs & the Repatriation Commission and the Military Rehabilitation and Compensation Commission

    96 257 979 159

    Digital Transformation Agency

    13 051 694 963

    Director of National Parks

    99 696 833 561

    Domestic, Family and Sexual Violence Commission

    12 212 931 598

    eSafety Commissioner

    93 614 579 199

    Fair Work Commission

    49 110 847 399

    Federal Court of Australia

    20 537 066 246

    Food Standards Australia New Zealand

    40 465 597 854

    Future Fund Board of Guardians

    53 156 699 293

    Future Fund Management Agency

    80 091 799 039

    Geoscience Australia

    12 949 356 885

    Great Barrier Reef Marine Park Authority

    27 598 959 960

    Independent Health and Aged Care Pricing Authority

    26 424 781 530

    Independent Parliamentary Expenses Authority

    59 912 679 254

    Indigenous Land and Sea Corporation

    51 248 702 319

    Inspector-General of Taxation

    38 113 072 755

    IP Australia

    13 679 821 382

    Murray-Darling Basin Authority

    47 446 409 542

    National Anti-Corruption Commission

    36 889 228 992

    National Archives of Australia

    87 361 602 478

    National Blood Authority

    75 149 374 427

    National Capital Authority

    56 552 760 098

    National Competition Council

    25 617 475 104

    National Disability Insurance Agency

    40 816 261 802

    National Emergency Management Agency

    27 855 975 449

    National Gallery of Australia

    88 601 010 284

    National Health and Medical Research Council

    15 337 761 242

    National Health Funding Body

    30 429 895 164

    National Indigenous Australians Agency

    22 385 178 289

    National Offshore Petroleum Safety and Environmental Management Authority

    67 890 861 578

    National Transport Commission

    72 581 678 650

    National Vocational Education and Training Regulator

    40 293 545 182

    NDIS Quality and Safeguards Commission

    61 900 398 761

    North Queensland Water Infrastructure Authority

    87 904 367 991

    Office of National Intelligence

    41 425 630 817

    Office of Parliamentary Counsel

    80 959 780 601

    Office of the Auditing and Assurance Standards Board

    92 702 019 575

    Office of the Australian Accounting Standards Board

    85 249 230 937

    Office of the Australian Information Commissioner

    53 003 678 148

    Office of the Commonwealth Ombudsman

    41 036 606 436

    Office of the Director of Public Prosecutions

    43 884 188 232

    Office of the Fair Work Ombudsman

    15 862 053 538

    Office of the Gene Technology Regulator

    27 478 662 745

    Office Of the Inspector-General of Aged Care

    67 332 668 643

    Office of the Inspector-General of Intelligence & Security

    67 582 329 284

    Office of the Official Secretary to the Governor-General

    87 767 208 148

    Office of the Special Investigator

    30 620 774 963

    Old Parliament House

    78 094 372 050

    Productivity Commission

    45 307 308 260

    Professional Services Review

    99 528 049 038

    Regional Investment Corporation

    45 852 104 259

    Royal Australian Mint

    25 203 754 319

    Rural Industries Research & Development Corporation

    81 840 374 163

    Safe Work Australia

    46 741 353 180

    Screen Australia

    32 745 854 352

    Seafarers Safety Rehabilitation and Compensation Authority

    90 794 605 008

    Services Australia

    17 090 574 431

    Snowy Hydro Limited

    91 314 398 574

    Special Broadcasting Service Corporation

    70 588 505 483

    Sport Integrity Australia

    50 658 250 012

    Tertiary Education Quality and Standards Agency

    18 108 001 191

    The Department of the Prime Minister and Cabinet

    40 939 406 804

    Therapeutic Goods Administration

    57 155 285 807

    Torres Strait Regional Authority

    47 641 643 874

    Workplace Gender Equality Agency

    MIL OSI News

  • MIL-OSI USA: Hickenlooper, Bennet Welcome $23 Million from Bipartisan Infrastructure Law for Denver, Colorado Springs Airports

    US Senate News:

    Source: United States Senator for Colorado John Hickenlooper
    WASHINGTON – Today, U.S. Senators John Hickenlooper and Michael Bennet welcomed $23 million from the Federal Aviation Administration (FAA) to improve airport infrastructure in Denver and Colorado Springs. This funding comes from the Airport Terminals Program, made possible by the Bipartisan Infrastructure Law.
    “Our Bipartisan Infrastructure Law keeps investing in Colorado and creating good-paying jobs. This time by improving travelers’ experiences at both Denver International Airport and the Colorado Springs Airport,” said Hickenlooper. “Giddy up!”
    “I’m grateful the FAA is supporting Colorado’s airports as they improve and modernize to meet our state’s changing needs,” said Bennet. “These dollars will help ensure our airports can continue to fuel our economy and better connect communities across our state.”
    Specifically, this funding includes:
    Airport Name
    Project Description
    Funding
    Denver International Airport
    Increase the efficiency and capacity of its baggage handling system
    $15 million
    Colorado Springs Airport
    Improve energy efficiency, ensure accessibility, and modernize gate areas
    $8 million
    Just this year, Hickenlooper and Bennet have welcomed nearly $140 million from the FAA for Colorado’s airports.

    MIL OSI USA News

  • MIL-OSI USA: On the Flightline with IAM Charlotte Local 1903M

    Source: US GOIAM Union

    The skilled Mechanics and Related at American Airlines and PSA Airlines in Charlotte recently celebrated the one-year anniversary of IAM Air Transport Local 1903M. These hardworking men and women are the heartbeat of the airline industry in Charlotte, ensuring planes are safe and our skies stay moving. This past year has been a year of achievements and a promising future. 

    WATCHOn the Flightline with IAM Charlotte Local 1903M

    One of Air Transport Local 1903M’s most significant accomplishments has been their collective strength in increasing safety and quality standards for American Airlines Mechanics and Related Workers and Mechanics at PSA. 

    “I am extremely proud of the leadership at Local 1903M coming together to ensure that mechanics have a say at American Airlines in Charlotte,”  said IAM Air Transport Territory General Vice President Richie Johnsen. “We will continue to provide the necessary resources to help grow this local.”

    Since its founding, Local 1903M has seen impressive growth in membership and influence within the industry. The local has expanded by bringing in new mechanics and related workers from diverse backgrounds. The strength in numbers has only amplified the local power, enabling it to fight for better working conditions.

    However, growth isn’t just about numbers. Local 1903M has also evolved in its ability to engage with the broader labor movement and continue working with IAM Local 1725 and the larger mission of the IAM. 

    One of the challenges that Local 1903M leadership has embraced includes their efforts to engage new and younger members. As the industry changes, Local 1903M has prioritized increasing participation by mentoring new mechanics and fostering a sense of community among all members. Initiatives like apprenticeships, peer-to-peer mentoring, and educational workshops have been tossed around as ideas to make sure younger members understand the benefits of union membership.

    One of the most heartwarming stories over the past year includes the work being done by IAM Local 1903M Community Co-chairs J.D. Peace and Austin Hazel. They host “Hazel Hot Dog Hideaway” fundraisers throughout the year that allow American Airlines employees to purchase hot dogs to help support charitable causes. They raised over $51,000 last year and were able to help a member with stage 4 cancer spend one last holiday with his family before passing the following year. 

    “The biggest accomplishment so far is that we came together and started the local,” said IAM Local 1903M President Mark De Luke. “Now, we must take that energy to increase our numbers and fill out our committees. The goal is to allow everyone, including family members, to get involved.” 

    The future of this local is strong, and it’s built on the dedication and solidarity of its members.

    “Our Local 1903M members at American Airlines and PSA Airlines help make the Charlotte airport operations successful,” said IAM District 142 President and Directing General Chair John M. Coveny Jr. “I look forward to seeing some more amazing stories that will come from the members of this local.”  

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    MIL OSI USA News

  • MIL-OSI USA: Memorandum on Advancing the United  States’ Leadership in Artificial Intelligence; Harnessing Artificial Intelligence to Fulfill National Security Objectives; and Fostering the Safety, Security, and Trustworthiness of Artificial  Intelligence

    US Senate News:

