Truth… Myths… Rhetoric… Hyperbole… Facts… · My economic baseline for 2012 for the global economy—is more bearish than the consensus and envisages: U.S. growth of 1.4%

P E R S P E C T I V E S

WINTER 2012 Newsletter

TECHNOLINK ASSOCIATION

Truth… Myths… Rhetoric… Hyperbole…

Facts…

More News on Members visit: www.TECHNOLINKASSOC.org

TECHNOLINK ASSOCIATION + PERSPECTIVES WINTER 2012

Note from the EditorSSuSAN FOrTE O’NEILL Founder and President, Forte DesignsCo-founder and Director, Technolink Association

Dear Technolink Friends,

Throughout many conversations with our contributors for this year’sWinter Perspective, I was continually reminded from our discussions that the “American Ingenuity is Forging Ahead”…

I know you will enjoy reading articles written by some of our distinguished members as they address the various topics from economics and law, innovation and space exploration, homeland security and public safety, to community and policy updates…

I think this year’s Perspectives is truly a richly filled edition of various thoughts and insights on what I may call the 2012 Business Survival Tool-Kit…

Thank you for your continued support to the Technolink AssociationEnjoy the great articles !

Warmest Wishes,Ssusan Forte O’Neill

Save the Date! Wednesday, May 9th, 201211:30 A.M.– 2:00 P.M. The Athenaeum Club at Caltech551 S.Hill Avenue, Pasadena CA

SAVE THE DATE!

MAY 9th, 2012WEDNESDAY

11:30 A.M.- 2:00 P.M.

The Athenaeum Club at Caltech

551 S.Hill AvenuePasadena

TECHNOLINK ASSOCIATION PRESIDENTS CLUBSPRING FORUM 2012

Special Thanks to Our Supporters

ALVAKA NETWORKS

THE BOEING COMPANY

CONNOLLY BOVE LODGE & HUTZ LLP

CALIFORNIA TECHNOLOGY VENTURES

CHROMOLOGIC

KIMBERLY C. COVEY CPA

FORTE DESIGNS

JET PROPULSION LABORATORY

LOS ANGELES AREA CHAMBER

MARI + KO CREATIVE

THE O’NEILL COMPANY

P2S ENGINEERING

POMONA UNIFIED SCHOOL DISTRICT

SADDLEBACK COLLEGE

SAN DIEGO GAS & ELECTRIC®

SOUTHERN CALIFORNIA GAS COMPANY

TALON COMPANIES

To All of Our Military & Public Safety Heros for Their Honor and Courage in Defending

Our Democracy and Freedom of Our Great Nation…

A Special Thanks



ECONOMY

4 TErrY r. O’NEILL It’s a New Year…& Global Economic Head Winds Remain the Same 6 Dr. KEvIN J. SCANLON The Entrepreneurial Economy

INNOvATION

8 LT. GENErAL EuGENE “GENE” TATTINI Jet Propulsion Laboratory 2012 OUTLOOK 9 DArYL G. PELC Boeing Begins NASA Solar Electric Propulsion Study

LEGAL BEAT

10 BILLY A. rOBBINS America Invents Act

ENErGY

12 KENT W. PETErSON Status of Renewable Energy Systems in the United States15 Dr. JEFFrEY rEED SDG&E Opens Energy Innovation Center to Promote Stainability and Energy Efficiency

HOMELAND SECurITY

16 LT. BrIAN K. BANNING Understanding The Terrorism Threat in America

19 BArrY MOzIAN Status of Renewable Energy Systems in the United States20 KEvIN MCDONALD Can We Prevent A Digital D-Day?

COMMuNITY...PuBLIC PrIvATE PArTNErSHIPS

23 DAN MErKLE Public Private Partnerships Adapt25 TErENCE NELSON Saddleback College Leading the Way to Provide Education & Transitional Services for our Military Veterans

WASHINGTON rEPOrT

27 CONGrESSMAN ADAM B. SCHIFF Investing in the Future….28 CONGrESSMAN JOHN CAMPBELL Song of the Shopkeeper


P E r S P E C T I v E S W I N T E r 2 0 1 2

Truth… Myths… Rhetoric… Hyperbole…

Facts…


PERSPECTIVESWinter 2012

Ssusan Forte O’Neill Forte Designs, Editor

Maryann InoueMari + Ko Creative

Co-Editor & Graphic Design

For More Information949.443.4026

[email protected]



ECONOMIC OuTLOOK

It’s a New Year…and Global Economic Head Winds Remain the Same TErrY r. O’NEILL CEO and President, The O’Neill Company

• Don’t be fooled by the recent stronger U.S. economic data: The economy will weaken in 2012.

• I still forecast very anemic U.S. economic growth of 1.4% in 2012—significantly below trend—with a 50% probability of an outright double-dip recession. Thus, the one major catalyst propping up global risk sentiment may soon disappear…

• There are seven reasons for taking the seemingly optimistic data with a pinch of salt: Early GDP estimates usually get revised down; the bounce in capex and housing will end; fiscal policy will not help; consumers face more headwinds; manufacturing won’t pick up the slack and net exports will hinder growth; we are in the early stage of a deleveraging cycle; and, globally, these are, to the say the least, “interesting times.”

It’s a new year, but we have the same old problems: Anemic U.S. growth; the euro-zone (EZ) recession and financial strains; slowing growth in China and other emerging

markets (EMs). My economic baseline for 2012 for the global economy—is more bearish than the consensus and envisages: U.S. growth of 1.4% (y/y), with as previous mentioned a 50% probability of a double-dip recession; a severe EZ recession with periphery members unable to resolve their stock (high private and public debts) and flow problems (lack of growth, loss of competitiveness and large external deficits), eventually leading—by 2013-14—to multiple coercive debt restructuring and even the exit of some of the weaker member states; below-trend economic growth in most other developed markets (DMs; the UK, Japan, Canada, Australia, etc.); below-consensus and below-trend growth in China (7.4%) with the risk of a hard landing by 2013-14 as China’s growth model, based on net exports, fixed investment, high savings and low consumption, eventually becomes unsustainable; and weaker growth in other EMs as DM economic weakness and the Chinese slowdown take a toll with a possible “hard landing” for China in 2013 or 2014.

Let me know if you can use this graphic form....I am ti ahead of the articles...if so save it to go with Terry's article..Much Grace and Peace,

SsusanForte DesignsP: [email protected]

Begin forwarded message:

From: "Terry O'Neill" <[email protected]>Subject: Global GDP Forecast Date: January 25, 2012 12:41:27 PM PSTTo: "'Ssusan Forte O'Neill'" <[email protected]>

Here is the graph to add to my Technolink Article please …thank you and may you know you can contact me if you require something additional.

Growth Inflation

2012 2013 2012 2013

1.4 1.5 2.6

-‐0.8 -‐1.8 1.5

1.6 0.8 -‐0.4

7.4 7.1 3.2

0.9 0.6 2.0

0.7 0.3 1.9

5.0 5.0 4.7

5.3 5.3 3.0

6.2 6.3 3.7

3.3 2.5 6.7

2.6 2.6 6.2

2.6 3.0 6.1

6.3 6.2 4.3

2.8 2.7 3.3

1. U.S., Canada, Japan, UK, the eurozone, Sweden, Norway, Australia, Switzerland2. Japan, Australia, China, India, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Vietnam, South Korea, Taiwan, Thailand3. Asia/Pacific ex-‐Japan and Australia4. Hong Kong, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam5. Brazil, Argentina, Mexico, Chile, Peru, Colombia, Venezuela6. Czech Republic, Hungary, Poland, Turkey, Russia7. Israel, Egypt, Saudi Arabia, the United Arab Emirates, South Africa

Forecasts are current as of Dec 6, 2011

Based on IMF PPP Weights from April 2011 for 2011 and 2012

Yours with respect,

Terry R. O'NeillPresident & CEO

THE O'NEILL COMPANYI N C O R P O R A T E D 23221 S. Pointe Dr., Suite 103Laguna Hills, CA 92653 (Map/Directions)

Global Growth Forecasts

U.S. 2.0

EZ 1.3

Japan -‐0.2

China 3.0

G7 1.6

Advanced Economies ₁ 1.5

Emerging and Frontier Markets 4.6

Asia/Pacific ₂ 2.8

Emerging Asia ₃ 3.4

Latin America ₅ 7.3

Emerging Europe ₆ 5.7

Middle East and Africa ₇ 6.5

BRIC 4.0

World 3.0

From: Ssusan Forte O'Neill <[email protected]>Subject: Fwd: Global GDP Forecast

Date: January 30, 2012 10:45:19 AM PSTTo: Minute Man <[email protected]>Cc: marian inoue <[email protected]>

2 Attachments, 873 bytes

Let me know if you can use this graphic form....I am ti ahead of the articles...if so save it to go with Terry's article..Much Grace and Peace,

SsusanForte DesignsP: [email protected]

Begin forwarded message:

From: "Terry O'Neill" <[email protected]>Subject: Global GDP Forecast Date: January 25, 2012 12:41:27 PM PSTTo: "'Ssusan Forte O'Neill'" <[email protected]>

Here is the graph to add to my Technolink Article please …thank you and may you know you can contact me if you require something additional.

Growth Inflation

2012 2013 2012 2013

1.4 1.5 2.6

-‐0.8 -‐1.8 1.5

1.6 0.8 -‐0.4

7.4 7.1 3.2

0.9 0.6 2.0

0.7 0.3 1.9

5.0 5.0 4.7

5.3 5.3 3.0

6.2 6.3 3.7

3.3 2.5 6.7

2.6 2.6 6.2

2.6 3.0 6.1

6.3 6.2 4.3

2.8 2.7 3.3

1. U.S., Canada, Japan, UK, the eurozone, Sweden, Norway, Australia, Switzerland2. Japan, Australia, China, India, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Vietnam, South Korea, Taiwan, Thailand3. Asia/Pacific ex-‐Japan and Australia4. Hong Kong, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam5. Brazil, Argentina, Mexico, Chile, Peru, Colombia, Venezuela6. Czech Republic, Hungary, Poland, Turkey, Russia7. Israel, Egypt, Saudi Arabia, the United Arab Emirates, South Africa

Forecasts are current as of Dec 6, 2011

Based on IMF PPP Weights from April 2011 for 2011 and 2012

Yours with respect,

Terry R. O'NeillPresident & CEO

THE O'NEILL COMPANYI N C O R P O R A T E D 23221 S. Pointe Dr., Suite 103Laguna Hills, CA 92653 (Map/Directions)

Global Growth Forecasts

U.S. 2.0

EZ 1.3

Japan -‐0.2

China 3.0

G7 1.6

Advanced Economies ₁ 1.5

Emerging and Frontier Markets 4.6

Asia/Pacific ₂ 2.8

Emerging Asia ₃ 3.4

Latin America ₅ 7.3

Emerging Europe ₆ 5.7

Middle East and Africa ₇ 6.5

BRIC 4.0

World 3.0

From: Ssusan Forte O'Neill <[email protected]>Subject: Fwd: Global GDP Forecast

Date: January 30, 2012 10:45:19 AM PSTTo: Minute Man <[email protected]>Cc: marian inoue <[email protected]>

2 Attachments, 873 bytes

Glo

bal G

row

th R

epor

t



Several headwinds to euro-zone (EZ) growth… and will affect the US:• The slowing core: One can no longer look to Germany and France to save the region with their growth. (France downgraded)

• Fiscal austerity: It will take years to see the benefits of structural reforms that can boost growth in the periphery—in the mean time, fiscal austerity will keep these economies mired in a deepening recession.

