[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] STATE OF THE NATION'S ENERGY INFRASTRUCTURE ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON ENERGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION __________ FEBRUARY 27, 2018 __________ Serial No. 115-102 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 30-215 WASHINGTON : 2019 ----------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, Jr., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DeGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY McMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. McKINLEY, West Virginia JERRY McNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJAN, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, SUSAN W. BROOKS, Indiana Massachusetts MARKWAYNE MULLIN, Oklahoma TONY CARDENAS, California RICHARD HUDSON, North Carolina RAUL RUIZ, California CHRIS COLLINS, New York SCOTT H. PETERS, California KEVIN CRAMER, North Dakota DEBBIE DINGELL, Michigan TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ``BUDDY'' CARTER, Georgia JEFF DUNCAN, South Carolina Subcommittee on Energy FRED UPTON, Michigan Chairman PETE OLSON, Texas BOBBY L. RUSH, Illinois Vice Chairman Ranking Member JOE BARTON, Texas JERRY McNERNEY, California JOHN SHIMKUS, Illinois SCOTT H. PETERS, California ROBERT E. LATTA, Ohio GENE GREEN, Texas GREGG HARPER, Mississippi MICHAEL F. DOYLE, Pennsylvania DAVID B. McKINLEY, West Virginia KATHY CASTOR, Florida ADAM KINZINGER, Illinois JOHN P. SARBANES, Maryland H. MORGAN GRIFFITH, Virginia PETER WELCH, Vermont BILL JOHNSON, Ohio PAUL TONKO, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, MARKWAYNE MULLIN, Oklahoma Massachusetts RICHARD HUDSON, North Carolina G.K. BUTTERFIELD, North Carolina KEVIN CRAMER, North Dakota FRANK PALLONE, Jr., New Jersey (ex TIM WALBERG, Michigan officio) JEFF DUNCAN, South Carolina GREG WALDEN, Oregon (ex officio) C O N T E N T S ---------- Page Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement.................................... 1 Prepared statement........................................... 3 Hon. Bobby L. Rush, a Representative in Congress from the State of Illinois, opening statement................................. 4 Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement...................................... 5 Prepared statement........................................... 7 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement......................... 7 Witnesses Gary McCarthy, Mayor, City of Schenectady........................ 10 Prepared statement........................................... 12 John Devine, Senior Vice President, HDR, Inc..................... 16 Prepared statement........................................... 18 Answers to submitted questions............................... 146 Brian Slocum, Vice President, Operations, ITC Holdings Corporation.................................................... 33 Prepared statement........................................... 35 Answers to submitted questions............................... 150 Jim Ross, Director, International Brotherhood of Electrical Workers Construction and Maintenance Department................ 43 Prepared statement........................................... 46 Answers to submitted questions \1\........................... 156 Jennifer Chen, Attorney, Sustainable FERC Project Climate & Clean Energy, Natural Resources Defense Council...................... 49 Prepared statement........................................... 51 Answers to submitted questions............................... 158 Brenda Hellyer, Chancellor, San Jacinto College.................. 62 Prepared statement........................................... 64 Answers to submitted questions............................... 168 Submitted Material Statement of the Utilities Technology Council, submitted by Mr. Harper......................................................... 115 Statement of the American Public Gas Association, submitted by Mr. Harper..................................................... 118 Article entitled, ``Debunking the False Claims of Environmental Review Opponents,'' the Center for American Progress, May 3, 2017, submitted by Mr. Rush.................................... 120 Article entitled, ``Trump's Infrastructure Scam Will Gut Environmental Protections To Benefit Corporate Polluters,'' the Center for American Progress, January 28, 2018, submitted by Mr. Rush....................................................... 131 Statement of BlueGreen Alliance, submitted by Mr. Rush........... 134 Article entitled, ``Congress should support an infrastructure plan that builds infrastructure--not guts health & environmental protections,'' Earthjustice, February 27, 2018, submitted by Mr. Rush.......................................... 139 Article entitled, ``Trump's Infrastructure Plan Puts Burden on State and Private Money,'' Earthjustice, February 12, 2018, submitted by Mr. Rush.......................................... 142 ---------- \1\ The committee did not receive a response to Mr. Ross's submitted questions for the record by the time of printing. STATE OF THE NATION'S ENERGY INFRASTRUCTURE ---------- TUESDAY, FEBRUARY 27, 2018 House of Representatives, Subcommittee on Energy, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 10:00 a.m., in room 2322 Rayburn House Office Building, Hon. Fred Upton (chairman of the subcommittee) presiding. Members present: Representatives Upton, Olson, Barton, Shimkus, Latta, Harper, McKinley, Kinzinger, Griffith, Johnson, Bucshon, Flores, Mullin, Hudson, Walberg, Duncan, Walden (ex officio), Rush, McNerney, Peters, Green, Castor, Sarbanes, Tonko, Loebsack, Schrader, Kennedy, and Pallone (ex officio). Staff present: Mike Bloomquist, Staff Director; Daniel Butler, Staff Assistant; Kelly Collins, Legislative Clerk, Energy/Environment; Jordan Davis, Director of Policy and External Affairs; Wyatt Ellertson, Professional Staff, Energy/ Environment; Margaret Tucker Fogarty, Staff Assistant; Adam Fromm, Director of Outreach and Coalitions; Jordan Haverly, Policy Coordinator, Environment; Ben Lieberman, Senior Counsel, Energy; Milly Lothian, Press Assistant & Digital Coordinator; Mary Martin, Chief Counsel, Energy/Environment; Brandon Mooney, Deputy Chief Counsel, Energy; Mark Ratner, Policy Coordinator; Annelise Rickert, Counsel, Energy; Dan Schneider, Press Secretary; Austin Stonebreaker, Press Assistant; Madeline Vey, Policy Coordinator, DCCP; Hamlin Wade, Special Advisor, External Affairs; Priscilla Barbour, Minority Energy Fellow; Evan Gilbert, Minority Press Assistant; Tiffany Guarascio, Minority Deputy Staff Director and Chief Health Advisor; Caitlin Haberman, Minority Professional Staff Member; Rick Kessler, Minority Senior Advisor and Staff Director, Energy and Environment; John Marshall, Minority Policy Coordinator; Alexander Ratner, Minority Policy Analyst; and Andrew Souvall, Minority Director of Communications, Outreach and Member Services. OPENING STATEMENT OF HON. FRED UPTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Upton. Today's hearing, the ``State of the Nation's Energy Infrastructure'' will provide members with the opportunity to explore the challenges and the opportunities related to the maintenance, modernization, and development of energy infrastructure. Two weeks ago, the White House unveiled its framework for rebuilding infrastructure across the country. Citing the need to maintain our country's global competitiveness and improve our citizens' quality of life, the President's plan seeks to stimulate at least $1.5 trillion in new investment over the next decade. And while the President's plan touches all sectors, from roads and bridges to airports and hospitals and dams, this hearing will focus on the state of the Nation's energy infrastructure and how we can make meaningful improvements. Joining us today is a panel of witnesses who can speak to the needs and challenges of a changing energy landscape. Since the start of the 115th Congress, this committee has held dozens of hearings related to infrastructure and the House has already passed legislation on interstate pipeline siting, hydropower licensing, and the development of cross-border energy infrastructure. That being said, this committee's infrastructure efforts are ongoing as there is no question that more needs to get done and more projects need to get built, for to deliver our nation's abundant energy resources to consumers in a reliable, efficient, and cost-effective manner, new electric transmission lines and natural gas pipelines have got to be constructed. And as we have heard during our series of Powering America hearings, the Nation's electrical grid faces enormous challenges as needed infrastructure is not getting built fast enough in some areas of the country. Additionally, we have got to face the fact that much of our existing infrastructure is in fact aging. The average age of a coal-fired power plant in the U.S. is 40 years old and the country's fleet of nuclear reactors isn't much younger. Many of these power plants are now facing retirement due to their inability to compete economically in a market-based environment. Notably, the Oyster Creek Nuclear Station in New Jersey, which is the oldest reactor in the country, recently announced that it will retire later this year after nearly 50 years of service. So we can't afford to have the energy infrastructure that does not meet America's needs or reflect the evolution of our energy markets. Instead, we have got to modernize our outdated system by encouraging innovative developments and state-of-the- art technology such as battery storage and advanced transmission devices. I should recognize that much is already being done on this front with private capital largely funding these improvements. In fact, electric utilities and independent transmission developers spent an estimated $23 billion in 2017 on new transmission infrastructure alone; while the natural gas utilities invested a record $25 billion last year across its industry. Though these private sector investments are critical in a highly capital-intensive industry, we should be mindful that none of it will get built if we don't have a trained workforce that is capable of innovating, designing, and constructing this new infrastructure. Not only do we need skilled linesmen and women and pipefitters but we also need the engineers to power systems in nuclear technologies in many other trades. The challenge associated with developing a skilled workforce may be greater than the challenge of siting and constructing infrastructure projects. So that's an important part of this conversation. I am glad we have some of the folks who can speak to us on that issue, and with that, I want to welcome our panel for sure and yield the balance of my time to Mr. Olson. [The prepared statement of Mr. Upton follows:] Prepared statement of Hon. Fred Upton Today's hearing, the ``State of the Nation's Energy Infrastructure'' will provide members with the opportunity to explore the challenges and opportunities related to the maintenance, modernization, and development of energy infrastructure. Two weeks ago, the White House unveiled its framework for rebuilding infrastructure in America. Citing the need to maintain our country's global competitiveness and improve our citizens' quality of life, the President's plan seeks to stimulate at least $1.5 trillion in new investment over the next 10 years. While the President's plan touches all sectors, from roads and bridges to airports and hospitals, this hearing will focus on the state of the Nation's energy infrastructure and how we can make meaningful improvements. Joining us today is a panel of witnesses who can speak to the needs and challenges of a changing energy landscape. Since the start of the 115th Congress, this committee has held dozens of hearings relating to infrastructure, and the House has already passed legislation on interstate pipeline siting, hydropower licensing, and the development of cross- border energy infrastructure. That being said, this committee's infrastructure efforts are ongoing as there is no question that more needs to get done and more projects need to be built. If we are to deliver our nation's abundant energy resources to consumers in a reliable, efficient, and cost-effective manner, new electric transmission lines and natural gas pipelines must be constructed. As we've heard during our series of Powering America hearings, the Nation's electrical grid faces enormous challenges as needed infrastructure is not getting built fast enough in some areas. Additionally, we must face the fact that much of our existing infrastructure is aging--the average age of a coal-fired power plant in the U.S. is 40 years old and the country's fleet of nuclear reactors isn't much younger. Many of these power plants are now facing retirement due to their inability to compete economically in a market-based environment. Notably, the uclear station in New Jersey, which is the oldest reactor in the country, recently announced that it will retire later this year after nearly 50 years of service. We cannot afford to have energy infrastructure that does not meet America's needs or reflect the evolution of our energy markets. Instead, we must modernize outdated systems by encouraging innovative developments in state-of-the-art technologies such as battery storage and advanced transmission devices. I should recognize that much is already being done on this front with private capital largely funding these improvements. In fact, electric utilities and independent transmission developers spent an estimated $23 billion in 2017 on new transmission infrastructure alone; while the natural gas utilities invested a record $25 billion last year across its industry. While these private-sector investments are critical in a highly capital-intensive industry, we should be mindful that none of it will get built if we don't have a trained workforce that is capable of innovating, designing, and constructing this new infrastructure. Not only do we need skilled linemen and pipefitters, but we also need engineers in power systems and nuclear technologies, and in many other trades. The challenge associated with developing a skilled workforce may be greater than the challenge of siting and constructing infrastructure projects. This is an important point in this conversation, so I'm glad that we have some folks with us who can speak to this issue. With that, I'd like to thank this entire panel of distinguished witnesses for appearing today and I look forward to your testimony. Mr. Olson. I thank the chair, and welcome to our six witnesses. Having a Texan on the panel gives me a chance to do what Texans love to do and that's to brag about my home state. The greater Houston region has some of the best technical colleges in the country and Texas-22, who I worked for, has the best of the best. Schools like Houston Community College, Texas State Technical College, Alvin Community College, Wharton County Junior College, who actually built a new campus in Matagorda County to meet the needs of retiring workers at the South Texas Power Plant. But the top gun at home is San Jacinto College and that's because of their chancellor, Brenda Hellyer. We are honored to have you here, Chancellor Hellyer. When America's largest petrochemical complex has a need, they turn to Dr. Hellyer and San Jac. One example is their new maritime technological training center. It simulates all 51 miles of the Port of Houston Ship Channel and it's so real. I was down there a year ago right by the Harbor Bridge. It snowed heavy snow--blizzard. The waves started rocking my little tugboat. I got seasick in a simulator. It's real, and that's San Jacinto Junior--San Jacinto College. Welcome, Dr. Hellyer. Glad to have you. I yield back. Mr. Upton. Gentleman's time has expired. The chair recognizes the ranking member of the subcommittee, the gentleman from Illinois, Mr. Rush. OPENING STATEMENT OF HON. BOBBY L. RUSH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS Mr. Rush. Mr. Chairman, I am at a loss for words on that. But I want to thank you, Mr. Chairman, for holding this important hearing today on the energy infrastructure. As you know, investing in the Nation's aging infrastructure is a top priority for members on both sides of the aisle and it is my hope that we can address this issue in a bipartisan manner. Unfortunately, Mr. Chairman, the proposal put forth by the Trump administration leaves a lot to be desired and, frankly, is a poor starting point, from my perspective. The President's infrastructure plan fails to provide adequate Federal investment in the Nation's antiquated energy infrastructure. But, rather, it attempts to short circuit environmental regulations and it places the vast majority of the funding burden on cash-strapped states and local municipalities. In fact, under the administration's proposal, states will be prohibited from receiving more than 10 percent of the total grant fund and 80 percent of new investment must come from non- federal sources. Mr. Chairman, this proposal resembles less of a national infrastructure plan and instead will simply pick winners and losers where only a limited number of states, localities, and affluent communities will actually benefit from the president's plan. Instead, Mr. Chairman, I want to urge this subcommittee to look at a more serious alternative outlined in H.R. 2479, the Leading Infrastructure for Tomorrow's America, or LIFT America, Act introduced by Ranking Member Pallone, myself, and the rest of the minority members of the Energy and Commerce Committee back in May 2017. This bill offers thoughtful recommendations that will surely benefit all Americans including providing provisions that would invest in cleaner water infrastructure, clean energy infrastructure, more resilient broadband, brownfields redevelopment and, last but not least, health care infrastructure. Additionally, Mr. Chairman, I have also sponsored a bill that would strengthen the Nation's workforce by investing in initiatives to train minority women and unemployed coal workers to compete for