[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
GROWING THE CLEAN ENERGY ECONOMY
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON RURAL DEVELOPMENT, AGRICULTURE, TRADE, AND
ENTREPRENEURSHIP
OF THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
SEPTEMBER 10, 2019
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-042
Available via the GPO Website: www.govinfo.gov
_________
U.S. GOVERNMENT PUBLISHING OFFICE
37-542 WASHINGTON : 2019
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HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
JARED GOLDEN, Maine
ANDY KIM, New Jersey
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Abby Finkenauer............................................. 1
Hon. John Joyce.................................................. 3
WITNESSES
Dr. Lynn Abramson, President, Clean Energy Business Network,
Washington, DC................................................. 6
Mr. Thomas R. Brooks, General Manager, Western Dubuque Biodiesel,
Farley, IA..................................................... 7
Mr. Michael G. Williams, Deputy Director, BlueGreen Alliance,
Washington, DC................................................. 9
Mr. David J. Spigelmyer, President, Marcellus Shale Coalition
(MSC), Pittsburgh, PA.......................................... 11
APPENDIX
Prepared Statements:
Dr. Lynn Abramson, President, Clean Energy Business Network,
Washington, DC............................................. 25
Mr. Thomas R. Brooks, General Manager, Western Dubuque
Biodiesel, Farley, IA...................................... 32
Mr. Michael G. Williams, Deputy Director, BlueGreen Alliance,
Washington, DC............................................. 39
Mr. David J. Spigelmyer, President, Marcellus Shale Coalition
(MSC), Pittsburgh, PA...................................... 47
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
None.
GROWING THE CLEAN ENERGY ECONOMY
----------
TUESDAY, SEPTEMBER 10, 2019
House of Representatives,
Committee on Small Business,
Subcommittee on Rural Development,
Agriculture, Trade, and Entrepreneurship,
Washington, DC.
The Subcommittee met, pursuant to call, at 10:02 [a.m.], in
Room 2360, Rayburn House Office Building, Hon. Abby Finkenauer
[chairwoman of the Subcommittee] presiding.
Present: Representatives Finkenauer, Golden, Craig, Kelly,
Hagedorn, Burchett, and Joyce.
Chairwoman FINKENAUER. Good morning. The Subcommittee will
come to order.
And I just first want to say thank you, thank you, thank
you to all of our witnesses who came here, traveled some long
distances to get here, and it means a lot that you all took
time out of your days to be here and join us here in Congress.
I also want to say welcome back to the Committee members
here. We are excited to jump back in and starting with a really
important hearing here today.
You know, as the Congresswoman from Iowa's First
Congressional District, I know how important it is that we
invest in clean energy and renewable fuels and how important
those are to our economy and our environment.
As the sector continues to grow and become a driving force
in the global economy, businesses large and small are looking
to take advantage of these new opportunities. By reducing
emissions, supporting renewable energy, and increasing energy
efficiency, we can reduce our environmental footprint and
continue to create millions of high-skilled jobs.
Small businesses play a vital role in the clean energy
economy, from our farmers growing corn and soybeans for
biofuels, to our manufacturers creating parts for wind
turbines, to our utility workers and workers installing energy
efficiency equipment. Nearly every State has seen an increase
in clean energy jobs.
The sector now employs more than 3.2 million people,
outnumbering jobs in fossil fuels almost 3 to 1. These jobs are
in a wide range of industries, many of which have had a large
presence of small firms.
Through innovation and hard work, many small businesses are
bringing clean energy technologies to market, creating economic
growth and supporting communities across the country. Even
large scale projects, such as wind farms and solar arrays,
create jobs and opportunities for these smaller firms.
Moving forward, we need to make sure that we are supporting
also our skilled workers, along with building trades and other
union apprenticeship programs which these growing industries
rely on to meet their workforce needs. Metal workers,
machinists, and truck drivers are among the Americans helping
create a more efficient and reliable clean energy future for
our country.
The clean energy economy has had an especially beneficial
impact on small towns and rural areas. Rural communities in the
Midwest, in States like Iowa, have experienced notable growth
in renewable energy. These industries are proven job creators,
adding more than 8,000 new jobs in 2016.
This hearing will explore the challenges and opportunities
to advancing energy efficiency and renewable energy
technologies and identify what Congress can do to support the
small businesses and skilled workforce that are the backbone of
the clean energy economy.
Being from Iowa, the topic of the hearing has obviously
some very special importance to me. Our State is a leader in
clean and renewable energy thanks to our strong agricultural
industry, investments in wind and solar energy, and strong
support from both the public and private sectors.
Over a third of the energy generated in Iowa, over 36
percent comes from wind. That is more wind energy than any
other State, and I do happen to know wind energy does not cause
cancer. And sadly, I jokingly say that, but unfortunately we
need to say that. You know, I know that is something that the
administration and our President has talked about. And it is
not true. The facts are that wind energy is good for our
communities and good for the environment and something that we
should be respecting and supporting, not making fun of or
creating false--false lies about.
We also lead the Nation in the production of biofuels, with
4.35 billion gallons of ethanol production and 365 million
gallons of biodiesel production in 2018, renewable fuels make a
significant contribution to the Iowa economy.
Biofuels support 48,000 jobs in Iowa and have become a
critical domestic market for corn and soybeans. However, our
renewable fuel sector is facing hard times, which makes this
hearing especially timely. Uncertainty surrounding some of the
Federal policies and incentives that the biofuels industry has
come to rely on has thrown its future and the future of my
neighbors and Iowa farmers into jeopardy.
This administration's unprecedented use of small refinery
waivers have undercut the renewable fuel standard. The approval
of these 85 waivers have killed demand for roughly 1.4 billion
bushels of corn and are an economic blow to farmers like my own
sister and brother-in-law who are already facing the
devastating effects of the prolonged trade war.
I am currently working with my colleagues on both sides of
the aisle to call for a Federal investigation of the secretive
exemption process for small refineries, but the question is
whether relief will come soon enough for the biofuels industry.
Even some of the biggest companies like ADM have seen
profits drop by roughly 40 percent, and others have been forced
to cut production or stop altogether. And this was happening
even before the administration granted the additional 31 small
refinery waivers for 2018.
The expiration of the biodiesel tax credit has also created
a huge challenge. This credit has been effective in helping the
biodiesel industry develop and compete with the well-
established fossil fuel industry. Biodiesel now supports 60,000
jobs and generates more than 11 billion in economic activity
annually.
Producers are now struggling to survive without the credit.
Already at least eight biodiesel plants have shut down this
year. Another three or four may close before the end of the
month if this credit is not extended.
For months now, I have been working hard on bipartisan
legislation to renew the biodiesel tax credit. Iowa jobs are
quite literally on the line, and we must act now to support and
extend these tax credits.
While pleased, obviously, that the Ways and Means has
marked up a tax credit extender package that includes a 3-year
extension of the tax credit, I will continue to call on the
House and Senate leadership to please work together and extend
the credit immediately.
The renewable fuels industry, like our other renewable
energy producers, have fought hard for a seat at the table and
are an integral part of the clean energy economy. We are
fortunate to have a biodiesel producer actually from Iowa here
today to discuss some of the challenges facing the industry.