• Politics: At some point, achieving the draconian fiscal targets and delivering on promised structural reforms will cause a public backlash that could unsettle bond markets.

• The banks: The negative feedback loop between the economy, banks and the sovereign only gets worse with a slowing economy.

• The ECB—valiant, but overwhelmed: Against a backdrop of slowing economic growth, the ECB’s responses to the EZ crisis are too little, too late.

• An overvalued currency: The one silver lining of a weaker euro exchange rate is not occurring nearly fast enough.

• Greece, yet again: A disorderly default by Greece is likely and could rock the EZ. The EZ remains deeply mired in an economic, financial and sovereign debt crisis. There has been some optimism

building that Europe can continue to “muddle through” its sovereign turmoil. But an underlying picture of economic weakness that has not only worsened but has spread to the core economies raises the question of how the continent can possibly grow its way out of the debt crisis.

Conclusion: The EZ Remains Deeply Mired in an Economic, Financial and Sovereign Debt Crisis that will have global implications.

In spite of slightly lower spreads for Italy and Spain in the past few weeks and the greater willingness of the ECB to backstop EZ banks, the fundamental problems of the EZ remain the same or probably worse. The recession in the periphery is severe and now swamping the core, and the front‐loaded austerity of the fiscal compact will make this recession worse and cause near depression in the periphery. Recent downgrades will exacerbate sovereign debt concerns. In spite of lower liquidity risk after ECB actions, the capital needs of EZ banks are massive, and deleveraging and credit contraction remain as severe as ever. The euro is only marginally weaker than it was a year ago, and the loss of competitiveness and structural external deficits of the EZ periphery are as bad as before. Insolvent Greece is in economic and financial free-fall, and a disorderly default cannot be ruled out. Certainly, Greece is the prime candidate for an exit from the monetary union, but over time other insolvent sovereigns will have to coercively restructure their debt and, eventually, consider exiting the EZ if their competitiveness, growth and external balance cannot be restored without such an exit. Brace yourself for a year in which the severe economic, fiscal and financial problems of the EZ will be sources of tail risk, volatility and risk aversion, not just for the EZ but also for other developed and emerging markets, as well as global financial markets and risky assets worldwide….put on your seat belts it will be very interesting to observe.

For More Information: www.theoneillco.com

www.theoneillco.com



ECONOMIC OuTLOOK

The Entrepreneurial EconomyDr. KEvIN J. SCANLON Chairman, Pasadena Angels

How will the American economy recover from the worse down-turn in several generations? The small business model of start up companies can drive a new economy. What is unique about American business that has kept it dominant in the world market? It’s entrepreneurial spirit. Where will these entrepreneurs come from to start new companies? Our young generation will lead the way.

Business cycles of the last decade have lead to unemployment at its worst and job insecurity at its best. We have had two cycles of boom and bust in the past eleven years. Our young generation wonders if they will ever find the same job security that their parents enjoyed. If a lifetime job at one company is not feasible, then perhaps this generation should become self-starters with their own ideas for marketable products. This is the year of the entrepreneur.

The challenges of being a successful entrepreneur are daunting. How do you identify the right management team, product, customer, market, investments and exit strategy? Angel investors have accumulated a mixture of knowledge, experience and talent to fund successful start up companies. An angel investor can create a culture of success around the entrepreneur.

For the past two hundred years, the history of business in the United States has been entrepreneurial. The primary driver of the US economy has been the inventor that can bring novel products to market. We have been the envy of Europe and Asia for the past 60 years with our innovations in medicine and information sharing. But this information is digitalized and disseminated around the world. With the “democratization of information” via the internet, there is an even playing field for obtaining any data. How will we use this data to create knowledge? This is our challenge, and an economic contest for a better quality of life. Competition can now come from every corner of the world. How will America stay ahead?

The American entrepreneur is fortunate to have a network of investors (venture capital and individual investors) that are interested in giving back to the community with both their knowledge and their wealth. However, the venture capital community has suffered weak returns to their investors over the past ten years. Consequently, the number of venture capital groups have been driven down from a high of over 1,500 in the year 2000 to fewer than several hundred today. Conversely, individual investors, as part of the angel community, have grown during this period. Angel investors support early stage companies by validating their product and defining the customer and market. In the deal flow process, the angels offer early start up companies capital as well as business experience. This angel investment model, first gaining a foothold in California, has been copied across the US, in Europe and in Asia. The two largest Southern Californian angel investment groups, Tech Coast Angels and Pasadena Angels, have approximately 325 and 100 SEC-accredited investors, respectively. The typical investor profile is someone with 10-50 years of business experience and/or senior C- level management experience, and many have started their own companies. In addition, these investors have institutional knowledge from reviewing over 8,000 business applications, screening over 1,500 companies and investing in over 250 companies. The angel investor in Southern California has invested over $150 million with follow-on funding by venture capital firms and angels to over $1.3 Billion. This is a resource that any state or country would be envious to obtain. This knowledge optimizes the chances of success for the entrepreneur in launching their product. But where are these new ideas to come from in this decade?

The first source: universities have innovative technology that has been driven by strong research investments from government and private sector for the past three generations. Except in a few cases, this research has not been exploited successfully. How can we create a better synergy between the university community and the business community? Universities (public and private) have recently turned to their IP portfolio to find a cash cow. Unfortunately, the process of developing a concept into a product is slow, fraught with challenges and a bit of luck is



required. How can we solve this business-academic chasm? The skill set to be successful in academics is not the skill set to be successful in business. The “academic” entrepreneur needs to work as a team with the business community to overcome the daily challenges of getting a product to market. The investment community has the experience and environment to mentor a startup company.

Secondly, to better foster an atmosphere of entrepreneurship, incubators and accelerators have popped up in LA in the last few years (about 19 to date). Their role is to bring the network of investors, service providers, and entrepreneurs under one roof and create culture of innovation. Two such successful incubators, the County of Los Angeles Business Technology Center and Idea Lab, have been in the Pasadena area spinning out products from Cal Tech, JPL and the local community for about 15 years. The Pasadena Angels work closely with these incubators; our offices and weekly meeting are held in the Business Technology Center in Altadena. Many other communities in Los Angeles are now supporting these types of initiatives at the city, county and state level. Entrepreneurs can be successful with a mentoring culture, surrounded by accomplished business people that know how to run a company successfully. Where can an entrepreneur find the money to get ideas to market?

The investment community has expanded its funding opportunities to very early stage start up companies by doing early round seed funding ($50,000 to $150,000) for three to nine months with a standard term sheet and a set pre-money valuation. The purpose of this funding is to reach entrepreneurs even earlier in the concept stage of development. Following the old adage “you always need twice as much money and twice as much time to launch a product”, an additional funding route has been through syndication of investments—connecting multiple angel investment groups at a local, regional or national level to enhance the funds necessary to launch products. The third funding strategy has been venture capitalists co-investing with angel groups. The use of standardized term sheets, close mentoring of the start up company, and better due diligence have allowed angel and venture capital investors to share the risk of funding entrepreneurs. Angel investment groups have become gatekeepers of sorts for entrepreneurs. Their business and institutional investment experience from successful companies allows for reality checks on what will work for the entrepreneur. Angel investors are more than the money. Angels know that business is also about relationships, networks and reputations.

How we manage new science and technology will determine if America will remain the world economic leader in the future market. The convergence of information, global markets, and new business models leave a dynamic playing field for the entrepreneur today. A start up company can navigate these new challenges by engaging experienced investors with domain experience in their product area. The angels have a strong track record over the past decade of mentoring, funding, and bringing new products to market. This institutional knowledge is the unique advantage for the American economy. Leveraging this knowledge by educating the next generation of entrepreneurs will keep the American economy competitive.

For More Information:Dr. KEvIN J. SCANLONChairman Pasadena Angelswww.pasadenaangels.comwww.kjscanlon.com

www.kjscanlon.com



INNOvATION

Jet Propulsion Laboratory 2012 OutlookLT. GENErAL EuGENE TATTINI (uSAF, rET.) Deputy Director, NASA Jet Propulsion Laboratory

With the highly successful launches of four new missions in recent months, 2012 will see JPL focused on critical flight events as those exploration ventures unfold. Much of the world will be watching in early August as Mars Science Laboratory, launched two days after Thanksgiving 2011, delivers its SUV-sized Curiosity rover to Gale Crater, one of the best places on Mars to study whether the planet could have ever supported life. Following landing enabled by precision technology, Curiosity will embark on a nearly two-year primary mission analyzing dozens of samples drilled from rocks or scooped from the ground as it explores with greater range than any previous Mars rover.

Just after New Year 2012, the Gravity Recovery and Interior Laboratory, or GRAIL, mission’s twin spacecraft arrived at Earth’s moon, which they are orbiting in tandem to measure the moon’s gravity field and reveal subsurface structures and thermal history. JPL’s Aquarius instrument is making global maps of how salt concentration varies across the surface of Earth’s ocean – which can offer insights into ocean circulation, the global water cycle and climate. The Juno spacecraft, also launched last year, is en route in its nearly five-year transit to Jupiter, where it will take up a polar orbit to investigate how the planet formed and evolved, helping scientists understand the formation of the solar system and planetary systems everywhere.

The Dawn spacecraft has spent the past few months carrying out a highly productive orbital study of the protoplanet Vesta, the second largest object in the asteroid belt. In July, Dawn will depart using ion propulsion to shape its flight path as it travels to the dwarf planet Ceres where it will arrive in 2015 for an orbital tour. This will make Dawn the first spacecraft ever to orbit one target body and then move to orbit another.