good-paying energy and manufacturing jobs and careers. Mr. Chairman, it is not enough to simply curtail an environmental protection and pass the funding for immersion onto the same. I look forward to hearing from our esteemed witnesses and I look forward to working with the majority. Mr. Chairman, with that, I yield my time to my good friend, also from the great State of Texas, Mr. Green. Mr. Green. Mr. Chairman, members, I thank you Ranking Member for yielding to me today. First of all, I want to say that this is the first committee hearing we have had that Pete Olson hasn't talked about the Astros. So Pete, I want to tell you how proud we are on this side about the Castros. Mr. Olson. It's coming. It's coming. Mr. Green. But, more importantly, I want to welcome our panel and particularly our chancellor from San Jac North. I've worked for many years with San Jacinto College in training. In East Harris County, we could have every union electrician in the country come to Houston and we'd still need more electricians because the expansion of our industries in East Harris County because of the Eagle Ford and now with Permian Basin. So we have refineries, chemical plants, and things like that. But I am a native Houstonian and you all have heard a lot of times I've never not lived on a pipeline easement in Houston, Texas. No matter where I've lived, I have a pipeline easement there and I get all these nice letters during the year making sure I know what happens if there is an accident. But our infrastructure is so important. It's not just highways and rails and airports but it's also pipelines, and because of the success we are having in some of the states, I think we need to have that infrastructure on energy pipelines, too. And with that, I'll thank my colleague. I know I've used up the time he yielded to me. Thank you. Mr. Upton. Gentleman's time has expired. The chair will recognize the chairman of the full committee, the gentleman from the good state of Oregon, Mr. Walden. OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON Mr. Walden. I thank the gentleman, and we are having a lot of talk about aging infrastructure and I don't think that's fair to Adam Kinzinger just because it's his 40th birthday today, speaking of aging infrastructure. [Laughter.] Happy birthday. Today's hearing explores the state of the nation's energy infrastructure. It's another important step in our commitment to putting the needs of consumers first. Energy, truly the driving force in our economy and our country, and our hearing today is focused on ways to expand and improve and modernize our infrastructure so we can deliver energy to consumers more safely, reliably, and cost-effectively. So this morning we have an excellent panel of witnesses who are going to share with us some challenges and opportunities that the country faces and you all face to modernize our infrastructure in the energy realm. We will gather your perspectives and we will learn more about what we need to do in public policy. Just for the record, our committee has been very active in this area. A lot of work has gone into our legislative initiatives on the nation's infrastructure. We know there is a lot more that needs to be done. This hearing marks our forty-seventh hearing on infrastructure just in this session of Congress alone. We have 24 energy bills and environmental bills that have passed the House already and have gone over to the Senate. They address pipeline infrastructure, hydropower relicensing, brownfields, air quality standards, energy efficiency, drinking water improvement, and nuclear waste storage. All this work is incredibly important for my district. These bills will have a direct positive impact for our local economies and our communities both in Oregon and across the country, and now we look forward to continuing our work with the United States Senate and the White House to get these measures signed into law. I applaud President Trump for not only recognizing the need to improve all facets of our nation's infrastructure but also for demonstrating the leadership needed to push forward this major initiative for our country. While there are many difficult details to work out, I believe there is support for a broad infrastructure bill. Just the other week I participated in a bipartisan, bicameral infrastructure meeting hosted by the President at the White House where we talked about our shared priorities for rebuilding our nation's infrastructure from roads and bridges to pipelines and for broadband in our un-served and underserved areas of the country. While much of the conversation around infrastructure has focused on ways to increase federal spending, we should be mindful that most of the nation's energy infrastructure is privately owned and operated. We all know that financing is a crucial aspect of any infrastructure plan so we are thinking outside the box to see where we can make the most progress with the limited federal money that is available. We are focused on fixing the regulatory environment, encouraging public-private partnerships, and strengthening our workforce. Our nation's energy infrastructure--the traditional base load power plants, windmills, solar panels, hydroelectric dams, pipelines, power lines, fossil fuel production facilities, and import-export terminals, they make up the real backbone of America's economy. With innovation and technological advancements driving change at a rapid pace it's our responsibility as members of this committee to understand the challenges and the opportunities associated with keeping these energy systems operating safely and reliably. So we have got a lot of work to do but we are moving in the right direction, and with that, I want to thank our witnesses for appearing before us today. I look forward to your testimony and the work going forward in this matter under Chairman Upton's leadership. So with that, Mr. Chairman, unless anyone else wants the remainder of my time, I'd be happy to yield back and hear from our witnesses. [The prepared statement of Mr. Walden follows:] Prepared statement of Hon. Greg Walden Today's hearing exploring the ``State of the Nation's Energy Infrastructure'' is another important step in our commitment to put the needs of consumers first. Energy is truly the driving force powering our economy. Our hearing today is focused on ways to expand, improve, and modernize our infrastructure, so that we can deliver energy to consumers more safely, reliably, and cost-effectively. This morning, we have an excellent panel of witnesses who will testify on the challenges and opportunities to modernizing our nation's energy infrastructure. We'll gather perspectives from the people on the front lines--those who train our workers and design, build, and operate our energy infrastructure. My hope is that their stories can help us identify policy gaps and propose solutions to attract investments to update and build new energy infrastructure. This committee has been hard at work on ways to modernize our nation's infrastructure, but there's more work to be done. This hearing marks our forty-seventh hearing on infrastructure this Congress alone. Twenty-four energy and environment bills have passed the House already, addressing pipeline infrastructure, hydropower licensing, Brownfields, air quality standards, energy efficiency, drinking water, and nuclear waste storage. All of this work is incredibly important for my district in Oregon. These bills will have a direct, positive impact for local economies and communities in my state and across the country. Now that these bills are with the Senate, we're working with our colleagues and the administration to get them moving and signed into law. I applaud President Trump for not only recognizing the need to improve all facets of our nation's infrastructure, but for also demonstrating the leadership needed to push forward this major initiative. While there are many difficult details to work out, I believe there is support for a broad infrastructure bill. Just the other week, I participated in a bipartisan, bicameral infrastructure meeting hosted by President Trump at the White House to discuss our shared priorities for rebuilding our nation's infrastructure. While much of the conversation around infrastructure has focused on ways to increase federal spending, we should be mindful that most of the nation's energy infrastructure is privately owned and operated. We all know that financing is a crucial aspect of any infrastructure plan, so we're thinking outside the box to see where we can make the most progress with limited federal funds. We're focused on fixing the regulatory environment, encouraging public-private partnerships, and strengthening our workforce. Our nation's energy infrastructure--the traditional baseload power plants, windmills, solar panels, hydroelectric dams, pipelines, power lines, fossil fuel production facilities, and import/export terminals--make up the backbone of our economy. With innovation and technological advancements driving change at a rapid pace, it's our responsibility as members of this committee to understand the challenges and opportunities associated with keeping these energy systems operating safely and efficiently. We've got a lot of work to do, but we're moving in the right direction. With that, I want to thank the witnesses for appearing before us today and I look forward to their testimony. Mr. Upton. Gentleman yields back. The chair recognizes the ranking member of the full committee, the gentleman from New Jersey, Mr. Pallone, for an opening statement. OPENING STATEMENT OF HON. FRANK PALLONE, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Pallone. Thank you, Chairman Upton. Revitalizing and modernizing our nation's crumbling infrastructure should be an area where Democrats and Republicans can find common ground. Unfortunately, the plan President Trump unveiled 2 weeks ago barely mentions energy and, as a whole, represents another cynical bait and switch. After promising for more than a year to invest over a trillion dollars in America's infrastructure, the President's plan does not offer any new funding for infrastructure. This anemic proposal calls for $250 billion in federal spending but even that is offset by $200 billion in cuts to vital existing programs. Worse yet, the 80 percent match requirement will do little to help towns, cities, and counties all across this country that simply cannot afford this kind of spending. In fact, the Wharton School at the University of Pennsylvania where President Trump attended college provides a withering criticism of his so-called infrastructure plan, stating that it really won't leverage funds and that ``There will be little to no impact on the economy.'' To call the Trump plan worthless isn't partisan. It's the reality. In stark contrast, Democrats actually have a real plan, a better deal for investing and rebuilding America. This plan includes important parts of the committee Democrats' bill, the LIFT America Act. This legislation would create jobs and boost the economy by putting real money towards infrastructure like replacing drinking water pipes, cleaning up brown field sites, supporting energy efficiency and clean energy, extending broadband service and revitalizing our hospitals and health care infrastructure. Democrats are committed to delivering a better deal for Americans, providing cheap clean energy for consumers and modernizing our aging energy infrastructure so that it's secure, efficient, and resilient. We will make key investments that will transport our energy infrastructure into the 21st century energy economy while creating jobs of the future that lessen our carbon footprint. We do this by expanding renewable energy and by investing in energy efficiency programs that will lower Americans' monthly bills and these programs are good for the environment and good for consumers. The Democrats' LIFT America Act is a bold proposal that will revitalize our infrastructure, grow our economy, and create new jobs, and to ensure good family-sustaining wages for workers we are committed to maintaining Davis-Bacon community- based wage standards and other worker protections. We will invest in workers through robust training, provide job opportunities for veterans, and level the playing field for small businesses including women and minority-owned businesses. And what we won't do is buy into the false choice between a strong economy and a healthy environment. President and Republicans keep pushing this outdated false narrative, but the reality is that a clean and safe environment supports a strong economy. Environmental safeguards are not the obstacle to infrastructure improvements. The real obstacle is the lack of funds. President Trump spared no expense and required no offsets for tax breaks to fuel profits on Wall Street, but when it comes to helping Main Street all he's offering is Monopoly money. And we can and must do better. I hope my colleagues on the other side of the aisle agree and will work with us to invest in America and truly make our infrastructure great again. And I yield the balance of my time to the gentleman from New York, Mr. Tonko. Mr. Tonko. And I thank the ranking member of the standing committee for yielding. It's my pleasure to thank Chair Upton and Ranker Rush for hosting this hearing, which is going to enable us to better understand the full range of possibilities of energy infrastructure that should be considered. So I welcome the panel here this morning and in particular want to offer my welcome to one of the mayors of the communities that I represent in the 20th Congressional District of New York, the Honorable Gary McCarthy, mayor of the great city of Schenectady, New York, in the 20th District. And I thank the mayor for being here. He's a great friend, a super colleague, and a very thoughtful leader, a progressive leader, and one who has brought great vision to leading the city of Schenectady, which is dubbed the electric city, as it opened its gates to Thomas Alva Edison at one time, and we have great heritage as it relates to energy development. But I want to bring attention to the city of Schenectady's report under the tutelage of Mayor McCarthy, the 2017 Smart City Report, which is just filled with all sorts of wonderful ideas and has enabled Gary McCarthy to be a national leader in Smart City demonstration projects. I encourage members to check out this report. It offers many opportunities that, when proven, could be replicable around the country and will hold a number of type of projects that are possible to improve energy efficiency, public safety, and internet access. It's a tremendous report. I thank the mayor for his leadership and I thank him for being here with the rest of the panel here this morning. So thank you, Mayor McCarthy, and welcome. Mr. Upton. Well, we are grateful for all the witnesses today. We are joined by Brian Slocum, the VP of operations for ITC Holdings, Jim Ross, the Director of International Brotherhood of Electrical Workers, Brenda Hellyer, Chancellor of San Jacinto College, John Devine, Senior VP for HDR, Inc., Jennifer Chen--I think--is that right, Chen--Sustainable FERC Project Attorney, Natural Resources Development Council, and the Honorable Mr. McCarthy, Mayor of Schenectady, New York. We welcome you all. Your statements are made part of the record in their entirety. Thank you for submitting them early, and each of you will be given 5 minutes to summarize that testimony. And Mr. Mayor, we will start with you. Welcome. STATEMENTS OF THE HONORABLE GARY MCCARTHY, MAYOR, CITY OF SCHENECTADY; JOHN DEVINE, SENIOR VICE PRESIDENT, HDR INC.; BRIAN SLOCUM, VICE PRESIDENT, OPERATIONS, ITC HOLDINGS CORPORATION; JIM ROSS, DIRECTOR, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS CONSTRUCTION AND MAINTENANCE DEPARTMENT; JENNIFER CHEN, ATTORNEY, SUSTAINABLE FERC PROJECT CLIMATE & CLEAN ENERGY, NATURAL RESOURCES DEFENSE COUNCIL; BRENDA HELLYER, CHANCELLOR, SAN JACINTO COLLEGE STATEMENT OF GARY MCCARTHY Mr. McCarthy. Chairman Upton, Ranking Member Rush, distinguished members of the committee and, of course, New York's 20th District Congressman Tonko, thank you for the opportunity to appear before you today. While I am the mayor of the city of Schenectady and serve in the leadership of the New York Conference of Mayors, I want to make available to you the resources and staff of the U.S. Conference of Mayors. Under the capable leadership of Conference President New Orleans' mayor, Mitch Landrieu and Executive Director Tom Cochran, the conference team is ready and able to assist you in research, identifying problems and opportunities in the adoption of a national energy infrastructure policy and the appropriate budgetary support to ensure the successful implementation of that policy. We live in an exciting time, one of rapid change, a time of disruptive technologies, a time of great opportunity. The city of Schenectady has a long and proud history of innovation in the creative use of technologies. Congressman Tonko pointed out Thomas Edison founded the General Electric Company in our city over 125 years ago. The x-ray was developed in Schenectady. The first television broadcast occurred in the city of Schenectady. Many of the world-changing products and technologies we use today have their roots in Schenectady. Today, some of the most valuable real estate in Schenectady and communities across the country are our light poles. The conversion of conventional street lights to LED fixtures is happening everywhere. It makes sense. There is an immediate savings of over 50 percent in electrical costs. But what we are doing in Schenectady and in some communities across the country is looking at the opportunity to add additional features. Sensor-based technologies to the light pole when the conversion to LED fixtures is happening, environmental sensors measure temperature and precipitation, device-based utility-grade meters that will allow different owners to place devices in a light pole and pay for the electricity that's used just by their device, optical sensor providing deterrence and documentation for policing, traffic and pedestrian