And with that, I again just want to thank you all for
taking the time out of your busy schedules to be here, and I
really look forward to our conversation. I hope we all leave
here today with a deeper understanding of the future of clean
energy and how to better support our small businesses and our
workers in these sectors.
I also want to take a moment too to thank Ranking Member
Dr. Joyce who is here with us today and would now like to yield
to Ranking Member Dr. Joyce for his opening statement.
Mr. JOYCE. Thank you, Madam Chairwoman.
And thank you for addressing such an important issue,
within hours of us coming back to Washington, addressing
preparation for growing the energy economy, the clean energy
economy, which is so important to us.
Today, our Subcommittee will examine the economic
opportunities, the challenges, and the clearcut benefits that
clean energy presents to small businesses across our country.
My home State of Pennsylvania has an extensive history of
supplying the Nation with reliable energy. As technology has
advanced, our methods have evolved. However, throughout these
changes, Pennsylvania has been able to maintain its position as
a national leader in the energy economy.
Thanks to the vast amounts of natural resources,
Pennsylvania maintains its position as the second largest net
supplier of energy to all other states.
In recent years, we have made impressive advancements to
minimize the environmental impact of our energy production.
Pennsylvania is home to more than 700 active wind turbines,
many of which you will find within my district, the 13th
District. We rank second in the Nation in nuclear power
generating capacity, and we continue to see that Pennsylvania's
private businesses expand their use of solar energy.
Pennsylvania is second only to Texas in expanding natural
gas reserves, which have more than tripled from 2011 to 2017.
And thanks to the development in the Marcellus Shale industry,
that has successfully occurred.
The development of natural gas in Pennsylvania not only is
expanding economic opportunities, but it is also helping to
drive declining CO2 emissions in the U.S. power sector.
According to the EPA, aggregate national emissions of the
six common pollutants alone dropped an average of 73 percent
from 1970 to 2017, while the gross domestic product grew by
over 300 percent. The emissions reductions have led to dramatic
improvements in the quality of the air that we breathe. Between
1990 and 2017, national concentrations of air pollutants
improved 80 percent for lead, 77 percent for carbon monoxide,
88 percent for sulfur dioxide, 56 percent for nitrogen dioxide,
and 22 percent for ozone.
As a physician, I understand the importance of clean air
for the health of all Americans. And at the same time, we must
be careful to balance our desire to reduce emissions with
common sense, reasonable reforms that remove regulatory
barriers, and allow the free market to drive our solutions. We
must be practical about where we are as a Nation and what we
can accomplish together to develop cleaner energy supplies.
As we focus on transitioning our energy supply to more
renewable solutions, we cannot simply abandon traditional
methods, but rather, must encourage innovation to attract and
harness private capital to help accelerate deployment of future
clean technologies. An all-of-the-above approach is the only
way to ensure that Americans have access to affordable,
reliable energy.
Today, the witnesses will discuss their experiences in the
clean energy economy and give us insight in what works best for
ensuring that America has a reliable and secure energy
portfolio.
It is clearly a privilege to welcome my fellow
Pennsylvanian and Penn State alumnus Dave Spigelmyer as one of
our witnesses, who will share a firsthand account of the
important role of natural gas in central and western
Pennsylvania.
I look forward to learning from each and every one of you
today and having a productive discussion on this very important
issue.
With that, Madam Chairwoman, I yield back.
Chairwoman FINKENAUER. Thank you, Dr. Joyce.
The gentleman yields back.
And if Subcommittee members have an opening statement
prepared, we would ask that they be submitted for the record.
I would again just like to take a minute to explain the
timing rules here as we move forward. So each witness gets 5
minutes to testify, and the members get 5 minutes for
questioning. There is a lighting system right in front of you
to assist you. The green light will be on when you begin, and
then the yellow light comes on when you have 1 minute
remaining. The red light comes on when you are out of time, and
we ask that you stay within the timeframe to the best of your
ability.
I would now like to introduce our witnesses.
Our first witness is Dr. Lynn Abramson. She is the
president of the Clean Energy Business Network, the small
business voice for the clean energy economy, representing over
3,000 businesses in all 50 States and across a diverse suite of
technologies and services in energy efficiency, renewable
energy, natural gas, and other advanced energy and
transportation sectors.
Dr. Abramson has earned a BA in biology from Boston
University, and a Ph.D. in marine atmospheric sciences from
Stony Brook University, where her research on carbon cycle
processes spurred her interest in advancing low carbon energy
solutions.
Thank you for joining us today, Dr. Abramson.
Our next witness is Mr. Thomas Brooks, who is the general
manager of Western Dubuque Biodiesel--I know you as Tom--a 30
million gallon production facility located in Farley, Iowa.
Mr. Brooks is the son of a Kentucky row crop and livestock
farmer. When starting his education, Mr. Brooks' first field of
study was actually ministry. Mr. Brooks then later attended
Texas A&M to study aerospace engineering. He is also an active
member of the Corps of Cadets and was commissioned a second
lieutenant in the U.S. Air Force in 1984 as an air weapons
officer with a degree in sciences.
Mr. Brooks has had more than 20 years of experience in his
field, specifically refinement and value adding of animal fats
and oil. He serves on the Iowa Biodiesel Board, the Iowa
Renewable Fuels Association, and the National Biodiesel Board.
He is a very busy guy.
Mr. Brooks, thank you for your service and thank you for
coming from all the way from Iowa and spending 5 hours in the
Chicago airport to join us.
Our third witness today is Mr. Michael Williams, the deputy
director of the BlueGreen Alliance, an organization that unites
America's largest labor unions with influential environmental
organizations to solve environmental challenges in ways that
create and maintain quality jobs and build a stronger economy.
Mr. Williams oversees the development of the organization's
policy and legislative agenda as well as the organization's
revenue and fundraising efforts. He has an extensive background
on issues related to climate change, clean energy,
infrastructure--one of my favorites--and procurement policies,
including overseeing the launch of BGA's landmark policy
initiative, Buy Clean, a first of its kind policy that was
signed into law in California in 2017.
Mr. Williams, thank you so much for being here.
I now yield to Ranking Member Dr. Joyce to introduce our
time witness today.
Mr. JOYCE. Thank you, Madam Chairwoman, again.
Our fourth witness today is David Spigelmyer, president of
the Pittsburgh, Pennsylvania-based Marcellus Shale Coalition,
or MSC, the region's largest shale development trade
association.
Mr. Spigelmyer was instrumental in the founding of the MSC
in 2008 and has served as the organization's Chair, Vice Chair,
and as lead on its legislative committee.
The Marcellus Shale Coalition, with supply chain partners
in the Appalachian Basin and across the country, address issues
regarding the production of clean, job-creating American
natural gas from the Marcellus and the Utica Shale plays. One
of its guiding principles is to implement state-of-the-art
environmental protection across all of its operations.
I am grateful to have Mr. Spigelmyer here with us today to
highlight the benefits and economic opportunities that clean
natural gas provides.
Mr. Spigelmyer is a native of Clearfield County, DuBois,
and a Penn State alum, as in ``We Are.'' He now lives in the
southwestern Pennsylvania area with his wife and two children.
I thank him as well for traveling to be with us today, and
I am looking forward to hearing his expert insights about clean
natural gas.
Thank you, Madam Chair.
Chairwoman FINKENAUER. Thank you, Dr. Joyce. The gentleman
yields back.