Yet another JPL mission will get underway in March when the Nuclear Spectroscopic Telescope Array, or NuSTAR, is launched on a Pegasus XL vehicle from the Kwajalein Atoll in the South Pacific. Led by a Caltech Principal Investigator, NuSTAR will gather high-energy X-rays from astrophysical sources. It will conduct a deep survey for black holes, study how particles are accelerated to within a fraction of a percent of the speed of light in active galaxies, and examine how elements are created in supernova explosions by imaging remnants of those events.

For More Information:www.jpl.nasa.gov



INNOvATION

Boeing Begins NASA Solar Electric Propulsion StudyAdvanced solar array and electric thruster technologies to be tested in future demonstrations

DArYL G. PELC Vice President of Engineering & Technology, Phantom Works, Defense, Space & Security, The Boeing Company

The Boeing Company has begun work on a four-month NASA contract to develop a mission concept study for solar electric propulsion technologies. Under the $600,000 firm, fixed-price contract, Boeing will evaluate concepts that combine high-power solar arrays with advanced electric thrusters to power spacecraft and payloads to high Earth orbit and deep space destinations.

“Boeing pioneered the use of electric propulsion, and has developed an approach to integrate compact, lightweight, and highly efficient solar arrays with next-generation electric thrusters in future spacecraft,” said Steve Johnston, director of Boeing Phantom Works’ Advanced Space Exploration division. “This technology offers weight and cost advantages while enabling increased on-orbit maneuverability for satellites in Earth orbit, and efficient deep space transportation for human exploration and robotic science missions.”

Boeing is one of five contractors selected to develop a mission concept to demonstrate solar electric propulsion technologies, capabilities and the infrastructure required to affordable sustain a human presence in space. Phantom Works will conduct the study in Huntington Beach with support from Boeing Space & Intelligence Systems electric power and propulsion experts in El Segundo, Calif.

For More Information:CHErYL SAMPSONBoeing Phantom [email protected]

The Boeing Company has begun work on a four-‐month NASA contract to develop a mission concept study for solar electric propulsion technologies. Under the $600,000 firm, fixed-‐price contract, Boeing will evaluate concepts that combine high-‐power solar arrays with advanced electric thrusters to power spacecraG and payloads to high Earth orbit and deep space desInaIons. “Boeing pioneered the use of electric propulsion, and has developed an approach to integrate compact, lightweight, and highly efficient solar arrays with next-‐generaIon electric thrusters in future spacecraG,” said Steve Johnston, director of Boeing Phantom Works’ Advanced Space ExploraIon division. “This technology offers weight and cost advantages while enabling increased on-‐orbit maneuverability for satellites in Earth orbit, and efficient deep space transportaIon for human exploraIon and roboIc science missions.” Boeing is one of five contractors selected to develop a mission concept to demonstrate solar electric propulsion technologies, capabiliIes and the infrastructure required to affordably sustain a human presence in space. Phantom Works will conduct the study in HunIngton Beach with support from Boeing Space & Intelligence Systems electric power and propulsion experts in El Segundo, Calif. Contact: Cheryl Sampson Boeing Phantom Works 714-‐934-‐9373 [email protected]

Advanced solar array and electric thruster technologies to be tested in future demonstra6ons

Boeing Begins NASA Solar Electric Propulsion Study



LEGAL BEAT

America Invents ActBILLY A. rOBBINS Attorney at Law, Connolly Bove Lodge & Hutz LLP

On September 16, 2011, President Obama signed into law the America Invents Act of 2011 which makes a number of changes to the U.S. Patent Law which will take effect beginning on the date of enactment with some provisions taking effect eighteen months after the date of enactment. The last major legislation effort on patent law was enacted in 1952 and that pales in comparison to the America Invents Act (AIA). The 1952 Act was an enormous task as it codified a large volume of jurisprudence into the U.S. Patent Law and was drafted by two legendary patent experts, Giles Rich and Pasquale Federico. In contrast, the provisions of the AIA were drafted by anonymous congressional aides who were lobbied by various special interests groups and the end result is a compromise containing many ambiguous terms which will be challenged for years in the U.S. Courts.

The two of the most important sections of the AIA changes the U.S. Patent Law from (1) the first inventor obtains the patent, to the first inventor to file obtains the patent and (2) radically changes what constitutes prior art that can be used to challenge a patent. These two items will be discussed further below.

First Inventor to FileAs of March 16, 2013, a right to a U.S. Patent depends on who first files his or her patent application with the U.S. Patent and Trademark Office and no longer depends on who first invents the claimed invention. The AIA, however, still provides a one year grace period in the United States within which an inventor can make a public disclosure of his or her invention and then file a patent application within the one year period of time and obtain a valid patent directed to that invention. The inventor’s public disclosure of his or her invention is excluded as prior art under the AIA so long as the public disclosure was within one year of the filing date. The provisions of the AIA also provides that if another inventor, having never heard of the first inventor, independently invents the same invention and then immediately files a patent application within that one year period of time, the public disclosure by the first inventor will become prior art against the patent application subsequently filed by the second inventor and will bar the second inventor from obtaining a patent even though the second inventor was the first to file.

When considering this interpretation of the AIA, it would appear that an inventor should immediately publish his or her invention to defeat the possibility of another who might file first from obtaining the patent. Such would be a good policy if the inventor is not interested in obtaining foreign patent protection for the invention. Public disclosure of an invention without first having a patent application on file eliminates the possibility of obtaining patent protection throughout the rest of the world with few exceptions.

In light of the new provisions of the first inventor to file in the AIA and the exceptions which are set forth therein makes it necessary for any inventors or companies where inventions are made to establish a new strategy to be sure that important inventions are protected by patents. Such a strategy to cover all possible patent protection, should be to immediately prepare and file a provisional patent application in the United States Patent and Trademark Office with that provisional patent application having sufficient disclosure of the invention to enable one skilled in the art with nothing more than the teachings of the provisional application to replicate the invention. This will provide a one year period of time which will allow exploitation of the invention to determine whether or not there is an appropriate market for it. Within that one year period of time, a non-provisional patent application must be filed claiming the benefit of the filing date of the provisional application. That non-provisional application may be one which can be filed under the provisions of the Patent Cooperation Treaty (PCT) and which designates all of the countries where potential patent protection may be desired. This will then provide an effective thirty month period of time from the filing date of the provisional application before it becomes necessary to enter a national stage in those countries where patent protection is required. By following this procedure, maximum patent protection can be obtained with the least possible cost particularly during the initial stages of the development and exploitation of the invention.



Prior ArtUnder a new section of the AIA, it is stated that “a person shall be entitled to a patent unless the claimed invention was patented, described in a printed publication, or in publicly use on sale, or otherwise available to the public before the effective filing date of the claimed invention.” (emphasis added) It is very important to note that there are no geographical restrictions in the definition of prior art in this section of the AIA. In the current definition of prior art, a public use or sale is only available as prior art if it occurs within the United States. Under the new provision of the AIA, a public use or sale anywhere in the world could prevent the patenting of an invention, or it could be used as prior art to invalidate an issued patent. Although this statement is relatively simple, many questions will have to be settled by case law. For example, what if there is a non-public sale of a product which embodies the claimed invention, would that constitute prior art. An additional question which immediately comes to mind is whether or not a public use of a product, which does not disclose the invention to the public would constitute prior art under the new AIA provision. A further question which also comes to mind is whether or not an oral public disclosure of the invention, for example, at a seminar or a conference anywhere in the world would be considered prior art under the new AIA provision.

Under a new section of the AIA, the publications of U.S. patent applications, U.S. patents and PCT publications designating the United States which name a different inventor are prior art at their earliest effective filing date. If that date is before the effective filing date of the claimed invention, even if the publication occurred after the filing date of the claimed invention, the disclosure is prior art. The important change in this part of the law is that publications of U.S. patent applications that claimed priority to a foreign patent application will be considered prior art as of their priority filing date, that is the filing date in the foreign country. Under the present law, such U.S. patent applications have an effective date as prior art as of the actual filing in the United States.

As a result of these two major changes in the patent law effected by the AIA, it is imperative that procedures be put in place to file high quality provisional patent applications as soon as possible after the making of an invention. The current practice of many companies and universities of simply placing the U.S. provisional patent application cover sheet on a paper prepared by a professor or student and filing it will probably not suffice.

ConclusionIt will also become necessary to also closely follow presentations made throughout the world within the technical fields that are of interest to thereby have a good view of the possible prior art that may be available and will have an effect on the patentability of inventions made.

For More Information Please Contact:BILLY A. [email protected] www.cblh.com/offices/losangeles



ENErGY

Status of Renewable Energy Systems in the United StatesKENT W. PETErSON, P.E. Vice President & Chief Engineer P2 Engineering, INC

IntroductionToday, most of the energy consumed in the United States comes from fossil fuels — coal, petroleum, and natural gas, with crude oil-based petroleum as the dominant source of energy. Renewable energy resources supply a relatively small but steady portion, about 8% of U.S. total energy consumption. Building energy efficiency and renewable energy supplies are two areas currently gaining more momentum to reduce reliance on fossil fuel based energy and carbon emissions.

Between 2009 and 2010, renewable energy consumption rose by 6 percent to over 8 quadrillion Btu (Figure 1). At the same time, total U.S. energy consumption rebounded by 4 percent to nearly 98 quadrillion Btu. Renewable energy’s share of U.S. consumption in 2010 was up slightly to a little more than 8 percent.

Energy Supply Historical PerspectiveIn the late 1950s, nuclear fuel began to be used to generate electricity, and in recent years has surpassed renewable energy sources. The use of energy fuels has changed over time, but the change tends to occur slowly. In the long view of U.S. history, wood, a renewable energy source, served as the preeminent form of energy for about half of the Nation’s history. Coal surpassed wood’s usage in the late 19th century, and was, in turn, overtaken by petroleum products in the mid 1900s. Natural gas consumption experienced rapid growth in the second half of the 20th century, and coal use also began to expand as the primary source of electric power generation. In the 1970s, electricity produced from nuclear fuel began to make a significant contribution and expanded rapidly in the following decades.