    Source: The White House
    MEMORANDUM FOR THE VICE PRESIDENT
                   THE SECRETARY OF STATE
                   THE SECRETARY OF THE TREASURY
                   THE SECRETARY OF DEFENSE
                   THE ATTORNEY GENERAL
                   THE SECRETARY OF COMMERCE
                   THE SECRETARY OF ENERGY
                   THE SECRETARY OF HEALTH AND HUMAN SERVICES
                   THE SECRETARY OF HOMELAND SECURITY
                   THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET
                   THE DIRECTOR OF NATIONAL INTELLIGENCE
                   THE REPRESENTATIVE OF THE UNITED STATES OF AMERICA TO THE UNITED NATIONS
                   THE DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY
                   THE ASSISTANT TO THE PRESIDENT AND CHIEF OF STAFF
                   THE ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS
                   THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC
                      POLICY AND DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL
                   THE CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS
                   THE DIRECTOR OF THE OFFICE OF SCIENCE AND TECHNOLOGY POLICY
                   THE ADMINISTRATOR OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
                   THE DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION
                   THE DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION
                   THE NATIONAL CYBER DIRECTOR
                   THE DIRECTOR OF THE OFFICE OF PANDEMIC PREPAREDNESS AND RESPONSE POLICY
                   THE DIRECTOR OF THE NATIONAL SECURITY AGENCY
                   THE DIRECTOR OF THE NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
                   THE DIRECTOR OF THE DEFENSE INTELLIGENCE AGENCY
    SUBJECT:       Advancing the United States’ Leadership in
                   Artificial Intelligence; Harnessing Artificial
                   Intelligence to Fulfill National Security
                   Objectives; and Fostering the Safety, Security,
                   and Trustworthiness of Artificial Intelligence
         Section 1.  Policy.  (a)  This memorandum fulfills the directive set forth in subsection 4.8 of Executive Order 14110 of October 30, 2023 (Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence).  This memorandum provides further direction on appropriately harnessing artificial intelligence (AI) models and AI-enabled technologies in the United States Government, especially in the context of national security systems (NSS), while protecting human rights, civil rights, civil liberties, privacy, and safety in AI-enabled national security activities.  A classified annex to this memorandum addresses additional sensitive national security issues, including countering adversary use of AI that poses risks to United States national security.
         (b)  United States national security institutions have historically triumphed during eras of technological transition.  To meet changing times, they developed new capabilities, from submarines and aircraft to space systems and cyber tools.  To gain a decisive edge and protect national security, they pioneered technologies such as radar, the Global Positioning System, and nuclear propulsion, and unleashed these hard-won breakthroughs on the battlefield.  With each paradigm shift, they also developed new systems for tracking and countering adversaries’ attempts to wield cutting-edge technology for their own advantage.
         (c)  AI has emerged as an era-defining technology and has demonstrated significant and growing relevance to national security.  The United States must lead the world in the responsible application of AI to appropriate national security functions.  AI, if used appropriately and for its intended purpose, can offer great benefits.  If misused, AI could threaten United States national security, bolster authoritarianism worldwide, undermine democratic institutions and processes, facilitate human rights abuses, and weaken the rules-based international order.  Harmful outcomes could occur even without malicious intent if AI systems and processes lack sufficient protections.
         (d)  Recent innovations have spurred not only an increase in AI use throughout society, but also a paradigm shift within the AI field — one that has occurred mostly outside of Government.  This era of AI development and deployment rests atop unprecedented aggregations of specialized computational power, as well as deep scientific and engineering expertise, much of which is concentrated in the private sector.  This trend is most evident with the rise of large language models, but it extends to a broader class of increasingly general-purpose and computationally intensive systems.  The United States Government must urgently consider how this current AI paradigm specifically could transform the national security mission.
         (e)  Predicting technological change with certainty is impossible, but the foundational drivers that have underpinned recent AI progress show little sign of abating.  These factors include compounding algorithmic improvements, increasingly efficient computational hardware, a growing willingness in industry to invest substantially in research and development, and the expansion of training data sets.  AI under the current paradigm may continue to become more powerful and general-purpose.  Developing and effectively using these systems requires an evolving array of resources, infrastructure, competencies, and workflows that in many cases differ from what was required to harness prior technologies, including previous paradigms of AI.
         (f)  If the United States Government does not act with responsible speed and in partnership with industry, civil society, and academia to make use of AI capabilities in service of the national security mission — and to ensure the safety, security, and trustworthiness of American AI innovation writ large — it risks losing ground to strategic competitors.  Ceding the United States’ technological edge would not only greatly harm American national security, but it would also undermine United States foreign policy objectives and erode safety, human rights, and democratic norms worldwide.
         (g)  Establishing national security leadership in AI will require making deliberate and meaningful changes to aspects of the United States Government’s strategies, capabilities, infrastructure, governance, and organization.  AI is likely to affect almost all domains with national security significance, and its use cannot be relegated to a single institutional silo.  The increasing generality of AI means that many functions that to date have been served by individual bespoke tools may, going forward, be better fulfilled by systems that, at least in part, rely on a shared, multi-purpose AI capability.  Such integration will only succeed if paired with appropriately redesigned United States Government organizational and informational infrastructure.
         (h)  In this effort, the United States Government must also protect human rights, civil rights, civil liberties, privacy, and safety, and lay the groundwork for a stable and responsible international AI governance landscape.  Throughout its history, the United States has been a global leader in shaping the design, development, and use of new technologies not only to advance national security, but also to protect and promote democratic values.  The United States Government must develop safeguards for its use of AI tools, and take an active role in steering global AI norms and institutions.  The AI frontier is moving quickly, and the United States Government must stay attuned to ongoing technical developments without losing focus on its guiding principles.
         (i)  This memorandum aims to catalyze needed change in how the United States Government approaches AI national security policy.  In line with Executive Order 14110, it directs actions to strengthen and protect the United States AI ecosystem; improve the safety, security, and trustworthiness of AI systems developed and used in the United States; enhance the United States Government’s appropriate, responsible, and effective adoption of AI in service of the national security mission; and minimize the misuse of AI worldwide.
    Sec. 2.  Objectives.  It is the policy of the United States Government that the following three objectives will guide its activities with respect to AI and national security.
         (a)  First, the United States must lead the world’s development of safe, secure, and trustworthy AI.  To that end, the United States Government must — in partnership with industry, civil society, and academia — promote and secure the foundational capabilities across the United States that power AI development.  The United States Government cannot take the unmatched vibrancy and innovativeness of the United States AI ecosystem for granted; it must proactively strengthen it, ensuring that the United States remains the most attractive destination for global talent and home to the world’s most sophisticated computational facilities.  The United States Government must also provide appropriate safety and security guidance to AI developers and users, and rigorously assess and help mitigate the risks that AI systems could pose.
         (b)  Second, the United States Government must harness powerful AI, with appropriate safeguards, to achieve national security objectives.  Emerging AI capabilities, including increasingly general-purpose models, offer profound opportunities for enhancing national security, but employing these systems effectively will require significant technical, organizational, and policy changes.  The United States must understand AI’s limitations as it harnesses the technology’s benefits, and any use of AI must respect democratic values with regard to transparency, human rights, civil rights, civil liberties, privacy, and safety.
         (c)  Third, the United States Government must continue cultivating a stable and responsible framework to advance international AI governance that fosters safe, secure, and trustworthy AI development and use; manages AI risks; realizes democratic values; respects human rights, civil rights, civil liberties, and privacy; and promotes worldwide benefits from AI.  It must do so in collaboration with a wide range of allies and partners.  Success for the United States in the age of AI will be measured not only by the preeminence of United States technology and innovation, but also by the United States’ leadership in developing effective global norms and engaging in institutions rooted in international law, human rights, civil rights, and democratic values.
    Sec. 3.  Promoting and Securing the United States’ Foundational AI Capabilities.  (a)  To preserve and expand United States advantages in AI, it is the policy of the United States Government to promote progress, innovation, and competition in domestic AI development; protect the United States AI ecosystem against foreign intelligence threats; and manage risks to AI safety, security, and trustworthiness.  Leadership in responsible AI development benefits United States national security by enabling applications directly relevant to the national security mission, unlocking economic growth, and avoiding strategic surprise.  United States technological leadership also confers global benefits by enabling like-minded entities to collectively mitigate the risks of AI misuse and accidents, prevent the unchecked spread of digital authoritarianism, and prioritize vital research.
         3.1.  Promoting Progress, Innovation, and Competition in United States AI Development.  (a)  The United States’ competitive edge in AI development will be at risk absent concerted United States Government efforts to promote and secure domestic AI progress, innovation, and competition.  Although the United States has benefited from a head start in AI, competitors are working hard to catch up, have identified AI as a top strategic priority, and may soon devote resources to research and development that United States AI developers cannot match without appropriately supportive Government policies and action.  It is therefore the policy of the United States Government to enhance innovation and competition by bolstering key drivers of AI progress, such as technical talent and computational power.
         (b)  It is the policy of the United States Government that advancing the lawful ability of noncitizens highly skilled in AI and related fields to enter and work in the United States constitutes a national security priority.  Today, the unparalleled United States AI industry rests in substantial part on the insights of brilliant scientists, engineers, and entrepreneurs who moved to the United States in pursuit of academic, social, and economic opportunity.  Preserving and expanding United States talent advantages requires developing talent at home and continuing to attract and retain top international minds.
         (c)  Consistent with these goals:
    (i)    On an ongoing basis, the Department of State, the Department of Defense (DOD), and the Department of Homeland Security (DHS) shall each use all available legal authorities to assist in attracting and rapidly bringing to the United States individuals with relevant technical expertise who would improve United States competitiveness in AI and related fields, such as semiconductor design and production.  These activities shall include all appropriate vetting of these individuals and shall be consistent with all appropriate risk mitigation measures.  This tasking is consistent with and additive to the taskings on attracting AI talent in section 5 of Executive Order 14110.
    (ii)   Within 180 days of the date of this memorandum, the Chair of the Council of Economic Advisers shall prepare an analysis of the AI talent market in the United States and overseas, to the extent that reliable data is available.
    (iii)  Within 180 days of the date of this memorandum, the Assistant to the President for Economic Policy and Director of the National Economic Council shall coordinate an economic assessment of the relative competitive advantage of the United States private sector AI ecosystem, the key sources of the United States private sector’s competitive advantage, and possible risks to that position, and shall recommend policies to mitigate them.  The assessment could include areas including (1) the design, manufacture, and packaging of chips critical in AI-related activities; (2) the availability of capital; (3) the availability of workers highly skilled in AI-related fields; (4) computational resources and the associated electricity requirements; and (5) technological platforms or institutions with the requisite scale of capital and data resources for frontier AI model development, as well as possible other factors.
    (iv)   Within 90 days of the date of this memorandum, the Assistant to the President for National Security Affairs (APNSA) shall convene appropriate executive departments and agencies (agencies) to explore actions for prioritizing and streamlining administrative processing operations for all visa applicants working with sensitive technologies.  Doing so shall assist with streamlined processing of highly skilled applicants in AI and other critical and emerging technologies.  This effort shall explore options for ensuring the adequate resourcing of such operations and narrowing the criteria that trigger secure advisory opinion requests for such applicants, as consistent with national security objectives.
         (d)  The current paradigm of AI development depends heavily on computational resources.  To retain its lead in AI, the United States must continue developing the world’s most sophisticated AI semiconductors and constructing its most advanced AI-dedicated computational infrastructure.
         (e)  Consistent with these goals:
    (i)    DOD, the Department of Energy (DOE) (including national laboratories), and the Intelligence Community (IC) shall, when planning for and constructing or renovating computational facilities, consider the applicability of large-scale AI to their mission.  Where appropriate, agencies shall design and build facilities capable of harnessing frontier AI for relevant scientific research domains and intelligence analysis.  Those investments shall be consistent with the Federal Mission Resilience Strategy adopted in Executive Order 13961 of December 7, 2020 (Governance and Integration of Federal Mission Resilience).
    (ii)   On an ongoing basis, the National Science Foundation (NSF) shall, consistent with its authorities, use the National AI Research Resource (NAIRR) pilot project and any future NAIRR efforts to distribute computational resources, data, and other critical assets for AI development to a diverse array of actors that otherwise would lack access to such capabilities — such as universities, nonprofits, and independent researchers (including trusted international collaborators) — to ensure that AI research in the United States remains competitive and innovative.  This tasking is consistent with the NAIRR pilot assigned in section 5 of Executive Order 14110.
    (iii)  Within 180 days of the date of this memorandum, DOE shall launch a pilot project to evaluate the performance and efficiency of federated AI and data sources for frontier AI-scale training, fine-tuning, and inference.
    (iv)   The Office of the White House Chief of Staff, in coordination with DOE and other relevant agencies, shall coordinate efforts to streamline permitting, approvals, and incentives for the construction of AI-enabling infrastructure, as well as surrounding assets supporting the resilient operation of this infrastructure, such as clean energy generation, power transmission lines, and high-capacity fiber data links.  These efforts shall include coordination, collaboration, consultation, and partnership with State, local, Tribal, and territorial governments, as appropriate, and shall be consistent with the United States’ goals for managing climate risks.
    (v)    The Department of State, DOD, DOE, the IC, and the Department of Commerce (Commerce) shall, as appropriate and consistent with applicable law, use existing authorities to make public investments and encourage private investments in strategic domestic and foreign AI technologies and adjacent fields.  These agencies shall assess the need for new authorities for the purposes of facilitating public and private investment in AI and adjacent capabilities.
         3.2.  Protecting United States AI from Foreign Intelligence Threats.  (a)  In addition to pursuing industrial strategies that support their respective AI industries, foreign states almost certainly aim to obtain and repurpose the fruits of AI innovation in the United States to serve their national security goals.  Historically, such competitors have employed techniques including research collaborations, investment schemes, insider threats, and advanced cyber espionage to collect and exploit United States scientific insights.  It is the policy of the United States Government to protect United States industry, civil society, and academic AI intellectual property and related infrastructure from foreign intelligence threats to maintain a lead in foundational capabilities and, as necessary, to provide appropriate Government assistance to relevant non-government entities.
         (b)  Consistent with these goals:
    (i)   Within 90 days of the date of this memorandum, the National Security Council (NSC) staff and the Office of the Director of National Intelligence (ODNI) shall review the President’s Intelligence Priorities and the National Intelligence Priorities Framework consistent with National Security Memorandum 12 of July 12, 2022 (The President’s Intelligence Priorities), and make recommendations to ensure that such priorities improve identification and assessment of foreign intelligence threats to the United States AI ecosystem and closely related enabling sectors, such as those involved in semiconductor design and production.
    (ii)  Within 180 days of the date of this memorandum, and on an ongoing basis thereafter, ODNI, in coordination with DOD, the Department of Justice (DOJ), Commerce, DOE, DHS, and other IC elements as appropriate, shall identify critical nodes in the AI supply chain, and develop a list of the most plausible avenues through which these nodes could be disrupted or compromised by foreign actors.  On an ongoing basis, these agencies shall take all steps, as appropriate and consistent with applicable law, to reduce such risks.
         (c)  Foreign actors may also seek to obtain United States intellectual property through gray-zone methods, such as technology transfer and data localization requirements.  AI-related intellectual property often includes critical technical artifacts (CTAs) that would substantially lower the costs of recreating, attaining, or using powerful AI capabilities.  The United States Government must guard against these risks.
         (d)  Consistent with these goals:
    (i)  In furtherance of Executive Order 14083 of September 15, 2022 (Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States), the Committee on Foreign Investment in the United States shall, as appropriate, consider whether a covered transaction involves foreign actor access to proprietary information on AI training techniques, algorithmic improvements, hardware advances, CTAs, or other proprietary insights that shed light on how to create and effectively use powerful AI systems.
         3.3.  Managing Risks to AI Safety, Security, and Trustworthiness.  (a)  Current and near-future AI systems could pose significant safety, security, and trustworthiness risks, including those stemming from deliberate misuse and accidents.  Across many technological domains, the United States has historically led the world not only in advancing capabilities, but also in developing the tests, standards, and norms that underpin reliable and beneficial global adoption.  The United States approach to AI should be no different, and proactively constructing testing infrastructure to assess and mitigate AI risks will be essential to realizing AI’s positive potential and to preserving United States AI leadership.
         (b)  It is the policy of the United States Government to pursue new technical and policy tools that address the potential challenges posed by AI.  These tools include processes for reliably testing AI models’ applicability to harmful tasks and deeper partnerships with institutions in industry, academia, and civil society capable of advancing research related to AI safety, security, and trustworthiness.
         (c)  Commerce, acting through the AI Safety Institute (AISI) within the National Institute of Standards and Technology (NIST), shall serve as the primary United States Government point of contact with private sector AI developers to facilitate voluntary pre- and post-public deployment testing for safety, security, and trustworthiness of frontier AI models.  In coordination with relevant agencies as appropriate, Commerce shall establish an enduring capability to lead voluntary unclassified pre-deployment safety testing of frontier AI models on behalf of the United States Government, including assessments of risks relating to cybersecurity, biosecurity, chemical weapons, system autonomy, and other risks as appropriate (not including nuclear risk, the assessment of which shall be led by DOE).  Voluntary unclassified safety testing shall also, as appropriate, address risks to human rights, civil rights, and civil liberties, such as those related to privacy, discrimination and bias, freedom of expression, and the safety of individuals and groups.  Other agencies, as identified in subsection 3.3(f) of this section, shall establish enduring capabilities to perform complementary voluntary classified testing in appropriate areas of expertise.  The directives set forth in this subsection are consistent with broader taskings on AI safety in section 4 of Executive Order 14110, and provide additional clarity on agencies’ respective roles and responsibilities.
         (d)  Nothing in this subsection shall inhibit agencies from performing their own evaluations of AI systems, including tests performed before those systems are released to the public, for the purposes of evaluating suitability for that agency’s acquisition and procurement.  AISI’s responsibilities do not extend to the evaluation of AI systems for the potential use by the United States Government for national security purposes; those responsibilities lie with agencies considering such use, as outlined in subsection 4.2(e) of this memorandum and the associated framework described in that subsection.
         (e)  Consistent with these goals, Commerce, acting through AISI within NIST, shall take the following actions to aid in the evaluation of current and near-future AI systems:
    (i)    Within 180 days of the date of this memorandum and subject to private sector cooperation, AISI shall pursue voluntary preliminary testing of at least two frontier AI models prior to their public deployment or release to evaluate capabilities that might pose a threat to national security.  This testing shall assess models’ capabilities to aid offensive cyber operations, accelerate development of biological and/or chemical weapons, autonomously carry out malicious behavior, automate development and deployment of other models with such capabilities, and give rise to other risks identified by AISI.  AISI shall share feedback with the APNSA, interagency counterparts as appropriate, and the respective model developers regarding the results of risks identified during such testing and any appropriate mitigations prior to deployment.
    (ii)   Within 180 days of the date of this memorandum, AISI shall issue guidance for AI developers on how to test, evaluate, and manage risks to safety, security, and trustworthiness arising from dual-use foundation models, building on guidelines issued pursuant to subsection 4.1(a) of Executive Order 14110.  AISI shall issue guidance on topics including:
    (A)  How to measure capabilities that are relevant to the risk that AI models could enable the development of biological and chemical weapons or the automation of offensive cyber operations;
    (B)  How to address societal risks, such as the misuse of models to harass or impersonate individuals;
    (C)  How to develop mitigation measures to prevent malicious or improper use of models;
    (D)  How to test the efficacy of safety and security mitigations; and
    (E)  How to apply risk management practices throughout the development and deployment lifecycle (pre-development, development, and deployment/release).
    (iii)  Within 180 days of the date of this memorandum, AISI, in consultation with other agencies as appropriate, shall develop or recommend benchmarks or other methods for assessing AI systems’ capabilities and limitations in science, mathematics, code generation, and general reasoning, as well as other categories of activity that AISI deems relevant to assessing general-purpose capabilities likely to have a bearing on national security and public safety.
    (iv)   In the event that AISI or another agency determines that a dual-use foundation model’s capabilities could be used to harm public safety significantly, AISI shall serve as the primary point of contact through which the United States Government communicates such findings and any associated recommendations regarding risk mitigation to the developer of the model.
    (v)    Within 270 days of the date of this memorandum, and at least annually thereafter, AISI shall submit to the President, through the APNSA, and provide to other interagency counterparts as appropriate, at minimum one report that shall include the following:
    (A)  A summary of findings from AI safety assessments of frontier AI models that have been conducted by or shared with AISI;
    (B)  A summary of whether AISI deemed risk mitigation necessary to resolve any issues identified in the assessments, along with conclusions regarding any mitigations’ efficacy; and
    (C)  A summary of the adequacy of the science-based tools and methods used to inform such assessments.
         (f)  Consistent with these goals, other agencies specified below shall take the following actions, in coordination with Commerce, acting through AISI within NIST, to provide classified sector-specific evaluations of current and near-future AI systems for cyber, nuclear, and radiological risks:
    (i)    All agencies that conduct or fund safety testing and evaluations of AI systems shall share the results of such evaluations with AISI within 30 days of their completion, consistent with applicable protections for classified and controlled information.
    (ii)   Within 120 days of the date of this memorandum, the National Security Agency (NSA), acting through its AI Security Center (AISC) and in coordination with AISI, shall develop the capability to perform rapid systematic classified testing of AI models’ capacity to detect, generate, and/or exacerbate offensive cyber threats.  Such tests shall assess the degree to which AI systems, if misused, could accelerate offensive cyber operations.
    (iii)  Within 120 days of the date of this memorandum, DOE, acting primarily through the National Nuclear Security Administration (NNSA) and in close coordination with AISI and NSA, shall seek to develop the capability to perform rapid systematic testing of AI models’ capacity to generate or exacerbate nuclear and radiological risks.  This initiative shall involve the development and maintenance of infrastructure capable of running classified and unclassified tests, including using restricted data and relevant classified threat information.  This initiative shall also feature the creation and regular updating of automated evaluations, the development of an interface for enabling human-led red-teaming, and the establishment of technical and legal tooling necessary for facilitating the rapid and secure transfer of United States Government, open-weight, and proprietary models to these facilities.  As part of this initiative:
    (A)  Within 180 days of the date of this memorandum, DOE shall use the capability described in subsection 3.3(f)(iii) of this section to complete initial evaluations of the radiological and nuclear knowledge, capabilities, and implications of a frontier AI model no more than 30 days after the model has been made available to NNSA at an appropriate classification level.  These evaluations shall involve tests of AI systems both without significant modifications and, as appropriate, with fine-tuning or other modifications that could enhance performance.
    (B)  Within 270 days of the date of this memorandum, and at least annually thereafter, DOE shall submit to the President, through the APNSA, at minimum one assessment that shall include the following:
    (1)  A concise summary of the findings of each AI model evaluation for radiological and nuclear risk, described in subsection 3.3(f)(iii)(A) of this section, that DOE has performed in the preceding 12 months;
    (2)  A recommendation as to whether corrective action is necessary to resolve any issues identified in the evaluations, including but not limited to actions necessary for attaining and sustaining compliance conditions appropriate to safeguard and prevent unauthorized disclosure of restricted data or other classified information, pursuant to the Atomic Energy Act of 1954; and
    (3)  A concise statement regarding the adequacy of the science-based tools and methods used to inform the evaluations.
    (iv)   On an ongoing basis, DHS, acting through the Cybersecurity and Infrastructure Security Agency (CISA), shall continue to fulfill its responsibilities with respect to the application of AISI guidance, as identified in National Security Memorandum 22 of April 30, 2024 (Critical Infrastructure Security and Resilience), and section 4 of Executive Order 14110.
         (g)  Consistent with these goals, and to reduce the chemical and biological risks that could emerge from AI:
    (i)    The United States Government shall advance classified evaluations of advanced AI models’ capacity to generate or exacerbate deliberate chemical and biological threats.  As part of this initiative:
    (A)  Within 210 days of the date of this memorandum, DOE, DHS, and AISI, in consultation with DOD and other relevant agencies, shall coordinate to develop a roadmap for future classified evaluations of advanced AI models’ capacity to generate or exacerbate deliberate chemical and biological threats, to be shared with the APNSA.  This roadmap shall consider the scope, scale, and priority of classified evaluations; proper safeguards to ensure that evaluations and simulations are not misconstrued as offensive capability development; proper safeguards for testing sensitive and/or classified information; and sustainable implementation of evaluation methodologies.
    (B)  On an ongoing basis, DHS shall provide expertise, threat and risk information, and other technical support to assess the feasibility of proposed biological and chemical classified evaluations; interpret and contextualize evaluation results; and advise relevant agencies on potential risk mitigations.
    (C)  Within 270 days of the date of this memorandum, DOE shall establish a pilot project to provide expertise, infrastructure, and facilities capable of conducting classified tests in this area.
    (ii)   Within 240 days of the date of this memorandum, DOD, the Department of Health and Human Services (HHS), DOE (including national laboratories), DHS, NSF, and other agencies pursuing the development of AI systems substantially trained on biological and chemical data shall, as appropriate, support efforts to utilize high-performance computing resources and AI systems to enhance biosafety and biosecurity.  These efforts shall include:
    (A)  The development of tools for screening in silico chemical and biological research and technology;
    (B)  The creation of algorithms for nucleic acid synthesis screening;
    (C)  The construction of high-assurance software foundations for novel biotechnologies;
    (D)  The screening of complete orders or data streams from cloud labs and biofoundries; and
    (E)  The development of risk mitigation strategies such as medical countermeasures.
    (iii)  After the publication of biological and chemical safety guidance by AISI outlined in subsection 3.3(e) of this section, all agencies that directly develop relevant dual-use foundation AI models that are made available to the public and are substantially trained on biological or chemical data shall incorporate this guidance into their agency’s practices, as appropriate and feasible.
    (iv)   Within 180 days of the date of this memorandum, NSF, in coordination with DOD, Commerce (acting through AISI within NIST), HHS, DOE, the Office of Science and Technology Policy (OSTP), and other relevant agencies, shall seek to convene academic research institutions and scientific publishers to develop voluntary best practices and standards for publishing computational biological and chemical models, data sets, and approaches, including those that use AI and that could contribute to the production of knowledge, information, technologies, and products that could be misused to cause harm.  This is in furtherance of the activities described in subsections 4.4 and 4.7 of Executive Order 14110.
    (v)    Within 540 days of the date of this memorandum, and informed by the United States Government Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential, OSTP, NSC staff, and the Office of Pandemic Preparedness and Response Policy, in consultation with relevant agencies and external stakeholders as appropriate, shall develop guidance promoting the benefits of and mitigating the risks associated with in silico biological and chemical research.
         (h)  Agencies shall take the following actions to improve foundational understanding of AI safety, security, and trustworthiness:
    (i)   DOD, Commerce, DOE, DHS, ODNI, NSF, NSA, and the National Geospatial-Intelligence Agency (NGA) shall, as appropriate and consistent with applicable law, prioritize research on AI safety and trustworthiness.  As appropriate and consistent with existing authorities, they shall pursue partnerships as appropriate with leading public sector, industry, civil society, academic, and other institutions with expertise in these domains, with the objective of accelerating technical and socio-technical progress in AI safety and trustworthiness.  This work may include research on interpretability, formal methods, privacy enhancing technologies, techniques to address risks to civil liberties and human rights, human-AI interaction, and/or the socio-technical effects of detecting and labeling synthetic and authentic content (for example, to address the malicious use of AI to generate misleading videos or images, including those of a strategically damaging or non-consensual intimate nature, of political or public figures).
    (ii)  DOD, Commerce, DOE, DHS, ODNI, NSF, NSA, and NGA shall, as appropriate and consistent with applicable law, prioritize research to improve the security, robustness, and reliability of AI systems and controls.  These entities shall, as appropriate and consistent with applicable law, partner with other agencies, industry, civil society, and academia.  Where appropriate, DOD, DHS (acting through CISA), the Federal Bureau of Investigation, and NSA (acting through AISC) shall publish unclassified guidance concerning known AI cybersecurity vulnerabilities and threats; best practices for avoiding, detecting, and mitigating such issues during model training and deployment; and the integration of AI into other software systems.  This work shall include an examination of the role of and vulnerabilities potentially caused by AI systems used in critical infrastructure.
         (i)  Agencies shall take actions to protect classified and controlled information, given the potential risks posed by AI:
    (i)  In the course of regular updates to policies and procedures, DOD, DOE, and the IC shall consider how analysis enabled by AI tools may affect decisions related to declassification of material, standards for sufficient anonymization, and similar activities, as well as the robustness of existing operational security and equity controls to protect classified or controlled information, given that AI systems have demonstrated the capacity to extract previously inaccessible insight from redacted and anonymized data.
    Sec. 4.  Responsibly Harnessing AI to Achieve National Security Objectives.  (a)  It is the policy of the United States Government to act decisively to enable the effective and responsible use of AI in furtherance of its national security mission.  Achieving global leadership in national security applications of AI will require effective partnership with organizations outside Government, as well as significant internal transformation, including strengthening effective oversight and governance functions.
         4.1.  Enabling Effective and Responsible Use of AI.  (a)  It is the policy of the United States Government to adapt its partnerships, policies, and infrastructure to use AI capabilities appropriately, effectively, and responsibly.  These modifications must balance each agency’s unique oversight, data, and application needs with the substantial benefits associated with sharing powerful AI and computational resources across the United States Government.  Modifications must also be grounded in a clear understanding of the United States Government’s comparative advantages relative to industry, civil society, and academia, and must leverage offerings from external collaborators and contractors as appropriate.  The United States Government must make the most of the rich United States AI ecosystem by incentivizing innovation in safe, secure, and trustworthy AI and promoting industry competition when selecting contractors, grant recipients, and research collaborators.  Finally, the United States Government must address important technical and policy considerations in ways that ensure the integrity and interoperability needed to pursue its objectives while protecting human rights, civil rights, civil liberties, privacy, and safety.
         (b)  The United States Government needs an updated set of Government-wide procedures for attracting, hiring, developing, and retaining AI and AI-enabling talent for national security purposes.
         (c)  Consistent with these goals:
    (i)   In the course of regular legal, policy, and compliance framework reviews, the Department of State, DOD, DOJ, DOE, DHS, and IC elements shall revise, as appropriate, their hiring and retention policies and strategies to accelerate responsible AI adoption.  Agencies shall account for technical talent needs required to adopt AI and integrate it into their missions and other roles necessary to use AI effectively, such as AI-related governance, ethics, and policy positions.  These policies and strategies shall identify financial, organizational, and security hurdles, as well as potential mitigations consistent with applicable law.  Such measures shall also include consideration of programs to attract experts with relevant technical expertise from industry, academia, and civil society — including scholarship for service programs — and similar initiatives that would expose Government employees to relevant non-government entities in ways that build technical, organizational, and cultural familiarity with the AI industry.  These policies and strategies shall use all available authorities, including expedited security clearance procedures as appropriate, in order to address the shortfall of AI-relevant talent within Government.
    (ii)  Within 120 days of the date of this memorandum, the Department of State, DOD, DOJ, DOE, DHS, and IC elements shall each, in consultation with the Office of Management and Budget (OMB), identify education and training opportunities to increase the AI competencies of their respective workforces, via initiatives which may include training and skills-based hiring.
         (d)  To accelerate the use of AI in service of its national security mission, the United States Government needs coordinated and effective acquisition and procurement systems.  This will require an enhanced capacity to assess, define, and articulate AI-related requirements for national security purposes, as well as improved accessibility for AI companies that lack significant prior experience working with the United States Government.
         (e)  Consistent with these goals:
    (i)    Within 30 days of the date of this memorandum, DOD and ODNI, in coordination with OMB and other agencies as appropriate, shall establish a working group to address issues involving procurement of AI by DOD and IC elements and for use on NSS.  As appropriate, the working group shall consult the Director of the NSA, as the National Manager for NSS, in developing recommendations for acquiring and procuring AI for use on NSS.
    (ii)   Within 210 days of the date of this memorandum, the working group described in subsection 4.1(e)(i) of this section shall provide written recommendations to the Federal Acquisition Regulatory Council (FARC) regarding changes to existing regulations and guidance, as appropriate and consistent with applicable law, to promote the following objectives for AI procured by DOD and IC elements and for use on NSS:
    (A)  Ensuring objective metrics to measure and promote the safety, security, and trustworthiness of AI systems;
    (B)  Accelerating the acquisition and procurement process for AI, consistent with the Federal Acquisition Regulation, while maintaining appropriate checks to mitigate safety risks;  
    (C)  Simplifying processes such that companies without experienced contracting teams may meaningfully compete for relevant contracts, to ensure that the United States Government has access to a wide range of AI systems and that the AI marketplace is competitive;
    (D)  Structuring competitions to encourage robust participation and achieve best value to the Government, such as by including requirements that promote interoperability and prioritizing the technical capability of vendors when evaluating offers;
    (E)  Accommodating shared use of AI to the greatest degree possible and as appropriate across relevant agencies; and
    (F)  Ensuring that agencies with specific authorities and missions may implement other policies, where appropriate and necessary.
    (iii)  The FARC shall, as appropriate and consistent with applicable law, consider proposing amendments to the Federal Acquisition Regulation to codify recommendations provided by the working group pursuant to subsection 4.1(e)(ii) of this section that may have Government-wide application.
    (iv)   DOD and ODNI shall seek to engage on an ongoing basis with diverse United States private sector stakeholders — including AI technology and defense companies and members of the United States investor community — to identify and better understand emerging capabilities that would benefit or otherwise affect the United States national security mission.
         (f)  The United States Government needs clear, modernized, and robust policies and procedures that enable the rapid development and national security use of AI, consistent with human rights, civil rights, civil liberties, privacy, safety, and other democratic values.
         (g)  Consistent with these goals:
    (i)    DOD and the IC shall, in consultation with DOJ as appropriate, review their respective legal, policy, civil liberties, privacy, and compliance frameworks, including international legal obligations, and, as appropriate and consistent with applicable law, seek to develop or revise policies and procedures to enable the effective and responsible use of AI, accounting for the following:
    (A)  Issues raised by the acquisition, use, retention, dissemination, and disposal of models trained on datasets that include personal information traceable to specific United States persons, publicly available information, commercially available information, and intellectual property, consistent with section 9 of Executive Order 14110;
    (B)  Guidance that shall be developed by DOJ, in consultation with DOD and ODNI, regarding constitutional considerations raised by the IC’s acquisition and use of AI;
    (C)  Challenges associated with classification and compartmentalization;
    (D)  Algorithmic bias, inconsistent performance, inaccurate outputs, and other known AI failure modes;
    (E)  Threats to analytic integrity when employing AI tools;
    (F)  Risks posed by a lack of safeguards that protect human rights, civil rights, civil liberties, privacy, and other democratic values, as addressed in further detail in subsection 4.2 of this section;
    (G)  Barriers to sharing AI models and related insights with allies and partners; and
    (H)  Potential inconsistencies between AI use and the implementation of international legal obligations and commitments.
    (ii)   As appropriate, the policies described in subsection 4.1(g) of this section shall be consistent with direction issued by the Committee on NSS and DOD governing the security of AI used on NSS, policies issued by the Director of National Intelligence governing adoption of AI by the IC, and direction issued by OMB governing the security of AI used on non-NSS.
    (iii)  On an ongoing basis, each agency that uses AI on NSS shall, in consultation with ODNI and DOD, take all steps appropriate and consistent with applicable law to accelerate responsible approval of AI systems for use on NSS and accreditation of NSS that use AI systems.
         (h)  The United States’ network of allies and partners confers significant advantages over competitors.  Consistent with the 2022 National Security Strategy or any successor strategies, the United States Government must invest in and proactively enable the co-development and co-deployment of AI capabilities with select allies and partners.
         (i)  Consistent with these goals:
    (i)  Within 150 days of the date of this memorandum, DOD, in coordination with the Department of State and ODNI, shall evaluate the feasibility of advancing, increasing, and promoting co-development and shared use of AI and AI-enabled assets with select allies and partners.  This evaluation shall include:
    (A)  A potential list of foreign states with which such co-development or co-deployment may be feasible;
    (B)  A list of bilateral and multilateral fora for potential outreach;
    (C)  Potential co-development and co-deployment concepts;
    (D)  Proposed classification-appropriate testing vehicles for co-developed AI capabilities; and
    (E)  Considerations for existing programs, agreements, or arrangements to use as foundations for future co-development and co-deployment of AI capabilities.
         (j)  The United States Government needs improved internal coordination with respect to its use of and approach to AI on NSS in order to ensure interoperability and resource sharing consistent with applicable law, and to reap the generality and economies of scale offered by frontier AI models.
         (k)  Consistent with these goals:
    (i)  On an ongoing basis, DOD and ODNI shall issue or revise relevant guidance to improve consolidation and interoperability across AI functions on NSS.  This guidance shall seek to ensure that the United States Government can coordinate and share AI-related resources effectively, as appropriate and consistent with applicable law.  Such work shall include:
    (A)  Recommending agency organizational practices to improve AI research and deployment activities that span multiple national security institutions.  In order to encourage AI adoption for the purpose of national security, these measures shall aim to create consistency to the greatest extent possible across the revised practices.
    (B)  Steps that enable consolidated research, development, and procurement for general-purpose AI systems and supporting infrastructure, such that multiple agencies can share access to these tools to the extent consistent with applicable law, while still allowing for appropriate controls on sensitive data.
    (C)  Aligning AI-related national security policies and procedures across agencies, as practicable and appropriate, and consistent with applicable law.
    (D)  Developing policies and procedures, as appropriate and consistent with applicable law, to share information across DOD and the IC when an AI system developed, deployed, or used by a contractor demonstrates risks related to safety, security, and trustworthiness, including to human rights, civil rights, civil liberties, or privacy.
         4.2.  Strengthening AI Governance and Risk Management.  (a)  As the United States Government moves swiftly to adopt AI in support of its national security mission, it must continue taking active steps to uphold human rights, civil rights, civil liberties, privacy, and safety; ensure that AI is used in a manner consistent with the President’s authority as Commander in Chief to decide when to order military operations in the Nation’s defense; and ensure that military use of AI capabilities is accountable, including through such use during military operations within a responsible human chain of command and control.  Accordingly, the United States Government must develop and implement robust AI governance and risk management practices to ensure that its AI innovation aligns with democratic values, updating policy guidance where necessary.  In light of the diverse authorities and missions across covered agencies with a national security mission and the rapid rate of ongoing technological change, such AI governance and risk management frameworks shall be:
    (i)    Structured, to the extent permitted by law, such that they can adapt to future opportunities and risks posed by new technical developments;
    (ii)   As consistent across agencies as is practicable and appropriate in order to enable interoperability, while respecting unique authorities and missions;
    (iii)  Designed to enable innovation that advances United States national security objectives;
    (iv)   As transparent to the public as practicable and appropriate, while protecting classified or controlled information;
    (v)    Developed and applied in a manner and with means to integrate protections, controls, and safeguards for human rights, civil rights, civil liberties, privacy, and safety where relevant; and
    (vi)   Designed to reflect United States leadership in establishing broad international support for rules and norms that reinforce the United States’ approach to AI governance and risk management.
         (b)  Covered agencies shall develop and use AI responsibly, consistent with United States law and policies, democratic values, and international law and treaty obligations, including international humanitarian and human rights law.  All agency officials retain their existing authorities and responsibilities established in other laws and policies.
         (c)  Consistent with these goals:
    (i)  Heads of covered agencies shall, consistent with their authorities, monitor, assess, and mitigate risks directly tied to their agency’s development and use of AI.  Such risks may result from reliance on AI outputs to inform, influence, decide, or execute agency decisions or actions, when used in a defense, intelligence, or law enforcement context, and may impact human rights, civil rights, civil liberties, privacy, safety, national security, and democratic values.  These risks from the use of AI include the following:
    (A)  Risks to physical safety:  AI use may pose unintended risks to human life or property.
    (B)  Privacy harms:  AI design, development, and operation may result in harm, embarrassment, unfairness, and prejudice to individuals.
    (C)  Discrimination and bias:  AI use may lead to unlawful discrimination and harmful bias, resulting in, for instance, inappropriate surveillance and profiling, among other harms.
    (D)  Inappropriate use:  operators using AI systems may not fully understand the capabilities and limitations of these technologies, including systems used in conflicts.  Such unfamiliarity could impact operators’ ability to exercise appropriate levels of human judgment.
    (E)  Lack of transparency:  agencies may have gaps in documentation of AI development and use, and the public may lack access to information about how AI is used in national security contexts because of the necessity to protect classified or controlled information.
    (F)  Lack of accountability:  training programs and guidance for agency personnel on the proper use of AI systems may not be sufficient, including to mitigate the risk of overreliance on AI systems (such as “automation bias”), and accountability mechanisms may not adequately address possible intentional or negligent misuse of AI-enabled technologies.
    (G)  Data spillage:  AI systems may reveal aspects of their training data — either inadvertently or through deliberate manipulation by malicious actors — and data spillage may result from AI systems trained on classified or controlled information when used on networks where such information is not permitted.
    (H)  Poor performance:  AI systems that are inappropriately or insufficiently trained, used for purposes outside the scope of their training set, or improperly integrated into human workflows may exhibit poor performance, including in ways that result in inconsistent outcomes or unlawful discrimination and harmful bias, or that undermine the integrity of decision-making processes.
    (I)  Deliberate manipulation and misuse:  foreign state competitors and malicious actors may deliberately undermine the accuracy and efficacy of AI systems, or seek to extract sensitive information from such systems.
         (d)  The United States Government’s AI governance and risk management policies must keep pace with evolving technology.
         (e)  Consistent with these goals:
    (i)   An AI framework, entitled “Framework to Advance AI Governance and Risk Management in National Security” (AI Framework), shall further implement this subsection.  The AI Framework shall be approved by the NSC Deputies Committee through the process described in National Security Memorandum 2 of February 4, 2021 (Renewing the National Security Council System), or any successor process, and shall be reviewed periodically through that process.  This process shall determine whether adjustments are needed to address risks identified in subsection 4.2(c) of this section and other topics covered in the AI Framework.  The AI Framework shall serve as a national security-focused counterpart to OMB’s Memorandum M-24-10 of March 28, 2024 (Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence), and any successor OMB policies.  To the extent feasible, appropriate, and consistent with applicable law, the AI Framework shall be as consistent as possible with these OMB policies and shall be made public.
    (ii)  The AI Framework described in subsection 4.2(e)(i) of this section and any successor document shall, at a minimum, and to the extent consistent with applicable law, specify the following:
    (A)  Each covered agency shall have a Chief AI Officer who holds primary responsibility within that agency, in coordination with other responsible officials, for managing the agency’s use of AI, promoting AI innovation within the agency, and managing risks from the agency’s use of AI consistent with subsection 3(b) of OMB Memorandum M-24-10, as practicable.
    (B)  Covered agencies shall have AI Governance Boards to coordinate and govern AI issues through relevant senior leaders from the agency.
    (C)  Guidance on AI activities that pose unacceptable levels of risk and that shall be prohibited.
    (D)  Guidance on AI activities that are “high impact” and require minimum risk management practices, including for high-impact AI use that affects United States Government personnel.  Such high-impact activities shall include AI whose output serves as a principal basis for a decision or action that could exacerbate or create significant risks to national security, international norms, human rights, civil rights, civil liberties, privacy, safety, or other democratic values.  The minimum risk management practices for high-impact AI shall include a mechanism for agencies to assess AI’s expected benefits and potential risks; a mechanism for assessing data quality; sufficient test and evaluation practices; mitigation of unlawful discrimination and harmful bias; human training, assessment, and oversight requirements; ongoing monitoring; and additional safeguards for military service members, the Federal civilian workforce, and individuals who receive an offer of employment from a covered agency.
    (E)  Covered agencies shall ensure privacy, civil liberties, and safety officials are integrated into AI governance and oversight structures.  Such officials shall report findings to the heads of agencies and oversight officials, as appropriate, using existing reporting channels when feasible.
    (F)  Covered agencies shall ensure that there are sufficient training programs, guidance, and accountability processes to enable proper use of AI systems.
    (G)  Covered agencies shall maintain an annual inventory of their high-impact AI use and AI systems and provide updates on this inventory to agency heads and the APNSA.
    (H)  Covered agencies shall ensure that whistleblower protections are sufficient to account for issues that may arise in the development and use of AI and AI systems.
    (I)  Covered agencies shall develop and implement waiver processes for high-impact AI use that balance robust implementation of risk mitigation measures in this memorandum and the AI Framework with the need to utilize AI to preserve and advance critical agency missions and operations.
    (J)  Covered agencies shall implement cybersecurity guidance or direction associated with AI systems issued by the National Manager for NSS to mitigate the risks posed by malicious actors exploiting new technologies, and to enable interoperability of AI across agencies.  Within 150 days of the date of this memorandum, and periodically thereafter, the National Manager for NSS shall issue minimum cybersecurity guidance and/or direction for AI used as a component of NSS, which shall be incorporated into AI governance guidance detailed in subsection 4.2(g)(i) of this section.
         (f)  The United States Government needs guidance specifically regarding the use of AI on NSS.
         (g)  Consistent with these goals:
    (i)  Within 180 days of the date of this memorandum, the heads of the Department of State, the Department of the Treasury, DOD, DOJ, Commerce, DOE, DHS, ODNI (acting on behalf of the 18 IC elements), and any other covered agency that uses AI as part of a NSS (Department Heads) shall issue or update guidance to their components/sub-agencies on AI governance and risk management for NSS, aligning with the policies in this subsection, the AI Framework, and other applicable policies.  Department Heads shall review their respective guidance on an annual basis, and update such guidance as needed.  This guidance, and any updates thereto, shall be provided to the APNSA prior to issuance.  This guidance shall be unclassified and made available to the public to the extent feasible and appropriate, though it may have a classified annex.  Department Heads shall seek to harmonize their guidance, and the APNSA shall convene an interagency meeting at least annually for the purpose of harmonizing Department Heads’ guidance on AI governance and risk management to the extent practicable and appropriate while respecting the agencies’ diverse authorities and missions.  Harmonization shall be pursued in the following areas:
    (A)  Implementation of the risk management practices for high-impact AI;
    (B)  AI and AI system standards and activities, including as they relate to training, testing, accreditation, and security and cybersecurity; and
    (C)  Any other issues that affect interoperability for AI and AI systems.
    Sec. 5.  Fostering a Stable, Responsible, and Globally Beneficial International AI Governance Landscape.  (a)  Throughout its history, the United States has played an essential role in shaping the international order to enable the safe, secure, and trustworthy global adoption of new technologies while also protecting democratic values.  These contributions have ranged from establishing nonproliferation regimes for biological, chemical, and nuclear weapons to setting the foundations for multi-stakeholder governance of the Internet.  Like these precedents, AI will require new global norms and coordination mechanisms, which the United States Government must maintain an active role in crafting.
         (b)  It is the policy of the United States Government that United States international engagement on AI shall support and facilitate improvements to the safety, security, and trustworthiness of AI systems worldwide; promote democratic values, including respect for human rights, civil rights, civil liberties, privacy, and safety; prevent the misuse of AI in national security contexts; and promote equitable access to AI’s benefits.  The United States Government shall advance international agreements, collaborations, and other substantive and norm-setting initiatives in alignment with this policy.
         (c)  Consistent with these goals:
    (i)  Within 120 days of the date of this memorandum, the Department of State, in coordination with DOD, Commerce, DHS, the United States Mission to the United Nations (USUN), and the United States Agency for International Development (USAID), shall produce a strategy for the advancement of international AI governance norms in line with safe, secure, and trustworthy AI, and democratic values, including human rights, civil rights, civil liberties, and privacy.  This strategy shall cover bilateral and multilateral engagement and relations with allies and partners.  It shall also include guidance on engaging with competitors, and it shall outline an approach to working in international institutions such as the United Nations and the Group of 7 (G7), as well as technical organizations.  The strategy shall:
    (A)  Develop and promote internationally shared definitions, norms, expectations, and standards, consistent with United States policy and existing efforts, which will promote safe, secure, and trustworthy AI development and use around the world.  These norms shall be as consistent as possible with United States domestic AI governance (including Executive Order 14110 and OMB Memorandum M-24-10), the International Code of Conduct for Organizations Developing Advanced AI Systems released by the G7 in October 2023, the Organization for Economic Cooperation and Development Principles on AI, United Nations General Assembly Resolution A/78/L.49, and other United States-supported relevant international frameworks (such as the Political Declaration on Responsible Military Use of AI and Autonomy) and instruments.  By discouraging misuse and encouraging appropriate safeguards, these norms and standards shall aim to reduce the likelihood of AI causing harm or having adverse impacts on human rights, democracy, or the rule of law.
    (B)  Promote the responsible and ethical use of AI in national security contexts in accordance with democratic values and in compliance with applicable international law.  The strategy shall advance the norms and practices established by this memorandum and measures endorsed in the Political Declaration on Responsible Military Use of AI and Autonomy.
    Sec. 6.  Ensuring Effective Coordination, Execution, and Reporting of AI Policy.  (a)  The United States Government must work in a closely coordinated manner to make progress on effective and responsible AI adoption.  Given the speed with which AI technology evolves, the United States Government must learn quickly, adapt to emerging strategic developments, adopt new capabilities, and confront novel risks.
         (b)  Consistent with these goals:
    (i)    Within 270 days of the date of this memorandum, and annually thereafter for at least the next 5 years, the heads of the Department of State, DOD, Commerce, DOE, ODNI (acting on behalf of the IC), USUN, and USAID shall each submit a report to the President, through the APNSA, that offers a detailed accounting of their activities in response to their taskings in all sections of this memorandum, including this memorandum’s classified annex, and that provides a plan for further action.  The Central Intelligence Agency (CIA), NSA, the Defense Intelligence Agency (DIA), and NGA shall submit reports on their activities to ODNI for inclusion in full as an appendix to ODNI’s report regarding IC activities.  NGA, NSA, and DIA shall submit their reports as well to DOD for inclusion in full as an appendix to DOD’s report.
    (ii)   Within 45 days of the date of this memorandum, the Chief AI Officers of the Department of State, DOD, DOJ, DOE, DHS, OMB, ODNI, CIA, DIA, NSA, and NGA, as well as appropriate technical staff, shall form an AI National Security Coordination Group (Coordination Group).  Any Chief AI Officer of an agency that is a member of the Committee on National Security Systems may also join the Coordination Group as a full member.  The Coordination Group shall be co-chaired by the Chief AI Officers of ODNI and DOD.  The Coordination Group shall consider ways to harmonize policies relating to the development, accreditation, acquisition, use, and evaluation of AI on NSS.  This work could include development of:
    (A)  Enhanced training and awareness to ensure that agencies prioritize the most effective AI systems, responsibly develop and use AI, and effectively evaluate AI systems;
    (B)  Best practices to identify and mitigate foreign intelligence risks and human rights considerations associated with AI procurement;
    (C)  Best practices to ensure interoperability between agency deployments of AI, to include data interoperability and data sharing agreements, as appropriate and consistent with applicable law;
    (D)  A process to maintain, update, and disseminate such trainings and best practices on an ongoing basis;
    (E)  AI-related policy initiatives to address regulatory gaps implicated by executive branch-wide policy development processes; and 
    (F)  An agile process to increase the speed of acquisitions, validation, and delivery of AI capabilities, consistent with applicable law.
    (iii)  Within 90 days of the date of this memorandum, the Coordination Group described in subsection (b)(ii) of this section shall establish a National Security AI Executive Talent Committee (Talent Committee) composed of senior AI officials (or designees) from all agencies in the Coordination Group that wish to participate.  The Talent Committee shall work to standardize, prioritize, and address AI talent needs and develop an updated set of Government-wide procedures for attracting, hiring, developing, and retaining AI and AI-enabling talent for national security purposes.  The Talent Committee shall designate a representative to serve as a member of the AI and Technology Talent Task Force set forth in Executive Order 14110, helping to identify overlapping needs and address shared challenges in hiring.
    (iv)   Within 365 days of the date of this memorandum, and annually thereafter for at least the next 5 years, the Coordination Group described in subsection (b)(ii) of this section shall issue a joint report to the APNSA on consolidation and interoperability of AI efforts and systems for the purposes of national security.
         Sec. 7.  Definitions.  (a)  This memorandum uses definitions set forth in section 3 of Executive Order 14110.  In addition, for the purposes of this memorandum:
    (i)     The term “AI safety” means the mechanisms through which individuals and organizations minimize and mitigate the potential for harm to individuals and society that can result from the malicious use, misapplication, failures, accidents, and unintended behavior of AI models; the systems that integrate them; and the ways in which they are used.
    (ii)    The term “AI security” means a set of practices to protect AI systems — including training data, models, abilities, and lifecycles — from cyber and physical attacks, thefts, and damage.
    (iii)   The term “covered agencies” means agencies in the Intelligence Community, as well as all agencies as defined in 44 U.S.C. 3502(1) when they use AI as a component of a National Security System, other than the Executive Office of the President.
    (iv)    The term “Critical Technical Artifacts” (CTAs) means information, usually specific to a single model or group of related models that, if possessed by someone other than the model developer, would substantially lower the costs of recreating, attaining, or using the model’s capabilities.  Under the technical paradigm dominant in the AI industry today, the model weights of a trained AI system constitute CTAs, as do, in some cases, associated training data and code.  Future paradigms may rely on different CTAs.
    (v)     The term “frontier AI model” means a general-purpose AI system near the cutting-edge of performance, as measured by widely accepted publicly available benchmarks, or similar assessments of reasoning, science, and overall capabilities.
    (vi)    The term “Intelligence Community” (IC) has the meaning provided in 50 U.S.C. 3003.
    (vii)   The term “open-weight model” means a model that has weights that are widely available, typically through public release.
    (viii)  The term “United States Government” means all agencies as defined in 44 U.S.C. 3502(1).
         Sec. 8.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:
    (i)   the authority granted by law to an executive department or agency, or the head thereof; or
    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
         (b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
         (c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
                                  JOSEPH R. BIDEN JR.