analytics, dimming controls for additional electrical savings, acoustical sensors, Wi-Fi, and cellular communication protocols are just a few of the possible additions to a standard light pole. These devices will better enable a more cost-effective delivery of municipal services, the valuable exchange of data and information, improved educational opportunities within our city school district, and help with cost containment in providing health care. Schenectady is partnering with National Grid, our local utility, in implementing a REV demonstration project in our city. REV is reforming the energy vision, a program with New York Governor Cuomo's comprehensive energy strategy to build a clean and more resilient affordable energy system. We are working with National Grid, GE, AT&T, Cisco, Presidio, CIMCON Lighting, and other local partners to do a citywide deployment of Smart City technology as we do the conversion to LED lights. We hope the National Grid project in Schenectady will create a replicable model for utilities in other communities across the state and, hopefully, the country. The ongoing efforts of Schenectady to further invest in infrastructure by leveraging convergent technologies including distributive generation resources, intelligence services, buildings in the electrification of transport will not only make the city more energy productive, economically and environmentally sustainable, but will assist New York State in its individually adopted economy wide target of an 80 percent reduction in greenhouse gas emissions by 2050, commonly referred to as the 80x50 Program. The 80x50 challenge is a significant goal and will require fundamental changes, which means that the early cost savings and sustainable applications of Schenectady and National Grid's initiatives could serve as a model for other communities and utilities. This type of project has the potential to transform communities and has clear implications for the global competitiveness of this country. But it's based on a stable and an adaptable electrical grid. There are many components of the Smart City or Smart Grid projects that are self-financing. Conversion to LED light fixtures is a clear example. Some lend themselves to partnerships between utilities, communities, and companies--public Wi-Fi in commercial areas is an example. Others, like the upgrading of utility resiliency to deal with physical and cyber-attacks, the possibility of electromagnetic pulses, economic warfare, or proof of concept for emerging or yet to be developed concepts or technologies will likely require 100 percent funding from the federal government. Mr. Chairman, again, I thank you for the opportunity to be here and look forward to the committee's questions. [The prepared statement of Mr. McCarthy follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you very much. Mr. Devine, welcome. STATEMENT OF JOHN DEVINE Mr. Devine. Good morning, Chairman Upton, Ranking Member Rush, and members of the subcommittee. I am John Devine, a past president of the National Hydropower Association, and I am here today on behalf of NHA to share my thoughts about the value and needs of hydropower's part of this nation's infrastructure. My engineering career spans 45 years focused on water resources and hydropower, working both in the public and the private sector. That also makes me part of the aging infrastructure, I might say. I was also a founding member of a hydropower consulting firm that started with two people in Portland, Maine, and grew into a practice with over 250 professionals with offices in six states. I hope this provides a small example of the jobs that hydropower can create. I will emphasize three points today. First, investment in new and existing hydropower projects produces economic benefits and creates jobs. Second, policies that support hydropower deserve to be part of any infrastructure package Congress develops, and third, in order to preserve investment in hydropower, I believe changes in federal policy, particularly in the licensing process, will be necessary. So to my point one, investment in hydropower infrastructure doesn't just create jobs. It creates the kind of jobs that require skill and education and are therefore valued, meaning in demand and well paid. We are talking about many field technicians, electricians, highly-skilled mechanics, biologist, hydrologists, computer modelers, suppliers of all kind in virtually every field of engineering. Hydropower is also often a cornerstone part of multipurpose projects that provide water for irrigation and natural resource protection, water supply for millions of people, drought mitigation, flood control, and other benefits. Which leads me to my second point. Ensuring more investment in hydropower should be a piece of any national infrastructure plan. Hydropower is a key part of the national infrastructure. Just consider the role played by hydropower in pulling the Northeast and the upper Midwest out of the 2003 blackout that affected 45 million people in the U.S. Hydropower's black start capability did that, and isn't that the very definition of important infrastructure? Consider our federal hydropower system. The average federal hydropower facility is over 50 years old. While this demonstrates reliability and durability, it also highlights the potential to increase efficiency and add capacity, therefore, more renewable energy from the same plant and more jobs. This leads me to my third point. I report to you today as a practitioner in the field of federal hydropower licensing. Here is what I can report to you from the field. First, the federal licensing and relicensing process is broken but maybe not for the reasons that you're thinking. It's not because of Congress passing the EP Act of 2005. Congress took a significant step to bring efficiency, transparency, and accountability to agency decision making. This committee in particular has done yeoman's service in support of hydropower. It's not because of FERC. In its promulgation of the integrated licensing process, FERC made a bold attempt to bring order, efficiency and better fact-based decision making to the process. In general, in my opinion, FERC is performing its role as a neutral arbiter of the facts. So how is it broken? It is broken today because many federal and state resource agencies do not adhere to the basic ground rules of the federal licensing process. Here are three examples that I can share with you. First, what I am seeing is that all too frequently the scientific studies conducted as part of the licensing process are being ignored by resource agencies when the study results do not comport with the agency's notions of a project's environmental impacts. This is despite the fact that these studies are performed for the express purpose of informing development of license conditions. Such disregard can lead to agency conditions which are not considered with the available and therefore are likely not to be effective. Second, state and federal resource agencies' recommendations for license conditions including mandatory conditions which FERC cannot balance are often made without due consideration of their full impacts and are only focused on narrow agency goals. Third, in many cases, the federal licensing process can drag on for years, even a decade or more after the filing of a complete application, while the applicant waits for the various federal and state agency decision making processes to be completed. Together, these provide a very chilling effect on investment. To conclude, hydropower offers many benefits to society. IT supports the grid and, as I mentioned, literally keeps lights on. It integrates other renewable generation. It supports clean air for our communities. These values are being eroded and U.S. hydropower has much more to offer, but only if it is given the policy support to unlock its potential. I thank the subcommittee for allowing me to testify and I look forward to answering your questions. [The prepared statement of Mr. Devine follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you very much. Mr. Slocum, welcome. STATEMENT OF BRIAN SLOCUM Mr. Slocum. Thank you, Chairman Upton, Ranking Member Rush, and the distinguished members of the subcommittee. As you know, my name is Brian Slocum. I am the Vice President of Operations for ITC Holdings, Corp., and I appreciate the opportunity to speak before you today. ITC is the largest independent electricity transmission company in the country and we own and operate electric transmission assets that has a footprint that expands to eight Midwest and Great Plains states. We have no geographic constraints and we invest in the grid and we do that to improve reliability, to expand access to markets, and lower the cost of delivered energy to our customers. We also allow for diverse and new generating resources to interconnect to our transmission systems. At the conclusion of today's hearings, I hope to leave the Committee with two very clear takeaways--first, that investment in the transmission grid is needed now, and secondly, the private sector utility industry, which we are a part of, are ready to make these investments if we are provided with the right regulatory and planning environment. While there have been some efforts made by the Trump administration and Congress to reform the existing regulatory process for electric transmission, additional reforms in federal permitting and environmental review processes are needed. We also need to continue to take proactive steps to reform procedures for planning the transmission system to ensure that we are examining the full value of the transmission investments. I would like to highlight the growing importance of transmission infrastructure to our economy. In the earliest incarnations of the grid, the transmission lines were built for a single purpose and that was just to move electricity from generating plants to homes and businesses. It was usually within a single utility footprint. Things have certainly evolved as FERC and individual states have opened up electricity markets to competition and transmission lines became more than just a one-way delivery system for individual utilities. Today, the transmission grid serves as a non-discriminatory regional platform for connecting consumers to energy markets. As customer expectations have increased, so too have the drivers for new investment in transmission infrastructure. Whatever the energy future may bring, let's be clear that we need a modern transmission system to provide the optionality to facilitate that future. Moving forward, the story is clear as well. Our economy is becoming more and more dependent on reliable and affordable access to electricity and the transmission grid becomes more stressed as that occurs. Planning the grid to address these demands requires consideration of many complex factors including potential threats to the system. We now understand that the redundancy that we planned into the transmission system--in other words, the different ways and pathways that we can connect to consumers--that offers a pretty strong protection against adverse events that can impact generation resources or the transmission system itself. Investing now will ensure the resilience of the grid and the resource diversity while keeping electricity prices low for consumers and for businesses. I would like to emphasize that, theoretically, no federal dollars are needed to strengthen the grid, increase resilience, and create jobs. The private sector which we are a part of is ready to make these investments, provided that regulatory and planning environment is conducive to the investment. We applaud the efforts by Congress to streamline the permitting process for new infrastructure. Even still today, permitting for a major transmission line can take nearly a decade to secure a range of federal, state, and local permits. In order to ensure that the NEPA process can be completed in a reasonable amount of time while maintaining the strong commitment that we have to environmental stewardship that we all share this commitment, then Congress could consider a number of options including requiring concurrent NEPA analysis and environmental reviews by all the permitting agencies involved, requiring those agencies to use the information that's already contained in the lead agency's NEPA document as the basis for their reviews, and then, finally, setting some firm deadlines for the NEPA process. To make the necessary investments in transmission infrastructure that we are ready to do, we need a supportive regulatory environment and to use the latest and most comprehensive methodologies to plan and approve new transmission lines. Planning the grid proactively requires that benefits of a potential investment be viewed more comprehensively by integrating a range of project benefits and planning drivers into criteria for approving projects. Finally, we need also to support the construction of new transmission lines that connect RTOs and ISOs in various regions which, as of today, are still highly separated. More interregional connections will increase system flexibility and resilience against potential threats while still allowing regional flexibility and approaches to joint planning. Thank you again for the opportunity to testify before the committee and I look forward to answering any questions you might have. [The prepared statement of Mr. Slocum follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you very much. Mr. Ross. STATEMENT OF JIM ROSS Mr. Ross. Thank you. Chairman Upton, Ranking Member Rush, and the Members of the Committee, on behalf of our president, Lonnie Stephenson, thank you for inviting me here today to participate in this important discussion. Energy generation and power distribution is an $800 billion a year business. With 775,000 active members and retirees, the International Brotherhood of Electrical Workers--the IBEW-- represents approximately 400,000 workers employed in generation, transmission, distribution, construction, and rail jobs all in some way related to the electrical grid. The IBEW supports a diverse balance and resilient energy portfolio that includes renewables like wind, solar, and hydro while preserving key base load energy's sources like natural gas, coal, nuclear power. These base load power sources are extremely important to the United States security and vital to future planning. The need to upgrade is getting its rightful attention these days. But left out of the recent conversation is that the United States has not made meaningful upgrades to its energy infrastructure since the 1970s. Unfortunately, our current electric distribution system, which functions on a regional or localized basis, is outdated and inefficient and the permitting and approval process for large-scale transmission projects is more than burdensome. It's an outright barrier to construction. The large-scale solar installation in the desert of California, a massive new hydropower generation project in eastern Canada, and a wind farm in the plains--these are major renewable energy development projects the members of the IBEW have been proud to help construct in recent years. But these generation projects of the future are only as good as the transmission network they will rely on. Their value is diminished if there is no infrastructure to take power from the source to the demand for electricity. New investment in the transmission network is a necessary component of these renewable energy projects and the good news is that plans exist and, in some cases, are years into the necessary permitting and approval stages. In fact, approximately $140 billion in private capital is awaiting permit approvals for aging transmission system overhauls and development of new clean lines to move more renewable sources to market. One important method of financing infrastructure projects is through bonds and regulatory decisions can dramatically impact the bond market. Congress can also play a key role in project financing by expanding access to private activity bonds. Your support for legislation that encourages market predictability and stability will foster job creation. It is also important to support legislation that would streamline permitting and siting processes. There are plenty of energy infrastructure projects across the United States that have been involved in the permitting process for years. An example of a project pending approval is the 192-mile Northern Pass project which will build high-voltage transmission lines through New Hampshire, carrying clean hydropower from Canada to New England. It would create 2,600 jobs during peak construction and many of these would be skilled IBEW construction linemen. Recent storms and frigid temperatures have challenged the ability to the region to meet demand for heating and electric generation. As a result, wholesale gas prices spiked more than 10 times the 2017 average price and oil-fueled turbines were employed, triggering a release of greenhouse gases and pollutants into the atmosphere. Northern Pass will relieve the massive imbalance of supply and demand in New England and introduce necessary renewable diversity into its energy portfolio. Another 750-mile high- voltage clean line project will deliver 4,000 megawatts of wind-generated power to major load centers in the Midwest and the East Coast, enough to power 720,000 homes. Both of these projects bring economic and job growth, preserve local communities, and grow the tax base. A regulatory resistance from state and local jurisdictions has effectively stopped them before they could get off the ground. For this reason, we need to empower federal authorities to approve large-scale projects of national importance that cross state lines and local government jurisdictions. With all due respect to local authorities, we need a new approach that trims unnecessary red tape and streamlines the rules created by numerous regulatory authorities. Additionally, the Federal Government should take responsibility for right sizing by incentivizing development of capacity in excess of current market demands. Accounting for future demand avoids the