In 2009, U.S. primary energy consumption decreased 5% from 2008 and 7% from the record level of 2007, and the United States consumed less fossil fuel than in previous years. This can be attributed to both efficiency improvements and the reduction in total GDP. Coal consumption dropped 12%, petroleum 5%, and natural gas 2%. The United States relied more on renewable fuels and nuclear electric power, which are less carbon intensive than other fuels. Renewable energy consumption rose 5% from 2008 and 15% from 2007. Although nuclear electric power consumption registered a small decline, its share of total primary consumption increased. The electric power sector used a less carbon-intensive mix of fuels in 2009 compared with the mix of fuels in the previous year. The sector’s share of coal consumption fell from 51% to 48%, and, for the first time since 1980, coal accounted for less than half of consumption. The share of natural gas, renewable energy, and nuclear electric power consumption each increased from the previous year.

Renewable EnergyBetween 2009 and 2010, U.S. renewable energy consumption rose by 6 percent to over 8 quadrillion Btu (Figure 1). At the same time, total U.S. energy consumption rebounded by 4 percent to nearly 98 quadrillion Btu, partly due to economic recovery.

Figure 1 U.S. Energy Consumption by Energy Source, 2010

Renewable Energy

Between 2009 and 2010, U.S. renewable energy consumption rose by 6 percent to over 8 quadrillion Btu (Figure 1). At the same time, total U.S. energy consumption rebounded by 4 percent to nearly 98 quadrillion Btu, partly due to economic recovery.

Renewable energy's share of U.S. consumption in 2010 was up slightly to a little more than 8 percent. The main drivers behind the changes in renewable energy were consumption increases of 288 trillion Btu for biofuels and 203 trillion Btu for wind. These were partially offset by a decrease of 160 trillion Btu for hydroelectric power.

Between 2006 and 2010, the biomass share of renewable consumption increased from 49 to 53 percent, conventional hydroelectric decreased from 43 to 31 percent, and wind increased from 4 to 11 percent (Figure 2). Geothermal's share stayed steady at 3 percent of renewable energy. Solar's share of renewable consumption remained steady at 1 percent, despite growing rapidly at an average annual rate of 12 percent.

Wind power has been the fastest-growing source of new electric power generation for several years. In 2009, generation from wind power increased 33.5 percent over 2008, bringing the share of total generation to 1.9 percent. This followed year-over-year generation gains of 60.7 percent in 2008, 29.6 percent in 2007, and 49.3 percent in 2006. Wind capacity in 2009 totaled 34,296 megawatts (MW), as compared to 24,651 MW in 2008.

The U.S. solar industry as a whole grew by 67% over 2009. The report indicates that the installed capacity of grid-connected PV systems grew to 878 MW in 2010, a 102% increase over 2009. The largest growth sector was in utility-scale PV, growing from an installed capacity of 70 MW in 2009 to 242 MW in 2010. The PV industry saw a relatively even distribution among the residential, nonresidential and utility markets. Even with the strong growth, the US market share in global installations fell from 6.5% in 2009 to 5% in 2010.

Figure 1 U.S. Energy Consumption by Energy Source, 2010



Renewable energy’s share of U.S. consumption in 2010 was up slightly to a little more than 8 percent. The main drivers behind the changes in renewable energy were consumption increases of 288 trillion Btu for biofuels and 203 trillion Btu for wind. These were partially offset by a decrease of 160 trillion Btu for hydroelectric power.

Between 2006 and 2010, the biomass share of renewable consumption increased from 49 to 53 percent, conventional hydroelectric decreased from 43 to 31 percent, and wind increased from 4 to 11 percent (Figure 2). Geothermal’s share stayed steady at 3 percent of renewable energy. Solar’s share of renewable consumption remained steady at 1 percent, despite growing rapidly at an average annual rate of 12 percent.

Wind power has been the fastest-growing source of new electric power generation for several years. In 2009, generation from wind power increased 33.5 percent over 2008, bringing the share of total generation to 1.9 percent. This followed year-over-year generation gains of 60.7 percent in 2008, 29.6 percent in 2007, and 49.3 percent in 2006. Wind capacity in 2009 totaled 34,296 megawatts (MW), as compared to 24,651 MW in 2008.

The U.S. solar industry as a whole grew by 67% over 2009. The report indicates that the installed capacity of grid-connected PV systems grew to 878 MW in 2010, a 102% increase over 2009. The largest growth sector was in utility-scale PV, growing from an installed capacity of 70 MW in 2009 to 242 MW in 2010. The PV industry saw a relatively even distribution among the residential, nonresidential and utility markets. Even with the strong growth, the US market share in global installations fell from 6.5% in 2009 to 5% in 2010. The U.S photovoltaic market has remained relatively concentrated in a few key states, although the market has been experiencing rapid geographic expansion over the past few years. In 2010, California accounted for approximately 30% of total installations, down from 2004-2005 when it accounted for roughly 80% of total installations in the U.S. market.

Renewables Used for Electricity GenerationRenewable energy provided 10 percent, or 425 billion kilowatthours (kWh) of U.S. electricity in 2010, out of a total of 4,120 billion kWh. U.S. total net generation increased by 4 percent, while renewable generation increased just 2 percent between 2009 and 2010. Renewable generation would have been higher, but for a net decrease of 16 billion kWh in conventional hydropower due to low water availability.

Wind generation increased by 21 billion kWh to 95 billion kilowatt hours between 2009 and 2010. All the other remaining renewable sources except other biomass increased as well. Despite the lingering effects of the recession being felt in financial markets into 2010, competition from low natural gas prices, and an increased reluctance for utilities to enter power purchase agreements with wind, renewable capacity expanded by 3 percent, or 4,019 megawatts (MW) in 2010, according to preliminary data reported to the U.S. Energy Information Agency.

Figure 2 U.S. Renewable Energy Consumption by Energy Source, 2006 and 2010

The U.S photovoltaic market has remained relatively concentrated in a few key states, although the market has been experiencing rapid geographic expansion over the past few years. In 2010, California accounted for approximately 30% of total installations, down from 2004-2005 when it accounted for roughly 80% of total installations in the U.S. market.

Renewables Used for Electricity Generation

Renewable energy provided 10 percent, or 425 billion kilowatthours (kWh) of U.S. electricity in 2010, out of a total of 4,120 billion kWh. U.S. total net generation increased by 4 percent, while renewable generation increased just 2 percent between 2009 and 2010. Renewable generation would have been higher, but for a net decrease of 16 billion kWh in conventional hydropower due to low water availability.

Wind generation increased by 21 billion kWh to 95 billion kilowatt hours between 2009 and 2010. All the other remaining renewable sources except other biomass increased as well.

Despite the lingering effects of the recession being felt in financial markets into 2010, competition from low natural gas prices, and an increased reluctance for utilities to enter power purchase agreements with wind, renewable capacity expanded by 3 percent, or 4,019 megawatts (MW) in 2010, according to preliminary data reported to the U.S. Energy Information Agency.

Figure 2 U.S. Renewable Energy Consumption by Energy Source, 2006 and 2010



State Renewal Portfolio StandardsA renewable portfolio standard (RPS) is a policy that requires electricity retailers to provide a minimum percentage or quantity of their electricity supplies from renewable energy sources and provides U.S. states with a mechanism to increase renewable energy generation. An RPS establishes a base level of demand but allows the market to determine which renewable energy resources will meet that demand. Historically, state legislatures and regulatory agencies have been the driving force behind RPS policy formulation, although some RPS polices have been adopted through citizen ballot initiatives. Initially proposed as a mechanism to support renewable energy development in competitively restructured electricity markets, the RPS model today serves additional policy aims such as fuel diversity and in-state economic development.

State RPS policies play an important part in increasing U.S. renewable energy supplies. At this point, twenty-nine states and the District of Columbia have established an RPS. An additional seven states and two territories have adopted non-mandatory renewable energy goals. Although wind, biomass and hydropower are the predominant resources used to satisfy RPS obligations, a growing number of states are incorporating a solar set-aside into the RPS, stipulating that a portion of the required renewable energy percentage or overall retail sales be derived from solar resources.

Table 1 gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

States adopting RPSs are providing actual data, and the early successes of these states are changing the debate about what states can individually accomplish with their energy systems, how states can cooperate regionally, and whether a federal RPS may be feasible. These states are also pushing up against the limits of what states can do without federal support and coordination. To date, engagement between state and federal policy makers on this issue has been surprisingly limited, and is overdue. These policy experiments may prove a deciding factor in the energy path that the United States chooses to take, demonstrating that renewables can be a viable part of our energy future.

ConclusionBuilding energy efficiency and renewable energy supply will both have important roles in reducing U.S. reliance on fossil fuel based energy. The installation and use of renewable energy within the U.S. is forecast to increase in the future with the projected doubling of U.S. PV installations in 2011. State renewable portfolio standards will continue to play an important role in accomplishing large-scale renewable use in the United States. While incentives are used to provide initial market penetration for new technologies, successful implementation should allow the market to determine which renewable energy resources should be utilized in various locations to meet the growing renewable energy demand.

STATE RENEWABLE PORTFOLIO STANDARDS

A renewable portfolio standard (RPS) is a policy that requires electricity retailers to provide a minimum percentage or quantity of their electricity supplies from renewable energy sources and provides U.S. states with a mechanism to increase renewable energy generation. An RPS establishes a base level of demand but allows the market to determine which renewable energy resources will meet that demand. Historically, state legislatures and regulatory agencies have been the driving force behind RPS policy formulation, although some RPS polices have been adopted through citizen ballot initiatives. Initially proposed as a mechanism to support renewable energy development in competitively restructured electricity markets, the RPS model today serves additional policy aims such as fuel diversity and in-state economic development.

State RPS policies play an important part in increasing U.S. renewable energy supplies. At this point, twenty-nine states and the District of Columbia have established an RPS. An additional seven states and two territories have adopted non-mandatory renewable energy goals. Although wind, biomass and hydropower are the predominant resources used to satisfy RPS obligations, a growing number of states are incorporating a solar set-aside into the RPS, stipulating that a portion of the required renewable energy percentage or overall retail sales be derived from solar resources.