    MIL OSI USA News

  • MIL-OSI United Kingdom: Biomass

    Source: United Kingdom – Executive Government & Departments

    Biomass is the first satellite that will study the world’s forests in 3-dimensions.

    Biomass. Credit: Airbus

    The Biomass mission will provide crucial information about the state of our forests and how they are changing. The data will be used to further our knowledge of the role forests play in the carbon cycle.

    Biomass will quantify the global carbon cycle which is essential to understanding many of the dramatic changes taking place in the Earth system, particularly those resulting from the burning of fossil fuel and land-use change.

    As a result, Biomass observations will support the initiative for the reduction of emissions due to deforestation and forest degradation.

    Biomass will have global coverage and produce one map every 6 months with unprecedented accuracy. It will reduce the current uncertainties in the amount of carbon stored in forests and how this changes with time, providing vital information to support decision making around climate change. Observations from this new mission will also lead to better insight into rates of habitat loss and the impact this may be having on biodiversity in the forest environment.

    Biomass is also a part of the European Space Agency’s (ESA) Earth Explorer missions which focuses on the atmosphere, biosphere, hydrosphere, cryosphere and the Earth’s interior with the overall aim of learning more about the interactions between these components and the impact that human activity is having on natural Earth processes.

    Biomass is due to launch in 2025 on a Vega-C rocket from Kourou in French Guiana. The mission is planned to be 5-years long.

    How is the UK involved?

    Biomass is being built in the UK by Airbus.

    The UK has invested in the ESA Earth Observation Envelope Programme – EOEP-3, EOEP-4, and EOEP-5 programmes.

    The lead scientist is Professor Sean Quegan based in the University of Sheffield, Airbus are leading the build, and other significant stakeholders in the mission are ESA, Nammo (propulsion), Astrotech (propulsion), and Enersys ABSL (batteries).

    Updates to this page

    MIL OSI United Kingdom

  • MIL-OSI: Capgemini announces ‘augmented engineering’ offerings powered by Gen AI

    Source: GlobeNewswire (MIL-OSI)

    Media relations:
    Florence Lièvre
    Tel.: +33 1 47 54 50 71
    Email: florence.lievre@capgemini.com

    Capgemini announces ‘augmented engineering’ offerings powered by Gen AI

    The Group is extending its generative AI portfolio of services with new offerings tailored for engineering and R&D. The new services will help organizations unlock the value of Gen AI to accelerate R&D and augment engineering1at all stages of the product development lifecycle

    Paris, October 24, 2024 – Capgemini is extending its Gen AI portfolio of services with the launch of engineering and R&D-specific Generative AI (Gen AI) infused solutions for clients to accelerate innovation, streamline engineering and R&D processes with high-level automation, and the ability to unlock new discoveries. As a world leader in engineering and R&D services with deep industry knowledge, and a leading player in the AI market, Capgemini is well positioned to help organizations transform their engineering and R&D processes and accelerate towards a more intelligent industry.

    With “augmented engineering”, Gen AI takes data-driven engineering and R&D to the next level. The adoption of a hybrid AI approach, combining Gen AI and AI with other kinds of engineering and scientific models, enables the delivery of outcomes with the precision, quality, regulatory compliance, and correctness required in engineering and science across industries. Engineering requires the ability to capture detailed data in many forms. For example, there is a vast difference in engineering application between a photo-realistic video and the schematic diagrams of an airliner avionics system, even if both are represented graphically.
    Designed to help clients reap immediate benefits from Gen AI, augment engineering processes with AI, and accelerate the creation of new smart products and services, the first set of Capgemini’s Gen AI offerings for engineering and R&D includes:

    • “Augmented R&D Discovery”: to accelerate scientific discovery, streamline R&D processes, identify novel scientific approaches, and generate new formulations. It augments research teams to reduce lead time for R&D discovery with data and AI-driven research hubs, reasoning engines, and digital R&D backbones needed to automate and orchestrate R&D processes, accelerate innovation – and unlock new discoveries in formulation-based industries. Example of applications include new drugs, aircraft fuel composition, tyre properties, components substitution in food, beverage and cosmetics.
    • “Augmented Software Product Engineering”: an agent-based asset framework and associated consulting and engineering services to provide a uniquely holistic approach to improving product creativity and quality, development efficiency, and developer experience. Includes software lifecycle accelerators addressing product requirements optimization, code creation, product generation, and code migration.
    • “Augmented Product Support & Services”: a Gen AI-enabled assistant to streamline software product support – making life easier for both support engineers and their customers in different industries e.g. telecommunications, industrial IoT or MedTech. Gen AI significantly reduces and automates product support work such as self-service deflection, guided remediation, while also removing linguistic barriers. It enables organizations to improve digital experience.
    • “Augmented Product Technical Publications”: technical publications are regulatory-required documents providing all necessary information for the effective operation, installation, maintenance, and servicing of a manufactured product and its components. Capgemini has designed a technical publications factory model, custom-built production workflow assistant to reduce data retrieval time from hours to minutes, and to shorten publication authoring time from weeks to days.