And, Dr. Abramson, you are recognized now for 5 minutes.
STATEMENTS OF LYNN ABRAMSON, PRESIDENT, CLEAN ENERGY BUSINESS
NETWORK, WASHINGTON, DC; THOMAS R. BROOKS, GENERAL MANAGER,
WESTERN DUBUQUE BIODIESEL, FARLEY, IA; MICHAEL G. WILLIAMS,
DEPUTY DIRECTOR, BLUEGREEN ALLIANCE, WASHINGTON, DC; AND DAVID
J. SPIGELMYER, PRESIDENT, MARCELLUS SHALE COALITION (MSC),
PITTSBURGH, PA
STATEMENT OF LYNN ABRAMSON
Ms. ABRAMSON. Chairwoman Finkenauer, Ranking Member Joyce,
and members of the Subcommittee, thank you so much for the
opportunity to testify today on the topic of growing the clean
energy economy.
My name is Lynn Abramson, and I am president of the Clean
Energy Business Network, which serves as the small business
voice for the clean energy economy. Our network of more than
3,000 small and mid-size business leaders across the country
spans all 50 States, including at least 31 professionals in the
congressional districts that are represented by members of the
Subcommittee.
My remarks today will focus on growth--the growth of the
clean energy economy as a whole, the growth opportunity that
small businesses represent, and the vision for how policymakers
can help business leaders deliver on that growth potential.
Renewable energy, energy efficiency, and natural gas
represent the growth sectors of the U.S. energy economy.
According to data from the 2019 Sustainable Energy in America
Fact Book, these clean energy sectors now employ 3.4 million
American workers and supply more than half our Nation's
electricity. And this growing industry is not only powered by
tech giants in Silicon Valley but also by the neighbors we run
into at the grocery store and PTA meetings--people like Bio Joe
and Beth Renwick, the founders of Green Energy Biofuel in South
Carolina.
More than a decade ago, the couple tried making biodiesel
in their garage to save money on gas. They have since turned
their experiment into a successful business with two production
centers, regional distribution, and several dozen local jobs
that can't be outsourced.
In 2017, CEBN surveyed our members on their business needs
and priorities. We asked what were the most significant
challenges facing their businesses, and policy topped the list
of responses, particularly the need for more stable predictable
policies.
It is very difficult for Fortune 500 companies, let alone
small businesses, to build long-term infrastructure when the
ground is constantly shifting beneath their feet.
My written testimony outlines detailed policy
recommendations, relevant business case studies, and provides
links to letters from hundreds of small businesses. But in
brief, here are some of the most important ways Congress can
accelerate the growth of the clean energy economy and the small
business opportunities within it.
First, reinstate and extend expired clean energy tax
incentives and clarify that energy storage and waste heat-to-
power qualify for the section 48 investment tax credit.
Second, provide robust funding in fiscal year 2020 for the
Department of Energy overall and key research development and
commercialization programs within the agency. I will note that
the congressional districts represented by members of this
Subcommittee have attracted more than $1 billion in DOE grants
over the past 5 years.
Third--across all Federal programs relating to
infrastructure, such as the farm bill, disaster recovery
legislation, transportation bills--promote the adoption of
clean, readily available technologies that will improve energy
reliability, security, and flexibility.
And finally, establish stable, predictable energy policy
goals that encourage market-based approaches and allow
businesses to innovate and compete to offer the most effective
affordable solutions.
There is nothing more fundamentally American than a small
business owner setting out to build a company. We are a Nation
that believes that any challenge can be overcome with
sufficient ingenuity and grit and that anyone can rise to
success with a good idea and enough dedication. But the right
opportunities need to exist. We need lawmakers to stand beside
our Nation's small businesses and provide the opportunity to
compete and grow in the U.S. clean energy economy.
Thank you again for offering me the opportunity to testify,
and I look forward to addressing your questions.
Chairwoman FINKENAUER. Thank you, Dr. Abramson.
And now I would like to recognize Mr. Brooks for 5 minutes.
STATEMENT OF THOMAS R. BROOKS
Mr. BROOKS. Good morning, Chairwoman Finkenauer, Ranking
Member Joyce, and members of the Committee. Thank you for
inviting me to testify today. Thank you for considering the
biodiesel industry as an important component of the clean
energy economy.
Small biodiesel producers are here today delivering clean
energy and economic development. Biodiesel producers can be a
giant driver of economic opportunity in rural communities. All
we need to continue delivering these benefits now and for the
future is stable policy.
My name is Tom Brooks. I am the general manager of Western
Dubuque Biodiesel, a small business in Farley, Iowa. Western
Dubuque was formed by a group of eastern Iowa farmers and local
business people. In June of 2006, we raised capital from 557
investors, all whom live within 45 miles of the facility. The
investment was a significant opportunity for a town of 1,500
people.
Today, Western Dubuque employs 24 workers at the plant plus
28 contract drivers, for a combined payroll of $3.7 million. We
purchase feedstocks, soybean oil, and catalysts from local
suppliers, again adding value to the State's economy.
The employment and economic opportunities are only part of
how we support the local community. Western Dubuque pays more
than $200,000 in taxes to the city of Farley each year.
Additionally, we paid into the city's new water tower fund and
the local Western Dubuque school expansion. I feel it is fair
to say that the town would not be able to afford the new water
tower and the school expansion without our company and its
contributions. Our small business is a large economic presence
in our small community. Moreover, we are delivering clean
energy right now, today.
Strong consistent Federal policy is needed to ensure
continued success. Congress created the renewable fuel standard
and the biodiesel tax incentive with the intent to reduce the
transportation sector's carbon emissions and build a rural
economy.
Without question, the policies are succeeding. When the
incentives were first implemented in 2005, the U.S. produced
nearly 112 million gallons of biodiesel. Now that market has
climbed to 2.9 billion gallons in 2017.
Nationwide, the biodiesel industry supports more than
65,000 jobs, $11 billion in economic impact. In many rural
areas of the country, biodiesel plants are the driving force of
that local economy, supporting employment for plant operators,
truck drivers, and farmers.
Grain farmers receive better value for their soybeans
thanks to biodiesel. U.S. biodiesel production uses the surplus
oil from soybean crushing, adding 63 cents to the value of
every bushel of beans grown by the farmer. By boosting the
value of surplus soybean oil, biodiesel lowers the price of
soybean mill for poultry and livestock producers, thereby
reducing our costs when we purchase meats. Informa Economics
estimates livestock producers pay $21 less per ton for soybean
meal due to increased biodiesel production and its use.
Stable, forward-looking tax policy, combined with market
signals from the RFS, can help the biodiesel industry continue
to stimulate economic growth, but right now policies are not
stable.
At the beginning of this year, biodiesel producers were
being forced to put projects on hold, reduce investments due to
uncertainty about the renewal of the tax incentive and the
growing number of small refinery exemptions being handed out by
the EPA. Now, 9 months later in the year, we have seen half a
dozen plants announce shutdowns, with more than 200 million
gallons of capacity impacted.
It is ironic that the EPA has such concern for the economic
hardships facing small refineries. The exemptions the agency is
granting to each refinery that asks are simply shifting the
hardship to even smaller bio producers, small businesses like
mine.