Table 1 gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

Table 1. Summary of U.S. State Renewable Portfolio Standards State Amount Year Arizona 15% 2025 California 33% 2030 Colorado 20% 2020 Connecticut 23% 2020 District of Columbia 20% 2020 Delaware 20% 2019 Hawaii 20% 2020 Iowa 105 MW Illinois 25% 2025 Massachusetts 15% 2020 Maryland 20% 2022 Maine 40% 2017 Michigan 10% 2015 Minnesota 25% 2025 Missouri 15% 2021 Montana 15% 2015 New Hampshire 23.8% 2025 New Jersey 22.5% 2021 New Mexico 20% 2020 Nevada 20% 2015 New York 24% 2013 North Carolina 12.5% 2021 North Dakota* 10% 2015 Oregon 25% 2025 Pennsylvania 8% 2020 Rhode Island 16% 2019 South Dakota* 10% 2015 Texas 5,880 MW 2015 Utah* 20% 2025 Vermont* 10% 2013 Virginia* 12% 2022 Washington 15% 2020 State Amount Year Wisconsin 10% 2015

*Five states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have set voluntary goals for adopting renewable energy instead of portfolio standards with binding target

States adopting RPSs are providing actual data, and the early successes of these states are changing the debate about what states can individually accomplish with their energy systems, how states can cooperate regionally, and whether a federal RPS may be feasible. These states are also pushing up against the limits of what states can do without federal support and coordination. To date, engagement between state and federal policy makers on this issue has been surprisingly limited, and is overdue. These policy experiments may prove a deciding factor in the energy path that the United States chooses to take, demonstrating that renewables can be a viable part of our energy future.

CONCLUSION

Building energy efficiency and renewable energy supply will both have important roles in reducing U.S. reliance on fossil fuel based energy. The installation and use of renewable energy within the U.S. is forecast to increase in the future with the projected doubling of U.S. PV installations in 2011. State renewable portfolio standards will continue to play an important role in accomplishing large-scale renewable use in the United States. While incentives are used to provide initial market penetration for new technologies, successful implementation should allow the market to determine which renewable energy resources should be utilized in various locations to meet the growing renewable energy demand.

Table 1. Summary of U.S. State Renewable Portfolio Standards

*Five states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have set voluntary goals

for adopting renewable energy instead of portfolio standards with binding target



ENErGY

SDG&E Opens Energy Innovation Center to PromoteStainability and Energy EfficiencyDr. JEFFrEY rEED Director Emerging Technologies Southern California Gas Company • San Diego Gas & Electric

Back in 2004, the state of California established an order of preference (“loading order”) for energy resources to guide its path toward sustainable energy. Energy efficiency is at the top of the list (followed by renewable energy and clean-burning natural gas ). The absolute cleanest energy is the energy that we don’t use at all. The State’s energy utilities, including our two companies, Southern California Gas Company and San Diego Gas and Electric, have had aggressive programs in place for over 20 years to assist customers in reducing their energy use. A number of years ago, the state of California adopted an innovative concept called de-coupling. Under this mechanism, the profit earned by electric and natural gas utilities does not depend on the amount of electricity or natural gas that flows on their wires and pipes. That policy, coupled with energy efficiency incentive programs has led to the most successful energy efficiency program in the nation. Over the past 30 years, as energy use in the United States has increased substantially while California has stayed flat in spite of significant growth in population and economic output.

In 1995, So Cal Gas opened its Energy Resource Center in Downey, California. The center has served for years as a showcase for the latest energy saving technologies, venue for education and training events and has served as the host site for several solar energy demonstrations. The facility is also home to a natural gas vehicle refueling station that is open for public use. This month, San Diego Gas and Electric opens its own flagship facility to showcase energy efficient technologies and green building – the SDG&E Energy Innovation Center.

• Automated lighting system that is 50% more efficient than require by current building standards

• Natural lighting and ventilation elements • “Smart Home” display area • Smart Grid integration software to control on-site solar energy systems and

energy consumers (devices and appliances) • Electric vehicle charging facilities with solar “trees” providing energy and shade

cover

The facility is open to the public and all members of the Technolink family are invited to stop by when in San Diego and have a look at the latest in energy efficient technologies and green building.



The Energy Innovation Center (EIC) is in the Clairemont Mesa neighborhood of San Diego. This facility, which applied for the Leadership in Energy Efficient Design (LEED) Platinum designation, features elements focused on energy-efficiency, green building, clean transportation, renewable generation and smart grid technologies.

The center functions primarily as a training and outreach center for SDG&E customers to learn about and explore the latest energy efficiency products for their homes and businesses but the facility also serves as a living laboratory for advanced building systems. Some of the unique features include low water use plumbing fixtures, provision of amenities for bicycle commuters; use of rain harvesting, efficient drip irrigation, draught tolerant plants and parking for low emitting and fuel efficient vehicles; optimal parking capacity and reflective roofing materials. The EIC also incorporates many environmentally friendly materials and practices. During the construction process, about 85% of the materials from the original building were either reused or recycled, and construction lumber and wood finish materials were sourced from managed forests.

Other features include• Ultra-high efficiency heating and cooling systems including an award-winning evaporative cooling system • Automated lighting system that is 50% more efficient than require by current building standards• Natural lighting and ventilation elements• “Smart Home” display area• Smart Grid integration software to control on-site solar energy systems and energy consumers (devices and

appliances)• Electric vehicle charging facilities with solar “trees” providing energy and shade cover

The facility is open to the public and all members of the Technolink family are invited to stop by when in San Diego and have a look at the latest in energy efficient technologies and green building.

For More Information: www.sdge.com/innovationcenter



HOMELAND SECurITY

Understanding The Terrorism Threat in AmericaLT. BrIAN K. BANNING Systems Research and Applications (SRA) Int., CalEMA

In the past ten years, the United States of America has focused more on the ‘War on Terror’ within our own borders than at any other time in our history. The Department of Homeland Security (DHS) has 230,000 employees and an annual budget in excess of 55 billion dollars. TSA alone has spent 57 billion dollars since 9/11 to secure our transportation infrastructure. The focus of all of these resources has been detection of and intervention in operational plots. America might get a better return on their anti terrorist investment by using some of that money to promote American values of fairness and freedom in those segments of society that breed terrorism.

Source of the problemIslam is not the only religion or political movement to suffer the insult of having it’s name used by criminals trying to force their world view on others. The Jewish Irgun, Christian Identity and the Covenant Sword and Arm of the Lord, ethno nationalist groups such as the Tamil Tigers and the Chechen rebels have all attached themselves to a religion or political cause to legitimize their violent attempts to force the world to do what they want.

One group of radicals affiliated with the extremist far Christian right is the Sovereign Citizens, a white racist group who believes that the government isn’t constitutionally backed and all authority is invalid. This group reportedly has 300,000 members and has committed over a dozen law enforcement involved shootings in the past two years, killing several officers. The extremist Christian groups believe they are Gods’ warriors and a pending civil war with the Government is a holy mandate and will result in ‘free’ sovereign, all white, rule of the country.

Many sources of terror exist so we need to watch for all of them but the threat from criminally radical Islam ideology has been the main recipient of attention from DHS due to its role in motivating the hijackers on 9/11.

Scope of the problemAmericas’ opinion of terrorism has changed over the past 50 years. While the volume of domestic terrorism activity in the 70s was much greater than the last ten years the fear factor now is much higher. If you exclude 9/11, the incident frequency and annual death toll from terrorism was much greater in the 70s than the past decade. The spectacular death tolls at the Murrah Building bombing in Oklahoma and the Twin Towers have imbued the population with the thought that terrorism equals mass destruction. The reality is a bit different. Between 9/11 and November 2011, the nation had detected 53 domestic terrorism incidents or plots that resulted in 14 deaths, 13 of them in a single incident at Fort Hood. An overwhelming 51 plots failed to hurt anyone. During the same time frame, four internationally based plots failed; Richard Reid the ‘shoe bomber’, Umar Abdulmutallab the ‘underwear bomber’, Faisal Shahzad the Times Square car bomber, and the failed cargo bomb plot originating in Yemen.

The international plots involved a level of expertise and complexity that caused their failure. By contrast, most of the domestic plots were simple and it’s only with the increased capabilities of the American intelligence community that they were detected and interdicted.

The domestic plots all involved the same dynamic; an American with sympathies to a cause decided to take a direct action against America in support of radical Islam. Each time, this required a population with a closed intellectual feed back loop that nurtured ill informed and hateful beliefs. It’s these pockets that should be targeted in a positive manner to prevent the emergence of the operational sympathizer in the first place. This may deter radicals but it’s more likely that increased reporting by their peers would be the attack diverting result of such a campaign.

The domestic plots mostly share another likeness, someone noticed suspicious behavior and reported it to the authorities, resulting in a life saving investigation.



Pew Research Center studies place the number of Muslims in America at 2.595 million. As of August 2011 there had been 172 Islamic suspects in terrorism acts or plots in the US. That number represents 0.000007% of Americas’ Muslims. While very few participate in criminality, the attached opinion poll from the Pew report shows that there is a high enough level of support for Islamic Radical ideology to cause concern.

Mitigating the problemThe frequency of incidents does appear to be on the rise. 32 of the 53 incidents reported since 9/11 occurred during or after 2009.

The tolerance or support Al Qaeda described in the Pew poll coupled with the incident frequency being on the increase reinforces the need to increase reporting.

The current focus of DHS on detection and prevention has been enormously expensive. While I would never advocate letting down our guard or decreasing the support for the intelligence, law enforcement, or military communities I do think we could reap greater benefits from a shift in emphasis from solely tactical efforts to social outreach and by engaging the private sector more.

Most of the suspects in these cases had jobs that took them out of their tightest circle of friends that provided the closed feedback loop that helped to convert them from fanatics to criminal actors. At those jobs the future suspect is vulnerable to detection.

One thing Technolink members can do to make the country safer is to foster an open environment that enhances the chance of reporting by providing the employee a feeling of confidentiality if they come forward. Many companies have educational sessions on workplace violence encouraging reporting of circumstances by potential victims. Similar programs that address the terrorist topic could be used.

Civil liberties have to be protected at all times but ‘See Something Say Something’ type programs rightly address indicators of criminality. We aren’t profiling ethnicity or religion, just indicators of possible criminal actions.

Information on Suspicious Activity and the Proper Reporting Links Can be Found at:www.calema.ca.gov/ThreatandResponse/Pages/California-State-Threat-Assessment-System.aspx

Mitigating the problem The frequency of incidents does appear to be on the rise. 32 of the 53 incidents reported since 9/11 occurred during or after 2009. The tolerance or support Al Qaeda described in the Pew poll coupled with the incident frequency being on the increase reinforces the need to increase reporting. The current focus of DHS on detection and prevention has been enormously expensive. While I would never advocate letting down our guard or decreasing the support for the intelligence, law enforcement, or military communities I do think we could reap greater benefits from a shift in emphasis from solely tactical efforts to social outreach and by engaging the private sector more. Most of the suspects in these cases had jobs that took them out of their tightest circle of friends that provided the closed feedback loop that helped to convert them from fanatics to criminal actors. At those jobs the future suspect is vulnerable to detection. One thing Technolink members can do to make the country safer is to foster an open environment that enhances the chance of reporting by providing the employee a feeling of confidentiality if they come forward. Many companies have educational sessions on



HOMELAND SECurITY

Combatting Cyber AttacksBArrY MOzIAN President, Talon Companies

While armed robbery, and other heinous crimes appear to be in decline, global and transnational cyber-crime is thriving and recording record numbers in monetary loss due to credit card and identity theft over the internet.