    Gen AI has the potential to turn innovative technology into engineering value, with products and services reaching new levels of intelligence and effectiveness. Our set of new ‘Augmented Engineering’ solutions are designed to take engineering and R&D to their next level and help clients to accelerate towards more intelligent products and services, comments Franck Greverie, Chief Technology Officer, Chief Portfolio Officer and Group Executive Board Member at Capgemini. “We are proud to be the preferred partner of industry leaders to support their ongoing transformation of engineering and R&D processes and help them drive innovation and breakthrough discoveries. Given the demanding context of engineering that requires precision, regulatory compliance and risk tolerance, we are developing tailored solutions, augmented with Gen AI, to empower researchers, streamline processes and unlock substantial creativity and high-quality outcomes.”

    Recognized as a Leader in AI and engineering
    Capgemini was named a Leader in The Forrester Wave™: AI services, Q2 2024, among nine vendors evaluated on 19 criteria, grouped by current offering, strategy, and market presence. It was also recognized as a Leader in 2024 Zinnov Zones Ratings for its overall Engineering, Research and Development and Digital Engineering Services.

    The Group announced in July 2023 an investment plan of €2 billion over 3 years to strengthen its leadership in AI and has already trained over 120K team members on generative AI tools, thanks to its Gen AI Campus. It has established a dedicated generative AI practice to rapidly scale its capability, solutioning and delivery, as well as a Generative AI Lab to follow the evolution of the technology and research the most relevant use cases and collaborations with businesses or academia for clients, and a dedicated platform, RAISE (Reliable AI Solution Engineering), to industrialize its custom Gen AI projects.

    Capgemini is also investing in its portfolio, to customize the uses cases and offers by industry, to build next-generation AI solutions for enterprises, and to generate more value for its clients, and in its partnerships, such as with Google Cloud, Microsoft, Salesforce, AWS, Mistral AI, and Liquid AI.

    About Capgemini
    Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.

    Get The Future You Want | www.capgemini.com


    1 Capgemini’s approach, ‘Augmented Engineering’, powered by Gen AI in combination with AI and other types of engineering and scientific models, is defined to manage the demanding context of engineering, that requires precision, regulatory compliance and risk tolerance.

    Attachment

    The MIL Network

  • MIL-OSI USA: Speech of Commissioner Summer K. Mersinger to Keynote at the S&P Global Commodity Insights Nodal Trader Conference

    Source: US Commodity Futures Trading Commission

    Good morning, and thank you for the warm welcome.  A special thank you to Nodal for inviting me to join your annual Trader Conference again this year.  It is truly an honor to address all of you this morning.  I am more than two years into my role as a commissioner at the Commodity Futures Trading Commission, and I still feel humbled by the opportunity to stand on a stage with a microphone to address accomplished professionals like all of you.  My children, on the other hand, are surprised that anyone would want to hear me talk about anything, and they are even more shocked that I would need a microphone to be heard as they are convinced that the only volume I ever use when speaking is shouting.

    The topic for my speech on today’s agenda is:  New Perspectives on Energy Trading and Power Markets, and I plan to focus on the road ahead for these markets.  But before discussing the road ahead, I will start with a story from my childhood about when I learned to drive.  I say this is a story from my childhood because in South Dakota, children as young as fourteen years old are allowed to obtain a driver’s license.  As much as I miss my home state, when I look at my fourteen-year-old son and think about him driving, I see the wisdom in Virginia’s approach.

    At the ripe old age of twelve, my dad decided it was time for me to learn how to drive.  As a tall child, I could reach the gas and brake pedals, which was apparently the minimum criteria for beginning driving lessons on the farm.  To be honest, I was scared to death of driving.  But my parents said I should learn because if there was ever an emergency, and I was the only one home, I may need to drive for help.  That logic just made me scared of driving and being left alone on the farm.

    My experience as a parent teaching two teenagers to drive involved multiple practice sessions in empty parking lots before slowly graduating to quiet side roads before paying another adult to do the really scary stuff, such as driving on highways and making left turns across oncoming traffic.  I suspect that sounds familiar to many in this room as well. 

    But that suburban approach is not how I learned to drive.  My lesson – notice I said lesson, not lessons—was a little more hands-off.  On the day I learned to drive, my dad had me jump in the passenger seat of his 1977 blue Chevy pick-up truck to take a ride with him.  Oddly, my older brother jumped in another farm truck and followed close behind.

    After driving a few miles away from our house, my dad drove the truck into the middle of a freshly plowed field.  Dad threw the truck into park, jumped out, and told me to slide over to the driver’s seat.  He then shut the door, leaned into the window, and told me to drive around the field until I was comfortable enough to drive myself home.  At that point, I realized why my brother had followed us in another vehicle—it was my dad’s getaway car.

    Honestly, I panicked.  I screamed, pleaded, and begged.  But my dad was confident in his approach.  And he left me with this advice:  always keep your eyes on the road.  But don’t just look at the road immediately in front of the vehicle; be sure to watch the road ahead so you know where you are going—and so that you do not smash into a deer.

    I’m sharing this story with you today for two reasons.  First, to offer some entertainment.

    Second, I found the advice my dad gave me that day relevant to the topic for my speech today.  Specifically, I want to share with you some thoughts and observations on energy markets, the road ahead for these markets, and potential down-the-road effects on the derivatives markets that are regulated by the CFTC.

    Being a derivatives regulator can feel a little like being that driver who is looking down the road to see what is ahead.  Our markets are forward looking, offering a view into points off in the distance so drivers are prepared for the path ahead.  But, just like a careful driver needs to see what is right in front of the vehicle as much as what is on the road ahead, careful regulation requires us to also keep our eyes on current market conditions, in addition to ensuring the reliability and safety of the futures markets, which reflect the road ahead.  The CFTC is always surveilling markets, spotting trends, and monitoring for risk that could impact the futures markets.

    Now, here is where this speech will diverge from my story of learning to drive.  While I was left to teach myself how to drive and had no one willing to share their expertise with me, our work at the CFTC in following markets occurs with the benefit of a variety of internal resources (such as the Market Intelligence Branch of the Division of Market Oversight and the Office of the Chief Economist) as well as external resources (such as our advisory committees).

    At the CFTC, we have five advisory committees, each of which is sponsored by a commissioner.  These committees are comprised of subject matter experts representing a variety of viewpoints, such as private sector stakeholders, non-profit groups, academia, and other governmental entities.  As many of you know, especially those who are members, I sponsor the Energy and Environmental Markets Advisory Committee.

    Growing up on a farm in South Dakota, I always understood that the price of energy had a major impact on whether it was a good year or a bad year for the farm.  Even at a young age, I could tell you the exact cost-per-gallon of diesel because either my dad was grumbling about it as he left for the field, or it was the topic of discussion at the local café in town where the older farmers convened for their morning coffee.

    The price of diesel determined the cost of running planters, tractors, combines, and trucks.  The cost of fertilizers and pesticides are also directly linked to fossil fuel input prices, and spreading those fertilizers and pesticides required hiring a spray pilot whose services were priced based on the cost of the aviation fuel.

    Even after our crops were harvested, energy costs were critical.  Energy prices influenced the cost of storage at the grain elevators and transportation; barges and ships run on bunker fuel and trains need diesel.  Everything in the farm economy depends on the price of energy.  You might have perfect temperatures, exactly the right amount of rain at exactly the right time, and high yields but still see your net profit shrink due to high energy prices.

    As the only Commissioner with a background in production agriculture, sponsoring the Commission’s Agriculture Advisory Committee may have seemed like the obvious choice.  But I saw the EEMAC as an opportunity to focus on sectors critical to the agricultural economy and to study those energy markets to understand their impact on the markets we regulate.  The goal is for the energy futures complex to serve end-users who need to hedge those costs and to mitigate the frequent price volatility experienced by the underlying cash markets.

    As the EEMAC has held meetings and participated in discussions around energy markets, we have heard over and over that the United States has critical gaps in its energy and power infrastructure.  As those gaps widen, so do risks to the stability of these markets that become more sensitive and less resilient to forces beyond US control.  Instability and volatility in spot energy markets and prices have a direct impact on the derivative products we regulate.

    Energy infrastructure’s impact on energy prices is something that cannot be ignored, and this reality has become even more apparent in the last decade.  Of course, it makes sense that energy transmission and delivery directly impact the cost to the end consumer.  However, truly understanding how energy infrastructure market fundamentals influence energy spot and derivatives prices requires hearing directly from hardworking domestic energy producers and seeing the infrastructure up close.

    With that in mind, the EEMAC has held a series of meetings on the road, and members of the advisory committee have joined me in getting outside of Washington to see our energy production and infrastructure and to talk directly with the experts who manage these facilities.

    In our first meeting, we visited Oklahoma and focused on more traditional energy markets such as crude oil and natural gas.[1]  We visited Cushing, Oklahoma, where the WTI Crude Oil contract settles to see the pipelines and storage facilities as well as to talk with those in charge of storing, blending, and moving the oil to locations throughout the US.  During the EEMAC meeting, a witness from the Federal Energy Regulatory Commission described an anomaly in the price of natural gas in New England.[2]  Despite having one of the largest concentrations of natural gas in the Marcellus Shale just over two hundred miles away, a lack of pipeline capacity makes it impossible to fully supply New England with gas from the Marcellus Shale.[3]  This situation means that New England relies on liquified natural gas (“LNG”) supplies from tanker ships.  As a result, the price New England end users pay is based on the Henry Hub price for exported LNG, rather than the domestic production price.  This circumstance creates an unusual situation where the spot price that a natural gas-fired power plant in Massachusetts pays for its fuel is more dependent on Europe’s desire for natural gas and a global market thousands of miles away than on the price and availability of natural gas produced two states away in Pennsylvania.

    To examine power markets and electrification, we held meetings in Roy, Utah; Nashville, Tennessee; and Golden, Colorado.[4]  In the course of those meetings, we had the opportunity to tour a large Ford EV production facility in Spring Hill, Tennessee, the Bingham Canyon Copper Mine in Utah, and a startup company looking to reuse mine tailings to produce critical metals and minerals in Golden, Colorado.

    Here in the United States, we have some of the largest deposits of the metals necessary for power generation, transmission, and use, but large gaps in our infrastructure and policies render these advantages almost meaningless.  In Golden, Colorado, we learned that despite a startup company’s cutting-edge technology that can turn mine waste into critical metals and minerals, China’s dominance in rare earth markets means that they can manipulate prices at will and squeeze out competition and force any US production into bankruptcy.

    Southwest of Salt Lake City, Utah, we toured the Bingham Canyon Copper Mine.  The Bingham County Mine is the largest man-made excavation in the world.[5]  It’s also the world’s deepest open pit mine, and it has produced more copper than any other mine in the world.[6]  As you can probably guess, the US has abundant supplies of copper; however, because of a lack of domestic smelting capacity, much of the copper mined in the US must be shipped overseas, often to China, to be processed and refined.  In fact, since 2000, China has been responsible for 75% of the global smelter capacity growth.[7]

    Finally, in Spring Hill, Tennessee, we learned that car companies are increasingly concerned  about logistical challenges reducing their  ability to provide cost-competitive electric vehicles.  This is not an idle concern.  Just four weeks ago, Rivian disclosed that it will be forced to reduce production and decrease its sales target in 2024 by almost 20% because of difficulties sourcing a component used in its electric motor.[8]  And last week, to secure a steady supply of lithium, GM announced an almost $1 billion investment in the Thacker Pass mine in Nevada.[9]

    For years, the problem for domestic energy policy was how to mine, drill, and import enough raw materials to satisfy America’s growing energy demand.[10]  Even after the oil glut of the 1980s and lower energy prices, we were still concerned with our reliance on foreign energy.[11]  The continuous mantra of Presidents starting with Richard Nixon was the concept of “Energy Independence” as a policy goal.[12]  Now, not because of government mandates, plans, or policies, but thanks to technological innovation, hard work, and the deployment of private capital, that goal has largely been achieved.  We have the raw materials in the ground that we need to power American energy independence; however, we need our infrastructure to catch-up with our domestic supply.

    Returning to my driving lesson, when I look at the road ahead, I see the United States coming to a crossroads.  One road leads to more resilient infrastructure, lower prices, and energy abundance.  The other road leads to energy scarcity, higher prices, and a loss of energy independence.  The direction we take as a country will have a major impact on the energy markets and the futures markets we regulate at the CFTC.  Unfortunately, gaps in energy infrastructure lead to instability and volatility in energy markets, which have a direct impact on the derivatives markets.  If derivatives markets fail to offer adequate price discovery and risk mitigation, they will no longer serve producers and end users as appropriate tools to hedge their exposure.  That is a road we cannot afford to go down.

    As a regulator, the CFTC is not the driver of this car, but we definitely have an interest in taking the road that leads to liquid, stable, and vibrant derivatives markets that serve as a tool for hedging against risk. We can do that by ensuring that new derivative products come to market efficiently without the fear of litigation or unreasonable staff positions, and by cultivating new market structures that minimize conflicts and instill market confidence.  Our enforcement efforts should be focused on ‘bad actors’ and not on trying to shortcut deliberative policymaking.  The CFTC should prefer “responsible regulation” over “regulation by enforcement.”  To arrive at our desired destination, we all need to keep our eyes on the road, to see what is right in front of us while simultaneously paying attention to the road ahead.

    Thank you for taking this road trip with me today.  I look forward to answering your questions.


    [1] CFTC Energy and Environmental Markets Advisory Committee meeting in Stillwater, Oklahoma, September 20, 2022.

    [4] CFTC Energy and Environmental Markets Advisory Committee meeting in Nashville, Tennessee, February 28, 2023.  CFTC Energy and Environmental Markets Advisory Committee meeting in Roy, Utah, June 27, 2023.  CFTC Energy and Environmental Markets Advisory Committee meeting in Golden, Colorado, February 13, 2024.

    [5] Kristine L. Pankow, Jeffrey R. Moore, J. Mark Hale, Keith D. Koper, Tex Kubacki, Katherine M. Whidden, and Michael K. McCarter.  “Massive landslide at Utah copper mine generates wealth of geophysical data.” Geological Society of America, vol. 24, no. 1, January 2014.

    [7] Securing Copper Supply: No China, No Energy Transition, WoodsMcKenzie, August 2024, Nick Pickens, Robin Griffin, Eleni Joanides, and Zhifei Liu.

    [8] Ed Ludlow and Kiel Porter. “Rivian Misstep Triggered Parts Shortage Hobbling Its EV Output.” Bloomberg, October 7, 2024.

    [9] Camilla Hodgson.  “General Motors increases investment in lithium mine to nearly $1bn.” Financial Times, October 6, 2024.

    [10] US Energy Information Administration, “U.S. energy facts explained, Imports & Exports.”  Last updated July 15, 2024, with data from the Monthly Energy Review.

    [12] Charles Homans, “Energy Independence: A Short History.”  Foreign Policy, January 3, 2012.

    MIL OSI USA News

  • MIL-OSI USA: NASA Releases Economic Impact Report for Fiscal Year 2023

    Source: NASA

    In fiscal year 2023, NASA investments supported 66,208 jobs in the state of California, generated $18.5 billion in economic output and $1 billion in tax revenue to the state’s economy.
    Overall, NASA generated an estimated $9.5 billion in federal, state, and local taxes throughout the United States.
    NASA’s Armstrong Flight Research Center in Edwards, California is one of three NASA centers in the state that contributes to this economic achievement. The center supports critical research in sustainable flight, air mobility, and airborne science, reinforcing the region as a hub of aerospace innovation.
    Most notably, NASA Armstrong plays a unique role in the Quesst mission and X-59 project, aimed at reducing the sonic booms into quieter “sonic thumps,” to change regulations impeding supersonic flight over land. Additionally, maturing key airframe technologies with the X-66 aircraft in the Sustainable Flight Demonstrator project which may influence the next generation single-aisle seat class airliner. The Center also supports the research of electric air taxis and drones to operate safely in the national airspace as well as supporting science aircraft for NASA’s Earth Science Mission.
    NASA’s Moon to Mars campaign generated 16,129 jobs and $4.7 billion in economic output in California. Collaborations with contractors like Boeing and Lockheed Martin further extended these benefits by creating thousands of high-skilled jobs in the Antelope Valley and across the state.
    NASA also fosters partnerships with educational institutions across the state, investing $39.5 million in universities to cultivate the next generation of aerospace innovators. These investments bring STEM opportunities to local communities and prepare students for careers in cutting-edge industries – adding to the agency’s most valuable asset, its workforce.
    NASA embraces the challenges of exploring the unknown and making the impossible possible as we continue our global leadership in science, human spaceflight, aerospace innovation, and technology development, and support the U.S. economy and benefit all.
    Read the full Economic Impact Report for Fiscal Year 2023.
    -end-
    Nicolas Cholula / Sarah MannNASA’s Armstrong Flight Research Center661-714-3853 / 661-233-2758nicolas.h.cholula@nasa.gov /sarah.mann@nasa.gov

    MIL OSI USA News

  • MIL-OSI: Rudy R. Miller Instrument Safety Currency Program (ISCP) Embry-Riddle Aeronautical University, College of Aviation, Prescott Campus

    Source: GlobeNewswire (MIL-OSI)

    SCOTTSDALE, Ariz., Oct. 24, 2024 (GLOBE NEWSWIRE) —  The Rudy R. Miller Instrument Safety Currency Program (ISCP) at Embry-Riddle Aeronautical University, College of Aviation, Prescott Campus, was created and funded by Mr. Miller in 2023, with students receiving simulator time starting in Spring 2024. The ISCP was created to build a curriculum that was compliant with federal regulations for instrument currency. Embry-Riddle’s training experts completed that curriculum which was then reviewed and validated by Embry-Riddle’s Chief Instructor, Ryan Albrecht. Once the process was completed and approved, the curriculum was uploaded into the flight systems for logging and tracking of activity.

    Embry-Riddle Aeronautical University, in coordination with the Prescott’s College of Aviation’s Flight Department and Flight Director, Parker Northrup, oversees the administration of the ISCP fund. This program supports flight students in their junior year flight course to maintain the skills they learned in their instrument rating course where focus is spent on learning commercial performance maneuvers and often allows instrument skills to degrade. The ISCP provides simulator time to update the instrument currency as required by Federal Aviation Regulations.

    ISCP RECIPIENTS SPRING 2024

    Christopher Gurule, Aeronautical Science Degree
    Kaleo Mendoza, Aeronautical Science Degree
    Joseph Molitor, Aeronautical Science Degree
    Reza Parva, Aeronautical Science Degree

    Parker Northrup, Chair, Flight Department, College of Aviation, Prescott Campus, said “Mr. Rudy Miller’s engagement and generosity are such a valuable addition to what we strive to do with our students.  ISCP allows us to selectively reinforce the safety culture that depends on maintaining those skills critical to safe instrument flying

    Rudy R. Miller commented, “I would like to thank Parker Northrup and Steve Bobinsky, executive director of philanthropy, for their time plus all their remarkable team members’ assistance in supporting this outstanding program for qualified students. I have really enjoyed working on this project over the past year and plan to stay involved.

    “The future is bright regarding all the numerous new projects, expansions, and improvements that Embry-Riddle, Prescott Campus, is executing, from my perspective. I am currently involved in a total of five Embry-Riddle projects with respect to my personal time involvement and various funding capabilities.”

    About Embry-Riddle Aeronautical University, Prescott Campus

    Embry-Riddle Aeronautical University, Prescott Campus, is organized into four colleges: College of Arts and Sciences, College of Aviation, College of Engineering, and College of Business, Security and Intelligence (the nation’s first), and offers bachelor of science degrees in applied science, aviation, business, computers & technology, engineering, security, intelligence & safety, and space. The Prescott campus also offers master’s degrees in Safety Science, Security & Intelligence, and Cyber Intelligence & Security. The programs in aeronautics, air traffic management, applied meteorology, and aerospace studies are certified by the Federal Aviation Administration (FAA) and is the nation’s first FAA-approved training provider for student airline certification.

    About Rudy R. Miller

    Mr. Rudy R. Miller, a former member of the U.S. Armed Forces, is an entrepreneur, philanthropist, and investor in numerous industries. Mr. Miller is Chairman, President, and CEO of Miller Capital Corporation, an affiliate of The Miller Group of entities; for more information, including Mr. Miller’s biography, visit www.themillergroup.net.

    In 2023, Mr. Miller was selected by Embry-Riddle Aeronautical University to join two influential advisory boards for both the College of Aviation and the College of Business, Security and Intelligence. In addition to joining the advisory boards at Embry-Riddle, he established scholarships for students at both colleges and set up a fund to support simulator training to improve commercial pilot safety, the Rudy R. Miller Instrument Safety Currency Program (ISCP). Mr. Miller instituted the annual Rudy R. Miller Business – Finance Scholarship Program in 2008 to support Arizona State University, W. P. Carey School of Business. Since inception, Mr. Miller has issued three additional ASU scholarships, not included in the annual award process, totaling 23 ASU scholarships to date. Mr. Miller had the honor to serve as a member of ASU’s Dean’s Council of 100, a national group of prominent business executives invited by the Dean to play a leadership role in shaping the future of the W. P. Carey School of Business.

    His philanthropic endeavors include support for the non-profit arts community, selective universities, athletic foundations, and veterans’ projects. He is a member-sponsor of the Army Historical Foundation and the National Museum of the U.S. Army located at Fort Belvoir, VA. He served as Chairman of the Advisory Board of Thunderbird Field II Veterans Memorial, Inc. (Tbird2), an organization that honors veterans, from 2018 until March 2024. Mr. Miller developed its aviation scholarship program and process in 2018 and served as the first Chairman of the Scholarship Committee until June 2023. Tbird2 offers scholarships at six colleges, for both veteran and non-veteran students, including two 4-year universities, Embry-Riddle Aeronautical University and Arizona State University, Ira A. Fulton Schools of Engineering.