possibility of under building and encourages future development renewable electricity sources because there will be a market case to make to investors, providing that they can move their generation to major markets. Lastly, we are encouraged by recent one-agency one-decision proposals which will reduce the time line for federal environmental reviews and permitting processes. We do not support efforts to diminish current environmental protections. We simply need an efficient process. We cannot afford to continue postponing the necessary upgrades. The United States lags behind China and Brazil, Germany, and many other countries in transmission infrastructure investment. With the Federal Government taking a decision making lead, market predictability will improve as well as the IBEW's ability to plan for training the next generation of construction linemen. It takes 3 years to train a journeyman lineman to perform transmission line construction and maintenance, and we anticipate the need for approximately 50,000 new power linemen over the next 10 years. While projects are held up, we are losing valuable training time. By the way, our privately-operated apprenticeship training programs invest approximately $200 million annually to equip students with the skills the markets demand. For more than 70 years, the IBEW and our employer partners, the National Electrical Contractors Association, have been the largest private sector trainer of electrical workers in the Nation. Together, the IBEW and NECA operate hundreds of training centers in communities across the country. Our training programs guarantee a steady stream of skilled electrical workers necessary for the important work of modernizing and expanding our grid. We ask for your leadership on making our modern electrical grid a reality. We remain a ready partner with our employers and elected officials from both sides of the aisle. Thank you for the opportunity to testify here before you today. [The prepared statement of Mr. Ross follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you. Dr. Chen. STATEMENT OF JENNIFER CHEN Ms. Chen. Good morning, Chairman Upton, Ranking Member Rush, and members of the Committee. Thank you for the opportunity to testify. I am Jennifer Chen, an attorney with the NRDC. I am also a board member with the Americans for a Clean Energy Grid, a coalition including transmission owners and developers. We are jointly working to achieve a modern, efficient, and clean consumer-friendly transmission grid. NRDC supports a range of infrastructure modernization projects that deliver economic, social, and environmental benefits. We support programs promoting energy efficiency and distributed energy resources, and we need to ensure that transmission planning counts for them to avoid overbuilding. Today, I will focus my comments on the main barrier to transmission infrastructure improvements most needed to modernize the electric grid--a severely fragmented transmission planning process and how we can overcome that barrier. But first, I want to emphasize that environmental laws are not driving a delay in modernizing our grid and President Trump's infrastructure plan that would severely undermine these protections is not the solution. As DOE noted in its quadrennial energy review on energy infrastructure, the environmental review and permitting requirements are accomplished effectively and efficiently. This is due in large part to progress made by Congress in the Energy Policy Act of 2005 as well as by the last two administrations. NEPA is only triggered if there is a federal nexus like when a project receives federal funding. NEPA and federal permitting requirements are important components for smart from the start planning. They disclose a project's impact to the public and provide opportunities for input including alternate solutions. Early robust public engagement is also key through reducing conflicts and mitigating impacts. Such input has resulted in better outcomes and stakeholder engagement helps avoid protracted legal battles, bad publicity, and protests. On the other hand, President Trump's plan to short circuit environmental projections and public processes would be counterproductive because experience has shown that insufficient public engagement breeds local opposition that can delay projects. It's far better to fix the disjointed planning process we can all agree is a barrier to something a wide range of stakeholders wants. We want our nation's transmission backbone to be able to deliver clean low-cost electricity from the windy heartland and sunny states to more densely populated regions. Importantly, that kind of grid modernization effort will create jobs, improve the efficiency of our electricity markets, promotes emissions-free electrification of our economy that is key to addressing climate change, and produce billions of dollars in benefits to electricity consumers. The problem is our transmission planning process is too small scale to produce a robust transmission backbone needed to accomplish these goals. Currently, interregional transmission planning proposals are dying on the vine, if proposed at all, far in advance of the environmental review stage. This is largely due to mismatched planning between neighboring regions. Smaller regional projects, on the other hand, have seen more success. FERC tried to facilitate interregional project development by requiring neighboring grid planners to coordinate with each other. But that's not the same as requiring them to jointly plan for transmission because neighboring regions use different methods in their planning. Asking them to simply coordinate has not facilitated these interregional projects. FERC sought public input in June of 2016 to revisit this issue but it has not acted on it since. Interregional transmission planning, not just coordination between regions, must be FERC's next priority. As a next step, Congress could encourage FERC to use existing authority to implement a rule on interregional transmission planning and to truly modernize the grid, Congress could encourage FERC to require planning that anticipates the impact of public policies and the falling costs of wind and solar power. FERC should also require planning that accounts for technologies that facilitate environmentally responsible siting, reduces energy loss along the wires, and maximizes the use of existing transmission lines and other infrastructure. Infrastructure is long lived and expensive, but it's an investment and it's important to get it right. And to do so, it's critical to take steps now to improve the planning process. President Trump's plan to circumvent environmental protections would encourage rushing to solve the wrong problem. Thank you, and I look forward to answering your questions. [The prepared statement of Ms. Chen follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you. Dr. Hellyer. STATEMENT OF BRENDA HELLYER Ms. Hellyer. Good morning, Chairman Upton, Ranking Member Rush, and Vice Chair Olson and members of the subcommittee. My name is Dr. Brenda Hellyer and I am Chancellor of San Jacinto College, and I am pleased to testify this morning on the role that community colleges and San Jacinto College specifically can play in contributing to the Nation's energy infrastructure and developing the workforce and the talent pipeline that's necessary to support that infrastructure. San Jacinto College is located in East Harris County, the Gulf Coast region of Texas, and serves approximately 45,000 credit and non-credit students each year. Last year, the college was recognized as an Aspen Rising Star Award, representing as one of the top five community colleges in the country for community college excellence. We are located in the heart of an energy industry. Our service area incorporates the Houston Ship Channel, home to the Nation's largest petrochemical complex, and we also support the NASA Johnson Space Center, Ellington Airport, and the Port of Houston, which is ranked number one in U.S. ports for foreign tonnage. In my written testimony, I outline some of the workforce challenges in the Houston region. Briefly, Houston's skills gap has reached critical proportions among the middle skilled jobs--those that require more education and training than a high school diploma but less than a four-year degree. Of the 3.6 million jobs in Houston, 1.4 million, or approximately 40 percent, are middle skills jobs. The best way to address this need is through collaboration and partnership. We have taken a national state and regional approach. No one entity or group can fix this challenge alone. From a regional standpoint, we engage area economic development corporations, our school districts, our universities, and our industries to build the pipeline for future workers. We are at the table together, addressing this issue from multiple angles. I am going to give you some examples of that-- San Jacinto College invites 6,000 sixth graders each year to gain hands-on experience in STEM experiments. This is through an event called Mind Trekkers. It's supported and it's sponsored by industry partners. We offer summer camps to kickstart students so they understand the jobs that are available in STEM, petrochemical, and maritime. We also have a speakers' bureau that's a grassroots effort--community colleges, our economic development group, and our industry partners going in to our high schools and our eighth graders talking about the careers and the jobs in our area. Last year, 12,000 students and their parents were contacted and spoken with about these jobs. We partner with industry to understand the types of employees they need, the skill sets required, and we adjust our curriculum to meet those needs. To that end, we are building a 145,000 square foot center for petrochemical energy and technology. This facility is being built based on the input from industry. It's for industry by industry and it's funded from taxpayer dollars and also private donations. More than a dozen industry leaders serve on a petrochem advisory council working directly with me to guide the project. This facility will house an exterior glycol unit. It'll have programs in process technology, instrumentation, electrical, non-destructive testing, the craft trades, and it'll also build on our construction management program. All of the programs will emphasize and build on a safety culture. The program will replicate a day in the life of plant operators and technicians. The programs are designed not only for the new worker coming into the field but also to upgrade the skills of the incumbent worker. Our partnership in providing a skilled energy workforce is enhanced through our work with you, the Federal Government. We understand that a well-educated technically trained energy workforce is essential to advancing the President's America First energy plan and growing the Nation's energy infrastructure. To that end, community colleges have been working on the development of new legislation for energy workforce training Centers of Excellence. Two bills have passed and we encourage the enactment on funding of this type of legislation. We also encourage Congress to continue investing in America's labor force through grants with the Departments of Labor, Education, and Energy. San Jacinto College is working with the Federal Government to provide workforce training programs through the Ready to Act workforce grant, the Carl Perkins Grant, the Trade Adjustment Act. All of these are designed around building that workforce and they're critical to the citizens of my region but they're also critical to the 1,100 community colleges throughout the country that provide the critical workforce training. While this committee doesn't oversee Pell, I would be remiss if I didn't mention the impact of Pell and how that really can define how we are going to continue to feed the workforce and make sure that we build that workforce. There's 2.7 million community college students using the Pell system, which is building our workforce. In conclusion, San Jacinto is working collaboratively in the Gulf Coast region to increase the number of students looking to go into these careers and workforce training, STEM, and the fields that really build this infrastructure. These programs improve the lives across our region. In the Gulf Coast region we are actually driving the economy of the Nation also. And so I can tell you from San Jacinto's perspective this program, how we really are going to help support the infrastructure is critical. But it's also critical that we have the support for all community colleges. Thank you. [The prepared statement of Ms. Hellyer follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Upton. Thank you all for your testimony. At this point, we'll move to questions from our subcommittee. Mr. Devine, I appreciate you being here for sure and from my perspective I want you to keep your job. I believe in an all-of-the-above strategy. Renewables are a big part of that. In Michigan, we've got a minimum mandate. Hydro is part of that. Not as much in Michigan as it is particularly in the Northwest, but as you may know, we have passed with a number of Democrats a hydropower licensing bill that moved through this committee and has passed in the House now and is waiting for action in the Senate. You talked about a number of hydropower facilities that are more than 50 years old. We need to add capacity. This is a renewable piece that most Americans would like but with, obviously, no carbon emissions, basically, from that source of power. If our legislation became law, went to the President's desk, how would this help the hydropower industry in terms of dollars invested in kilowatts generated? Mr. Devine. Well, Chairman Upton, I think that improving the timelines involved in the licensing process will reduce some of the perception of the risk in the process. Risk is anathema to investment. So I think that aligns very well with increasing investment in hydropower. There are many opportunities for upgrades and improvements and increasing energy at existing hydropower facilities and at non-power dams, and I think it's viewed as from these have to be financed and the financing is susceptible to risk and reward effects. So the proposals that increase the efficiency of the process and will help in terms of improving the overall investment opportunity. Mr. Upton. So I am one who believes that there ought to be an energy title within the infrastructure bill that, hopefully, moves through the Congress this year. Dr. Hellyer, as you know, the President had many of the Nation's governors here for the last couple days. A whole number of different issues were discussed. One of them was infrastructure. I had the opportunity last night to have dinner with my Michigan governor, Rick Snyder. He told me, he said, ``You know, if there's one thing you can really do to help create jobs and move on infrastructure is to expand Pell to make sure that it's involved in community colleges and job training.'' In my district, we've got two nuclear plants. We've got a new LNG plant that they're almost ready to break ground on, which will, as I am told, double the tax base for that particular community. It's a couple years away from being complete but they're ready to break ground, I believe, this spring. As I meet with my IBEW folks, they have a very active group in Michiana, as we say--Indiana and Michigan. I've been to a number of their events over the years and they are very proud, rightly so, of the work that they do creating the jobs, the internships. I am fascinated with what's happened in Houston and the leading role that you play because I do believe that that skills gap and worker training out of be part, again, perhaps, of an infrastructure bill creating the jobs that we want, knowing that we are going to improve the infrastructure across the country. How do you both see perhaps an expanded role as it relates to worker training, working through our community colleges which, again, in my view, is so important? Maybe Mr. Ross, start with you and come back to Dr. Hellyer. Mr. Ross. We are always looking for skilled craftsmen or top-rated individuals that come out of the community colleges because we love getting those individuals directly out of the community college because that makes our job easier--transition them right into our apprenticeship program. At least for linemen it's a 3-year program--our inside program for a journeyman wireman like myself is a 5-year program. So any advanced training they get it gives them a leg up on someone trying to apply for our program and get in our program. So we work directly with community colleges. I know where I am from, from West Virginia, we work directly with our community colleges there to get those individuals. I would go out and visit those community colleges, encourage them to take an application for our program. I know throughout the country IBEW always works with the community colleges. Mr. Upton. And Dr. Hellyer, I would just say we've got a lot of really great community colleges in my district. One of them is Kalamazoo Valley--KVCC. They actually have a wind turbine school training folks and they have jobs right away as they graduate. Ms. Hellyer. So there are a couple of things I think could be done. Right now, the Higher Education Reauthorization Act is being looked at. There are some talks about making it where Pell can be used for short-term programs. For us, that could be very helpful, especially with programs like commercial truck driving that don't qualify right now. As far as working with IBEW, apprenticeship, programs, we do that quite often. I was in Austin yesterday for a meeting around a new program in trying to take high school students and move them into apprenticeship and going into licensing for plumbing, electrical, and one of the comments came up how do they use their Pell dollars for that. So I think there needs to be some more flexibility built into the program and because some of these programs are going to take longer than what you have Pell dollars available and so how do you leverage that. So you need short-term but then you also