I want to again thank Chairwoman Finkenauer for taking
action to investigate EPA's refinery exemptions which are a
severe threat to the clean energy economy in the rural
communities. The economic misfortune for biodiesel producers
flows through local rural economies. It impacts feedstock
purchases, farm equipment purchases, and in savings and
investments to the rural community.
While a long-term extension would provide necessary policy
certainty, our industry urgently needs immediate extension of
the biodiesel tax incentive for 2018 and 2019, at least, to
help end the current climate of uncertainty that clouds our
industry.
I want to thank once again, Chairwoman Finkenauer for her
leadership and fighting to renew that credit.
I would like to emphasize that there are successful
policies in place to support clean energy and jobs at home,
primarily through small businesses like mine. That progress,
however, is in jeopardy without quick reinstatement of the
biodiesel tax incentive and stable RFS policy over the long
term.
Thank you for the opportunity to submit my testimony.
Chairwoman FINKENAUER. Thank you, Mr. Brooks. I appreciate
it.
And I would now like to recognize Mr. Williams for 5
minutes.
STATEMENT OF MICHAEL G. WILLIAMS
Mr. WILLIAMS. Thank you, Chairwoman Finkenauer, Ranking
Member Dr. Joyce, and distinguished members of the
Subcommittee. My name is Mike Williams. I am with the BlueGreen
Alliance. Thank you for convening this hearing today regarding
the opportunities that the clean energy economy can provide.
Small businesses are critical to our economy, and a major
expansion of clean energy is vital if we are going to succeed
in the fight against climate change. It is time we brought this
thinking together, and in doing so, we must strive to do it
right and lift up American workers.
Chairwoman, as you noted, the BlueGreen Alliance unites
America's largest and most influential labor unions and
environmental organizations to solve today's environmental
challenges in ways that create and maintain quality jobs and
build a stronger, fair economy. Our partnership is firm in its
belief that Americans don't have to choose between a good job
and a clean environment. We can and we must have both.
Many solutions are already being put into place across the
country. Tradespeople built the Block Island offshore wind
project off the coast of Rhode Island. Auto workers are on the
factory floors building cleaner cars and trucks in Michigan.
Previously unemployed workers in St. Louis and Los Angeles are
gaining access to high-skilled jobs and energy efficiency
retrofitting, pipefitting, and transit manufacturing, while
companies across the country are manufacturing methane
mitigation technologies. These are all good jobs building a
clean energy and climate-resilient economy today, and many of
these industries provide key opportunities for small
businesses.
Let's take two examples. First, the methane mitigation
industry. Methane is an incredibly potent gas that is the
second largest contributor to climate change. Reducing methane
emissions can reap economic benefits for workers, businesses,
and communities across the country. Our research has found that
the adoption of technologies and practices to reduce methane at
new and modified oil and gas facilities would create over
50,000 jobs over the first decade of full implementation. Many
of these jobs would be in the methane leak detection and repair
industry.
Research has found over 130 companies, with customers in
almost every State in this growing field. More than one-third
of these businesses were founded within the last 6 years, and
the majority of them are small businesses. And these are good
jobs. The median hourly wage for the industry is $30.88
compared to $19.60 for all U.S. jobs.
Second, companies across the country are manufacturing and
providing services to improve the energy efficiency of our
Nation's housing and building stock and industrial facilities.
Energy efficiency improvements support existing jobs, increase
the quality of jobs created, and reduce pollution. Local
communities can also capture the benefits of energy efficiency
retrofits, including lower utility bills, improved tenant
health, and increased economic development.
Small businesses are not only creating the jobs to do this
work, but can also reap these same costs in environmental
health benefits if they make energy efficiency updates
themselves. There are currently over 2.3 million jobs in the
energy efficiency sector, and roughly 70 percent of these are
in small businesses.
Furthermore, identifying the supply chain and moving
policies to increase domestic manufacturing of energy
efficiency retrofit products can also help to create quality
manufacturing jobs. Our research has found roughly 4,500 local
manufacturing facilities in nearly every State across the
country doing just this.
In New York, for example, Flower City Habitat for Humanity
builds affordable housing for communities in Rochester. Through
a commitment to in-state sourcing with 95 percent of parts
coming from New York manufacturers, Flower City Habitat will be
using windows and doors that exceed Energy Star standards at an
affordable price. Many of these New York-based suppliers are
IUE-CWA represented, supporting quality jobs and local
businesses in these communities while reducing emissions.
These kinds of opportunities are exactly what we should be
prioritizing to revitalize American manufacturing, protect the
environment, and create quality jobs across the country.
Through an aggressive agenda to regain American leadership
in clean technology innovation and manufacturing and an
ambitious plan to rebuild and transform America's
infrastructure, we will rebuild American competitiveness in the
global economy and secure and create a new generation of good
middle-class jobs across America.
At the same time, while many clean economy jobs are good
union jobs, too many are still not. Too many companies are
offshoring jobs, offering substandard wages, conditions and
benefits, or failing to provide a safe, healthy workplace.
Progress has been made, but it is being put at risk.
We need a commitment to high-quality job creation across
all sectors of the economy but especially related to clean
energy adaptation and resilience. That means a commitment to
increasing union density, labor standards and prevailing wage,
health and safety protections, training, and project labor and
community benefit agreements.
In closing, I want to reiterate that tackling the crisis of
climate change, if done right, is a significant opportunity to
ensure a more equitable society, increase U.S. global
competitiveness, support and grow small businesses, and create
quality, family sustaining jobs across the country.
We look forward to working with you, Chairwoman, Ranking
Member, and the whole Committee as you move forward your agenda
for the 116th Congress. Thank you again for the opportunity to
testify today.
Chairwoman FINKENAUER. Thank you, Mr. Williams.
And now I would like to recognize Mr. Spigelmyer for 5
minutes.
STATEMENT OF DAVID J. SPIGELMYER
Mr. SPIGELMYER. Thank you, Chairwoman Finkenauer, Ranking
Member Joyce, and distinguished members of the Committee. Thank
you for the opportunity to testify today.
My name is Dave Spigelmyer. I am the president of the
Pittsburgh-based Marcellus Shale Coalition. We represent an
energy producing, transmission, midstream, companies, as well
as more than 150 supply chain businesses supporting shale
development across the Appalachian basin.
This is a critical and timely conversation about supporting
our Nation's pursuit of a thriving clean energy economy, one
that prioritizes innovation, job growth, and a sustainable
energy future. Our country's energy landscape has changed
dramatically over the last decade. Innovation and technology
have enabled access to deep shale formations in the Appalachian
basin as well as across our country which has triggered
tremendous job growth.
The natural gas we are producing in Pennsylvania has driven
unprecedented environmental gains that are enhancing air
quality and making clean energy affordable once again for
consumers of natural gas. Furthermore, natural gas is the vital
fuel necessary and essential to back up interruptible sources
of renewable energy to contribute to our electric grid.
As a result of shale development, our Nation is far more
energy secure. In many ways, our economic and environmental
progress is in large part owed to it.
In Pennsylvania alone, where 20 percent of America's
natural gas is now produced, our industry supports over 300,000
direct and indirect jobs and contributes $45 billion to our
State's economy, according to PriceWaterhouseCoopers.