    Embry-Riddle Aeronautical University photographer, Connor McShane,
    Director of Enrollment Multimedia, 928 777-6912

    Miller Capital Corporation
    Kristina Caylor
    Vice President Admin & Corporate Controller
    kcaylor@themillergroup.net
    602.225.0505

    Keaton S. Ziem
    Senior Communications Officer
    ziemk@erau.edu
    386.226.4838

    Photos accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c327597f-75c9-4779-8d41-a0198005c64e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/2c4c3dcc-9f44-4f68-9963-bda216c15103

    https://www.globenewswire.com/NewsRoom/AttachmentNg/40f71685-00ef-42f4-adbd-d5cefe243886

    The MIL Network

  • MIL-OSI: WENDEL: Q3 2024 Trading Update

    Source: GlobeNewswire (MIL-OSI)

    PRESS RELEASE – OCTOBER 24, 2024

    Fully diluted1Net Asset Value of €184.5

    up +13.7 %2year-to-date (+5.3% since June 30)

    With the announced acquisition of Monroe Capital, Wendel dramatically expands its Asset Management platform and rebalances its business model towards more recurring cash flows and growth

    Fully diluted Net Asset Value3as of September 30, 2024: €184.5 per share

    • Fully diluted NAV per share up +16.1%4 since the start of the year when restating for the €4 dividend paid in May 2024 reflecting:
      • Strong increase in Bureau Veritas’ share price (+34% YTD)
      • Slight decrease in value of non-listed assets
      • Positive contribution of Asset Management activities (IK Partners), reflecting the increase in market multiples

    Very active implementation of new strategic directions and active portfolio rotation

    • Principal Investment:
      • €2.3 billion proceeds and value crystallization through the sale of 9% of Bureau Veritas’ share capital and the disposal of Constantia Flexibles
      • €0.7 billion invested including €625 million in Globeducate, closed on October 16
    • Asset Management:
      • €0.4 billion invested for the acquisition of 51% of IK Partners
      • $1.13 billion will be invested in equity to acquire 75% of Monroe Capital, as announced on October 22, 2024 (closing expected in the first half of 2025)

    Wendel Asset Management business is now a significant performance driver

    • Considering the announced acquisition of Monroe Capital, Wendel’s Asset Management platform will represent c.€31bn of AuM in private assets5
    • In 2025, Wendel AM business is expected to generate c.€160m6 of Fee Related Earnings (“FRE”) and c.€185m of total pre-tax profit in 2025
    • IK Partners Fee Paying AuM up +19% over the first 9 months of 2024

    Consolidated 9M 2024 sales of €5,918.1 million, up +14.6% overall and +8.9% organically

    • Very strong organic growth at Bureau Veritas (+10.4% over 9 months)
    • Solid growth at CPI (+7.9%)    
    • ACAMS (+8%) in total over 9 months, due to the earlier timing of a flagship conference than in 2023
    • Encouraging first 9 months for Stahl (+1.6% total growth), with Q3 (-4.7%) impacted by a mixed environment in its industry
    • Scalian: slight decrease of -0.2% over 9 months

    Strong financial structure and committed to remain Investment Grade

    • Debt maturity of 3.9 years with an average cost of 2.4%
    • LTV ratio at -6.8% as of September 30, 2024, and 18.9%7 on a pro forma basis
    • Pro forma total liquidity of €1.48 billion as of September 30, 2024, including €0.5 billion in cash and €875 million in committed credit facility (fully undrawn)
    Laurent Mignon, Wendel Group CEO, commented:

    “The first nine months of 2024 have been generating good value creation for shareholders, with fully diluted Net Asset Value growing by 13.7%, driven notably by Bureau Veritas’ strong stock price and operating performances.

    We continue to enhance our cash flow generation and value creation profile, by executing our strategic plan with determination, rigor and financial discipline, as demonstrated by the Monroe Capital acquisition, announced two days ago, while also focusing on premium assets in our principal investment activities, highlighted by the recent acquisition of Globeducate.

    Our transformation to a dual-strategy model is now well-grounded, with top partners in asset management such as IK Partners in private equity and now Monroe Capital in private credit.

    Following the investment in Globeducate and the announced acquisition of Monroe Capital, the priorities of Wendel’s teams are to create value on existing assets, to successfully build the private asset management platform around IK Partners and Monroe Capital, and to maintain a solid financial structure.”

    Wendel’s net asset value as of September 30, 2024: €184.5 per share on a fully diluted basis

    Wendel’s Net Asset Value (NAV) as of September 30, 2024, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

    Fully diluted Net Asset Value was €184.5 per share as of September 30, 2024 (see detail in the table below), as compared to €162.3 on December 31, 2023, representing an increase of +13.7% since the start of the year and +16.1% restated for the dividend paid in 2024. Compared to the last 20-day average share price as of September 30, the discount to the September 30, 2024, fully diluted NAV per share was -50.6%.

    Bureau Veritas contributed very positively to the increase in Net Asset Value: on September 30, its 20-day average share price was up strongly (+34.3%) compared to December 31, 2023. Impacts from share price movements from IHS Towers (-30.0%) and Tarkett (-2.8%) were negligible given the weight of Bureau Veritas in the NAV. Total value creation per share of listed assets was therefore +€26.1 over the first nine months of 2024 on a fully diluted basis.

    Unlisted assets’ contribution to the growth of the NAV was slightly negative over the first nine months of the year with a total change per share of -€1.2, reflecting a positive evolution of the market multiples and from bolt-on acquisitions, more than entirely offset by negative FX effect and selective downward revisions of outlooks for the current year (compared to December 31, 2023).

    Asset management activities were consolidated and accounted in the NAV for the first time at the end of June following the acquisition of IK Partners. There is no sponsor money included in the NAV yet, as no capital has been called. IK Partners’ valuation is up by €1.5 per share over the third quarter, driven by positive market multiples evolution.

    Cash operating costs and net financing results impacted NAV by -€1.2 over 9 months, as Wendel benefited from a positive carry. The impact of year-to-date share buybacks on fully diluted NAV per share is +€1.4 per share more as of September 30, 2024, than as of December 31, 2023. Other assets and liabilities impacted NAV by -€0.5.

    Total Net Asset Value increase amounted to €26.2 per share over the first nine months of the year before dividend payment.

    Fully diluted NAV per share of €184.5 as of September 30, 2024

    (in millions of euros)     09/30/2024 12/31/2023
    Listed investments Number of shares Share price (1) 3,800 3,867
    Bureau Veritas 120.3m/160.8m €29.9/€22.2 3,591 3,575
    IHS 63.0m/63.0m $3.1/$4.4 174 251
    Tarkett   €8.9/€9.1 35 40
    Investment in unlisted assets (2) 3,158 4,360
    Asset Management Activities (3) 449
    Other assets and liabilities of Wendel and holding companies (4) 95 6
    Net cash position & financial assets (5) 3,027 1,286
    Gross asset value     10,530 9,518
    Wendel bond debt     -2,386 -2,401
    IK Partners transaction deferred payment -131
    Net Asset Value     8,012 7,118
    Of which net debt     509 -1,115
    Number of shares     44,430,864 44,430,554
    Net Asset Value per share 180.3 €160.2
    Wendel’s 20 days share price average   €91.1 €79.9
    Premium (discount) on NAV -49.5% -50.1%
    Number of shares – fully diluted 42,469,744 43,302,016
    Fully diluted Net Asset Value, per share 184.5 €162.3
    Premium (discount) on fully diluted NAV -50.6% -50.8%

    (1)   Last 20 trading days average as of September 30, 2024, and December 31, 2023.

    (2)   Investments in unlisted companies (Stahl, Crisis Prevention Institute, ACAMS, Scalian, Wendel Growth as of September 30, 2024, also included Constantia Flexibles as of December 31, 2023). Aggregates retained for the calculation exclude the impact of IFRS16.

    (3)   IK Partners’ activity, no sponsor money has been called at this stage. It is therefore not included in the NAV at this stage.

    (4)   Of which 1,961,120 treasury shares as of September 30, 2024, and 1,128,538 treasury shares as of December 31, 2023.

    (5)   Cash position and financial assets of Wendel and holdings.

    Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.

    If co-investment and management LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 246 of the 2023 Universal Registration Document.

    Wendel’s Principal Investments’ portfolio rotation

    Since the beginning of the year, Wendel has realized a total of €2.3 billion in disposals for its own account and has invested €0.7 billion, reflecting the acceleration of the diversification of its investment portfolio, in line with the strategy announced a few months ago:

    • Wendel announced on January 4, 2024, that it had completed the sale of Constantia Flexibles, generating total net proceeds9 for Wendel of €1,121 million for its shares, i.e. a valuation over 10% higher than the latest NAV on record before the announcement of the transaction (as at March 31, 2023).
    • Wendel announced on April 5, 2024, that it had successfully completed the sale of 40.5 million shares in Bureau Veritas, representing c.9% of the Company’s share capital, for total proceeds of approximately €1.1 billion. The transaction was carried out at a price of €27.127, or a discount of 3% from the previous day’s share price.
    • Wendel Growth realized its investment in Preligens, a leader in artificial intelligence (AI) for aerospace and defence, generating net proceeds to Wendel of c.€14.6M, translating into a gross IRR of 28%10. In addition, Wendel Growth announced on June 11, 2024, the acquisition of a minority stake in YesWeHack through an equity investment of €14.5 million.
    • Wendel reinvested €43.7m in Scalian upon the acquisition of MANNARINO Systems & Software on June 21, 2024. This Canadian company is a leading engineering services specialist for advanced technology R&D for the aviation sector, primarily in North America, with recognized expertise in safety-critical embedded software and systems.
    • On October 16, 2024, Wendel completed the acquisition of c.50% of Globeducate, one of the world’s leading international K-12 education groups, from Providence Equity Partners. Wendel invested €625 million of equity, at an Enterprise Value of c.€2 billion11, to join Providence, and both firms will now own c.50% of the group.

    Wendel’s Asset Management platform evolution

    Acquisition of Monroe Capital dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth

    Wendel announced on October 22 that it had entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”), and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

    For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding Principal Investment business.

    With IK Partners and Monroe Capital, Wendel’s third party asset management platform will reach c.€31 billion in AUM12, c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€101 million in pre-tax FRE (Wendel share) by 2025 and is expected to reach €150 million (Wendel share) in pre-tax FRE by 2027 through double-digit organic growth.

    For more information, see the October 22, 2024, announcement on http://www.wendelgroup.com.

    Third Party Asset Management value creation and performance

    9 months 2024 performance

    Over the first nine months of 2024, IK Partners had particularly strong activity, generating a total of €126.4 million in revenue. Total Assets under Management (€13.3 billion, of which €3.3 billion of Dry Powder13) grew by 20% since the beginning of the year, and FPAuM14 (€9.0 billion) by 19%. Over the period, €1.7 billion of new funds were raised (IK X, PFIII and IK SO) and 7 exits have been announced, for over €1.2 billion.

    Sponsor money invested by Wendel

    Wendel committed €400 million in IK Partners funds, of which €300 million in IK X. These commitments have not yet been called.

    Principal Investment companies’ value creation and performance

    Listed Assets: 36% of Gross Asset Value

    Bureau Veritas – Strong Q3 2024 organic revenue growth; refocused portfolio with ongoing acquisitions acceleration, in line with the LEAP | 28 strategy; 2024 revenue outlook upgraded

    (Full consolidation)

    Revenue in the first nine months of 2024 totaled € 4,569.6 million, a 5.6% increase year-to-date.

    Revenue in the third quarter of 2024 amounted to € 1,547.9 million, an 8.8% increase compared to Q3 2023. Organic growth achieved a strong 13.0%, which led to 10.5% on a 9-month basis. The scope effect was a positive 0.5%, reflecting bolt-on acquisitions (contributing to +1.1%) realized in the past few quarters and partly offset by the impact of small divestments completed over the last twelve months (contributing to -0.6%). Currency fluctuations had a negative impact of 4.7%, due to the strength of the euro against most currencies.

    Three businesses delivered very strong organic growth: Marine & Offshore, up 13.2%, Industry, up 23.8%, and Certification, up 17.7%. Buildings & Infrastructure further recovered, up 9.3% organically in the third quarter (after 4.3% in the first half) while both Consumer Products Services and Agri Food & Commodities grew high-single digits organically, both reflecting improving market trends.

    Based on the 9-month performance, leveraging a healthy and growing sales pipeline and strong underlying market growth, Bureau Veritas now expects to deliver for the full year 2024:

    • 9 to 10% organic revenue growth (from “high single-digit” previously);
    • Improvement in adjusted operating margin at constant exchange rates;
    • Strong cash flow, with a cash conversion above 90%.

    For more information: https://group.bureauveritas.com

    Tarkett – Slight organic decrease year-to-date, with Q3 2024 solid organic sales growth of +2.4%, as Sports division grew at a sustained pace in the most important quarter of the year. Activity remained sluggish in flooring, particularly in EMEA and the CIS countries

    (Equity method)

    Revenue in the first nine months of 2024 amounted to €2,560.7 million, down by -1.2% compared to the same period of 2023, reflecting an organic decline of -0.4%. Sales prices remained stable over the financial year, i.e. -0.3% compared to the first nine months of 2023. In Q3 2024, Group net sales came to €1,002 million, up +1.8% compared to the third quarter of 2023. Organic growth reached +2.4%. Sales prices remained broadly stable over the year, with a slight decline of -0.5% compared to the third quarter of 2023.

    For more information: https://www.tarkett-group.com/en/investors/

    IHS Towers (not consolidated) – IHS Towers will report its Q3 2024 results in the coming weeks

    Unlisted Assets: 30% of Gross Asset Value

      Sales (in millions)
      9 months 2023 9 months 2024
    Stahl €677.3 €687.9
    CPI $103.6 $112.0
    ACAMS $67.9 $76.8
    Scalian €402.2 €401.3

    Stahl – Total sales up 1.6% for the first 9 months of 2024 on the back of Q3 market challenges in the leather market for automotive and luxury goods

    (full consolidation) 

    Stahl, the world leader in specialty coatings for flexible materials, posted total sales of €687.9 million in the first 9 months of 2024, representing a total increase of +1.6% over the period. Organically, sales were slightly down -0.4%, in a context of tougher markets in automotive and luxury goods, while FX contributed -1.3%. The acquisition of ICP Industrial Solutions Group (ISG) in March 2023 contributed positively (+3.3%) to total sales variation.

    Stahl Q3 sales were down -4.7% (-3.1% organically and -1.6% due to FX) linked to the weaker market performance of the automotive and luxury goods sectors, notably in August, which was a particularly quiet month this year as many Italian tanneries were inactive for a four-week period due to reduced activity.

    On September 27, Stahl completed the acquisition of WEILBURGER Coatings, a leading German-based manufacturer of water-based and energy cured coatings for the graphic arts and packaging industry. The transaction significantly strengthens Stahl’s packaging coatings division and supports its strategy to broaden its franchise for specialty coatings for flexible materials. This acquisition strengthens Stahl’s strategic position in Europe, positioning the company as the second-largest packaging coatings player in the region. WEILBURGER Coatings posted sales of €70 million in 2023 and has over 140 employees, primarily based in Germany.

    Stahl also announced it maintained its Platinum EcoVadis rating for the third consecutive year, reaffirming its commitment to sustainability. In August, Stahl was awarded the Living Wage certification strengthening its commitment to fair compensation and employee well-being.

    Crisis Prevention Institute reports +8.2% revenue as compared with 9M 2023

    (full consolidation)

    CPI recorded first nine months 2024 revenues of $112 million, up +8.2% compared to 9M 2023, or +8.1% organically (FX impact was +0.1%), resulting from the addition of new certified instructors across end markets and geographies, and strong consumption of training materials, signifying active training of broader staff throughout the Company’s primary customers in educational, healthcare and human services settings. The company’s year-to-date results include relatively flat year-over-year revenue for the third quarter, however, reflecting what management describes as a temporary, seasonal slowdown in new certified instructors and a difficult year-over-year comparison resulting from an unusually large enterprise program added in the third quarter of 2023.

    2024 continues to be a pivotal year for CPI in growing its impact and reach, including further global expansion with the opening of its first office in the United Arab Emirates, and new program launches, including Reframing Behavior, a new certification program designed to help educators build a more positive, supportive learning environment and prevent disruptive classroom behavior. In addition, regulatory and legislative actions continue to provide support for workplace violence prevention programs and related training, including expanded requirements in New York, Texas and California during 2024.

    ACAMS – ACAMS reports positive total growth amid accelerated transformation

    (full consolidation)

    ACAMS, the global leader in training and certifications for anti-money laundering and financial crime prevention professionals, reported year-to-date bookings of $78 million, roughly flat with reported bookings for the same period in 2023, and revenue of $77 million for the first nine months of 2024, representing 8% year-over-year growth. The results for the first nine months of 2024 reflect continued growth and market expansion in North America and Europe, largely offset by declines with customers in the Asia-Pacific region. As well, the year-to-date results include the impact of ACAMS’ flagship Las Vegas conference that was held in the third quarter of 2024 and fourth quarter of 2023. Excluding the impact of this timing difference would reduce year-over-year bookings and revenue growth for the nine months ending September 30, 2024, to -0.8% and +0.3%, respectively.

    The Company has made considerable progress in its transformation this year. Having largely completed its separation and transition to a stand-alone, independent company in 2023, ACAMS has made many investments instrumental to the Company’s future growth, including organizational changes led by the CEO, Neil Sternthal, who joined ACAMS in early 2024 and subsequently added several executives, including a new Chief Financial Officer and a Chief Revenue Officer, investments in the Company’s technology platform, business analytics and sales organizations, and new product development, most notably with the planned introduction of its Certified Anti-Fraud Specialist (CAFS) certification.

    Scalian – Slight decrease of total sales of -0.2% year-to-date, in a context of overall market slowdown

    (full consolidation since July 2023.)  

    Scalian, a European leader in digital transformation, project management and operational performance consulting, reported total revenues of €401.3 million over the first 9 months in a context of continued industry slowdown, in particular supply chain tensions in the aeronautic sector as well as the turndown of the European automotive sector. Sales are down by -2.5% organically and benefited from a positive scope effect of +2.3%.

    Scalian announced the acquisition of Dulin Technology in January 2024, a Spanish-based consulting firm specializing in cybersecurity for the financial sector, and MANNARINO Systems & Software in June 2024, a Canadian-based company that is a leading engineering services specialist with a unique know-how in advanced technology R&D for the aviation sector.

    Agenda

    Friday, December 6, 2024,

    2024 Investor Day.

    Wednesday, February 26, 2025

    Full-Year 2024 Results – Publication of NAV as of December 31, 2024, and Full-Year consolidated financial statements (post-market release)

    Thursday, April 24, 2025

    Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

    Thursday, May 15, 2025

    Annual General Meeting

    Wednesday, July 30, 2025

    H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

    Appendix 1: Nine-month 2024 sales of Group companies

    Nine-month 2024 consolidated sales

    (in millions of euros) 9-month 2023 9-month 2024            Δ Organic Δ
    Bureau Veritas 4,328.0 4,569.6 +5.6% +10.4%
    Stahl (1) 677.3 687.9 +1.6% -0.4%
    Scalian (2) n.a. 409.3 n.a. n.a.
    Crisis Prevention Institute 95.6 103.1 +7.9% +8.1%
    ACAMS (3) 62.7 70.6 +12.6% +8.6%
    IK Partners(4) n.a. 77.6 n.a. n.a.
    Consolidated net sales (3)(4) 5,163.5 5,918.1 +14.6% +8.9%

    (1)   Acquisition of ICP Industrial Solutions Group (ISG) since March 2023 (sales’ contribution of €70.8M vs €62.7M as of 9M 2023)
    (2)   Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 9 months’ sales between October 1st 2023 and June 30 2024.
    (3)   The sales include a PPA restatement for an impact of -€0.5M (vs -€3.2M as of 9M 2023). Excluding this restatement, the sales amount to €71.3M vs. €66.1M as of 9M 2023. The total growth of +12.6% include a PPA effect of +4.5% and the conference revenue which generated $5,9M while this event occurred in Q4 2023 last year.        
    (4)   Contribution of five months of sales        
                                                                            

    Nine-month 2024 sales of equity accounted companies

    (in millions of euros) 9-month 2023 9-month 2024           Δ Organic Δ
    Tarkett(5) 2,592.6 2,560.7 -1.2% -0.4%

    (5)   Sales price adjustments in CIS countries are historically intended to compensate for currency movements and are therefore excluded from the “organic growth” indicator.

    Q3 2024 sales of Group companies

    Q3 2024 consolidated sales

    (in millions of euros) Q3 2023 Q3 2024             Δ Organic Δ
    Bureau Veritas 1,423.8 1,547.9 +8.8% +13.0%
    Stahl 234.3 223.3 -4.7% -3.1%
    Scalian (1) n.a. 131.1 n.a. n.a.
    Crisis Prevention Institute 42.0 41.2 -1.8% -1.0%
    ACAMS (2) 20.2 26.1 +29.1% +28.6%
    IK Partners n.a. 44.2 n.a. n.a.
    Consolidated net sales 1,720.2 2,013.8 +17.1% +10.6%

    (1)   Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 3 months’ sales between April 1st 2024 and June 30 2024.
    (2)   ACAMS Q3 2024 sales includes the conference which generated $5,9M, while this event occurred in Q4 2023 last year.                        

    Q3 2024 sales of equity accounted companies

    (in millions of euros) Q3 2023 Q3 2024           Δ Organic Δ
    Tarkett(3) 984.3 1,002.0 +1.8% +2.4%

    (3)   Sales price adjustments in CIS countries are historically intended to offset exchange rate movements, and are therefore excluded from the “organic growth” indicator.


    1 Fully-diluted NAV per share assumes all treasury shares are cancelled and a complementary liability is booked to account for all LTIP related securities in the money as of the valuation date.
    2 +13.7% compared with fully diluted NAV of €162.3 as of Dec. 31, 2023.
    3 Fully diluted of share buybacks and treasury shares. Without adjusting for dilution, NAV stands at €8,012m and €180.3 per share.
    4 Including the €4.0 per share dividend paid in 2024, and on a non-fully diluted basis NAV is up 15.0%.
    5 As of September 2024.
    6 c.€101m of FRE expected in 2025, Wendel share.