need some of the long term where students are going out and working and then coming back. Mr. Upton. I know Virginia Foxx would like me to say that that looks like additional jurisdiction for this committee. With that, I yield to the ranking member of the subcommittee, Mr. Rush. Mr. Rush. I want to thank you, Mr. Chairman. Mr. Ross, I really want to commend the IBEW Local 134 in my city and my state. They're doing a remarkable job rebuilding the--in terms of a grammar school--a closed grammar school and they're turning that into a union hall--really, really nice-- right next to another of our vocational high schools. And so they're in the forefront of really taking CTE students and giving them skills and training and I really want to commend your union for that. They're wonderful people. Dr. Hellyer, the city of Houston has a number of comprehensive workforce development strategies that includes training and in K to 12 levels, community college levels, university, and vocational educational levels. This decision allows candidates to be trained and developed throughout all stages of the educational spectrum. My workforce development bill attempts to run this model to a national level and is aimed at training minorities, women, veterans, and unemployed energy workers for good-paying jobs and careers. First of all, I want to commend you on your leadership in San Jacinto College and I hope that you will work with my office to help make my bill a reality as part of a broader infrastructure package. I think that you have shown tremendous insight into the needs of our nation by what you're doing at San Jacinto and I also want to commend you. I think that your leadership is surely and truly inspirational, notwithstanding the comments of my friend Chairman Upton's subcommittee. Mayor McCarthy, you are on the forefront on trying to reconcile the needs and priorities of your constituents with the budgetary restraints so many of our states and cities are facing. What are your thoughts on the administration's proposal asking states and local municipalities to cover 80 percent of new funding for infrastructure projects? Is this realistic, in your view? Are you concerned with the Federal Government's attempt to shirk its responsibility of investing in a serious and meaningful way in our nation's aging energy infrastructure? Mr. McCarthy. Thank you, sir. I approach it that the 80/20 funding formula that's proposed is really oversimplistic. There are, again, many components that could be financed within the revenue streams that exist today. But some of the emerging technologies are new. You have to do the proof of concept. They're going to happen. They're happening in other countries. You're seeing things in South Korea. You're seeing things in the Mideast where they're developing and deploying technologies faster than we are doing here in the United States. And so how do you build that resiliency into the grid and at the same time create a platform that really positions not only our communities but the country as a whole to take advantage of it and go forward so that you're creating jobs, you're creating economic opportunities, and you're improving just the quality of life and, hopefully, in your deliberations that you will look at those formulas and create the regulatory environment that allows things that are self-financing to go forward but at the same time look at those things that are new and emerging that we need assistance and are going to need some subsidy or large amount of financing from the federal government to ensure that they're developed, deployed, and continue to allow this country to lead in a global environment. Mr. Rush. My second question to you, Mayor, is the administration--under this administration the agencies that had been previously preparing plans to increase resilience to climatic events for access under their purview are now forbidden from even uttering the phrase ``climate change,'' much less preparing for its consequences and its symptoms. Do you see the need for significant federal investment in local energy assurance plans to advance resiliency efforts including proposals to combat climatic events? Do you---- Mr. McCarthy. I am sorry. Directed to me again? Mr. Rush. Yes, sir. Mr. McCarthy. Climate change is happening. There's debate in terms of what's causing that but it's happening. And so we have to take that into account in terms of public policy and how do you look to reduce greenhouse gases. Most of the scenarios that are out there also allow for cost savings, improved efficiencies, and job creation when you do the reduction in greenhouse gases so that you're improving the environment at the same time creating opportunities for some of these emerging technologies and emerging skill sets where we have to have a work force--and some of the other panelists have talked about--that are able to provide these skill sets that we need for services that people demand. Mr. Rush. I yield back, Mr. Chairman. Mr. Olson [presiding]. The gentleman's time has expired. The chair now calls upon the chairman of the full committee from the Beaver State, Mr. Walden, for 5 minutes. Mr. Walden. I thank the gentleman. As an Oregon Duck, I don't always refer to it as the Beaver State, although that is our mascot. [Laughter.] So, Mr. Ross, thank you for being here. To all of our panelists, again, thank you for your testimony on this very important set of issues. I know I've worked closely with IBEW out in Oregon--Local 48 and 659, I think--and toured the apprentice operation there. It's very impressive. Where's the gap? What do we need to be doing? I know we don't directly have that jurisdiction but this is important because we can help streamline projects without diminishing the environmental piece of this. We can do a lot of work here to get pipelines and power lines and broadband going. But if we don't have the skilled workforce necessary to do the work, we got a problem. So can you talk about your apprenticeship programs and where you're at and what we need to be thinking about? Mr. Ross. Well, we need a lot more, quite frankly. We are doing our level best to try to attract individuals into our programs. For our outside program we have approximately 4,600 registered apprentices for the line side and around 32,000 for our inside program and we certainly could use a lot more. But what you run into, we are unique in construction and for most people it is familiar--we work ourselves out of a job. So we are always looking for the next one. So good steady work forecasts certainly helps our apprenticeship programs, certainly attract individuals into our programs but also keeps them working. So it's hard for a local union to accept a bunch of apprentices if they don't have a place for them to work. Mr. Walden. Right. Right. Mr. Ross. So that's our dilemma. It's kind of a catch-22. So we are always looking at the next job, and we certainly went through a major recession in 2007 and '08. Mr. Walden. Yes, sir. Mr. Ross. We would call it depression for our industry. Mr. Walden. I would, too. Mr. Ross. We had tremendous unemployment. Most of the locals weren't taking apprentices in because they couldn't keep them working. So we are trying to get caught up because we are in an economic boom for construction right. We are having some skills shortage. That's why we are working with community colleges and different groups trying to get those individuals help. Mr. Walden. Yes. I know in the town of my birth, The Dalles, there's Columbia Gorge Community College, actually, in both Hood River and The Dalles and they started a wind energy program a long time ago, teaching safety and some of the electrical skills as well. I would like to touch on too when I did a series of town halls last spring we got some development underway or proposed in Oregon and some who tried to block this sort of development ridicule these jobs as temporary jobs. I heard it a lot at the meeting, and it kind of perplexed me because while my wife and I have never constructed our own house, I think if we ever did when the carpenters were done I wouldn't want them to move into one of the bedrooms. I would want them to move on to the next house. But this is an argument and it's an argument on the left, and I heard it a lot. Can you speak to those temporary jobs and are they not worthy? That's a rhetorical question. Mr. Ross. It is rhetorical, yes. Like I said, we are always looking for the next project no matter how short. I am an electrician by trade, OK. I just happen to be working in Washington, D.C. now. But I've taken projects that were only supposed to last 3 weeks and be there 2 \1/2\ years. So I think it's a pretty sad state of affairs, because all our jobs are temporary in construction. Quite frankly, if you didn't work yourself out of a job you wouldn't get the next job---- Mr. Walden. That's right. Mr. Ross. Because the idea is to get the job done on time and on budget. So---- Mr. Walden. As you know, we are spending a lot of time here trying to streamline the permitting process. Again, we get criticized that somehow we are diminishing the environmental nature of it. But that's not what we are up to. I have a tiny little community in central Oregon that I think spent years trying to get four power poles on Bureau of Land Management land to go through the permitting process, and I know others say, ``Oh, it never slows you down.'' It does. Half of my district--more than that--is federal land. So we encounter this everywhere we go, and it took them 3 or 4 years to get these four power poles sited so that they could get three-phase power into Mitchell, Oregon for the first time. Do you run into--these permitting delays? Mr. Ross. Well, I kind of addressed that in my testimony. But yes, we will run into those issues all the time. Unfortunately, some of these projects would put a lot of people to work. Most of them have been through the siting permitting process and are just sitting there basically to get done but being held up through someone on the other side doesn't want, I get where people don't want a power line in their back yard. I get that. Mr. Walden. Sure. Mr. Ross. But in some cases---- Mr. Walden. They do want the power to come on when the switch is thrown, though. Mr. Ross. Exactly. When people's lights go out they want their power back on. They don't really care what they look like. Mr. Walden. Well, I thank you and I thank all our witnesses for your input. And Mr. Chairman, I yield back. Mr. Olson. Gentleman's time has expired. The chair now calls upon the gentleman from the thirteenth largest city in California--Stockton, California--Mr. McNerney, 5 minutes, sir. Mr. McNerney. Well, thank you for that little statistic, Mr. Chairman, and I thank the panel for coming and testifying this morning. The U.S. clearly needs to modernize our electrical infrastructure. The technology exists today to do that. We can make our grid resilient and responsive. We can meet consumer demands that are changing by the day. We can meet the demands of intermittent resources, physical and cyber-attacks, and the changing weather patterns that are brought on by climate change that have brought down the grid in Puerto Rico, in Texas, in New York, New Jersey, and in California. So we have the capabilities to do that and, fortunately, my good friend, Bob Latta, and I have formed a Grid Innovation Caucus to make people aware of what's available and the need to move forward on that. So I just wanted to make that clear. Mr. Devine, I worked on the Hydropower Modernization Act and one of the things that struck me was definitely how long it took to get permits, how expensive it was to get permits. Could you say a little bit about how much hydropower we could expect if that was improved? Mr. Devine. I would hate to guess in terms of the total amount of capacity involved but it's thousands of megawatts. It's very significant. As I mentioned to Chairman Upton, the view of the risk in the amount of time it takes to improve even somewhat straightforward projects is very difficult for investors to accept. So I think there is a considerable amount of available upgrade potential and power to be added to existing dams that have no power and I think it's in the thousands of megawatts. I am working on a project right now where we have an upgrade potential of something on the order, of an existing station, something on the order of 20 or 30 megawatts. Now, that may not seem large but that's just one station in location. That's a significant amount. We are now in our seventh or eighth year of licensing. It's not the only issue, of course, but the licensing process can hold up these upgrades and these improvements for a considerable amount of time. It's very difficult for the investors to wait that long in order to realize a return on that. Mr. McNerney. Thank you. Mr. Ross, you mentioned private activity bonds. Could you expand on that a little bit? I've done some legislative work on that. How important would that be in terms of municipal bonds and other tools? Mr. Ross. I am going to have to take a pass on that one and get our political department or someone get you an answer to that, OK? Mr. McNerney. Dr. Chen, you mentioned pretty pointedly that we would require regions to coordinate transmission planning. Could you go into that a little bit? How would that work? How would that speed up our process? How would it make it more easy to put in transmission? Ms. Chen. All right. So there are two parts to that and I appreciate that question. So first, in the transmission planning process, the different ISOs and RTOs plan separately and they're required to coordinate by FERC for interregional projects. But, unfortunately, that's not really producing any projects. So what we really need to see is a full joint interregional planning process. FERC can use its existing authority to extend order number 1000 to require this and Congress could write letters to FERC, hold a hearing for FERC to ask how they can move forward in that process. Separately, in terms of siting, especially some of these long lines, coordinating between state and federal processes as well as locals and other stakeholders--landowners--would be greatly helpful. We've seen great success and, for example, in the Department of Energy and Department of Interior working together with the State of California to site 9 megawatts of solar in just 9 months by coordinating together, doing as much of the environmental review concurrently and jointly, and that sped things up a lot. There is a great example about a Midwestern project, CapX2020, that I can go into further. But a University of Minnesota report highlighted a lot of successes that arose out of the coordination there as well. Mr. McNerney. Very briefly, does anyone have anything to say about ARPA-E? Would the elimination of ARPA-E, is that going to set us back in terms of our electrical infrastructure development? Anybody on the panel. Mr. Devine. In terms of the, Congressman McNerney, the renewable portfolio standards that you're referring to? Mr. McNerney. No, ARPA--that's the advanced renewable energy or advanced energy research based on DARPA. Ms. Chen. Very briefly, I think that would set us back. Mr. Olson. The gentleman's time has expired. The chair now calls upon the gentleman who was the former chairman of the full committee, the current vice chairman of the full committee and a proud Texas Aggie, Mr. Barton. Mr. Barton. Well, we thank you, Mr. Chairman. Thank you for that introduction. This is a difficult hearing for me to get my arms around because we are trying to put a government spin, apparently, on private sector investment in infrastructure. I do believe there's a legitimate public interest certainly in the permitting and licensing part of these big infrastructure projects. We certainly need to protect our environment. And I think you could argue that if you look at public sector infrastructure--highways, bridges, ports--compare it to private sector infrastructure--pipelines, refineries, transmission lines--the private sector has done a better job. We seem to be more up to date in our private sector infrastructure than our public sector infrastructure. So, I think while it's important to look at permitting reforms and things like that, if it's not broke don't fix it. I guess one question I have to the mayor of Schenectady-- it's always good to have local officials here--you're closer to the problems. There's been an ongoing problem for decades in the Midwest and the Northeast. When you need power, electricity, natural gas it's hard to get the permits for the transmission lines or the pipelines to get that power or that product to your part of the country. Do you have the solution on how to balance the legitimate needs of the state and local government against the public good and interstate commerce of getting the product from point A to point B if it cross state lines? Mr. McCarthy. I don't, Congressman. Mr. Barton. That's an honest answer. [Laughter.] Mr. McCarthy. Even though I think the opportunity is out there, as you see some of the emerging technologies where you had centralized points of generation and the distribution network was, clearly, in one direction that is changing. So where you have solar and wind that are being added to it that can provide supplemental points of generation and the ability to balance the load so that you don't get the peak demand anymore, those will take some of the pressure off the need to have the central points of generation at the same time will hopefully be able to allow it to be done in a cost- effective manner for the consumers who will take advantage of some of the newer concepts and products that are out there. Mr. Barton. That's actually a very good answer. If you eliminate the need to cross the state line, you have solved the problem and so more of these alternative energy projects that are on site. Those eliminate that need. But I think you're still going to need to somehow figure out a way to move natural gas or oil from Texas to New York or Chicago. There are going to be occasions where you still need to cross state lines. But your solution