From Pennsylvania's labor community with union halls at
full employment to new building tradesmen and women being
trained, jobs are being generated to mobilize our Nation's
energy infrastructure. Our building trades are constructing new
power generation facilities, pipelines, and a world-class
petrochemical complex just west of Pittsburgh. This facility
alone is a $6 billion investment. It is one of the largest
construction sites in America with more than 147 cranes active,
employs 6,000 building tradesmen and women to build this world-
class facility.
There are also countless small business owners whose
entrepreneurial spirit has seized the opportunities presented
by this industry, including our State's agricultural sector.
Proceeds from natural gas development has indeed saved family
farms.
Pennsylvania consumers have witnessed and have benefitted
from historic reductions in natural gas commodity prices,
especially those on fixed incomes. Natural gas commodity prices
for end-use consumers are down 56 to 76 percent, depending on
which utility serves your natural gas, since 2008. And
wholesale electric prices in the PJM ISO are down 41 percent
since 2008, saving the average household between $1,200 and
$2,500 annually, according to our Pennsylvania Public Utility
Commission.
Pennsylvania's economic strides have been met with equally
impressive air quality achievements thanks to innovations in
technology, tightening environmental performance standards, and
increased use of natural gas. We have reduced volatile organic
compound emissions which are down 51 percent, sulfur dioxide
emissions down 82 percent, nitrogen oxide emissions down 72
percent. And additionally, Pennsylvania's carbon dioxide
emissions from electric power generation where natural gas is
playing a bigger and bigger role are down 30 percent since
2005.
Nationally, according to the U.S. EPA, in 2017, total
greenhouse gas emissions across the U.S. reached their lowest
levels in 25 years, propelling the U.S. to be a world leader in
CO2 emission reductions. This is not despite the shale
revolution; it is because of it.
As I stated earlier, natural gas is the most reliable and
affordable partner for our growing clean energy economy. When
intermittent renewable sources are unavailable, dependable
baseload power is essential. Natural gas generators can scale
up rapidly to meet demand, making natural gas a vital partner
with renewable energy.
Natural gas is also vital to our everyday lives as a
manufacturing fuel. All steel, glass, plastics, chemicals,
fertilizers, powdered metals, pharmaceutical medications, and
indeed, one-third of our power generation today are produced
from natural gas. Without a doubt, any conversation about clean
energy must be grounded in the partnership that will make that
possible.
Supporting a thriving natural gas industry from production
to pipeline deployment to its growth in power generation should
be a core focus of any public policy discussion aimed at
building upon the progress our industry has realized for
Pennsylvania and in the Nation.
As you continue to explore how Congress can best support
the growth of our Nation's clean energy economy, I appreciate
the recognition of this Subcommittee that natural gas is
important and a vital component of that discussion.
On behalf of our members and the thousands of men and women
who work in our Nation's natural gas industry, thank you for
having me here today, and I look forward to your questions.
Chairwoman FINKENAUER. Thank you, Mr. Spigelmyer.
And now we are going to begin questions from the members up
here, and with that, I will recognize myself for 5 minutes.
And, Mr. Brooks, since you again spent those 5 hours in
Chicago in that airport, I feel like I should start with you.
Thank you again for being here today.
As you know, the biodiesel tax credit has been key to
growing your industry in our State. I know that our gas
stations and truck stops and, therefore, consumers and truck
drivers also benefit from this tax credit to keep actually gas
prices low. Can you explain how the credit works to the
Committee? And then how does your company use the credit? And
why is its lapse so damaging that it is forcing some plants to
shut down?
Mr. BROOKS. Thank you, Congresswoman Finkenauer, for the
question. First, the biodiesel tax incentive is a dollar-per-
gallon credit available to the taxpayer who blends the
biodiesel or renewable diesel into the petroleum diesel fuel,
who either use or sell the mixture or trade it with their
business. The net effect is that each gallon of biodiesel and
renewable diesel used in the United States offers a dollar of
revenue value throughout the value and supply chain.
Secondly, the flexibility of the incentive, when it is
extended prospectively, spurs both investments in production
when the producer claims a portion of the credit and in the
blending infrastructure when the discretionary blender uses a
portion of the credit.
Unfortunately, when the biodiesel tax incentive lapses, the
market relies on Congress' history of retroactively reinstating
that credit, so someone must bear the burden of taking the risk
Congress will not reinstate the credit. The downside of the
market reliance is that at least one party, the producer or the
discretionary blender, eventually has to be held on accounts
receivable.
Finally, as discretionary blenders become less and less
willing to take the pricing risk associated with the
uncertainty of the extending tax incentive, biodiesel and
renewable diesel producers are forced to bear the risk, the
full risk, and are exposed to the dollar per gallon price risk
on every gallon produced.
Chairwoman FINKENAUER. Thank you so much. And could you
also elaborate just a little bit further too on how the
uncertainty surrounding the renewable fuel standard and the
biodiesel tax credit is impacting our farmers and our rural
communities, just a little more broadly?
Mr. BROOKS. Yes, ma'am.
Chairwoman FINKENAUER. And what you are hearing on the
ground. Yeah.
Mr. BROOKS. The uncertainty of the RFS, because of not
growing the volumes in the last 5 years, has created havoc to
the Midwest farmer, as seen by the prices that they are
bringing at harvest time. They are in the red as compared to
the first 5 years of the RFS. We have got trade wars, the
uncertainty, then you throw the SREs into the mix. It creates a
problem for the markets in RINs generation which affects fuel
prices. Then the producer can't sell at a stable price,
creating further instability in the market. And farmers that
are investors in the plant suffer because of the grain price,
they suffer because of the uncertainty of the market, and they
are suffering because of the investments that they made in
renewable energy.
Chairwoman FINKENAUER. Thank you. And actually, something
that I learned when I was visiting you guys at the plant not
that long ago had to do with something that we are watching
very closely with the Department of Commerce. Right now I
understand that they are considering reducing countervailing
dutied rates on biodiesel from Argentina.
As you know, Argentina's policies were undercutting
American biodiesel producers, and the current countervailing
and anti-dumping duty orders were meant to level the playing
field. In the short time that they have been in place, I
understand that the rates have been successful in keeping out
these unfairly priced imports.
Can you tell us, if the Department of Commerce moves
forward with reducing these rates, what impact will that have
on Western Dubuque Biodiesel and other small businesses like
yours?
Mr. BROOKS. Good question, Chairwoman. When the
countervailing duties were not in place, we saw production
decrease to 60 percent of capacity throughout the Midwest and
the United States. So the differential tax credit that
Argentina had allowed for their feedstocks, to make biodiesel,
allowed those imports to come into the United States cheaper
than the farmer could even grow the bean and have the oil
crushed from. And as a result, discretionary blenders were
taking advantage of the market, driving prices down with
cheaper imports coming into the country.
Chairwoman FINKENAUER. So it would be fair to say that you
would agree that the administration and the Department of
Commerce and Secretary Ross should not be allowing these
countervailing measures to go away, and if they did, it would
be detrimental?
Mr. BROOKS. Yes, ma'am, and I have told him as much
personally.
Chairwoman FINKENAUER. Thank you very much. Appreciate it,
Mr. Brooks.
And with that, my time is about to expire, so I would like
to recognize Dr. Joyce for his 5 minutes.
Mr. JOYCE. Thank you, Chairwoman Finkenauer.