A malware called Zeus was designed to capture personal and proprietary information when a benign e-mail is sent to a victim. The victim merely has to open the e-mail and the malware embeds itself into the victim’s computer capturing proprietary data and information such as social security numbers, bank account information as well as confidential personal information.

Zeus records keystrokes and allows hackers to lift private and corporate account information, passwords, and security codes. Bank accounts were breached and funds withdrawn using “money mules” and wire transferred to overseas bank accounts. The scheme involved “insider” bank employees.

In September 2010, 37 people from the United States, Ukraine, and Moldavia were indicted. It is estimated they were able to extract $70,000,000 before they were caught.

Hackers frequently use “phishing” or “spear phishing” as well as social engineering to capture data and information that is then used to perpetrate identity theft and convert the stolen identities into cash.The Internet Crime Complaint Center IC3, indicates that cyber-security incidents reported from federal agencies from 2006 to 2010 increased by 660%.

Yet according to the American Society of Industrial Security (ASIS), corporate America only allocates 3% of their security budget to combat the infiltration of their IT Systems. The study also suggest that 65% of the time an information system is compromised, it is an insider or current employee.

We recommend encrypting trade secret files and that information the company has deemed as their “Crown Jewels”. Frequently requiring employees to change their passwords and monitoring all employee electronic traffic is imperative. Employees also need training in identifying social engineering schemes as well as identifying phishing and other malicious attempts to get their information. IT professionals need to review the logs and to monitor the IT system 24/7 for any unidentified intrusions.

Talon frequently recommends proprietary data be moved to cloud computing or to a secure data center. Annual penetration test by a third party to validate the security of the system is also encouraged. If the system is compromised, it is imperative that the company contact an IT Security company immediately to identify the intrusion or loss and to begin restoration and preservation of evidence in the event a criminal charge is filed or civil litigation is initiated.

Companies frequently attempt to “solve” the issue themselves. This is a huge mistake because the IT staff may not have the training in securing the system or they may destroy valuable evidence without preserving the chain of custody. Lastly, the electronic crimes task force studies show that 75% of the time an insider is responsible for data theft it is someone in the IT department that is responsible.

For More Information Please Visit:TALON COMPANIESwww.taloncompanies.com



HOMELAND SECurITY

Can We Prevent A Digital D-Day?KEvIN MCDONALD Executive Vice President Alvaka NetworksChairman, Orange County Sheriff/Coroner’s Community Technology Advisory Council Chair, Orange County Crime Stoppers This article is actually an update from a piece that I originally wrote for National Cyber Security Online back in 2005. I am updating it because in reality, it is truer today and the original imperatives identified are of greater importance than ever. I understand that Technolink has placed some focus on Cyber Security in recent years and that this one of many topics that are of concern to Technolink members. I believe Cyber Security will rapidly gain in relevance and needs to be addressed on an ongoing basis if we are going to maintain our status as a world leader.

The vast majority of state and federal data security laws are currently focused on protecting financial and medical information with an ancillary focus on intellectual property and corporate espionage. The primary cyber-security regulations to date are the Health Insurance Portability and Accountability Act (HIPAA) and subsequent 2009 Health Information Technology for Economic and Clinical Health Act (HITECH), the Gramm-Leach-Bliley Act (GLBA) and the Homeland Security Act (HSA), which contains the language of the Federal Information Security Management Act (FISMA) and finally Federal Information Processing Standards (FIPS). These regulations compel private healthcare and financial institutions, and federal agencies to protect their computer systems. Interestingly, due to the new $1.5 million dollar penalties for willful neglect contained in HITECH, many would argue that there is now more to lose by failing to protect the record of a patient having the sniffles than our vital national secrets. In reality, the primary goal of nearly all cyber security related legislation (with the exception of toothless FISMA) over the past 10 years has been to prevent the theft or release of civilian information and the resulting identity theft or possible public embarrassment. The balance of the regulations were designed to ensure the integrity of records for public companies. FISMA only compels federal agencies and related orgs to comply and has no reach into private companies unless they are contracting with a federal agency.

American businesses are controlled by more than 50 state laws outlining a variety of preventative and reactive actions (or worse) prescribed results with ambiguous guidance or no specifics whatsoever on how to achieve those results. From silly rules like Texas requiring a Private Investigator’s license for many computer security services, to others requiring the implementation of security protocols and spelling out conflicting breach notification and remediation activities, the laws are written and enforced by states. The federal laws that do exist are mostly known as checklist or self-enforcement regulations that have little or no teeth. The results of these self-audit rules are fudged or filled out reports without any consideration for the desired outcome. I have personally experienced so called audits being filled out by a contractor or employee without having done any assessment or audit of the system they are reporting on. I have seen audits done by facets of an organization that have zero knowledge of the IT operations and that get no input from the IT team either. You need not look too far for proof. You need only look at the successful attacks on law enforcement over the past year. Basic code injection and password attacks were successful in gaining access to highly sensitive records. Further evidence can be found in last month’s attacks on the DOJ and others by the same hacking group Anonymous and affiliated LulzSec. The attack measures the hackers used, while moderately technical in their combination, were according to the DHS National Cyber Security and Communications Integration Center Bulletin A-0010-NCCIC-160020110719 admittedly [rudimentary exploits and tactics, techniques and procedures commonly associated with less skilled hackers referred to as Script Kiddies.] In translation, even a bored teenager could have succeeded at these attacks.

The DHS Bulletin, while providing some warning, seems to be designed to minimize the skills of the hackers; something that I think is a mistake. On the other hand, these successes actually provide insight that the DOJ and others are failing to defend against even these “rudimentary” attacks. What is most telling in all of this is not that the DOJ alone, but many other organizations also showed a lack of basic security by having failed to patch applications and use adequate passwords. Passwords belonging to employees of US corporations as well as members



of U.S. intelligence, law enforcement and of course our military were reportedly found to be, “weak and easy to decode.” This basically means that even those who should know what’s at stake and who are supposed to know the protocols, failed to take the most basic steps to secure our critical data. If the reports that these employees utilized weak passwords are true (which I have little doubt), this should send a chill up the proverbial spine of America.

I see several significant challenges that we must address or prepare to suffer potentially dire consequences. We must fix the badly disjointed legal and regulatory landscape. As primarily a states’ rights advocate (with a federal interventionist allowance), I am very frustrated with the abstract montage of disjointed, over reaching, duplicative and often ambiguous laws that we in business are burdened with today. My internal and sometimes external argument is that while private businesses may own much of our infrastructure and we should be free to operate our own systems, that infrastructure has the potential to negatively impact the nation as a whole. The failure of the Fukushima reactors to get power to mange the cooling systems after the 2011 earthquake is a good example of how a private company can devastate unrelated resources and people. How does this relate to Cyber Security? It relates because it shows that if private companies fail to take proper precautions (whether intentional or not) many can suffer. It also shows the public interest in being sure that precautions are taken to reduce the bleed over from a commercial failure. For this reason I argue that we need federal cyber security regulations that create a minimum floor of activity for all systems that impact survivability. States can continue to dictate how their citizens’ data should be protected but systems that can impact significant portions of the economy or our national security must be held to a higher standard and truly verified.

Now let’s look at the specifics of the legal complexity. First, let us not forget that the Internet by its very nature allows for the free crossing of borders with information and commerce and that business is rapidly moving to the Internet for delivery of traditional store front operations. In addition to the move to Web stores, consumers often buy out-of-state products to avoid taxes. Why does this matter? The buying across state lines has a huge impact on the seller because in the vast majority of cases, the law of the land where the consumer resides is the law that the seller must follow. Because these differing state laws vary so dramatically in their prescriptive underpinnings and penalties, sellers are confused, often conflicted with choosing how to “comply” and worse yet, terrified by the prospect of being dragged into a state court thousands of miles from their corporate location over issues that in reality don’t present any real damages to the consumer filing the complaint.

As a nation, almost every aspect of our existence is now dependent on reliable and secure technology. Having data privacy is important, but should the breach of individuals’ credit card information really be treated as paramount? I would argue that protecting our communications systems, water, food and fuel supplies, nuclear facilities, and other fundamental parts of our defense and economic infrastructure must be paramount. While we fight the war in Afghanistan and pay attention to other physical front lines, we must pay attention to other countries spending their time and untold dollars searching for weakness in our core digital infrastructure. With the vast majority of our nation’s infrastructure in the hands of private individuals and often under management of non-American, multi-national conglomerates, the reality of insecurity is growing with every passing day. We have companies that have no allegiance to our country buying up critical commercial assets, and in many cases, our very infrastructure such as roads, bridges and vast energy interests.

The increasing complexity and interdependence of our national and international infrastructure is also cause for hyper awareness. The rapid advancement, combined with the government’s inability to keep up with the salaries and benefits required to recruit and retain the best talent makes the government’s fight for available talent more often than not, a losing proposition. Our education system is failing to deliver the talent. We are educating foreign students in our universities and sending them home or to competitive nations rather than welcoming them here to stay and develop new ideas, businesses and security tools. Consider that more than half of Silicon Valley companies are founded by foreign born individuals. Now consider that more and more foreign born individuals are either not being allowed to come to America or to stay once they get here. However you look at this, we have a serious problem. We are quickly losing the old guard talent to retirement and suffering from increasing brain drain in our government agencies. We are failing to backfill the skills. If you now add the shuttering of NASA and other science related projects causing many scientist to find work elsewhere, these talent issues are a formula for disaster.



Much of the new equipment and software that is being used to support our most critical systems are increasingly produced and supported by foreign countries. Their underlying technology is hidden to those who are using these systems and in fact knock-off and counterfeit goods are finding their way into our most sensitive infrastructure. This proves we do not have tight enough controls. It is true that there are some incredibly intelligent and very talented professionals supporting our government systems, but as technology becomes more deeply layered and built on modules of past performers, the ability for any one person to fully understand the systems that they support grows limited. The days of those Binary speaking geeks who knew every detail of how and why a system works are long gone. We are becoming reliant on teams of people with a myriad of specialties to communicate with each other and come to some common conclusion. This means that the potential for error, the exploitation of weakness or even the outright betrayal by an individual is much greater than in days past. Our corporations both large and small are storing massive amounts of private and commercial data in foreign countries. They are relying on foreign computer service firms that also have limited or no allegiance to the US. Yes, they are in currently friendly nations but, as history shows, an ally can become an enemy in short order. We have seen in recent years that many that live in those nations we call our friends or allies are harboring hatred and disdain for our international policies. It does not matter why so many hate America. What matters is that there are millions of people in the world who would celebrate harm being done to the US and our interests.