is---- Mr. McCarthy. And I agree with that. I don't have a solution, though, for the regulatory environment or the ability to make sure that adequate capacity is there. Mr. Barton. This last question is a little bit off subject but it is infrastructure related and that's who should be the lead and who should pay to protect our infrastructure, our power plants and things like that against cyber-attacks? So OK, Mr. Slocum, just---- Mr. Slocum. Yes. We own quite a bit of that infrastructure and we certainly do a lot to protect especially our most critical facilities and our critical systems that we use to operate the bulk electric system from cyber-attacks. So we cover those costs and ultimately those go to our ratepayers today. But I do think there is a need for a discussion about at what point does that stop for private industry and what point does the government help to do that in areas where we are getting into even acts of war and things of that nature. So I have a concern that private industry not have to be burdened with those costs. But we are certainly ready to work together with government to meet those needs and make sure their infrastructure is protected. Mr. Barton. I see my time has expired. Final question--are you any kin to the former football coach who's my great friend, R.C. Slocum of Texas A&M? Mr. Slocum. I can't say that I am but it's not the first Slocum I've been asked if I am related to. So thanks. Mr. Barton. OK. Thank you, Mr. Chairman. Mr. Olson. Gentleman's time has expired. The chair now calls upon a friend who rooted against the L.A. Dodgers in the World Series and for our Houston Astros, Mr. Peters, for 5 minutes. Mr. Peters. Thank you. I always enjoy hearing what my introduction is going to be, Mr. Chairman. So thank you very much. Thanks for being here. I want to ask Dr. Chen a couple questions. Dr. Chen, I have to say I read your testimony and we hear all the time from businesses and investors that regulatory system can cause uncertainty and the length of delay can cause projects not to get built or be more expensive or result in investors not wanting to take these risks. The citations in your testimony to the Department of Energy's own statistics, the Center for American Progress, I understand that people argue that it isn't a problem. But we hear from people who are actually doing the investing that it is a problem and I just don't think that we do ourselves any favors on this side of the aisle by not thinking about what we could do to improve the process to achieve high standards and yet do it more quickly in a way that's more certain for people. What happens, I think, when we don't do that is that we get the kinds of things that President Trump has proposed, which is an evisceration of the regulatory system that doesn't get us high standards. So I wanted to just ask you about a couple things that Mr. Slocum suggested which seem, to me, reasonable and see if you have an issue with them. Could Congress require concurrent NEPA analysis and environmental reviews by all permitting agencies? Is there an issue you have with that? Ms. Chen. No. So, certainly, there are a lot of provisions in place that enable a joint review so---- Mr. Peters. Could it be required? Ms. Chen. It could be. I haven't---- Mr. Peters. OK. How about requiring concurrent NEPA analysis--well, that's the same thing--requiring cooperating agencies to use the information already contained in the lead agency's NEPA document as the basis for their permit-related reviews? Ms. Chen. I think it's something to consider. I think there are a lot of efficiencies that can be explored. But our main issue is eliminating or curtailing environmental protections. Mr. Peters. I understand, too, and I think that's not where I want to get to. The other thing is whether we should set a deadline, and I got to tell you I was shocked when I got on this committee and heard that hydropower which is, basically, clean base load energy--takes 10 years to get a permit for. And the thing that we learned is something you suggested, too, in your references to success stories. In the success stories you have these people who are remarkably talented and well-motivated to work together and they get it done in 9 months. That's a really ad hoc kind of cross-your-fingers approach to permitting, I think, because you might not get people who are so willing to work together. You might get opponents who are more vociferous. And for me, it would be much more comfortable if we could find a way to get these decisions made in the right way, in a way that protects the environment but also gives an answer. I've always said no is the second best answer. Let people know. And I was just actually looking at Twitter because there is some downtime in these hearings, believe it or not, and NRDC is opposing a pipeline very vociferously right now on Twitter, and that's fine. But I just don't think there's any excuse for not getting this done in a quicker way. And so I would like to work with you. By the way, you went to the finest law school in the United States of America. I would like to work with you, as a former alum of the same school, to see if we can't come up with better responses to the concern that we are hearing from the economy that this permitting process is in the way. It's too inefficient. I think we can do it in a way that's useful. Mr. Devine, I wanted to ask you, just in case we haven't covered it, you said in your testimony that you didn't think that Congress was at fault for the length of time it takes to do hydropower. So you tell me if there's anything Congress should do to address the situation out there. Mr. Devine. Yes. Thank you, Congressman Peters. I think there is, definitely. Let me do it by example, possibly. So I think what FERC tried to do with the integrated licensing process was try to bring some order and some efficiency to that process. It was a collaborative rulemaking process, which meant that all of the agencies and all conservation groups and the industry was involved in coming up with that process. And yes, it's still a long process but it's very structured and you go through the process and FERC, I think, has brought some efficiency in their effort to bring to the federal hydropower licensing process. The difficulty that we have in the process is you get to a certain point and and there are other federal and state licensing processes that then interact with that process and they don't have any sort of schedule particularly and I think the courts have actually said--I am not an attorney--that FERC is not in a position to force those agencies to meet any particular deadlines. So that means there is no deadline. Mr. Peters. So we should look at action-forcing, perhaps? Mr. Devine. Yes, I think so. Mr. Peters. All right. Thank you. My time has expired. I really to appreciate all the witnesses being here. I yield back. Mr. Olson. Gentleman yields back. The chair now calls upon himself for 5 minutes. My first question is for you, Dr. Hellyer, and again, it's so great to have you here this afternoon. You are the best of the best. As we both know, incredibly, I think kids these days still think they have to get a 4-year Bachelor's degree to be successful in America. But as San Jac shows, there are incredible opportunities and jobs related to American energy and infrastructure for kids without a B.A. Can you please tell me a little about what draws your students to your programs and how you're actively in the community to raise the profile of energy industry courses? Ms. Hellyer. Excuse me. I think it comes down to our relationship across all the sectors--with our K through 12 partners, with our university partners, but mostly with our industry partners--and we tackle that together. As I mentioned, we bring 6,000 sixth graders onto campus. That is based on hands-on experiments so that they can be working with industry partners at the table, seeing what happens in our petrochem facility, seeing what's happening in the maritime industry. Then we also reconnect with them again as they're going through eighth grade and we give those teachers experiments so they can refresh that in the classes. And in ninth grade, there is the speakers' bureau where we are going out into the high schools with, again, industry partners talking about the jobs. We had had many years where we weren't really focusing on the jobs in our region, and when you can become a process operator making $100,000 a year with an Associate degree, you start to look at that differently when you can be a welder and making $75,000 a year. And so we are really putting that marketing campaign together but that marketing campaign is for students, it's for parents, and it's also for teachers and counselors in our high schools because they don't necessarily understand all the pieces of our region. But then having industry really engaged in our programs, having internships, having apprenticeships where they can get hands-on training and then being involved in that interview process. So it's across the board partnerships. Mr. Olson. I would just ask you to brag. Can you talk about how you work with employers and local high schools to help students transition into industry? We've heard some confirm this--one day in May every year some young men and women walks across the stage, gets his high school diploma, spins around, puts on a different cap and gown and walks by and gets an AA from San Jacinto. Please explain that success you had with merging the education sector with your work there at San Jacinto College. Ms. Hellyer. So we have eight early college high schools and these are early college high schools designed for high school students to be earning an Associate degree at the same time as they're getting their high school diploma. So they will actually earn an Associate degree 2 weeks before they graduate from high school, and it's a great program. It's an intense program and people say, ``Well, how are those kids ready?'' It's because of the screening process. It's because of support systems. And where do those go to? I can tell you I've had students going to Princeton, UT, Penn State--just all across the country they're going to the top colleges after they graduate from us. But we also have a similar program for career and technical education. So, again, they're getting their career and technical process tech degree or a welding degree so they can go into the workforce right away. So at our graduation the youngest graduate can be 17 earning an Associate degree and in December the oldest was 72. So we serve everybody. Mr. Olson. That includes my alma mater Rice, Mr. Flores' alma mater Texas A&M, along those litany of UT and other schools? Ms. Hellyer. Yes. Our top five transfer universities, A&M and UT, are right there, and then all the University of Houston universities. Mr. Olson. Thank you. One question for you, Mr. Slocum. We know that building a new transmission line, especially longer ones across the state lines or electricity markets is remarkably complex. You said a decade, in some cases, in your opening statement. What is the largest driver for these delays? Is there anything Congress can do to make this move faster? Mr. Slocum. Yes. I would say the largest delays that we have--we have an example of a project between Iowa and Wisconsin that we got approval for I believe back in 2011, if I have my date correct, and we don't expect to complete that project until 2023. So we plan the project and we stand ready to build the project. But it's getting that permitting process done in the middle. And so I agree with a lot of what's been said today, that there are ways that we can more efficiently move through that process such that we can get to the point where we are building the lines, building the projects and those benefits are flowing to consumers rather than waiting and going through a serial permitting process. Mr. Olson. Thank you. One final question for you, Dr. Hellyer. My dear colleague, Mr. Green, in his opening statement mentioned I've not talked about the Houston Astros, and that's true. I didn't do that because I knew you could talk about the Houston Astros for me. [Laughter.] They went to the World Series in 2005 for the first time in the Astros' history. Two star players were on that team--Hall of Famers--Roger Clemens, Andy Pettitte. Where did they start playing there all beyond high school? What school was that? Ms. Hellyer. San Jacinto College. [Laughter.] Mr. Olson. Thank you. I yield back and yield to the gentleman from Texas, Mr. Green, for 5 minutes. Mr. Green. Thank you, Mr. Chairman, and I thank you for allowing me to testify or to ask questions, rather. I was shocked because one of the successes of San Jacinto College, Andy Pettitte--a great baseball player but he comes back every year and has a great golf tournament that supports San Jacinto College. And I am not a very good golfer. I haven't had a chance to play but I will at least go to the reception. So thank you, and thank all our witnesses for being here. I have a very urban district in Houston and one of the campuses of San Jacinto College is there and I have students from our district who go to the other two campuses. And I just want to thank Dr. Hellyer and the leadership both of the board of trustees but over the years at San Jacinto College because I was a state senator before I got to Congress I saw San Jacinto College doing some of the things that are so important today. Dr. Hellyer, can you elaborate on the partnership with local industry--the college heads and the Center for Petroleum Energy and Technology? I am interested in sharing more about how the industry guidance towards the curriculum is getting students ready for those real jobs today and not just generalized certificates, because I've been there and seen that partnership between the industry--the people who hire our constituents and the college. Ms. Hellyer. So one of the things with industry we have 90 petrochemical plants right there around us and it really is how do you partner. And so I make it very clear I want the good, bad, and the ugly around our programs and we are going to fix the bad and the ugly, and that's what the conversations are. And so, for example, our electrical program, as we've dug into that, it was too focused on residential. We have redesigned it where it has a commercial and industrial phase. Industry has come to the table and gotten us almost $2 million in donations so that we can really have the program that they need. We have built in the kind of testing they want, the kind of components they feel are so critical, the safety components, and we are just constantly revising our programs. One of the things that we needed to do was hire somebody from industry to run the program and so we have hired a man named Jim Griffin who has been a plant manager or in the industry for about 30 years and he's retired to work with us. He has the respect of industry and he is working with us on how we continue to develop and develop our faculty around that. It's the same approach we took with our maritime programs. But it really is creating the environment where you're having the conversations and then you're responding and you're bringing the resources to the table as partners. Mr. Green. I want to ask a question of Mr. Ross. Mr. Ross, when I was going to college I didn't play football well enough to get a scholarship so I did my apprenticeship as a printer while I was going to school. Can the IBEW or other trades partner with programs like San Jacinto College? How hard is it to get college credit, for example, for what may be the standard apprentice program for IBEW or plumbers or pipefitters or anything like that? Mr. Ross. Well, as I stated earlier we certainly work with community colleges in an attempt to try to steal their graduates and to get them into our program, definitely. Second, our 5-year inside apprenticeship program we work with community colleges for those individuals once they complete our program to get an Associate's degree. So once they graduate they work with the community colleges to get their Associate's degree. So they--our program is accredited for--toward an Associate's degree. So that's what we do. Mr. Green. And I think that's important because most folks getting out of high school want to earn a living and they may not be able to afford a college and go to college and they also may not want to take out loans so they could actually both get a job and do an apprenticeship. And I always remember my third year in my apprenticeship I actually started making decent money and I was able to get a business degree. And, so that's why I would like to see if we could structure that with our trades and also our community colleges. That's really important in my area in Houston and San Jac is part of it. And I know you're getting competition from some of our other community colleges. I am trying to get them to realize that trades skills are really important and, frankly, I remember when I was graduating from college I had an offer of $600 a month--1971 dollars, by the way--and I explained to those companies that offered me that--I said, ``Well, I am making $850 now and so I think I will stay in Houston and help manage this printing business.'' So that can be done but mine was just lucky. I would like to see it structuralized so whether they be in our district or anywhere else they can get that training and if they want to go on and get an electrical engineer's degree, that's great. But they can at least support their families. So Mr. Chairman, I want to thank you and you and I both are Astros fans and I know we'll be at the White House next week. Mr. Olson. Yes, we will. Gentleman yields back. The chair now calls upon the gentleman from the Commonwealth of Virginia, Mr. Griffith, for 5 minutes. Mr. Griffith. Thank you very much, Mr. Chairman, and since you always like to talk about sports I would be remiss, coming from the Commonwealth of Virginia, if I didn't mention the number-one basketball team in the country is UVA. But we are particularly proud in my district of the fact that our Virginia Tech Hokies beat the number-one team a