Mr. Spigelmyer, you piqued my interest with some
information that you discussed with the expanding shale
industry in Pennsylvania. You talked about the positive impact
on agriculture. Now, realize this Subcommittee also addresses
agricultural issues and entrepreneurship. Would you please
explain more what you were talking about in that?
Mr. SPIGELMYER. Yeah. When leases are taken, bonus payments
are paid. In Pennsylvania, it has exceeded $5 billion to
mineral owners and land owners across the Commonwealth of
Pennsylvania. And my comment was that it has indeed saved
family farms, and that is my experience.
As well, royalties are paid. On average, 15 percent of the
production royalties go back to the mineral owner, and that too
has provided valuable income back to consumer--or back to
mineral owners in the Commonwealth of Pennsylvania.
Mr. JOYCE. During my time in the district work period in
August, I had the opportunity to visit the new petrochemical
plant that Shell is building in western Pennsylvania. Can you
talk about the economic impact of that on community and
actually on the Nation at large?
Mr. SPIGELMYER. Sure. It is the first of its kind
petrochemical complex that is being built just to the west of
Pittsburgh. About 70 percent of plastics manufacturers are
located within 700 miles of Pittsburgh, yet they have had to
transport the raw materials for plastics manufacturing to that
region by truck. The savings on a cost of goods sold is about
1.3 percent right out of the gate, but the jobs being
generated, that is like the--the downstream jobs that will
likely flow from that are extraordinary. That plant is expected
to be complete in 2022.
And I would share that it is not just the investments from
a $6 billion facility like that. We have written the obituary
for manufacturing in the Appalachian basin for the last four
decades, and today we are writing birth announcements up and
down the Ohio River. We have got not only the $6 billion that
has been invested at that facility, we have got a billion
dollars now being invested by US Steel. We have got the savings
of the Marcus Hook Industrial Complex just outside the
Philadelphia airport. We have got $13 billion of new power
generation facilities. Again, we produce about 250 percent of
the power that we use in Pennsylvania, and it has saved
consumers up and down the PJM ISO, you know, 41 percent on
their wholesale energy cost.
And I think I would also share that from a small business
standpoint, I would be remiss if I didn't mention that we have
witnessed small businesses that started in 2008 with a person
or two. I will use one for example. Steel Nation. It is a
building manufacturer south of Pittsburgh. They had one
employee, had less than a million dollars of gross proceeds
annually. They now have 30 employees at that location, and
their proceeds are $40 million annually.
Those small business type of stories are being told over
and over and over again all through Pennsylvania, and I am
sure, Congress, you have a chance to talk to a lot of those
folks every day.
Mr. JOYCE. We are going to ask that you just bring the mic
closer so that we can hear your important answers.
Mr. SPIGELMYER. I am having an issue with my mike here, but
that's fine. Thank you.
Mr. JOYCE. You have mentioned natural gas in power
generation, and importantly, its partnership with the
renewables. What specifically have you observed in
Pennsylvania? This is so important as we reach and embrace the
all-of-the-above approach to be able to have the strong
interaction with the reusable renewables and with the natural
gas industry.
Mr. SPIGELMYER. Yes. In 2004, Pennsylvania passed an
alternative energy portfolio standard requiring 18 percent of
their power be generated by tier 1 and tier 2 sources. Those
are renewable sources of energy as well as new technologies. We
are on our path there today, but I would share that in
Pennsylvania, our wind doesn't always blow and our sun doesn't
always shine. And consumers across Pennsylvania require that
when they turn the switch on, their power comes on. There is no
better partner for renewable energy than natural gas. Natural
gas comes on quickly, it comes on affordably, and it is
reliable in the Commonwealth of Pennsylvania.
Mr. JOYCE. Thank you for your comments. Thank you for
emphasizing the partnerships that we need to be able to
achieve, the benefits to the agricultural industry which
natural gas has occurred and developed in Pennsylvania.
As a physician, understanding the decreased emissions--and
we quoted very similar, I think identical numbers on the
decreased emissions. That is important to my constituents. It
is important to all of Pennsylvania.
I thank you all for being here.
Mr. Brooks, I would be amiss if I didn't thank you for your
military service as well.
I yield back my time, Madam Chair.
Chairwoman FINKENAUER. Thank you, Dr. Joyce.
And with that, I would like to recognize Representative
Angie Craig for 5 minutes.
Ms. CRAIG. Thank you so much, Madam Chairwoman. Thank you
to all of you for being here.
And, Mr. Brooks, I wanted to start with you. As a member of
the Ag Committee, it is an honor to fight for family farmers in
Minnesota. I want to direct my question and also just applaud
the Chairwoman for her work on biodiesel and specifically her
bill to provide the 2-year extension of the biodiesel tax
credit of which I also am an original co-sponsor.
As you mentioned, Congress previously extended the tax
credit retroactively for 2017, but it expired in 2018. You
noted in your testimony that the biodiesel blenders tax
incentive has helped achieve the desired goal of expanding
domestic production of clean energy resources and jobs here at
home. I know Chairwoman Finkenauer and I have frequently pushed
for quick action, but I am curious to hear what you think
stands in the way at this point of getting this tax credit
extended or reauthorized, and how does that lack of certainty
impact small businesses?
Mr. BROOKS. Excellent question. Thank you for being a co-
sponsor on the bill. I can't answer why it hasn't happened
specifically, but I can tell you what the impact is for it not
being extended. We have seen years where the credit has lapsed,
7 of the last 11 years, which has the effect of coming in in
December or January and February, which brings no value to the
producer or the blender missing gallons, and it creates an
uncertain market for the person buying downstream because they
don't know if the credit is coming. Should they buy the gallon
or not buy the gallon. So I sell to discretionary blenders who
take on a portion of that credit just like I do.
So we have an accounts receivable that is out for 21
months. That is hard to run a business when you have
receivables out 21 months, even for a discretionary blender and
other small businesses like ours. So getting it reinstated
would be greatly appreciated.
Ms. CRAIG. Thank you.
Mr. Williams, I wanted to ask you as you--thank you for
what you do at the BlueGreen Alliance as well. How do we
prepare the current and future workforce? I spent about 4 years
as the head of HR for a major organization in Minnesota, but
how do we prepare American workers to be part of this growing
clean energy economy?
Mr. WILLIAMS. Thank you, Congresswoman. The question--and
for your work. We are founded in Minnesota, so we appreciate
your service there as well.
So a public investment in training and preparedness, plan
development, economic development, but especially that point on
training is incredibly important to this. And it is incredibly
important that when the Federal Government invests in training
and workforce development, it does so in partnership with local
communities, with unions, with registered apprenticeship
programs, with community colleges, and especially leaning on
working with unions and specifically registered apprenticeship
programs in the construction and building trades industries,
because there is a significant amount of expertise there, and
we want to be able to lift up the expertise and the work that
is already happening. So there is a number of pieces of
legislation that have done this, but that would be what I
recommend.
Ms. CRAIG. Thank you.
And then finally, I just wanted to say, Dr. Abramson, thank
you for presenting the DOE grants. It was incredibly
enlightening, and I have got to figure out what we are doing in
the Second Congressional District and help us get more of those
grants. So thank you.
Madam Chair, I yield back.
Chairwoman FINKENAUER. Thank you, Congresswoman Craig.