Don’t be fooled into believing that there is some super secret information highway that is fully controlled by crack government teams of experts and super geeks. The secured pathway of information that is safe and guaranteed to be there in the event of disaster or sustained physical attack is currently a fantasy and does not exist. The truth is that our government often knows less about the world of technology than the majority of those in the private sector. They rely on the commitments and promises from professional contract organizations and private companies who are apt to not fully disclose their weakness, exaggerate their capabilities or take short cuts to make a buck. Yes, there is a high level of security protecting some “critical systems”. The problem is that there is a constant battle of risk versus benefit in identifying what is critical. Only those systems that are deemed critical by people who have their own self interest at heart are getting the funding and attention that is needed. If there is no invested advocate with power or one that is unable to articulate how important it is to protect a particular system, then there may be no protection at all. In fact, we have been shown that those critical systems are vulnerable to attack and not getting the attention they need.

As I said, much of our infrastructure relies on the ability of the private sector to transport data, create software, integrate and secure systems, and provide power to the grid. The issues discussed here, combined with the recent discovery of the current state of Supervisory Control and Data Acquisition (SCADA) networks including recent attacks and incidents, a digital D-day attack that involves our core systems could have devastating impacts on our basic life support. Our food distribution, power management, medical facilities, transportation, water management, critical communications, and other necessities could be interrupted for extended periods of time and the impact on our economy could be immense. If one thinks about how completely reliant on technology our society has become, it doesn’t take long to see that there are few types of physical attacks that could have as devastating an impact.

Please take a minute and consider how your lives and that of your family and community would be impacted if we were to suffer the loss of these important capabilities. Then consider ways that you can be part of the solution. Take those actions that protect the systems that you have influence over and be a positive voice in the need to take this all seriously. I will write more on the very serious issue surrounding SCADA in my next installment.

For More Information Please Contact:KEvIN [email protected]



COMMuNITY-PuBLIC PrIvATE PArTNErSHIPS

Public Private Partnerships AdaptDAN MErKLE Chairman & CEO of Lexipol LLC, Chairman of the Orange County Homeland Security Advisory Council

Communities in the United States have a long history of support and working partnerships between their citizens and local law enforcement agencies. We all remember the movie portrayals of the town “posse” mounting up with the local marshal to ride off and hunt down the bad guys who robbed the good citizens. Those portrayals, though somewhat romanticized, are reflective of the recognition that – at times – our local law enforcement needs additional resources.

The posse often transformed in more modern times to a sophisticated and well-equipped search and rescue unit. Circumstances emerge unpredictably where timely deployments of man power and equipment will make a substantial impact on the likelihood of success. Today, many law enforcement agencies utilize dedicated reserve units in aero operations, accessing volunteered equipment unattainable under normal funding constraints.

A low tech yet effective localized “suspicious activity reporting” (SAR) approach emerged in suburban areas known as “neighborhood watch.” This organized citizens to become engaged as the eyes and ears to help disrupt burglary activities. An unintended advantage discovered after interviews with child predators was that they tended to avoid these neighborhoods as well in their abduction targeting.

Today our country faces threats and disruptive activities that would have been hard to imagine 15 years ago.Al Qaeda as it existed 10 years ago is largely marginalized. That is good news. The federal agencies continue to focus on potentially large scale impact threats and have been very effective in their efforts. But the radicalized jihadist movement has continued to adapt to the pressures we exert. The adaptation includes localized recruitment through internet and small group gatherings throughout the country.

Drug cartels and cybercrime organizations now have presence in every state and are no longer limited to urban environments. The sheer volume of potential local activities prompted by international players needing attention is overwhelming to the Feds and therefore increasingly falls to local law enforcement. This need for an increased level of effort at the local level coincides with historic budget deficits in local government, compounding the challenges to effectiveness. But just as threats evolve, so do the solutions.

In Orange County, Sheriff Hutchins has led the formation of the Orange County Homeland Security Advisory Council (OCHSAC). This organization is inspired by the rich history of public/private partnerships of citizen involvement with local law enforcement while adapting to the unique challenges emerging in our communities. The group includes the Sheriff’s Department along with local police agencies and the private sector, including major corporations in the hospitality, transportation, utility, retail, and entertainment industries.

Leveraging the eyes and ears of the county effectively became a focus of our attention. At the same time, one of our members SORO Inc. had been assisting the US Department of Homeland Security to develop a digital message aggregation system – capable of dealing with large amounts of data. The system is intended to support the nationwide DHS promotion of “See something, Say something,” a nationwide SAR program deployed locally. The system allows capture of e-mail, text, twitter, video, geospatial, and most other digital formats for citizen reporting of suspicious activity.



The companion element to this collection system is a concept sorting, filtering and analysis system designed to process high volumes of information. Digitally finding the needle in the hay stack is the challenge. The two systems work in concert to guide effective use of constrained local law enforcement resources. Stay tuned for the public announcement of “See Something, Say Something” in Orange County.

This partnership focuses on how we as citizens, companies, local civic groups, and law enforcement can support each other in this evolving and complex world of risk. Our law enforcement agencies enforce the rules of society we adopt through law. Debate will become heated on defining the balance of increased expectations of transparency while maintaining privacy; the challenge of using technology tools to preempt catastrophic events while protecting individual freedoms. Our role is not only supporting law enforcement but facilitating the needed conversations in our communities about these issues.

Engaged community conversation will lead to broader consensus and comfort with the adaptations necessary to preserve our safety. We thank Sheriff Hutchins for her leadership and support for our work. We hope to share our lessons for success so that others may adapt as well.

For more information please visitDAN MErKLEChairman & CEO

LExIPOL, LLCPhone: 949.484.4444Fax: 949.484.4443www.lexipol.com



COMMuNITY-PuBLIC PrIvATE PArTNErSHIPS

Saddleback College Leading the Way to Provide Education andTransitional Services for our Military Veterans TErENCE NELSON

In the Fall of 2009, Saddleback College President Dr. Tod Burnett opened the doors to an innovative program that would become the region and the state’s model for Veterans services. His vision regarding supporting our nation’s returning warriors is now a reality. The goal of the Veterans Education and Transition Services (VETS) Program is to support veterans, active military and military families from application to graduation. Saddleback serves over 1,000 student veterans each semester. Our institution is unique in that we are the northern neighbor of Camp Pendleton Marine Base. We have a very high rate of Marine combat veterans on campus. Saddleback also understands the impact of the fact that young OIF/OEF veterans have a far higher rate of unemployment than our general population. As the VETS Program becomes better known throughout the community, the veteran population is increasing and the services that Saddleback offers are becoming more comprehensive and interactive.

With the leadership of Kolin Williams, Veterans Counselor, and Terence Nelson, Assistant Dean of Counseling and Special Programs as well as the VETS Program Director, the Saddleback VETS Program uses a variety of in-house services, local partnerships, and student mentors to provide students veteran with the educational and personal tools they need to be successful in and out of the classroom. With donations raised by the Saddleback College Foundation and Associated Student Government grants, the VETS Program provides all of these services at little cost to the college. This is an example of a successful student services program that the community truly owns yet the costs remain minimal.

One of the offerings that makes the Saddleback VETS Program unique is the way we utilize veterans in peer-to-peer support and mentorship. The best mentor to a new student is one who has gone through the same experiences who can share their tools for success. Mentors are available to all veterans students and disabled veterans are often paired. In addition to volunteering their time on a one-on-one basis, veteran students have also taken the initiative to form several groups, including Female Veterans Unity Group and support for Veterans Club.

With the guidance of these student veterans, the faculty, staff, and administrators offer several services: counseling (academic, personal, and career); VETS Academy, a learning community for new student veterans with math, English, and introduction to college courses; and disabled veterans counseling. With The Program also works closely with college’s Veterans Affairs Office, with staff member Don Lindboe and Director Carol Hilton at the helm, to assist veterans and eligible dependents with the filing of required documents for educational benefits. This office provides veterans with easy access to information about the very complex GI Bill. Within the past couple years, the office has seen a doubling of student veterans seeking VA educational benefits. The staff of seven, comprised of almost all veterans, may reach 500 certified students per semester by the end of the spring term. Their diligence and attention to detail ensures timely receipt of the much needed benefits.

The VETS Program is able to sponsor several events throughout the year, which aid the students in their transition, academic success, and ultimately transfer and/or employment. The VETS Program recognizes that it cannot meet all the needs of the growing student veteran population alone nor is it a goal to duplicate the exceptional existing services that exist in the community, so it has forged partnerships with several local groups that can provide specialized services at low or no cost. The South OC Vet Center offers counseling therapy, which is vital in dealing with the transition from combat to the classroom and with mental health issues, including combat stress, post traumatic stress disorder and depression. An AMVETS (American Veterans) Service Officer Program provides disability claim advising and VA assistance along with the Laguna Hills VA Health Clinic. American Legion members volunteer in our VETS Center and assist veterans about their rights and available benefits. Though we have a robust Career Center on campus, the needs of our students can also be met in the community.



The Program also works with an Employment Development Department (EDD) veterans representative and the CalVet Job Corps to place students in part-time jobs and develop soft skills for future employment while attending school and to help them start their career following graduation. These partnerships make it possible for veterans to access everything they need to be successful.

While there are dozens of success stories, the impact that the VETS Program and the Saddleback community makes on these students is evident in one student who graduated in May 2011. Alex Lopez is a veteran, a Saddleback alumnus, and current UC Berkeley student. Alex credits the faculty and staff at Saddleback for helping him get into UC Berkeley. He graduated with an Associate of Arts degree in psychology and a 3.74 GPA, but it wasn’t always easy for the Navy veteran, who overcame substance abuse and a post traumatic stress disorder resulting from his time in the military. For him, the support and services offered by the college’s VETS Program was immeasurable in helping him transition from military to civilian life. Alex, a former student employee of VETS is just one example of continued service positively impacting one’s academic life. Currently the five student veterans working part time in the VETS Program helping other veterans navigate the road home hold over a 3.5 GPA.