couple week back and last night dispatched with the number five Duke team. So we are very proud of that. The district is one that has a lot of assets. We are a coal mining district. We have natural gas. Last week, I attended a meeting with a solar company in district. But, Mr. Devine, we also have a lot of water and hydropower is an essential component of an all-of-the-above strategy, which I have always supported, and I believe should be included in any infrastructure package that passes through this committee. I had a bill earlier or last fall--earlier in the session-- H.R. 2880, which streamlines the licensing process for the construction of closed-loop pump storage hydropower projects. I see those as giant batteries that are very energy efficient. I enjoyed reading your testimony where it talks about how hydro is the number-one ``clean energy source in the country,'' and I was wondering if you could explain to folks exactly how closed- loop pump storage hydro projects provide to our grid. Mr. Devine. Thank you. Be a pleasure to do so. So one of the aspects about pump storage is that it does help to bring in other renewable energy sources. It helps to regulate the grid in being able to incorporate those other renewable energy sources. The closed-loop part of pump-- basically, what pump storage is is that during periods-- historically, during periods of high demand an upper reservoir would throw water down to the lower reservoir and generate electricity in doing that. And then during periods of lower demand, base load stations like nuclear or coal would use energy to pump that water back up to use it at a more peak time. I think the role of pump storage is now changing. It's changing significantly, because it's now very critical to bring stability to the grid during the--and incorporating the other renewable energy generation opportunities into the grid and keeping stability to the grid. So the closed-loop part of this would be that while some pump storage projects are using water from, say, a river system that--in flowing by that would pump up water to the upper reservoir and then release it back to the river. A closed-loop system basically brings water into the system for one time and then is just constantly moving that water back and forth between the upper and lower reservoir. It only takes a little bit of water then to make up for some evaporation losses. So that closed-loop system, once built, basically operates by itself alone without any additional water flow or impact to the environment once built. Mr. Griffith. And as a result of that, do you agree that that warrants expedited consideration by FERC and with some relaxed regulations because we are using the same water over and over again so that we don't have as much impact on the environment? Mr. Devine. I do, and one of the main reasons is because oftentimes what's indicated to be the primary issue with respect to those is the effect of the river, where the water is being flowing into and pumping out of--fishery impacts, sediment impacts, other related potential impacts. With a closed-loop system, once you have built and filled these reservoirs and take care of that in the original licensing, you don't have that potential issue any further. So I do believe that it deserves that more efficient process and expedited licensing process. Mr. Griffith. And we've been interested in--because we hear all the time from folks who oppose coal that you all need to transition, we've been interested in maybe putting one of these inside an abandoned coal mine because then there's really virtually no impact to the environment. Would you agree with that? Mr. Devine. Yes. I think there's opportunities with a lower reservoir potentially to be inside old mining facilities. I think there have been several of those in the past proposed and some actually moved through the--back in the '80s I think it was, or early '90s, move through the processing and were not able to get the financing, not able to get built at that point but moved through the whole process of permitting and were closed-loop systems and using old mines for the lower reservoir. Mr. Griffith. We have a lot of people who are very interested in this and anybody that is interested in investing in the 9th Congressional District for doing one of these we've got plenty of water to put into the system. Mr. Slocum. I will just quickly mention ITC may be interested in that and we do have a project just as--exactly what you just mentioned in northwest Arizona that we've proposed and we've submitted that to FERC. And so I agree with everything that was just said. Thanks. Mr. Griffith. Thank you, and appreciate it and yield back, Mr. Chairman. Mr. Olson. Gentleman yields back. The chair now calls upon the gentlelady from Florida, who is a huge fan of the chancellor of University of Houston--Dr. Renu Khator, just like Dr. Hellyer and myself, Ms. Castor, has 5 minutes. Ms. Castor. Well, thank you, Mr. Chairman. I do have great respect for the University of Houston Chancellor Dr. Khator and I am sure she was as excited as you that her old alma mater, the University of South Florida, defeated the University of Houston in women's basketball last week. But thank you for giving me time to be ready with that one. I want to thank the witnesses for being here today. Many of you have cited in your testimony the importance of modernizing America's electrical grid and how that would be a very important piece of an infrastructure plan for the country, and I agree. Many of you have cited benefits of modernizing our grid. There is creating higher-paying jobs, building in greater grid resiliency, greater efficiency for our businesses and electric utilities and so much more. Many of you know that the Democratic colleagues on this committee have drafted a piece of legislation called the LIFT America Act. My contribution to the LIFT America Act has been to promote a modern grid that includes clean energy distribution and really trying to bring the most modern technology that we have developed to bear in an infrastructure plan. I think it's clear that if we were to make a real investment in clean, reliable, and cost-effective energy resources, the country would reap huge benefits. Ms. Chen, in your testimony you highlight the importance of technological innovations like expanded grid technology, smart meters, energy storage as part of upgrading the nation's power infrastructure. Can you elaborate on your vision for a more modern electrical grid with expanded distribution and greater technology and what would we need to build that? Ms. Chen. Sure. That response--I probably don't have enough time to fully flesh that out. But I think the number-one thing to think about here, especially when we talk about more clean innovative technologies on the distribution system is being able to integrate it with the larger bulk transmission grid so that that way whatever savings in electricity that you don't have to purchase from the bulk electricity system you can reap through fewer requirements on the transmission grid infrastructure, lower requirements on generation infrastructure that could be very costly for your consumers. But at the same time, if you integrate these distributed energy resources like storage, demand response, energy efficiency, solar panels, you can also allow them to recover revenues from the wholesale electricity markets. So one of the great things that FERC recently did was finalize the storage rule that enables storage, at least, to compete in the wholesale electricity markets. What it left behind is the distributed energy resources. There's a component to that rule that would have enabled those resources to also participate in the wholesale electricity markets. So FERC is going to convene a proceeding to investigate it further and we would love to see distributed energy resources to be able to participate in the bulk electric transmission system. So that kind of integrated system would be the overall large framework picture that we have for the modern grid. Ms. Castor. So you would encourage the Committee to urge FERC to move forward on that along with greater planning in advance across regions to help save money and become more efficient and put all those technological tools to use? Ms. Chen. Right. Absolutely. So this all goes hand in hand in the transmission planning process and the regional operators' load forecasting process. They have a lot of planning that goes on. Sometimes it's not holistic enough to account for everything that's on the distribution system. So, certainly, including these distributed energy resources in those plans would ensure that we don't overbuild and, again, it would ensure that if they can participate in the markets they could reap some of those revenues. Ms. Castor. And I just want to close by saying that I think there was bipartisan concern that President Trump's infrastructure plan, when it was released, included nothing in regard to modernizing America's electrical grid, just simply no mention, and I think that was a real absence of vision. Just like the plan included no mention of broadband expansion across the country, and I think this committee has a responsibility to take up that charge on a bipartisan basis with the matters that are in our jurisdiction and help lead the way. We can't do infrastructure and create these high-paying jobs and take our country to the next level unless infrastructure also means a modern electrical grid and greater broadband. So I yield back my time. Thank you. Mr. Olson. The gentlelady yields back and the chair wishes to inform the gentle lady that she publicly called Dr. Khator-- her new home getting defeated by her old home. I've sent her a text message about the statement so be prepared for a response if it hasn't come already. The chair now calls upon the gentleman from Indiana, the Hoosier State, Mr. Bucshon, for 5 minutes. Mr. Bucshon. Thank you, Mr. Chairman. Earlier this Congress, the House unanimously passed my bill, H.R. 2872, the Promoting Hydropower Development at Existing Non-powered Dams Act. H.R. 2872 would promote hydropower development at existing non-powered dams by establishing an expedited licensing process for qualifying facilities that will result in a decision on an application in 2 years or less. The bill also requires FERC, the U.S. Army Corps of Engineers, and the Department of the Interior to develop a list of existing non-powered federal dams that have the greatest potential for non-federal hydropower development. Developing hydropower generation at over 50,000 suitable dams across the country has the potential to have 12 gigawatts of clean energy to the grid, create good-paying jobs, and bring billions of dollars of investment. In fact, in the 8th District of Indiana, which I represent, there are six suitable dams that can benefit from this expedited permitting process. This legislation modernizes our existing infrastructure and I believe should be included in any infrastructure package passed out of Congress. So Mr. Devine, in your testimony you state that enacting legislation like this, and you quote, ``in a way to move investments in hydropower infrastructure forward without major cost to the U.S. government.'' Can you speak to the impact H.R. 72 and other hydropower legislation but specifically this would have on hydropower development across the country as well as its role in our country's infrastructure? Mr. Devine. Yes. Thank you, Congressman Bucshon. I think it's an excellent example of trying to improve the investment picture for small hydropower and hydropower in the country. It's also an example of moving forward hydropower at existing dams recognizes that the main aspect of these dams are usually run-of-river dams. Run-of-river dams are known to have very minor impacts, generally, to the water resources of the river. Therefore, a 2-year expedited process in this is not incongruent with protecting environmental resources. I think it's also an example of an expedited process which also continues to protect the environment because these environmental analyses will be done and completed in a reasonable time frame and fully evaluated from the scientific perspective. I think it also combines the expedited time frame for the licensing process and is a good example of not trying to rescind any environmental laws or regulations. I think it's a fine example of encouraging new investments in hydropower and recognizing that some of these projects have minimal environmental effects and could move forward expeditiously. Mr. Bucshon. Thank you very much. I just want to point out this bill was passed unanimously out of the House with bipartisan support. We worked with both parties to develop language that people were comfortable with and, again, I want to reiterate that the environmental review process is still there in place. We are just getting federal agencies to move the process more quickly rather than 10 years or 12 years to a process that would be over a 2-year period, which the potential for expanding this form of clean energy is tremendous. And I look forward to our Senate colleagues taking this up and I do think there's a lot of interest over there and I think in a bipartisan way. I am hoping to get this type of legislation to the president's desk. So thank you very much, Mr. Chairman. I yield back. Mr. Olson. The gentleman yields back. The chair now calls upon the pride of Schenectady, New York, right behind Thomas Edison, as we learned this morning-- Mr. Tonko, for 5 minutes. Mr. Tonko. Thank you, Mr. Chair. I think the pride may be the mayor of Schenectady. But that's up for discussion. Mayor, again, I want to thank you for a very comprehensive report. It is so innovative and it allows us to go into the next stage of energy resources, and I thank you, again, for the vision that, obviously, will lead many people down a path of sound energy policy. Schenectady has, I believe, over 5,000 street lights and what is considered when a city decides to make a major infrastructure investment such as converting to LED streetlights? Mr. McCarthy. Again, there's approximately 5,000 street lights in the city of Schenectady, 500 of which the city owns. Forty-five hundred, approximately, are owned by the utility. So the 500 that the city owns are fairly easy to deal with. Where you get utility-owned streetlights it becomes a more complicated process to either buy those or purchase the residual value of the fixtures that had been installed and that's why we are trying to work with New York Public Service Commission to come up with a model that would allow that transition to the LED lights. When you're doing that it's not to miss the opportunity to put some of the other available technology on the light pole, which will, again hopefully help the utility, help the city, then help the residents and businesses within the community take advantage of some of the emerging and wireless and sensor-based technologies. Mr. Tonko. So as you convert to LED, what are the potential savings for the city when adopting a smart lighting system? Mr. McCarthy. The initial savings--our number is just under $400,000--about half of our electrical costs. Also, when you put the optical sensors on the poles that you can then pick up additional savings when you dim the lights further when there's less activity on the street. When you put either a Wi-Fi or cellular communication protocol on the pole it might be able to extend that savings to residents or businesses so that your control is on the sensor on the street but you would enable homeowners or businesses to be able to dim their either porch lights or advertising on their buildings or other fixtures that they might have when there's no activity--you could dim that. When there is activity you'd be able to turn them up. So it becomes really an integrated deployment where, hopefully, everybody will benefit from it. Mr. Tonko. Tremendous. In addition to lighting, Schenectady has developed other clean energy and efficiency projects. Among them a few years ago the city installed a CHP system--a combined heat and power system--at the wastewater treatment facility and more recently installed a solar array, I believe, at that facility. Mr. McCarthy. Yes. Mr. Tonko. What are the benefits of these types of projects? Mr. McCarthy. Our wastewater treatment plant, the co-gen facility there, saves us approximately $30,000 a month in utility costs, capturing the methane gas and burning it on site and then our solar deployment at the time was the largest municipal solar array in New York State. It's done on top of an enclosed reservoir. The Bevis Hill Reservoir supplies hydrostatic pressure for the water system within the city. Mr. Tonko. So there's, obviously, long-term benefits there to the city with these projects? Mr. McCarthy. Correct. It was just really unused land and so now we get 711 kilowatts of electricity generated there that we use a remote metering package to offset the costs of some of our higher utility bills of the municipal--primarily city hall and some of our fire stations. Mr. Tonko. Right. Just make mention here for the record that the city established a smart city advisory commission chaired by Mark Little, the former chief technology officer and director of GE Global Research, which includes businesses and important institutions from around the area. So it's really pulling in the private sector-public sector partnership. Back to those public sector partnerships, are there-- earlier you were quizzed about the 80/20 match with Ranker Rush. But are there opportunities for public partnerships at the state and federal level that you would encourage? Mr. McCarthy. I believe everybody has to look at the emerging technologies. Things are changing so fast. I was here at a NIST event 3 weeks ago and they talked about that 90 percent of the data that exists in the world today had been created in the last 36 months. I went back and used that statistic at an event at our community college. Somebody came up to me and corrected me. He said, ``Mr. Mayor, that's wrong. Ninety percent of the data that exists in the world today has been created