And with that, I will recognize Representative Jim Hagedorn
for 5 minutes.
Mr. HAGEDORN. Thank you, Madam Chair. It is a pleasure to
be here. I thank the witnesses.
As a representative from a rural district in Minnesota and
someone who serves on the Ag Committee, I am part of the
Biofuels Caucus. We certainly support biodiesel, ethanol, those
things. We would like to see the tax credits extended again,
reinstated, and also make sure that we do get the small
refinery and other issues cleared up.
I spoke with some people at Agriculture, including the
Secretary himself over the break, and he said they are working
on that, and I think maybe we will see some progress here in
the near future. So, hopefully, that will go well. We support
the industry.
Thank you, Mr. Brooks, for being here.
You know, small business does depend on energy, all of the
above, and back talking on the break, manufacturers, it doesn't
matter, you know. Trucking companies, everybody, they need
abundant, reliable, low cost energy. And sometimes I think we
get a little conflicted where we feel, and maybe there is--you
know, folks think that the world's coming to an end and we have
to make all these, you know, big changes, Green New Deal and
all that. And that, I guess, could drive making changes at any
cost, but I don't believe in that. I think we need to be
efficient. We need to do things that are going to be right for
our economy and right for our consumers and everyone else.
So all of the above makes sense to me in keeping downward
pressure on the cost of energy, because when the price of
energy is inflated needlessly, the price of every cost and
service in our economy goes up, takes money out of people's
back pockets, makes us less competitive around the world. It is
not a good thing.
And we also need not just all of the above but the energy
infrastructure, and I was happy to hear about pipelines,
refineries, distribution points and, you know, this talk about
labor and how these things can all connect. But the labor folks
that I talk to are a little disappointed because a lot of
pipeline projects out there, a lot of refinery projects and the
folks that are, quote/unquote, for clean energy are the ones
blocking those.
We have a pipeline in northern Minnesota, Enbridge 3. It is
a replacement for crude oil. And, you know, the clean energy
folks say we shouldn't do it because we should get off of
fossil fuels, but there is no path at this point to eliminate
fossil fuels from our economy. As a matter of fact, there is no
technology that can get us there for even electricity
production. We don't have the battery storage technology in an
efficient way or even a practical way to make that happen. So
until that, it would be irresponsible, I think, for us to try
to run our traditional energy companies out of business while
we are promoting the, you know, so-called again clean energy.
Nothing is clean. There is issues with every source of energy.
But I was very impressed, Mr. Spigelmyer, with your
testimony about what is going on in natural gas and the way
that great American technology is being used to first locate
that gas and go get it and then driving down emissions, driving
down costs, providing the baseload power that is necessary in
order to make sure that our small businesses and consumers and
everybody can rely on that.
One of the things, again, I see in conflict is that some of
the folks that would like us to move from, let's say, coal-
fired power plants to natural gas, you know, think that is a
good move, but then they don't support fracking. What is your
opinion of that? I mean, right now, don't we have about a 300-
plus year reserve of gas that we predict, and we are exporting
it and all these other things?
Mr. SPIGELMYER. It is a great reflection, Congressman. I
would share that we have gone from a period of high price and a
lack of supply to periods of abundance and affordability, all
driven by technology. Some would think it is because of
hydraulic fracturing. We have actually been hydraulically
fracturing natural gas wells in America since the early 1940s.
Hydraulic fracturing certainly plays a role in releasing
not only natural gas but liquid hydrocarbons to the surface,
but the technology changes in production today are the ability
to turn a drill bit horizontally to produce far more than
anyone ever thought possible through unconventional horizontal
development. And as you mentioned, reserves in the neighborhood
of 300-plus years are certainly possible through this
technology.
I would share with you that we put this coalition that I
represent 10 years ago. None of us thought that Pennsylvania
could go from 180 BCF of production or 180 billion cubic feet
of production to over 6 trillion cubic feet of production in 10
years. We are now the number two producer of natural gas in
America as a result of that technology improvement.
Mr. HAGEDORN. I would also add that, you know, a lot of--I
am not at all against or opposed to wind and solar. I support
it. I think we should just be practical about it. It is an
intermittent source, and it can contribute, but it is not the
panacea at this point because of technology. But if we want a
lot of wind and solar, we also need a lot of copper and other
types of materials, and we have to get that through mining. And
we also want to do that in Minnesota, and some of the folks,
again, that say they are for clean energy don't want the
mining. So maybe there is some conflict to be worked out on
both sides.
Thank you. I yield back.
Chairwoman FINKENAUER. Thank you, Representative Hagedorn.
And with that, I will recognize Representative Jared Golden
who is the Chairman of the Subcommittee on Contracting and
Infrastructure, again, one of my favorites, for 5 minutes.
Mr. GOLDEN. Thank you, Madam Chair.
Mr. Williams, I just wanted to point out something that--
and I follow your organization closely, and I appreciate the
work that you do and the effort that you are making. I wanted
to point out some things going on in Maine for your alliance to
look into.
One is we have some loggers who have joined the machinists
union of late. And when talking about the renewable fuel
standard in woody biomass, we have a problem in Maine, and I
think most of the northeast and parts of the southeast as well,
which is that it currently only allows for woody biomass that
comes from planted trees and tree residue from actively managed
tree plantations.
Of course, about 57 percent of our forests in the United
States are owned by private citizens, families, private
cooperatives, industries, and others. And the majority of these
rely on natural regeneration for stand establishment and not
artificial regeneration like we see in plantation forests. So
it feels like we are leaving a lot of potential biomass in the
woods, so to speak. And I think that, you know, we have been
pushing as a Maine delegation to get the EPA to treat this a
little bit differently and get that woody biomass that is
naturally regenerative into the market, you know, and assisted
through the Renewable Fuel Standard.
I would also point out for your organization's interest
that this isn't just about the loggers but the biomass
facilities themselves, some of which are going out of business
as, you know, investors look elsewhere where there are other
energies, you know, that are reliable--can be, you know,
supported through the Renewable Fuel Standard and other tax
incentives and others that just aren't being prioritized for
biomass.
In addition, we have got the saw mills and a lot of other
forest products manufacturers, many of whom are union to
include steel workers, boilermakers, machinists, electricians,
and others, but I just think there is some space for you to get
involved and step in and be supportive of some of these
changes. So I wanted to share that with you.
I am also excited about growth of solar in the State of
Maine, but there is a lot of talk about the need for some
apprenticeship programs and others as we see that growing
workforce coming into our State. There is a workforce shortage
and a need for apprenticeship opportunities in others. Don't
forget about Maine, is all I would say about that.
Dr. Abramson, I want to ask you just about your membership
in general. Do you have a lot of members that directly use
biomass or provide equipment or services to clients who
generate with biomass? And also, we have a great bill. Senator
Angus King sponsored the Biomass Thermal Utilization Act which
would add tax incentives for the installation of energy
efficient wood boilers, stoves, and heaters, residential and
commercial, so maybe you would be supportive of that as well.
Ms. ABRAMSON. Yes. Thank you so much. And just to note on
that last point, I mean, we are supportive of across the board
incentivizing energy technologies, you know. The incumbent
energy industries have historically enjoyed tax credits, and
that has been incredibly valuable in promoting economic
development and the growth of new industries in this country
and the renewable energy and energy efficiency biodiesel
industries. And as you noted, the thermal, you know, energies
industries certainly should benefit as well from long-term
stable tax policies that can incentivize these technologies.