    7 Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

    8 Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

    9 Net proceeds after ticking fees, financial debt, dilution to the benefit of the Company’s minority investors, transaction costs and other debt-like adjustments.
    10 Gross IRR of 28%. Net IRR of 26%.
    11 EV including IFRS 16 impacts. Excluding IFRS 16, EV stands at c.€1.86 billion.
    12 As of September 2024

    13 Commitments not yet invested

    14 Fee Paying AuM

    Attachment

    The MIL Network

  • MIL-OSI USA: Wexton Announces $40 Million in Federal Infrastructure Law Funding for New Dulles Airport Terminal Project

    Source: United States House of Representatives – Congresswoman Jennifer Wexton (D-VA)

    Washington, DC – Today, Congresswoman Jennifer Wexton (D-VA) announced a new $40 million grant from the Bipartisan Infrastructure Law’s Airport Terminals Program (ATP) to aid in the construction of Washington Dulles International Airport’s new 14-gate regional and commuter terminal. This is the fourth consecutive fiscal year that the new terminal project has received funding through the Bipartisan Infrastructure Law, after receiving $49.6 million in 2022, $20 million in 2023, and $35 million in 2024.

    “I’m proud that our Bipartisan Infrastructure Law is once again delivering critical funding that will help grow and enhance travel and economic activity here in Virginia’s 10th District at Dulles Airport,” said Congresswoman Wexton. “Today’s announcement brings the total to more than $144 million in federal funds to make this new terminal project a reality. A top priority for the airport, it will save passengers’ time, reduce crowding, and make the passenger experience smoother and more convenient. The investments we’ve made through this historic infrastructure law continue to have an impact in our community and local economy that will have benefits for generations to come.”

    The new terminal will be conveniently located atop the underground Concourse C/D Aerotrain station, providing quick and easy access to passengers and reducing transit times for passengers with connections at Dulles who must currently use shuttle buses or long walkways. The new terminal will allow for jet bridge boarding that reduces boarding times and is more accessible for passengers with disabilities, rather than forcing passengers to board using outdoor covered walkways and aircraft stairs. It will be nearly four times larger than the current facility, which will reduce crowding, allow for expanded concessions and passenger amenities, and create additional space for operational areas, offices, aircraft servicing, and baggage handling.

    The new regional and commuter terminal project will also improve Dulles’s environmental footprint, as the proposed new facility will be built to LEED Silver Certifiable standards. Environmental improvements include support for electric aircraft servicing vehicles and the use of modern energy efficient construction methods and materials.

    The Airport Terminals Program, established by the Bipartisan Infrastructure Law which Wexton voted to pass in 2021, provides $1 billion in grants annually for five years to address aging infrastructure at our nation’s airports.

    ###

    MIL OSI USA News

  • MIL-OSI USA: Manchin Tours River Town Aviation and Aircraft, American Rescue Plan Funded Projects in Parkersburg

    US Senate News:

    Source: United States Senator for West Virginia Joe Manchin
    October 23, 2024
    Parkersburg, WV – Today, U.S. Senator Joe Manchin (I-WV) toured River Town Aviation and Aircraft’s newly-renovated hangar at the Mid-Ohio Valley Airport as well as three projects funded by the American Rescue Plan in Parkersburg, West Virginia.
    “West Virginia has accomplished so much for the advancement of aviation, and I couldn’t be more optimistic about our future,” Senator Manchin said. “I am always so proud to see our West Virginia airports and flight programs, like River Town Aviation and Aircraft, expand and prosper.
    “I’m pleased to see the incredible improvements that have been made to the Southwood Pool, the City Park Baseball Field, and the Fort Boreman Water & Sewer Site,” Senator Manchin continued. “The investments made by the American Rescue Plan are reinvigorating the city of Parkersburg and making this town a better place for all who live and visit here. I remain dedicated to fighting for West Virginia’s priorities and will do everything in my power to ensure we receive the resources we need to continue strengthening the Mountain State’s communities.”
    Photos from the event are available here.

    MIL OSI USA News

  • MIL-OSI: Gevo to Report Third Quarter 2024 Financial Results on November 7, 2024

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD, Colo., Oct. 24, 2024 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on November 7, 2024, at 4:30 p.m. ET (2:30 p.m. MT) to report its financial results for the third quarter ended September 30, 2024.

    To participate in the live call, please register through the following event weblink: https://register.vevent.com/register/BId0c13b561f9d442ba7211ad0cbc56dbc

    After registering, participants will be provided with a dial-in number and pin.

    To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/ggx3po5y

    A webcast replay will be available two hours after the conference call ends on November 7, 2024. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

    About Gevo

    Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of its business systems through its Verity subsidiary.

    Learn more at Gevo’s website: www.gevo.com.

    PUBLIC AFFAIRS CONTACT
    Heather Manuel
    VP of Stakeholder Engagement & Partnerships
    PR@gevo.com

    INVESTOR CONTACT
    Eric Frey, PhD
    VP of Finance and Strategy
    IR@gevo.com

    The MIL Network

  • MIL-OSI USA: QUIGLEY, SORENSEN, DURBIN, DUCKWORTH, ANNOUNCE $33.5 MILLION IN FEDERAL FUNDING FOR PEORIA AND CHICAGO AIRPORTS

    Source: United States House of Representatives – Representative Mike Quigley (IL-05)

    Today, U.S. Representatives Mike Quigley (D-IL-05), Eric Sorensen (D-IL-17) and U.S. Senators Dick Durbin (D-IL), and Tammy Duckworth (D-IL) announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program.

    With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.

    “Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.

    “By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”

    “Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”

    “This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.

    Durbin and Duckworth previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.

    Durbin and Duckworth helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.

    MIL OSI USA News

  • MIL-OSI: Live Oak Bancshares, Inc. Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, N.C., Oct. 23, 2024 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2024 net income of $13.0 million, or $0.28 per diluted share.

    “Live Oak delivered historic production levels this quarter as our teams continue to put capital into the hands of business owners across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “We believe our business momentum is in an exciting place and our conservative approach to growth is driving positive operating leverage, revenue, and deeper customer relationships.”

    Third Quarter 2024 Key Measures

    (Dollars in thousands, except per share data)       Increase (Decrease)    
      3Q 2024   2Q 2024   Dollars   Percent   3Q 2023
    Total revenue(1) $ 129,932     $ 125,479     $ 4,453       3.5 %   $ 127,301  
    Total noninterest expense   77,589       77,656       (67 )     (0.1 )     74,262  
    Income before taxes   17,841       36,058       (18,217 )     (50.5 )     42,760  
    Effective tax rate   27.0 %     25.2 %     n/a       n/a       6.9 %
    Net income $ 13,025     $ 26,963     $ (13,938 )     (51.7 )%   $ 39,793  
    Diluted earnings per share   0.28       0.59       (0.31 )     (52.5 )     0.88  
    Loan and lease production:                  
    Loans and leases originated $ 1,757,856     $ 1,171,141     $ 586,715       50.1 %   $ 1,073,255  
    % Fully funded   42.4 %     38.2 %     n/a       n/a       52.2 %
    Total loans and leases: $ 10,191,868     $ 9,535,766     $ 656,102       6.9 %   $ 8,775,235  
    Total assets:   12,607,346       11,868,570       738,776       6.2       10,950,460  
    Total deposits:   11,400,547       10,707,031       693,516       6.5       10,003,642  

    (1) Total revenue consists of net interest income and total noninterest income.

    Loans and Leases

    As of September 30, 2024, the total loan and lease portfolio was $10.19 billion, 6.9% above its level at June 30, 2024, and 16.1% above its level a year ago. Excluding historical Paycheck Protection Program loans, the third quarter of 2024 was the Company’s highest loan production quarter of all time. Compared to the second quarter of 2024, loans and leases held for investment increased $659.8 million, or 7.2%, to $9.83 billion while loans held for sale decreased $3.7 million, or 1.0%, to $360.0 million. Average loans and leases were $9.76 billion during the third quarter of 2024 compared to $9.38 billion during the second quarter of 2024. 

    The total loan and lease portfolio at September 30, 2024, and June 30, 2024, was comprised of 34.5% and 36.4% of guaranteed loans, respectively.

    Loan and lease originations totaled $1.76 billion during the third quarter of 2024, an increase of $586.7 million, or 50.1%, from the second quarter of 2024. Loan and lease originations increased $684.6 million, or 63.8%, from the third quarter of 2023.

    Deposits

    Total deposits increased to $11.40 billion at September 30, 2024, an increase of $693.5 million compared to June 30, 2024, and an increase of $1.40 billion compared to September 30, 2023. The increase in total deposits from prior periods was to support growth in the loan and lease portfolio as well as the Company’s targeted liquidity levels.

    Average total interest-bearing deposits for the third quarter of 2024 increased $287.5 million, or 2.8%, to $10.56 billion, compared to $10.27 billion for the second quarter of 2024. The ratio of average total loans and leases to average interest-bearing deposits was 92.5% for the third quarter of 2024, compared to 91.4% for the second quarter of 2024.

    Borrowings

    Borrowings totaled $115.4 million at September 30, 2024 compared to $117.7 million and $25.8 million at June 30, 2024, and September 30, 2023, respectively. During the first quarter of 2024, the Company increased long-term borrowings by $100.0 million through an unsecured 5.95% fixed rate 60-month term loan with a third party correspondent bank. This increase in borrowings was to strategically enhance capital levels in order to accommodate future growth expectations.

    Net Interest Income

    Net interest income for the third quarter of 2024 was $97.0 million compared to $91.3 million for the second quarter of 2024 and $89.4 million for the third quarter of 2023. The net interest margin for the third quarter of 2024 and second quarter of 2024 was 3.33% and 3.28%, respectively, an increase of five basis points quarter over quarter. During the third quarter of 2024, the average cost of interest-bearing liabilities increased by two basis points, while the average yield on interest-earning assets increased by six basis points.

    The increase in net interest income for the third quarter of 2024 compared to the third quarter of 2023 was largely driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by four basis points arising from an increase in deposits and borrowings, combined with the increase in average cost of funds, outpacing the increase in average yield on interest-earning assets.

    Noninterest Income

    Noninterest income for the third quarter of 2024 was $32.9 million, a decrease of $1.2 million compared to the second quarter of 2024, and a decrease of $5.0 million compared to the third quarter of 2023. The primary drivers in noninterest income changes are outlined below.

    The loan servicing asset revaluation resulted in a loss of $4.2 million for the third quarter of 2024 compared to a $11.3 million gain for the third quarter of 2023. This decrease between periods was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of servicing rights which resulted in a nonrecurring gain of $13.7 million during that period.

    Net gains on sales of loans was $16.6 million, a $2.3 million increase compared to the second quarter of 2024 and a $4.0 million increase compared to the third quarter of 2023. The increase in net gains on sales of loans for both compared periods was the result of higher levels of market premiums combined with increased loan sale volumes. The average guaranteed loan sale premium was 107%, 106% and 105% for the third and second quarters of 2024 and third quarter of 2023, respectively. The volume of guaranteed loans sold was $266.3 million for the third quarter of 2024 compared to $250.5 million sold in the second quarter of 2024 and $225.6 million sold in the third quarter of 2023.

    Loans accounted for under the fair value option had a net gain of $2.3 million for the third quarter of 2024, compared to a net gain of $172 thousand for the second quarter of 2024 and a net loss of $568 thousand for the third quarter of 2023. The increased levels of net gains arising from the valuation of loans accounted for under the fair value option compared to the second quarter of 2024 was largely associated with lower market interest rates. The increase in net gains when compared to the third quarter of 2023 was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of loans measured at fair value, which resulted in a nonrecurring gain of $1.3 million during that period.

    Management fee income decreased by $2.2 million, as compared to both the second quarter of 2024 and third quarter of 2023. This decrease was the result of a restructuring of the Canapi Funds in the third quarter of 2024. In connection with that restructuring, the Company’s subsidiary Canapi Advisors voluntarily withdrew as an advisor to the funds. The Company remains an investor in the Canapi Funds and continues its focus on new and emerging financial technology companies.

    Other noninterest income for the third quarter of 2024 totaled $7.1 million compared to $11.0 million for the second quarter of 2024 and $3.5 million for the third quarter of 2023. The quarter over quarter decrease of $3.9 million was largely related to a $6.7 million gain arising from the sale of one of the Company’s aircraft in the second quarter of 2024, partially offset by a $2.4 million gain from the sale of a building in the third quarter of 2024. The $3.6 million increase compared to the third quarter of 2023 was largely related to the above mentioned $2.4 million gain from the sale of an idle building and accompanying land that was determined earlier in 2024 not to be best suited to serve the Company’s future expansion plans.

    Noninterest Expense

    Noninterest expense for the third quarter of 2024 totaled $77.6 million compared to $77.7 million for the second quarter of 2024 and $74.3 million for the third quarter of 2023. Compared to the third quarter of 2023, the increase in noninterest expense was principally impacted by smaller balance increases in various expense categories, partially offset by $2.2 million in decreased levels of FDIC insurance expense. The decrease in FDIC insurance expense was the product of favorable changes in the Company’s FDIC assessment rates.

    Asset Quality

    During the third quarter of 2024, the Company recognized net charge-offs for loans carried at historical cost of $1.7 million, compared to $8.3 million in the second quarter of 2024 and $9.1 million in the third quarter of 2023. Net charge-offs as a percentage of average held for investment loans and leases carried at historical cost, annualized, for the quarters ended September 30, 2024, June 30, 2024, and September 30, 2023, was 0.08%, 0.38% and 0.48%, respectively.

    Unguaranteed nonperforming (nonaccrual) loans and leases, excluding $8.7 million and $9.6 million accounted for under the fair value option at September 30, 2024, and June 30, 2024, respectively, increased to $49.4 million, or 0.52% of loans and leases held for investment which are carried at historical cost, at September 30, 2024, compared to $37.3 million, or 0.42%, at June 30, 2024.

    Provision for Credit Losses

    The provision for credit losses for the third quarter of 2024 totaled $34.5 million compared to $11.8 million for the second quarter of 2024 and $10.3 million for the third quarter of 2023. The level of provision expense in the third quarter of 2024 was primarily the result of specific reserve increases on individually evaluated loans and continued growth of the loan and lease portfolio. Provision expense for three individually evaluated loan relationships amounted to $13.6 million, or 60.0% and 56.3% of the increase in the total provision for loan and lease losses when compared to the second quarter of 2024 and third quarter of 2023, respectively.

    The allowance for credit losses on loans and leases totaled $168.7 million at September 30, 2024, compared to $137.9 million at June 30, 2024. The allowance for credit losses on loans and leases as a percentage of total loans and leases held for investment carried at historical cost was 1.78% and 1.57% at September 30, 2024, and June 30, 2024, respectively.

    Income Tax

    Income tax expense and related effective tax rate was $4.8 million and 27.0% for the third quarter of 2024, $9.1 million and 25.2% for the second quarter of 2024 and $3.0 million and 6.9% for the third quarter of 2023, respectively. The lower level of income tax expense for the third quarter of 2024 compared to the second quarter of 2024 was primarily the result of the decreased level of pretax income. The higher level of income tax expense for the third quarter of 2024 as compared to the third quarter of 2023 was primarily the result of lower levels of anticipated investment tax credits in 2024 as compared to the prior year.

    Conference Call

    Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, October 24, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 04478. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

    Live Telephone Dial-In

    U.S.: 800.549.8228
    International: +1 646.564.2877
    Pass Code: None Required

    Live Webcast Log-In

    Webcast Link: investor.liveoakbank.com
    Registration: Name and Email Required
    Multi-Factor Code: Provided After Registration

    Important Note Regarding Forward-Looking Statements

    Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

    About Live Oak Bancshares, Inc.

    Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

    Contacts:

    Walter J. Phifer | CFO | Investor Relations | 910.202.6926
    Claire Parker | Corporate Communications | Media Relations | 910.597.1592

    Live Oak Bancshares, Inc.
    Quarterly Statements of Income (unaudited)
    (Dollars in thousands, except per share data)

      Three Months Ended   3Q 2024 Change vs.
      3Q 2024   2Q 2024   1Q 2024   4Q 2023   3Q 2023   2Q 2024   3Q 2023
    Interest income                     %   %
    Loans and fees on loans $ 192,170     $ 181,840     $ 176,010     $ 169,531     $ 162,722       5.7       18.1  
    Investment securities, taxable   9,750       9,219       8,954       8,746       8,701       5.8       12.1  
    Other interest earning assets   7,016       7,389       7,456       8,259       9,188       (5.0 )     (23.6 )
    Total interest income   208,936       198,448       192,420       186,536       180,611       5.3       15.7  
    Interest expense                          
    Deposits   110,174       105,358       101,998       96,695       90,914       4.6       21.2  
    Borrowings   1,762       1,770       311       265       287       (0.5 )     513.9  
    Total interest expense   111,936       107,128       102,309       96,960       91,201       4.5       22.7  
    Net interest income   97,000       91,320       90,111       89,576       89,410       6.2       8.5  
    Provision for credit losses   34,502       11,765       16,364       8,995       10,279       193.3       235.7  
    Net interest income after provision for credit losses   62,498       79,555       73,747       80,581       79,131       (21.4 )     (21.0 )
    Noninterest income                          
    Loan servicing revenue   8,040       7,347       7,624       7,342       6,990       9.4       15.0  
    Loan servicing asset revaluation   (4,207 )     (2,878 )     (2,744 )     (3,974 )     11,335       (46.2 )     (137.1 )
    Net gains on sales of loans   16,646       14,395       11,502       12,891       12,675       15.6       31.3  
    Net gain (loss) on loans accounted for under the fair value option   2,255       172       (219 )     (170 )     (568 )     1211.0       497.0  
    Equity method investments (loss) income   (1,393 )     (1,767 )     (5,022 )     47       (1,034 )     21.2       (34.7 )
    Equity security investments gains (losses), net   909       161       (529 )     (384 )     (783 )     464.6       216.1  
    Lease income   2,424       2,423       2,453       2,439       2,498             (3.0 )
    Management fee income   1,116       3,271       3,271       3,309       3,277       (65.9 )     (65.9 )
    Other noninterest income   7,142       11,035       9,761       8,607       3,501       (35.3 )     104.0  
    Total noninterest income   32,932       34,159       26,097       30,107       37,891       (3.6 )     (13.1 )
    Noninterest expense                          
    Salaries and employee benefits   44,524       46,255       47,275       44,274       42,947       (3.7 )     3.7  
    Travel expense   2,344       2,328       2,438       1,544       2,197       0.7       6.7  
    Professional services expense   3,287       3,061       1,878       3,052       1,762       7.4       86.5  
    Advertising and marketing expense   2,473       3,004       3,692       2,501       3,446       (17.7 )     (28.2 )
    Occupancy expense   2,807       2,388       2,247       2,231       2,129       17.5       31.8  
    Technology expense   9,081       7,996       7,723       8,402       7,722       13.6       17.6  
    Equipment expense   3,472       3,511       3,074       3,480       3,676       (1.1 )     (5.5 )
    Other loan origination and maintenance expense   4,872       3,659       3,911       3,937       3,498       33.2       39.3  
    Renewable energy tax credit investment impairment (recovery)   115       170       (927 )     14,575             (32.4 )     100.0  
    FDIC insurance   1,933       2,649       3,200       4,091       4,115       (27.0 )     (53.0 )
    Other expense   2,681       2,635       3,226       5,117       2,770       1.7       (3.2 )
    Total noninterest expense   77,589       77,656       77,737       93,204       74,262       (0.1 )     4.5  
    Income before taxes   17,841       36,058       22,107       17,484       42,760       (50.5 )     (58.3 )
    Income tax expense (benefit)   4,816       9,095       (5,479 )     1,321       2,967       (47.0 )     62.3  
    Net income $ 13,025     $ 26,963     $ 27,586     $ 16,163     $ 39,793       (51.7 )     (67.3 )
    Earnings per share                          
    Basic $ 0.28     $ 0.60     $ 0.62     $ 0.36     $ 0.89       (53.3 )     (68.5 )
    Diluted $ 0.28     $ 0.59     $ 0.60     $ 0.36     $ 0.88       (52.5 )     (68.2 )
    Weighted average shares outstanding                          
    Basic   45,073,482       44,974,942       44,762,308       44,516,646       44,408,997          
    Diluted   45,953,947       45,525,082       45,641,210       45,306,506       45,268,745          

    Live Oak Bancshares, Inc.
    Quarterly Balance Sheets (unaudited)
    (Dollars in thousands)

      As of the quarter ended   3Q 2024 Change vs.
      3Q 2024   2Q 2024   1Q 2024   4Q 2023   3Q 2023   2Q 2024   3Q 2023
    Assets                     %   %
    Cash and due from banks $ 666,585     $ 615,449     $ 597,394     $ 582,540     $ 534,774       8.3       24.6  
    Certificates of deposit with other banks   250       250       250       250       3,750             (93.3 )
    Investment securities available-for-sale   1,233,466       1,151,195       1,120,622       1,126,160       1,099,878       7.1       12.1  
    Loans held for sale   359,977       363,632       310,749       387,037       572,604       (1.0 )     (37.1 )
    Loans and leases held for investment(1)   9,831,891       9,172,134       8,912,561       8,633,847       8,202,631       7.2       19.9  
    Allowance for credit losses on loans and leases   (168,737 )     (137,867 )     (139,041 )     (125,840 )     (121,273 )     (22.4 )     (39.1 )
    Net loans and leases   9,663,154       9,034,267       8,773,520       8,508,007       8,081,358       7.0       19.6  
    Premises and equipment, net   267,032       267,864       258,071       257,881       258,041       (0.3 )     3.5  
    Foreclosed assets   8,015       8,015       8,561       6,481       6,701             19.6  
    Servicing assets   52,553       51,528       49,343       48,591       47,127       2.0       11.5  
    Other assets   356,314       376,370       387,059       354,476       346,227       (5.3 )     2.9  
    Total assets $ 12,607,346     $ 11,868,570     $ 11,505,569     $ 11,271,423     $ 10,950,460       6.2       15.1  
    Liabilities and shareholders’ equity                          
    Liabilities                          
    Deposits:                          
    Noninterest-bearing $ 258,844     $ 264,013     $ 226,668     $ 259,270     $ 239,536       (2.0 )     8.1  
    Interest-bearing   11,141,703       10,443,018       10,156,693       10,015,749       9,764,106       6.7       14.1  
    Total deposits   11,400,547       10,707,031       10,383,361       10,275,019       10,003,642       6.5       14.0  
    Borrowings   115,371       117,745       120,242       23,354       25,847       (2.0 )     346.4  
    Other liabilities   83,672       82,745       74,248       70,384       70,603       1.1       18.5  
    Total liabilities   11,599,590       10,907,521       10,577,851       10,368,757       10,100,092       6.3       14.8  
    Shareholders’ equity                          
    Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding                                        
    Class A common stock (voting)   361,925       356,381       349,648       344,568       340,929       1.6       6.2  
    Class B common stock (non-voting)                                        
    Retained earnings   707,026       695,172       669,307       642,817       627,759       1.7       12.6  
    Accumulated other comprehensive loss   (61,195 )     (90,504 )     (91,237 )     (84,719 )     (118,320 )     32.4       48.3  
    Total shareholders’ equity   1,007,756       961,049       927,718       902,666       850,368       4.9       18.5  
    Total liabilities and shareholders’ equity $ 12,607,346     $ 11,868,570     $ 11,505,569     $ 11,271,423     $ 10,950,460       6.2       15.1  