in, roughly, the last 24 months.'' So there is so much information out there that, if properly managed, it will allow us to do predictive analytics. It will enable us to drive better outcomes, whether it's government services, products that are produced in business, and educational opportunities within our communities. But, again, it's happening so fast that we have to have policy standards and an environment that allow those things to be fully utilized and taken advantage of in a rapid manner. Again, it's really our global competitiveness is a key component of that because other countries are moving faster in some areas. Mr. Tonko. Thank you very much, again, for the vision. And I agree, the challenge to us now is to determine how we utilize the great compilation of data that we acquire. And with that, Mr. Chair, I yield back. Mr. Olson. Gentleman's time has expired. The chair now calls upon the Motorcycle Riders Foundation 2017 Legislator of the Year, Mr. Walberg, for 5 minutes. Mr. Walberg. Wow. [Laughter.] Tell you what, always wondering what in the world you do to get all of the research done with all of our members here. It's impressive, Mr. Chairman. Impressive. Thanks to the panel for being here. Mr. Ross, I certainly appreciate the work the Brotherhood does in training people to do jobs whether it's at my Fermi plant--the DTE Fermi plant--or down Lake Erie a bit at the big coal-fired plant or in all of the consumers' gas-powered plants, et cetera to get the electricity to the lines and ITC and others. We appreciate the work you do. I want to ask you to give us some examples, if you could, or ideas how we can expand access to apprenticeships. But I would preface it by saying I was greatly excited with what our governor was proposing in Michigan last week called the Marshall Plan for talent and, specifically, as he talked about pushing means toward short-term certification programs, education programs, whether it's the community college level or apprenticeships, et cetera. The PROSPER Act that we passed out of the House Education and Workforce Committee just a couple months ago that reauthorized the Higher Education Act has a one-loan one-grant one-work study program that can be done for that very purpose-- those Pell grants, et cetera, that can go towards short-term training opportunities as well in the professional trades, as we are calling now in Michigan. I know they're skilled but they're professional as well and we want to give that idea out to our students that could look to fill spots that can be an asset to what we have. The SKILLS Act we passed several years ago and was signed by President Obama, again, pushed education for real-world jobs back to the states and the local communities and private entities like yourself. So we want to build on that. What would be the best way to do this, to expand recruiting and apprenticeships for the next generation of electric workers as well as how can the U.S. encourage more individuals pursue these programs? Mr. Ross. I think we should start by introducing the trades earlier on in school. When I came through school you were introduced in shop class or you had to go to electrical class just to introduce individuals to those programs, and there's not much vocational training, at least I haven't seen much, in the high schools anymore. They've gone away from that and certainly guidance counselors have gotten away from trying to push individuals to our industry--the trades. Unfortunately, not everyone is cut out for college or even community colleges, in some cases. We take individuals with basically a high school education, at a minimum, and for an electrician basically high school algebra is a bare minimum for us and we train them to be electricians. We certainly need to do a better job of promoting that program to individuals out there and, quite frankly, we need to do a lot better than what we have been. And I think reintroducing them in the high schools would certainly be a starter--even earlier in junior high--to get them exposed to what the trades are--have them hands-on. We also have pre-apprenticeship programs out there that our electrical training alliance has developed to put high school graduates into those programs. It gets them exposed to what's expected of them when they become selected as an apprentice. So some of those programs we are trying to promote. Mr. Walberg. That's great. The push to encourage people toward their sweet spots--it would be a waste of time for some to go the university or 4-year college route. We would waste the skills and the talents that they have, and if we think about professional skills these are jobs like you're talking about that are careers--that are good paying and can continue to expand. I wish you well on that. We need the juice. [Laughter.] We need the electricity to our homes. Mr. Slocum, earlier this Congress with the help of this committee we passed H.R. 1109. This was legislation that was introduced to reduce red tape on both industry and FERC to free up resources and lower utility bills. This made a simple fix to Section 203 of the Federal Power Act and harmonized the language in that particular section. We know there needs to be serious permitting reform. Simple or technical fixes such as 1109 that Congress can pass to remove red tape and reduce burdensome paperwork--other low- hanging fruit ideas as well. What would you have to move us forward to get past this red tape and bureaucracy? Mr. Slocum. Thank you, Congressman, and we appreciation the work that was done there to make things more efficient with respect to that 203 process. And I think, as mentioned in my testimony, I talk about some changes that could be made to the NEPA process that seems to have a level of agreement and seems to make some straightforward sense as far as making sure that we can get through the permitting process in a timely manner but we can do that efficiently. And so that would be one of the biggest things that I would see that would be a low-hanging fruit type opportunity. Mr. Walberg. My time has expired. I yield back. Mr. Harper [presiding]. Gentleman yields back. The chair will now recognize the gentleman from West Virginia, Mr. McKinley, for 5 minutes. Mr. McKinley. Thank you, Mr. Chairman. This now is the thirteenth we've had out of those--2 hours ago we heard this is the forty-seventh hearing we've had on infrastructure and this is the thirteenth dealing with grid resiliency regarding the infrastructure. We've heard a lot of good solutions over those 47 and, clearly, we have a growing problem with the adequacy of our energy infrastructure and the grid being at risk. But, unfortunately, I can tell you, I am not sure the messages are being heard because just a few years ago we had with the Polar Vortex we came within just minutes of having a blackout through the PJM. PJM was reporting that. And now ISO is just--New England has just come out with a very well- documented report that says the possibility of the power plants in the New England area won't have or be able to get the fuel they need to operate, and their quote was, ``This is the foremost challenge to a reliable power grid in New England.'' And then further in the report it says New England has a better than 80 percent chance of a blackout in the next bad weather storm. But in the meantime, New England is becoming increasingly reliant on Russian LNG to be able to satisfy their energy demands instead of using American energy. So if we are truly committed as a country for energy dominance, what are we doing about it? Are we listening to the hearings that have been taking place? And then one that particularly disturbs me is that New England is apparently importing subsidized Canadian electricity at the expense of American jobs--80--or 73 gigawatts of power coming in from Canada. I've got to think that the impact of that--instead of having the jobs that we could have as a result of that, nearly a hundred coal-fired or nuclear or wind or solar--the equivalent of power plants, we could have those in America instead of importing from overseas or from Canada. I don't understand why the governments in the New England area are withholding permits to be able to build pipelines so that we could use American resources to be able to do that. As a result, we seem to be prematurely closing a lot of our coal and nuclear power plants unnecessarily so. So I think we have to be careful and I hope that these hearings will underscore that because what we've talked about is a couple weeks ago we passed a 45Q, which was a tax credit. We need to give more people the chance to use that 45Q to find out if we don't get carbon capture with this tax credit that we were able to pass. And then working with Congressman Tonko, we keep pushing the efficiency idea with turbines. We have capabilities of doing this but it doesn't look like there's a commitment to do it. The fuel security is, I believe, a national security and that's what these two reports are saying. So if government is-- both sides of the aisle--really serious about all-of-the-above energy resources instead of just empty rhetoric, isn't it about time that we paint or get off the ladder? Think about that. So Mr. Ross, I know you have got a connection back to Parkersburg. What's your response to the fact that we are importing electricity from Canada rather than creating American jobs and using American ingenuity and American efficiency and American clean environment? Mr. Ross. I hate to say too much to our brothers in the north because we represent IBEW members out there. So the powerline I talked about earlier on would be done with IBEW. So I understand where you're coming from. There's plenty of resources here in the United States we can use if we could just get the permitting process sped up and create the national grid that we need. Mr. McKinley. Can any of you explain why the pipelines are being held up so that we can use American resources to create American jobs? Mr. Slocum. I will just say I can't speak to pipelines but certainly with the electric transmission infrastructure I think it's a lack of that interregional planning where you can get buy-in to a project and the reasons for the project and then from there you can move forward with the permitting and get something that's actually an interregional project built. Until you have the impetus behind the project, it becomes very difficult to cross state lines, especially multiple state lines, where there's going to be winners and losers between those two areas unless you have a project that has some sort of ultimate approval that's going to proceed and move forward. Mr. McKinley. I know my time is over. But I find it just offensive that, according to this Bloomberg article that we are importing natural gas from Russia instead of using our own supplies, especially with all the gas that we have discovered in America that makes us such a large producer. I hope that we can reverse that. I yield back. Mr. Harper. Gentleman yields back. The chair will now recognize himself for 5 minutes. And Dr. Hellyer, I would like to ask you a few questions and certainly you know very well how the energy landscape of the United States is constantly changing. And according to the U.S. Department of Labor, the average age of the U.S. energy workforce is over 50 and the energy sector will need more than 100,000 new skilled workers by 2024 just to replace those retiring workers, and by some estimates more than twice as many workers are expected to retire as are currently involved in the apprenticeship or certificate programs, and degree completion and engineering has remained relatively stagnant since the 1980s. So from your perspective, what incentives are needed to expand community college access and apprenticeship programs? Ms. Hellyer. One of the conversations we had mentioned earlier was around Pell, and Pell is an important component for all students of higher education, specifically community college students. And there are 2.7 million community college students using Pell. From our standpoint and in my community, 75 percent of the students are first generation to college. About 75 percent are also going part time, and if you dig into our ISDs they are about 70 percent economically disadvantaged. And so Pell does play a critical role. I think it's what Mr. Ross said earlier also is that awareness around those jobs, which is something that we have really done well in our region trying to build that awareness much younger and then putting that all together and allowing the resources to be put in place, the industry partnerships to build the apprenticeships. We have registered approved apprenticeships at San Jacinto College and we have unregistered programs and, again, designing them based on what the industry partner needs but realizing that it's a combination that's going to be needed. Mr. Harper. So how do you communicate to these students that these are the types of jobs in the energy and manufacturing sector that they can have a good life, support their family on? How is that communication made to the students? Ms. Hellyer. In our region what we are doing is first we are engaging in sixth graders, bringing them onto campus and seeing hands-on around what happens in our petrochemical plants, what's happening in the maritime industry so having that hands-on, reengaging them again in eighth grade. In eighth grade in Texas, students decide an endorsement-- an area of study--and so we are engaged with them around that process. Again, how does this tie back to the jobs in our community, and then we also have a speakers bureau, which is led by industry with community colleges going in to the eighth grade and then the high schools. Those conversations are directed at parents, teachers, counselors, and students. You need that broad awareness and, to be honest, just as Mr. Ross said, there hadn't been that kind of awareness in our communities for a lot of years and so we are building that pipeline. But when you can talk that a process operator will make $100,000 or a welder $70,000 with the proper credentials, that starts speaking. And those students need to hear it from people that are younger than me. They need to hear it from people who went to their high school and that are reengaging and that's what industry has done. They bring in those people working in their plants back into the high schools where they can get a role model and then get their questions answered. And then it's us putting in place the support systems at the college--having industry partners at the table, being real clear what the expectations are, defining how's the safety culture built in--what's the work ethic and reinforcing that in all your programs. Our industry partners at the table with us are the critical factors. Mr. Harper. That's great. What we observed is students just by nature, when they're in high school, the earliest time that they are able to opt out of math and science classes they try to do that and get it done and then you lose those skills. So are you seeing any connection with that to where you're seeing more and more students maintain the STEM curriculum in high school so they don't opt out of those possible job opportunities? Ms. Hellyer. So, again, it's working with our high schools and with the industries but also with the universities because some of those jobs do require university and so how do you have that pipeline. And then for us in higher education we can redesign math a little bit. We are not directing all students to college algebra. If you're moving in to a business degree you're doing more statistics. If you are going into process technology it's more of a technical math and showing how that reinforces with what you're going to do--welding, more geometry. And so we try to redefine some of that. We take the same approach with English. Our operators need English. They need the math skills. They need more of a technical English and so how do you redesign that and being very prescriptive again, take math early, take the sciences early because it does reinforce the rest of the courses in your degree program. Mr. Harper. Thank you, all of you, for being here. It's provided a lot of important insight to the committee. And seeing that there are no further members wishing to ask questions I would like to thank all of our witnesses again for taking the time to be here today. Before we conclude, I would like to ask unanimous consent to submit the following letters for the record: One, the Utilities Technology Council letter, and the second is the American Public Gas Association. [The information apears at the conclusion of the hearing.] Mr. Harper. Without objection, those are so entered and I will ask if Mr. Rush has any similar documents. Mr. Rush. Mr. Chairman, I would ask the unanimous consent to enter into the record different letters, one from the Center for American Progress, these are statements, one, and the American--the Center for American Progress has a statement debunking the false claims of the environmental review component. Additionally, there's the Center for American Progress statement on Trump's infrastructure scam that will gut the environmental protection to benefit corporate polluters. And we have a series of others--BlueGreen Alliance entitled, ``The Right Way to Repair America's Infrastructure''--the Earth Justice statement, which is entitled, ``Congress Should Support an Infrastructure Plan that Builds Infrastructure, Not Gut Health and Environmental Protection.'' And lastly, a New York Times article that's entitled, ``Trump's Infrastructure Plan Puts the Burden on State Environment Money.'' [The information appears at the conclusion of the hearing.] Mr. Harper. Without objection. Pursuant to committee rules, I remind members that they have 10 business days to submit additional questions for the record and I ask that witnesses submit their response within 10 business days upon receipt of the questions. Without objection, the subcommittee is adjourned. [Whereupon, at 12:24 p.m., the committee was adjourned.] [Material submitted for inclusion in the record follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]