Alex told us, “In my opinion, Saddleback College has a wealth of support to ensure all students have the tools they need to succeed and graduate. The support Saddleback offers to the student veterans is unmatched by any other community college.”

Alex received four scholarships Alex at Saddleback’s annual scholarship ceremony that will help him pay for his tuition at Berkeley, where he is majoring in development studies, which focuses on the social, political, economical, and environmental conditions of Third World economies. Alex returned the favor by establishing a new Saddleback scholarship for student veterans entitled the “Robert Sickles Scholarship,” named after a young veteran who was lost.

Alex is what Saddleback College and our VETS Program is all about. These students have served our country and now it is time we do our duty by providing them with all the available tools to reach success in civilian life.

For more information If you are interested in supporting the VETS Program in any way please contact us at (949)[email protected] most pressing need for our student Veterans is internships, career mentorship, and employment.



WASHINGTON rEPOrT

Investing in the Future….THE HONOrABLE ADAM B. SCHIFF

As the nation continues to struggle with a sluggish economy, we must make every effort to speed-up our recov-ery. For over a century, America has been the beneficiary of a global “brain drain” in which many of the best and brightest came to America to study and start their businesses. Now, we are at risk of losing this needed talent as foreign students graduate from U.S. universities with advanced degrees and are denied the opportunity to remain in the country. The loss of this America-educated talent only contributes to our economic problems, and we should do all we can to retain those who hold highly coveted STEM (Science, Technology, Engineering and Mathematics) degrees and want to stay in the U.S., start a new business, and hire U.S. workers. Thomas Friedman put it best when he wrote, “Good-paying jobs don’t come from bailouts. They come from start-ups. And where do start-ups come from?...They come from recruiting talented immigrants.”

Research by the Kauffman Foundation found that approximately 60,000 foreign students graduate each year from a U.S. university with a STEM degree. At the California Institute of Technology, foreign students make up nearly 40% of the graduate student body. Every year, many of these graduates from our nation’s top universities have no other option but to return to their country of origin at the expiration of their student visas. Unfortunately due to the lack of U.S. immigration options, these tremendously talented individuals are forced to take their ideas and build on them in foreign countries -- boosting those economies instead of our own -- and creating competition for American companies.

My legislation, the INVEST Act (H.R. 3692), would make it easier for foreign students who have graduated from U.S. universities with STEM degrees to stay in the country, start their own businesses and create American jobs. Permanent residency will be made available to immigrant entrepreneurs who are in the process of completing, or have recently completed a graduate STEM degree from an accredited university in the U.S. To qualify, the immi-grant entrepreneur must start a new business relevant to the area of study, create 2 new jobs or invest $200,000 after 2 years, and create five jobs or invest $500,000 in the business within five years. The INVEST Act will allow highly skilled entrepreneurs the opportunity to build the next great company and to do it in America. Our universities are educating the next generation of Steve Jobs – we want to make sure they build the next Apple in the United States and not overseas.

I invite you to subscribe to the Washington Update, my email newsletter which contains information on local events, my work in Washington, and even lets you weigh in on important issues through online polls. Visit me online at http://schiff.house.gov to subscribe. You can also follow me on Facebook, http://www.facebook.com/CongressmanSchiff, and Twitter, http://twitter.com/repadamschiff.

For more information

Click here to subscribe to Congressman Schiff’s Washington Update E-newsletter

More updates from Congressman Schiff:

WAShIngTon, DC oFFICE2411 Rayburn house office BuildingWashington D.C. 20515Phone: (202) 225-4176Facsimile: (202) 225-5828

PASADEnA oFFICE87 n. Raymond Ave. #800Pasadena, California 91103Phone: (626) 304-2727Facsimile: (626) 304-0572

http://schiff.congressnewsletter.net/mail/util.cfm?mailaction=profile

http://www.facebook.com/CongressmanSchiff

http://twitter.com/#!/repadamschiff

http://www.youtube.com/user/AdamSchiff



WASHINGTON rEPOrT

Song of the ShopkeeperTHE HONOrABLE JOHN CAMPBELL

Sitting outside with my wife on a recent trip to California, I quietly watched several shopkeepers sweeping the sidewalk in front of their stores. As I looked on, I began to think that shopkeepers have been doing this for centuries, if not millenni-ums. A few weeks later, back on the East Coast, I noticed another shopkeeper carefully rearranging a display in the window. It struck me that those acts represented pride in their work and their place of work. No work rules made them do it. It has always been thus.

When President Obama talks about the economy and jobs, he invariably mentions teachers and firefighters. Fine. Teaching and firefighting are noble professions. But I can’t help but think that he does so because teachers and firefighters almost always are employees of some government entity and almost always are compelled by law to join a union as a condition of having the job. They pay forced union dues, some of which will be sent without their consent to the campaign coffers of politicians they do not support. It seems the president favors those who work for the government or are in a union or, preferably, both.

Well, Mr. President, most Americans do not work for the government, nor are they members of a union. They are salesmen, clerks, mechanics and, yes, shopkeepers. Their contribution to society is no more or less than that of people in those other professions.

But no one ever talks about the guy on the corner selling yogurt or the independent bookstore run by the woman who is still making a go of it in spite of Kindles and such. Shopkeepers have a heck of a job. They take a lot of risks: signing a lease on the bet that they can sell enough stuff to pay the rent. Choosing what they think you will buy for more money than they paid for it. Figuring out how to spend limited advertising dollars and how to track whether the ads actually bring people to the store. Investing money they saved for years to buy the inventory. Selling at a loss things that didn’t sell the way they thought they might. And, of course, they have to hire employees and do all the paperwork the government requires for taxes and workers’ compensation insurance and God knows what else. They often work six or seven days a week because their shops usually are open all those days. They create a pension by saving enough of what they make. They buy their own health insurance.

Nothing guarantees their jobs except their own personal effort and industry. They still have a boss: It’s the customer who can put them out of business in a moment.

When others in my current profession talk about their defense of those powerful interests that represent professions, I think that’s fine for them. But for me, the unsung shopkeeper represents those Americans who take risks, work hard, take care of themselves and maybe someone else, too, and want the opportunity to succeed. They are small-business people. It is they who make the economy run. I hold them up with the greatest of respect. It is they who are ever in my thoughts as I make decisions in Washington. It is that entrepreneur for whom I fight the daily fight against socialism, blind ideology and those who would steal their independence and freedom.

So I sing the song of the shopkeepers. Their job is not a new one. It is as old as civilization. They are our neighbors, friends and family members. They don’t make noise. They make growth. They are part of the fabric of society. And their toil is every bit as honorable in God’s eyes as anyone else’s.

Next time you walk past a clean sidewalk in front of a store, remember that it didn’t get that way by itself. Behind those windows, someone is putting his all into what is not only his livelihood but a critical part of our economy and our way of life. May we give such shopkeepers shelves full of opportunity in the years ahead.

For More Information Contact: CHrISTOPHEr J. BOGNANNO Communications Director Legislative Assistant- Office of John Campbell

www.campbell.house.govwww.greeneyeshadeblog.com

Click Here to subscribe toCongressman Campbell’s Laptop Report

http://www.facebook.com/JohnCampbell

http://www.youtube.com/repjohncampbellca48

http://repjohncampbell.amplify.com/

http://campbell.house.gov/index.php?option=com_content&view=article&id=2342&Itemid



TECHNOLINK Mission

A coalition of Aerospace, Academic, Defense, Energy, Life Sciences, Innovation, Public Safety, International and Policy Leaders cooperating together to bridge the public and private sectors to develop a virtual high technology corridor in Southern California.

The mission of the TECHNOLINK Association is to serve as a trade association and resource center for emerging and start-up companies, enhancing the development of innovation with both public and private partnerships from the collective universities and institutions in Southern California. It aims to link the business community with the collective technological resources of organizations and institutions such as the California Institute of Technology, Jet Propulsion Laboratory, the University of California, Los Angeles, University of California, Irvine, California State University, Long Beach and Saddleback College.

Throughout the years the Technolink Association has proudly created “linkages” for many start - up companies to enhance economic development throughout southern California. The TECHNOLINK Association was created to support a plurality of high technology clusters and to serve as a resource base for the start-up companies conceived from the universities and research institutions in Southern California. A high tech coalition, the TECHNOLINK Association is a premier example of the positive aspects of government and industry partnerships.

TECHNOLINK Association Principal Supporters

The Boeing CompanyCAISOConnolly Bove Lodge & Hutz LLPJet Propulsion LaboratoryThe O’Neill CompanyForte DesignsSouthern California Gas Company(SOCALGAS®)San Diego Gas & Electric® (SDG&E®)

Enzymes are nature’s catalysts. Nearly everything that happens in every living thing is due to the action of an enzyme. Enzymes help you digest food, produce vital nutrients, move muscles, and fight infections. Catalysis by an enzyme is called biocatalysis. Historically biocatalysis has been used for thousands of years to produce vinegar from alcohol and to brew beer (quite likely the oldest example of biocatalysis, with historical records dating back 6000 years!) More recently, enzymes have found applications in products used by people on a daily basis. Improving the cleaning power of laundry detergents (“protein gets out protein”), preventing staling of bread, and enabling diagnostic testing of blood in laboratories are just a few examples. Long-time TechnoLink member Dr. David Rozzell has had a long involvement with biocatalysis. As founder of Pasadena-based enzyme company BioCatalytics, Inc., Dr. Rozzell spent most of his working life thinking about how to create and use enzymes more effectively in a variety of applications. BioCatalytics brought to market new enzymes that changed the way chemistry was carried out. Some of the products commercialized by BioCatalytics include new enzymes for manufacture of purer and safer chemical products, detection of small amounts of toxins in the environment or in biological samples, and production of new pharmaceuticals. BioCatalytics was acquired by Redwood City, CA-based Codexis in 2007. Now Dr. Rozzell has decided to start two new ventures.The first is a consulting business called Sustainable Chemistry Solutions. Launched in February 2011, Sustainable Chemistry Solutions was created to help companies develop better ways to ways to produce products more sustainably. Predictably, Dr. Rozzell believes an important part of sustainable production involves the use of biocatalysis—enzyme catalysts—to replace metals and toxic chemicals previously employed as industrial catalysts. Why use biocatalysis?

To Learn abouT MeMbershipConTaCT –

Ssusan Forte O’NeillTechnolink Association

[email protected]

Design by Mari + Ko Creative Photo Credits: Wikimedia Commons

Documents

Truth… Myths… Rhetoric… Hyperbole… Facts… · My economic baseline for 2012 for the global economy—is more bearish than the consensus and envisages: U.S. growth of 1.4%