    (1) Includes $343.4 million, $363.0 million, $379.2 million, $388.0 million and $410.1 million measured at fair value for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

     

    Live Oak Bancshares, Inc.
    Statements of Income (unaudited)
    (Dollars in thousands, except per share data)

      Nine Months Ended
      September 30, 2024   September 30, 2023
    Interest income      
    Loans and fees on loans $ 550,020     $ 454,136  
    Investment securities, taxable   27,923       24,751  
    Other interest earning assets   21,861       22,852  
    Total interest income   599,804       501,739  
    Interest expense      
    Deposits   317,530       243,512  
    Borrowings   3,843       2,498  
    Total interest expense   321,373       246,010  
    Net interest income   278,431       255,729  
    Provision for credit losses   62,631       42,328  
    Net interest income after provision for credit losses   215,800       213,401  
    Noninterest income      
    Loan servicing revenue   23,011       20,057  
    Loan servicing asset revaluation   (9,829 )     8,860  
    Net gains on sales of loans   42,543       33,654  
    Net gain (loss) on loans accounted for under the fair value option   2,208       (3,369 )
    Equity method investments (loss) income   (8,182 )     (6,041 )
    Equity security investments gain (losses), net   541       (585 )
    Lease income   7,300       7,568  
    Management fee income   7,658       10,015  
    Other noninterest income   27,938       11,467  
    Total noninterest income   93,188       81,626  
    Noninterest expense      
    Salaries and employee benefits   138,054       130,778  
    Travel expense   7,110       7,378  
    Professional services expense   8,226       4,685  
    Advertising and marketing expense   9,169       10,058  
    Occupancy expense   7,442       6,259  
    Technology expense   24,800       23,456  
    Equipment expense   10,057       11,517  
    Other loan origination and maintenance expense   12,442       10,867  
    Renewable energy tax credit investment (recovery) impairment   (642 )     69  
    FDIC insurance   7,782       12,579  
    Other expense   8,542       12,035  
    Total noninterest expense   232,982       229,681  
    Income before taxes   76,006       65,346  
    Income tax expense   8,432       7,611  
    Net income $ 67,574     $ 57,735  
    Earnings per share      
    Basic $ 1.50     $ 1.30  
    Diluted $ 1.48     $ 1.28  
    Weighted average shares outstanding      
    Basic   44,937,409       44,298,798  
    Diluted   45,707,245       45,023,739  

    Live Oak Bancshares, Inc.
    Quarterly Selected Financial Data
    (Dollars in thousands, except per share data)

      As of and for the three months ended
      3Q 2024   2Q 2024   1Q 2024   4Q 2023   3Q 2023
    Income Statement Data                  
    Net income $ 13,025     $ 26,963     $ 27,586     $ 16,163     $ 39,793  
    Per Common Share                  
    Net income, diluted $ 0.28     $ 0.59     $ 0.60     $ 0.36     $ 0.88  
    Dividends declared   0.03       0.03       0.03       0.03       0.03  
    Book value   22.32       21.35       20.64       20.23       19.12  
    Tangible book value(1)   22.24       21.28       20.57       20.15       19.04  
    Performance Ratios                  
    Return on average assets (annualized)   0.43 %     0.93 %     0.98 %     0.58 %     1.46 %
    Return on average equity (annualized)   5.21       11.39       11.93       7.36       18.68  
    Net interest margin   3.33       3.28       3.33       3.32       3.37  
    Efficiency ratio(1)   59.72       61.89       66.89       77.88       58.34  
    Noninterest income to total revenue   25.35       27.22       22.46       25.16       29.76  
    Selected Loan Metrics                  
    Loans and leases originated $ 1,757,856     $ 1,171,141     $ 805,129     $ 981,703     $ 1,073,255  
    Outstanding balance of sold loans serviced   4,452,750       4,292,857       4,329,097       4,238,328       4,028,575  
    Asset Quality Ratios                  
    Allowance for credit losses to loans and leases held for investment(3)   1.78 %     1.57 %     1.63 %     1.53 %     1.56 %
    Net charge-offs(3) $ 1,710     $ 8,253     $ 3,163     $ 4,428     $ 9,122  
    Net charge-offs to average loans and leases held for investment(2) (3)   0.08 %     0.38 %     0.15 %     0.22 %     0.48 %
                       
    Nonperforming loans and leases at historical cost(3)                  
    Unguaranteed $ 49,398     $ 37,340     $ 43,117     $ 39,285     $ 33,255  
    Guaranteed   166,177       122,752       105,351       95,678       65,837  
    Total   215,575       160,092       148,468       134,963       99,092  
    Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment(3)   0.52 %     0.42 %     0.51 %     0.48 %     0.43 %
                       
    Nonperforming loans at fair value(4)                  
    Unguaranteed $ 8,672     $ 9,590     $ 7,942     $ 7,230     $ 6,518  
    Guaranteed   49,822       51,570       47,620       41,244       39,378  
    Total   58,494       61,160       55,562       48,474       45,896  
    Unguaranteed nonperforming fair value loans to fair value loans held for investment(4)   2.53 %     2.64 %     2.09 %     1.86 %     1.59 %
                       
    Capital Ratios                  
    Common equity tier 1 capital (to risk-weighted assets)   11.19 %     11.85 %     11.89 %     11.73 %     11.63 %
    Tier 1 leverage capital (to average assets)   8.60       8.71       8.69       8.58       8.56  

    Notes to Quarterly Selected Financial Data
    (1) See accompanying GAAP to Non-GAAP Reconciliation.
    (2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
    (3) Loans and leases at historical cost only (excludes loans measured at fair value).
    (4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

    Live Oak Bancshares, Inc.
    Quarterly Average Balances and Net Interest Margin
    (Dollars in thousands)

      Three Months Ended
    September 30, 2024
      Three Months Ended
    June 30, 2024
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    Interest-earning assets:                      
    Interest-earning balances in other banks $ 519,340     $ 7,016       5.37 %   $ 555,570     $ 7,389       5.35 %
    Investment securities   1,287,410       9,750       3.01       1,263,675       9,219       2.93  
    Loans held for sale   409,902       9,859       9.57       387,824       9,329       9.67  
    Loans and leases held for investment(1)   9,354,522       182,311       7.75       8,997,164       172,511       7.71  
    Total interest-earning assets   11,571,174       208,936       7.18       11,204,233       198,448       7.12  
    Less: Allowance for credit losses on loans and leases   (137,285 )             (136,668 )        
    Noninterest-earning assets   567,098               562,488          
    Total assets $ 12,000,987             $ 11,630,053          
    Interest-bearing liabilities:                      
    Interest-bearing checking $ 350,239     $ 4,892       5.56 %   $ 304,505     $ 4,267       5.64 %
    Savings   5,043,930       51,516       4.06       4,804,037       48,617       4.07  
    Money market accounts   134,481       190       0.56       128,625       186       0.58  
    Certificates of deposit   5,028,830       53,576       4.24       5,032,856       52,288       4.18  
    Total deposits   10,557,480       110,174       4.15       10,270,023       105,358       4.13  
    Borrowings   116,925       1,762       6.00       119,321       1,770       5.97  
    Total interest-bearing liabilities   10,674,405       111,936       4.17       10,389,344       107,128       4.15  
    Noninterest-bearing deposits   237,387               223,026          
    Noninterest-bearing liabilities   90,079               70,667          
    Shareholders’ equity   999,116               947,016          
    Total liabilities and shareholders’ equity $ 12,000,987             $ 11,630,053          
    Net interest income and interest rate spread     $ 97,000       3.01 %       $ 91,320       2.97 %
    Net interest margin           3.33               3.28  
    Ratio of average interest-earning assets to average interest-bearing liabilities           108.40 %             107.84 %

    (1) Average loan and lease balances include non-accruing loans and leases.

    Live Oak Bancshares, Inc.
    GAAP to Non-GAAP Reconciliation
    (Dollars in thousands)

      As of and for the three months ended
      3Q 2024   2Q 2024   1Q 2024   4Q 2023   3Q 2023
    Total shareholders’ equity $ 1,007,756     $ 961,049     $ 927,718     $ 902,666     $ 850,368  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,606       1,644       1,682       1,721       1,759  
    Tangible shareholders’ equity (a) $ 1,004,353     $ 957,608     $ 924,239     $ 899,148     $ 846,812  
    Shares outstanding (c)   45,151,691       45,003,856       44,938,673       44,617,673       44,480,215  
    Total assets $ 12,607,346     $ 11,868,570     $ 11,505,569     $ 11,271,423     $ 10,950,460  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,606       1,644       1,682       1,721       1,759  
    Tangible assets (b) $ 12,603,943     $ 11,865,129     $ 11,502,090     $ 11,267,905     $ 10,946,904  
    Tangible shareholders’ equity to tangible assets (a/b)   7.97 %     8.07 %     8.04 %     7.98 %     7.74 %
    Tangible book value per share (a/c) $ 22.24     $ 21.28     $ 20.57     $ 20.15     $ 19.04  
    Efficiency ratio:                  
    Noninterest expense (d) $ 77,589     $ 77,656     $ 77,737     $ 93,204     $ 74,262  
    Net interest income   97,000       91,320       90,111       89,576       89,410  
    Noninterest income   32,932       34,159       26,097       30,107       37,891  
    Total revenue (e) $ 129,932     $ 125,479     $ 116,208     $ 119,683     $ 127,301  
    Efficiency ratio (d/e)   59.72 %     61.89 %     66.89 %     77.88 %     58.34 %
    Pre-provision net revenue (e-d) $ 52,343     $ 47,823     $ 38,471     $ 26,479     $ 53,039  
                                           

    This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

    The MIL Network

  • MIL-OSI USA: Brownley, Schneider, Kildee Introduce Legislation to Expand Sustainable Aviation Fuel Production and Reduce Carbon Emissions

    Source: United States House of Representatives – Julia Brownley (D-CA)

  • MIL-OSI USA: Duckworth, Durbin, Quigley, Sorensen Announce $33.5 Million in Federal Funding for Peoria and Chicago Airports

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth
    October 23, 2024
    [CHICAGO, IL] –  U.S. Senator Tammy Duckworth (D-IL), U.S. Senate Majority Whip Dick Durbin (D-IL), U.S. Representatives Mike Quigley (D-IL-05) and Eric Sorensen (D-IL-17) today announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program. 
    With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.
    “Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”
    “By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”
    “This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.
    “Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.
    Duckworth and Durbin previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.
    Duckworth and Durbin helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.
    -30-

    MIL OSI USA News

  • MIL-OSI USA: Congressman Cohen Applauds Transportation Department Response to Mistreatment of Air Travelers with Disabilities

    Source: United States House of Representatives – Congressman Steve Cohen (TN-09)

    Previously introduced the Mobility Aids on Board Improve Lives and Empower All (MOBILE) Act

    MEMPHIS – Congressman Steve Cohen (TN-9), the Ranking Member of the Aviation Subcommittee, today applauded the U.S. Department of Transportation’s (DOT’s) $50 million fine against American Airlines for its mistreatment of air travelers who use wheelchairs.

    Congressman Cohen introduced the Mobility Aids on Board Improve Lives and Empower All (MOBILE) Act in 2023 and was pleased to see parts of the legislation included in a proposed DOT rule in February and codified in the FAA Reauthorization Act in May. Congressman Cohen joined members of the House Transportation and Infrastructure Committee last December in writing a letter to Airlines for America (A4A) expressing their dismay over the continued mistreatment of passenger wheelchairs and scooters that had come to light after video of such misuse at Miami International Airport surfaced in the news media.

    Congressman Cohen made the following statement:

    “I applaud DOT’s and Secretary Buttigieg’s righteous stand against the senseless mistreatment of mobility devices by airline and airport personnel. Today’s serious penalty shows that federal officials are aware of and taking seriously the damage done to what are often the only means for some air passengers to get around. This is yet another example of the DOT listening to Congress and looking out for the vulnerable as we attempt to make air travel safer and more convenient for all.”

    # # #

    MIL OSI USA News

  • MIL-OSI USA: Celebrating Bioenergy Day 2024 With a Research Retrospective

    Source: US National Renewable Energy Laboratory


    Over the past year NREL researchers made critical advancements for the bioeconomy including recyclable wind turbine blades, converting carbon dioxide to formic acid, biobased and biodegradable polyesters, and wastewater resource recovery using algae. Photos by NREL 

    The U.S. Department of Energy (DOE) National Renewable Energy Laboratory (NREL) bioenergy research empowers the decarbonization of our nation’s industrial and transportation sectors and a circular bioeconomy through development and deployment of sustainable fuel, chemical, and polymer technologies.

    NREL researchers have been uncovering secrets about interesting methods and technologies such as biodegradable plastics, phosphorus-eating algae for resource recovery, sustainable aviation fuel (SAF), and converting carbon dioxide (CO2) to value-added chemicals.

    With National Bioenergy Day 2024 upon us, NREL reflects on some of the team’s scientific discoveries over the past year that have helped strengthen the bioeconomy.

    Bioenergy Research Highlights From Fiscal Year 2024

    Building Bridges Through Relationships and Photosynthesis Research

    How do you bring together long-time research friends and help develop STEM collaboration with historically marginalized institutions and a DOE national laboratory all in a way that ignites passions and furthers bioenergy research? Through the DOE Office of Science Visiting Faculty Program (VFP) of course! Check out how the VFP brought together old friends and new, while mentoring a new generation of STEM students to understand the energy-generating mysteries of blue-green algae.

    An NREL scientist holds small cubes of renewable biomass resin that can be used in wind turbine blades and can be recycled. Photo by Werner Slocum, NREL

    Advancing Methods for Recyclable, Plant-Based Wind Turbine Blades

    Researchers at NREL see a realistic path forward to the manufacture of wind turbine blades derived from renewable biomass. The chemical recycling process allows the components of the blades to be recaptured and reused again and again, allowing the remanufacture of the same product. This method has the potential to end the current practice of old blades winding up in landfills at the end of their useful life.

    Tools To Investigate How Organisms Control Energy at the Electron-Level

    In NREL’s Advanced Spin Resonance Facility there is a special technical capability called electron paramagnetic resonance spectroscopy that provides insight into the most basic energy carrier and unit, the electron. Demystifying the fundamental processes of how organisms control energy at the level of electrons is key to advancing the applied research and development of systems for generating sustainable low-carbon fuels, chemicals, and electricity.

    New Device Architecture Enables Streamlined Production of Formic Acid From CO₂ Using Renewable Electricity

    Formic acid is a potential intermediate chemical with many applications, especially as a raw material for the chemical or biomanufacturing industries and potential input for biological upgrading into SAF. A research team led by NREL developed a conversion pathway to produce formic acid from CO2 with high energy efficiency and durability while using renewable electricity. Analysis confirmed that this pathway is economically viable at scale and with use of commercially available components.

    The novel perforated cation exchange membrane (CEM) architecture in a CO₂ electrolyzer to achieve energy-efficient and durable formic acid production has a patent by K.C. Neyerlin and Leiming Hu pending. Illustration by Elizabeth Stone, NREL

    NREL Biomass Refining Technology a Cornerstone of SAFFiRE Renewables Biofuel Pilot Plant

    SAFFiRE Renewables LLC broke ground in August 2024 on its biofuel pilot plant in Kansas to turn agriculture residue into a scalable biofuel business. The company has licensed an NREL technology that uses an alkaline bath and mechanical shredder to prepare corn stover for ethanol fermentation—essential steps for accessing the energy-dense sugars locked inside. The new plant will not only help DOE with its SAF goals, but using lignocellulosic corn leaves, stalks, and cobs can also reduce greenhouse gas emissions by 88% to 108% on a life-cycle basis compared to conventional jet fuel.  

    WaterPACT Project To Quantify and Reduce Plastic Waste in U.S. Rivers

    With more than a million tons of plastic debris entering ocean-bound rivers, creeks, and sewer drains every year, it is essential to intercept this waste before it enters the ecosystems, communities, and ocean. To help solve this problem, the NREL-led Waterborne Plastics Assessment and Collection Technologies (WaterPACT) project is on a mission to develop renewable-energy-powered technologies that detect, quantify, and collect plastic from U.S. waterways.

    The WaterPACT research team collected plastic and water samples near the mouths of the Columbia, Delaware, Los Angeles, and Mississippi rivers. Each river has a unique watershed (the area of land that drains water to it) and volume of plastics emissions. Illustration by Elizabeth Stone, NREL

    The North Face Taps NREL-Led BOTTLE Consortium To Scale Biodegradable Polyester Alternative

    Polyester-based clothing sheds and disperses tiny microplastic fibers throughout homes, soils, and waterways, taking centuries to degrade. One potential solution is replacing today’s petroleum-derived polyester with a nontoxic, biodegradable alternative made from polyhydroxyalkanoates (PHAs). A team of BOTTLE consortium scientists from NREL and Colorado State University have developed a portfolio of PHAs that behave like conventional polyester but are biobased, biodegradable, and easier to recycle. In conjunction with The North Face, the BOTTLE team is scaling the process to produce several pounds of PHA fiber, which The North Face will test and evaluate for use in its product lines.

    $15 Million Multilaboratory Effort To Advance Commercialization of CO2 Removal

    Carbon dioxide removal technologies have potential to help mitigate climate change by addressing existing carbon emissions and removing them from the atmosphere. To achieve this goal, scientists must first establish robust scientific frameworks and methodologies to account for these efforts—giving governments and private buyers a unified approach to tracking the climate impacts of their investments. In support of this, DOE tapped NREL to support a new $15 million research effort to improve the measurement, reporting, and verification of CO2 removal technologies.

    On the Ground in Colorado, NREL Is Simulating SAF Combustion During Flight

    Public and private investments are helping accelerate production and use of SAF, an energy-dense, renewable fuel seen as essential for decarbonizing flight. Adopting SAF means proving the fuel is as safe and reliable as current fuels while being fully compatible with existing jet engines. NREL has developed computer simulations to predict how SAF performs during flight and provide insights on how to maximize its safety and performance. These simulated SAF combustion tests could determine if new fuels meet requirements before industry invests millions of dollars to produce large volumes for ASTM engine tests.

    The Dynamics of Jet Fuel Combustion—Researchers from NREL’s Computational Science Center look at a detailed simulation of sustainable aviation fuel as it combusts in a “virtual jet engine.” Photo by Joe DelNero, NREL

    NREL Researchers Produce First Macromolecular Model of Plant Secondary Cell Wall

    Lignocellulosic biomass has potential as a feedstock for low-carbon biobased fuels and chemicals. However, this biomass type is difficult to break down during the conversion process due to three layers of biopolymers. NREL scientists quantitatively defined the relative positioning and structure of the three biopolymer layers in Populus wood using solid-state nuclear magnetic resonance and molecular modeling. Having a computer model of the interplay of these three biopolymers will help design more efficient deconstruction approaches to convert renewable lignocellulosic biomass into better biobased materials.

    NREL Research Quantifies Losses From Cardboard, Paper Waste

    Of the estimated 110 million metric tons of paper and cardboard waste tossed out across the United States in 2019, approximately 56% was landfilled and 38% was recycled. This category of waste includes everything from newspapers and magazines to books and napkins, from junk mail and photographs to pizza boxes and milk cartons. New research from NREL showed that the estimated value for recovered postconsumer paper and carboard from landfills is $4 billion. Understanding this value can guide policymakers toward sustainable waste management practices and help researchers study the impact of implementing new waste-management technologies.

    Newly Identified Algal Strains Rich in Phosphorous Could Improve Wastewater Treatment

    Phosphorus in wastewater is a major contributor to harmful algal blooms in water bodies around the globe, with the potential to harm wildlife, livestock, and humans. To prevent this, wastewater treatment plants often rely on chemical- and energy-intensive techniques to remove phosphorus before it can impact downstream water bodies. NREL researchers developed the Revolving Algal Biofilm system for phosphorus removal from wastewater by maximizing the ability of algae to harness solar energy to efficiently accumulate and remove phosphorus from water.

    A close-up of algal biofilm on a RAB system is shown on the left. On the right is a dried algal fertilizer product produced from the system. Photos from Gross-Wen Technologies

    Pick Your Polymer Properties and This NREL Tool Predicts How To Achieve Them With Biomass

    Petroleum-based polymers form the building blocks of plastics. Plastics can be made out of renewable biomass and waste resources, but identifying the right chemistry to make biobased polymers more sustainable and higher performing is the challenge. An NREL machine learning tool, PolyID™: Polymer Inverse Design, makes it easier to identify biobased polymers for use in plastics. Using artificial intelligence, the tool can screen millions of possible biobased polymer designs to create a short list of candidates for a given application.

    Learn more about NREL’s bioenergy research.

    MIL OSI USA News

  • MIL-OSI Australia: SYD elevates international dining with contemporary mix of brands

    Source: Sydney Airport

    Thursday 24 October 2024

    Sydney Airport is excited to welcome new food and beverage brands at the T1 International terminal – EARL, BARista, East x West, and Sydney Coffee Trader offering travellers an array of high-quality dining options.

    Launching in December 2024, EARL – renowned as ‘the best in the sandwich-making business’ will bring its premium fast-casual dining experience to Sydney’s international stage.

    With dozens of sandwiches in their repertoire, alongside exclusive new combinations crafted for a Sydney-centric experience, passengers can also enjoy speciality beverages from EARL’s signature brew taps, featuring seasonal drinks like yuzu-spiked cold brew and matcha oat lattes.

    Founded 15 years ago in Melbourne by former Sydneysiders Simon O’Regan and Jackie Middleton, EARL marks a return to the city where their hospitality careers began. “Sydney has always been our ‘fun town’, a place we love to visit and enjoy with friends and family, said Simon and Jackie.

    “Opening EARL at Sydney Airport feels like a significant milestone in our journey, blending our passion for premium dining with a truly global audience.”

    The established and much-loved EARL is known for its focus on quality and sustainability, aligning perfectly with Sydney Airport’s commitment to providing exceptional and responsible dining options.

    Mark Zaouk, Group Executive Commercial at Sydney Airport, said: “We are continually innovating our food and beverage options to meet changing consumer tastes, elevating our wellbeing offering while keeping true to the fast-paced environment of our dining precincts.

    “The introduction of these new brands reflects our commitment to enhancing the passenger experience and offering a diverse and dynamic range of dining choices. We are excited to see how BARista, EARL, East x West and Sydney Coffee Trader will contribute to making Sydney Airport a destination in itself.”

    BARista will open its doors later in the month, offering international travellers a premium coffee experience alongside a selection of standout gourmet dishes including the Benedict Croissant, a signature cheeseburger and flavourful Katsu Sando (crispy chicken sandwich).

    For those after a quick bite before their flight, classic favourites like the BLT and bacon and egg roll will also be available, while the Hokkaido Tarts will delight anyone with a sweet tooth. Whether you’re after a caffeine fix or a hearty meal, BARista promises a fresh and satisfying dining experience.

    East x West, which is also set to open later this year, will offer a vibrant fusion of East Asian and Western culinary influences, perfectly reflecting its name. The venue will hero Ramen dishes accompanied by a sumptuous selection of spring rolls, dumplings, and handmade bao.

    Passengers looking for something lighter can enjoy crunchy lotus chips and edamame paired perfectly with Sapporo Premium Black on tap, a rare find in Australia and exclusive to the East x West brand. Adding to the unique experience, East x West will feature a dedicated mixologist crafting expertly made cocktails, along with a curated menu of Japanese whiskies and fine wines.

    Sydney Coffee Trader located within the bustling T1 International arrivals hall will showcase exceptional coffee in partnership with Seven Miles Coffee Roasters – a welcome sight for weary travellers. The menu highlights gourmet bagels loaded with fillings and oversized sandwiches complemented by freshly made salads and chia puddings. Whether travellers need a coffee pick-me-up or a wholesome meal, Sydney Coffee Trader offers the perfect blend of quality and convenience.

    “As a local roaster, we’re excited to be partnering with Sydney Coffee Trader in showcasing our city’s vibrant coffee culture. I think this venue perfectly combines a distinctive menu of locally sourced flavours with a unique coffee experience that travellers and guests are going to love,” says James Bailey, General Manager of Seven Miles Coffee Roasters.

    The new food offerings have been developed in partnership with Emirates Leisure Retail, who recently unveiled Gusto in the T1 International dining precinct which offers passengers a contemporary take on traditional Italian fare.

    Emirates Leisure Retail also expressed their enthusiasm about expanding their partnership with Sydney Airport.

    Davina Connell, Regional Director and General Manager ANZ Emirates Leisure Retail stated, “We are thrilled to build on our strong partnership with Sydney Airport as these diverse dining options are set to elevate the airport experience to new levels.

    “Whether you’re a coffee connoisseur in search of a smooth brew to rival your favourite local café, or ready to unwind with high-street-quality Asian-inspired dishes or a quick bite, there is something to satisfy every craving.

    “These new food brands represent a significant step forward in enhancing the airport’s culinary landscape, and we look forward to unveiling them in the coming months.”

    Images of new dining options at Sydney Airport can be found here.

    Notes to editor

    Menu highlights

    EARL – located in the T1 food court before security

    Handmade sandwiches and salads

    • The Pork Belly – free-range pork belly, apple, fennel and kale coleslaw
    • Harissa Lamb – slow cooked harissa rubbed lamb, quince, herb yoghurt, green beans and almonds
    • Mushroom and Ricotta – roast field mushrooms, ricotta, EARL salsa verde, chestnuts and rocket
    • Sydney-exclusive sandwich combinations
    • Signature brew taps with seasonal drinks such as yuzu-spiked cold brew, matcha oat lattes and Single Origin batch brews

    East x West – located in the T1 food court before security

    • Ramen
    • Handmade Bao
    • Spring Rolls
    • Dumplings
    • Crunchy Lotus Chips and Edamame
    • Sapporo Premium Black on tap along with other favourites
    • Japanese whiskies, fine wines and expertly crafted cocktails prepared by an in-house mixologist

    Sydney Coffee Trader – located in T1 Arrivals

    • Freshly brewed coffee
    • Loaded gourmet bagels
    • Oversized sandwiches
    • Fresh, healthy salads
    • Chia puddings

    BARista – located beyond security

    • Gourmet dishes from breakfast to classic favourites
    • Benedict Croissant
    • Katsu Sando (Chicken Sandwich)
    • BLT
    • Bacon and Egg Roll
    • Pastries including Hokkaido Tart
    • Specialty coffee

    MIL OSI News

  • MIL-OSI USA: Durbin, Duckworth, Quigley, Sorensen Announce $33.5 Million In Federal Funding For Peoria And Chicago Airports

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    10.23.24
    CHICAGO – U.S. Senate Majority Whip Dick Durbin (D-IL), U.S. Senator Tammy Duckworth (D-IL), and U.S. Representatives Mike Quigley (D-IL-05) and Eric Sorensen (D-IL-17) today announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program.
    With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.
    “By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”
    “Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”
    “This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.
    “Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.
    Durbin and Duckworth previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.
    Durbin and Duckworth helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.
    -30-

    MIL OSI USA News

  • MIL-OSI Global: Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom

    Source: The Conversation – Canada – By Frederick John Packer, Associate Professor of Law and Director of the Human Rights Research and Education Centre, L’Université d’Ottawa/University of Ottawa

    Global freedom has been in decline for nearly two decades, according to Freedom House, an American non-profit organization devoted to supporting democracy around the world.

    That means the role of high-profile freedom activists, including activists in exile — people who are displaced from their countries of origin due to their activism but continue to affect change through various means — has become ever more crucial.

    A recent incident involving Alexander Lapshin, a Soviet-born Israeli travel journalist turned human rights advocate, at Armenia’s Yerevan airport highlights the ongoing persecution faced by activists even in seemingly secure environments.

    On Sept. 21, during Armenia’s Independence Day celebrations, Lapshin said he was detained at the request of Belarusian authorities, accused of insulting the honour and dignity of Belarusian President Aleksandr Lukashenko by highlighting the authoritarian nature of his regime in social media posts.

    Though not formally expelled from any one country, Lapshin’s circumstances have effectively left him with no safe or stable place to settle. He says legal and political pressures in both Ukraine and Israel prevent him from returning.

    Armenia ultimately refused to arrest him, but Lapshin and his family were forced to endure four hours of distressing uncertainty at the Yerevan police station before his release was formally registered by Armenia’s Prosecutor General’s Office.

    This provocation underscored the persistent threats activists face even in countries offering relative safety.

    Extradited to Azerbaijan

    Just weeks before his arrest in Yerevan, we met with Lapshin in Ottawa to learn about his odyssey, and by extension, the suffering of his family resulting from his work as a travelling journalist.

    It’s not the first time Lapshin had been targeted by authoritarians. In 2016, while in Minsk, the capital of Belarus, Lapshin was detained by the authorities at the request of the Azerbaijani government. He was subsequently extradited to Azerbaijan on charges related to his travel in 2012 to the disputed region of Nagorno-Karabakh/Artsakh — an area claimed by both Armenia and Azerbaijan.

    The Azerbaijani government accused Lapshin of violating its laws by entering the enclave without permission and promoting its independence. However, at that point Lapshin had never been involved in politics nor called for the region’s independence. The Azerbaijani court dropped this charge, though convicted him of taking an unauthorized journalistic trip.

    The story of Lapshin’s arrest and extradition drew widespread condemnation from human rights organizations and various governments, who viewed it as a blatant violation of his rights to freedom of movement and expression.

    Lapshin was nevertheless found guilty and sentenced to three years in prison. However, following significant international pressure and diplomatic negotiations, he was pardoned and released in September 2017.

    Lapshin’s Azerbaijani ordeal

    In his subsequent testimony to the Centre for Truth and Justice, a U.S.-based non-profit organization, Lapshin detailed the severe abuse he endured during his imprisonment in Azerbaijan.

    Upon arrival at Kurdakhani prison — known for holding political prisoners — Lapshin was subjected to humiliating strip searches and invasive medical checks. For seven months, he was confined to a small, windowless cell, kept under constant artificial light and allowed only one hour of exercise in a similarly confined yard. His diet was minimal and of poor quality, leading to significant physical and psychological distress.

    Lapshin testifies about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The most harrowing part of his imprisonment came on Sept. 10, 2017, when four masked men brutally assaulted him in his cell. Lapshin described the attack in detail:

    “I felt three of them holding my legs and chest while one strangled me. They punched my ribs, my head and my genitals. I lost consciousness within seconds.”

    He sustained severe injuries, including broken ribs, a broken wrist and multiple broken teeth. Azerbaijani authorities maintained that he had attempted suicide.

    Lapshin’s further testimony about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The European Court of Human Rights eventually examined his complaints and found a violation of his “right to life.” The United Nations Human Rights Committee found multiple violations of his rights (including freedom from torture) under the International Covenant on Civil and Political Rights.

    According to Lapshin, Azerbaijan released him not because of the European Court’s decision, but due to his near death following an attempted murder in custody. He believes the president of Azerbaijan decided to release him without formalities to avoid international tension if he’d died in prison.

    Broader implications

    Lapshin’s recent detention in Armenia is part of a continued pattern of harassment against him as he’s morphed from a travel blogger to a human rights advocate.

    Despite the ordeal, Lapshin sees these provocations as an opportunity to create greater public awareness. The media coverage generated from such incidents often works to his advantage, drawing more attention to the plight of political prisoners and the excesses of authoritarian regimes.

    Lapshin sees his ordeals as helping to raise public awareness about authoritarians.
    (WikiMedia), CC BY

    Lapshin’s collaboration with Jivan Avetisyan, a prominent film director focusing on human rights issues, exemplifies his strategic approach to advocacy — turning personal trauma into powerful narratives that reach a global audience.

    Such collaborations contribute significantly to keeping human rights abuses in the spotlight.

    Activists like Lapshin are crucial figures in the global struggle against authoritarianism. Despite enduring harsh persecution, they persist in their advocacy efforts from the relative safety of democracies, and work to raise awareness among policymakers and the public.

    Lapshin’s recent trip to Ottawa is one example of this. He met with Global Affairs Canada officials and presented them with a sanctions list targeting Azerbaijani officials he alleges are responsible for war crimes and abuses, including those involved in his prison mistreatment.

    Impact and challenges

    Activists like Lapshin employ diverse strategies to advance their causes, such as social media engagement and public mobilization, as well as partnerships with global human rights organizations.

    These efforts often result in positive changes, including the release of detained activists and the imposition of sanctions on oppressive governments. Lapshin’s resilience, along with that of notable exiled activists like Chinese-born Chen Guangcheng and Belarus’ Sviatlana Tsikhanouskaya, demonstrates the power and influence that individuals can wield against repressive regimes from afar.




    Read more:
    Fighting for a future: The Belarusian regiment in Ukraine is staking its claim on democracy


    Activists, in particular those in exile, face numerous challenges, including transnational repression and a lack of resources. Authoritarian regimes employ measures like surveillance, intimidation, physical assaults and even murder to target activists beyond their borders. These activists must also navigate legal, financial and cultural barriers in foreign countries when they seek asylum, find work and try to integrate into new societies, all while continuing their advocacy.

    Lapshin’s experiences illustrate these challenges. The ongoing threats and harassment against him continue even today. Nonetheless, his dedication to human rights advocacy remains unwavering.

    I am a member of various professional / academic associations and some human rights NGOs including (pro bono) the Canada Committee of Human Rights Watch. None of these would be affected by this article nor would I gain any benefit as a result.

    Philip Leech-Ngo does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom – https://theconversation.com/human-rights-advocate-alexander-lapshin-no-place-to-go-but-still-fighting-for-global-freedom-241550

    MIL OSI – Global Reports

  • MIL-Evening Report: King Charles arrives in Samoa for ‘resilient environment’ CHOGM

    By Susana Suisuiki, RNZ Pacific journalist in Apia

    King Charles III and his wife Queen Camilla have landed in Apia, Samoa.

    The monarch has been greeted by a guard of honour at the airport before being escorted to his accommodation in Siumu.

    Local villagers have lined the roadsides with lanterns to welcome His Royal Highness.

    King Charles will deliver an address to the Commonwealth Heads of Government Meeting (CHOGM) on Friday.

    The royal office said as well as attending CHOGM, the King’s programme in Samoa would be supportive of one of the meeting’s key themes, “a resilient environment”, and the meeting’s focus on oceans.

    The King and Queen were to be formally welcomed by an ‘Ava Fa’atupu ceremony before meeting people at an engagement to highlight aspects of Samoan traditions and culture.

    Charles will also attend the CHOGM Business Forum to hear about progress on sustainable urbanisation and investment in solutions to tackle climate change.

    He will visit a mangrove forest, a National Park, and Samoa’s Botanical Garden, where he will plant a tree marking the opening of a new area within the site, which will be called ‘The King’s Garden’.

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: ICYMI: US Navy: Projecting Strength and Building the Fleet of Tomorrow

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham

    US Navy: Projecting Strength and Building the Fleet of Tomorrow

    By Senator Lindsey Graham and Morgan Ortagus

    Fox News

    October 23, 2024

    https://www.foxnews.com/opinion/us-navy-projecting-strength-and-building-fleet-tomorrow

    It’s time for all Americans to grasp a hard truth: in a world that may be on the brink of World War III, our military budgets are inconsistent with the threats we face. This is especially the case with the budget of the Department of the Navy.  

    The bad news: the current Navy budget will not make a stronger military or a larger U.S. fleet a reality. The good news: through American innovation and more agile products, we can build a bigger and more efficient Navy.  

    However, President Biden’s proposed FY2025 budget of $257.6 billion for the Department of the Navy is well below inflation and does not provide for a more lethal Navy. 

    As both President Biden and President Trump certified, the most direct challenge facing the U.S. Navy today is from the People’s Republic of China. Therefore, strong investments must be made now to ensure the Navy, and most importantly the United States, can meet this threat head-on.

    It comes as no shock to the reader that America and its allies and partners are facing an unprecedented deluge of maritime threats by the People’s Republic of China. The Chinese Navy alone has provoked a U.S. destroyer in the Taiwan Strait with dangerous maneuvers, harassed Taiwan with aggressive military exercises, entered America’s Exclusive Economic Zone in the Bering Sea, developed a jam-resistant submarine torpedo, and injured several Filipino sailors at and around Second Thomas Shoal.  

    These developments incrementally set the conditions for a direct conflict on the open seas. Meanwhile, Washington has been lulled into complacency by decades of maritime supremacy. Most concerning, the United States lacks the political resolve to shed the Navy’s Soviet-era mentality and adapt to the new era of great power competition. 

    To meet the moment’s maritime threats, America must choose between tough and tougher: make significant investments in our fleet or face the costs of inaction.

    Section One: Expanding U.S. Shipbuilding Capacity and Cooperation with Allies

    Our shipbuilding industrial base is grappling with significant delays and challenges, affecting major programs like the Columbia-class submarines, Constellation-class frigates, and Ford-class carriers. These delays are not only impacting the procurement of new ships, they are also impacting the ability to maintain the current fleet. 

    A great first step to combating the maritime threats our nation faces is to expand the physical footprint of the U.S. shipbuilding industry.  

    The U.S. shipbuilding industry is first in its class and the men and women that come to work every day in our nation’s shipyards build the world’s most lethal and capable warships. In states like South Carolina, there are a wealth of maritime industry suppliers and shipbuilders diligently producing the necessary components to construct our nation’s ships.  

    But that alone is not enough. China’s Bohai Shipyard boasts an annual capacity exceeding the total number of ships our Navy has launched since 2014.  

    In addition, China is rapidly expanding its existing shipyards and according to experts “has been investing so much in shipbuilding over the past 18 years that it can now build more ships in a month than the United States can in a year.” 

    By comparison, America only has four public shipyards and these yards focus on maintenance of submarines and aircraft carriers and not the construction of new vessels.

    The Department of the Navy should look at states like South Carolina to build new shipyards to maximize the U.S. shipbuilding capacity and our maritime industry. 

    In addition, the Navy must expand maintenance capacity here in the states as well as in the Pacific. The U.S. Navy has already decided to augment its capacity by placing a submarine maintenance facility in Guam. This should be replicated for other vessels elsewhere. 

    It is clear that the need for more shipbuilding capacity is great and immediate. Investing here at home will certainly help address the need. At the same time, our nation should also not discount opportunities to work with others when the opportunity presents itself.  

    The U.S. Navy cannot afford to leave any stone unturned when thinking of innovative ways to grow the fleet as quickly as possible.

    Section Two: Fleet Requirements and Capabilities

    A fundamental step toward a 21st-century U.S. Navy is improving both the size and modernity of our existing fleet. The fleet currently consists of carriers, surface combatants, submarines, amphibious warships, combat logistics ships, fleet support vessels and mine warfare assets.  

    Yet this fleet is hardly agile or scalable enough to meet a Chinese maritime threat that includes drones, hypersonic missiles and other high-tech tools of warcraft.

    Persistent gaps also remain in amphibious warfare and in contested logistics. Amphibious combat vehicles, landing vessels, and light warships are all needed in higher quantities for rapid and effective landings. 

    Unmanned and underwater systems are especially relevant to modern naval operations. Often at a fraction of the cost of manned vessels, these vessels – both large and small – perform intelligence, surveillance, reconnaissance missions, logistics and strike operations.  

    They also relieve pressure on our high-demand, low-density assets while augmenting the fleet. The proof is in their success in Ukraine, where naval drones have successfully countered Russia’s Black Sea Fleet, forcing them into safe harbors and destroying dozens of Russian vessels.

    In addition to their combat roles, unmanned systems are revolutionizing naval logistics. Unmanned logistics platforms can autonomously deliver supplies, ammunition, and fuel to forward-deployed forces, significantly extending the operational reach of our fleet.  

    These systems reduce the need for manned resupply missions, which are often vulnerable to enemy attacks, thereby enhancing the safety and efficiency of our operations. By integrating unmanned logistics into our naval strategy, we can maintain sustained operations in contested environments, ensuring our forces remain equipped and ready for extended engagements.

    A possible way to advance the construction of these unmanned vessels is through an international partnership. Such a partnership could be modeled after the trilateral security partnership between the United States, the United Kingdom and Australia (AUKUS) for submarine production in Australia. An AUKUS-like agreement for unmanned systems could create a new pathway for faster construction of these unmanned platforms and increase the integration between partners.

    China’s naval power is growing at an alarming rate, with close to 400 ships currently in service and projections of 435 by 2030. The impact of this expansion is worsened by our diminishing technology gap, as China advances its naval technology while the U.S. Navy struggles to build ships.  

    Meanwhile, the U.S. Navy’s latest shipbuilding assessment calls for 381 battle force ships (carriers, destroyers, amphibious ships, submarines, etc.) and 134 unmanned vehicles, totaling 515 vessels.  

    While it is great to have a roadmap, the U.S. Navy’s own shipbuilding plan projects that we would not reach 381 battle force ships until 2043 under the best scenario. This delay poses an unacceptable risk to our national security and could force our sailors into a fight they are underequipped to win.

    To avoid that scenario and reduce the exposure of manned ships to enemy attacks, we must expedite shipbuilding with a focus on unmanned surface and subsurface systems that are affordable and quick to produce. America does not have to win a shipbuilding foot race, but we must strategically invest in both the capabilities and capacities to counter China’s growing maritime capabilities and protect our interests.

    Section Three: Funding the Department of the Navy

    The U.S. military budget is woefully underfunded for the threats our nation faces today. The U.S. is on target to spend only 3.1% of total GDP on defense in Fiscal Year 2025 and that percentage is projected to fall to a paltry 2.4% in 2034 under the Biden-Harris budget plan.  

    Budgetary “business as usual” will only widen the gap between U.S. and Chinese naval capabilities. With China’s defense budget growing in both size and sophistication, it is imperative the United States make greater, and smarter, investments of our own. 

    Increasing funding for the Navy’s ship procurement, known as the Shipbuilding and Conversion account, alone will not be enough.  In order to address the shipbuilding problem, Congress should consider a comprehensive approach that includes strong and consistent funding across procurement, operations and maintenance, research and development, personnel and military construction accounts.  

    In order to do this, Congress will need to think outside the box as the current budgetary restraints limit the needed investments. Congress should form a “Fleet Investment Fund” – codifying the Navy’s entire budget growth at least 5% above inflation and more than the department’s topline request – covering all aspects of naval development and readiness. 

    Most importantly, this account should not be subject to any caps or restrictions within the president’s budget request to Congress each fiscal year. The formation of this account must be seen as a national imperative.

    Conclusion

    There is no doubt that the costs of these investments are great and will require tradeoffs and significant political capital, but the costs of inaction will be far greater. History demonstrates that adversaries are emboldened by America’s hesitation and deterred by its resolve. History proves that the U.S. Navy can adapt to evolving defense needs. 

    Since 1945, America has served as the global guarantor of open seas and freedom of navigation in contested waterways and critical trade routes. President Theodore Roosevelt stated before Congress in 1902 that “a good Navy is not a provocation to war. It is the surest guaranty of peace.”

    Morgan Ortagus is the founder of Polaris National Security and formerly served as the spokesperson for the U.S. State Department under President Trump. 

    Republican Lindsey Graham represents South Carolina in the United States Senate. 

    MIL OSI USA News