To your earlier question regarding our membership, it is
quite diverse. We have renewable energy, energy efficiency,
natural gas, combined heat and power, waste heat to power,
biomass, biodiesel, storage grid technologies, carbon capture.
I mean, it is quite, quite extensive, and it just speaks to the
breadth of the clean energy economy.
I would say in Maine, actually, one exciting member that I
have actually noted in my written testimony----
Mr. GOLDEN. I read that.
Ms. ABRAMSON.--is Kay Aikin from Introspective Systems who
was just in town a little bit ago in March to talk about how
the Department of Energy has helped her commercialize her
advanced microgrid technology and software solutions, which she
is now bringing to bear in solutions such as providing reliable
power to the Isle au Haut, Maine, which is currently under
jeopardy because they have this 7-mile pipeline or cable,
rather, undersea cable that is at risk of failure, and she is
replacing that with a solar and storage microgrid solution. So
it is a terrific case study.
Mr. GOLDEN. I am glad you shared that in your testimony. We
have a lot of island communities. And talking about battery
storage, solar, wind, and others, you know, with the more
traditional sources of energy is, I think, important for the
future of those communities. Obviously, that is not special
just in the Maine coast, so thank you----
Ms. ABRAMSON. Thank you.
Mr. GOLDEN.--for sharing that.
Now, lastly, Mr. Williams, I just wanted to share. Wind
energy potential in Maine--I think a lot of you know this too--
is huge. In fact, the Gulf of Maine is, I think, unique in its
ability to produce wind power offshore. However, you know, you
have got some experience trying to pull together alliances that
sometimes people may traditionally think are at odds, so I
would love to hear your feedback at some point about how we can
tap into that, you know, energy source for the State of Maine.
I think about 3 percent of the shoreline, if we were to utilize
that for wind, could power almost the entire State.
Of course, we would have to talk about how to get that
energy into the grid, but beyond that, I think a lot of
lobstermen and also machinists in Maine are rightfully
concerned about how that offshore wind could impact their
fisheries. We have got some work to do to build a coalition
that can work together, and maybe the BlueGreen Alliance has
some experience with this type of work and could help.
Mr. WILLIAMS. Yeah. Really quick, so I live in Maine,
actually.
Mr. GOLDEN. I didn't realize that.
Mr. WILLIAMS. Not in your district, sadly, though. But been
working closely with the IBEW on solar, the AFL-CIO. The
question on woody biomass was great earlier, and we would love
to talk further. Those conversations need to be updated. They
are based on previously held notions. We need to dig into that
further.
On offshore wind, I just want to flag. I have been working
with the ironworkers in Maine. There is going to be a
conference held on October 16 in Portland, so we would love for
you to come or send staff. We would love to help dig into that
further.
Mr. GOLDEN. Thank you very much.
Chairwoman FINKENAUER. Thank you, Representative Golden.
And now I would like to recognize Representative Burchett
for 5 minutes.
Mr. BURCHETT. Birch like the tree and et like I just et
breakfast, Chairlady.
Thank you for letting me poach your Committee. I am not a
member of this Committee, and I am honored that you would let
me be here for a short moment.
And thank you, Ranking Member Joyce, as well. Thank you.
While I am not a member of the Subcommittee, I appreciate
y'all allowing me to be here to discuss this important topic. I
think there is plenty of opportunities in the clean energy
economy for innovation, job growth, and growing small
businesses across the country, and I know that there is going
to be plenty of different approaches to doing all of this. And
I am hopeful whatever we do, we can keep our free market
principles in mind when we look at different approaches.
For example, I recently introduced the Carbon Capture
Improvement Act. See how I worked that in there? I just worked
that in there that I had a bill that dealt with this. This is a
bill that would provide industrial facilities and power plants
a financial incentive to invest in carbon capture and storage
equipment. The goal here would be to invest in companies that
are working to grow clean energy.
I think we ought to incentivize business to lower carbon
emissions rather than force it on them through more regulations
that seem to just employ bureaucrats and not really accomplish
what we attempted to do. And I would suggest that I would like
for y'all to take a look at them and see if you are interested
in helping support this initiative.
Aside from that, I would like to know what you all see as
the most important step we should be taking to ensure this
sector is getting the support needed to continue to grow this
economy. And I will stop there.
Ma'am, you are nodding your head, so why don't you just
jump in?
Ms. ABRAMSON. Well, I would be happy to jump in. I think
two areas that I noted in my testimony that are particularly
critical, one includes appropriations. This is an area where
there are some promising technologies. We do need to continue
to invest in developing those technologies and bringing down
costs. And we have some members not so much working in the
larger carbon sequestration projects, although there are some
very exciting ones out there such as NetPower which is
developing a zero emitting natural gas facility in Texas which
is very exciting. And then we have others that are investing in
carbon capture utilization, so developing bio products or other
materials out of carbon and sequestering it through that
mechanism.
So I do think continued funding is important--because one
of the things we hear is that venture capitalists are not going
to necessarily help fund unproven technologies. They want to
see that the technology has already been demonstrated, and that
is where the government comes in, where we can invest in
promising technologies that could have both economic and
environmental benefits and help them bring those technologies
to commercialization so the private sector--we can leverage
those private sector dollars to continue that work.
So I would say appropriations is critical. And then whether
we are talking about regulation or legislation such as tax
incentives having, I think to the extent possible, that we can
incentivize across the board and allow technologies to compete,
that is extremely helpful.
Mr. BURCHETT. Anyone else?
Mr. SPIGELMYER. I will just jump in that carbon capture and
storage is certainly a huge opportunity for enhancing, you
know, recovery of liquid hydrocarbons. I know the Department of
Energy is spending a fair amount of money through their NETL
(National Energy Technology Labs) programs across the country.
I did have a chance recently to talk to Deputy Secretary
Winberg at the Department of Energy, and I know they are
spending a fair amount of money to take a look at how carbon
capture and storage can enhance recovery of not only natural
gas but natural gas liquids as well.
Just one add on I would have. There was a comment made
about methane. To give you a perspective, in 2008, natural gas
pricing at the wellhead was $13.71. Just this past week,
bidweek pricing for September was $1.61. Operators in my space
have every incentive to capture every single molecule of
natural gas that they can capture because it is the product
that they sell. They have an incentive to make sure they have
technologies in place to make sure we are not allowing methane
to escape into the atmosphere, and we are doing just that.
Mr. BURCHETT. Do we have any facts or figures on how much
methane is being produced, I guess you would say, anaerobically
through our landfills?
Mr. SPIGELMYER. You know, it is a great piece that fits
into the renewable portfolio standards of almost every single
State in the country where, you know, landfill gas is adding to
power generation and new technology for, you know, for business
growth as well. I don't have a figure on how much that is, but
it is significant, sir.
Mr. BURCHETT. Chairlady, I will yield back the remainder of
my 4 seconds. Thank you, ma'am.
Chairwoman FINKENAUER. Thank you, Representative Burchett.
And thank you all so much for taking the time today. It
truly does mean a lot that you all traveled all this way and to
have your voices heard and to have us be able to ask you these
questions that we think are very important for Congress to hear
and learn from.
And, you know, I just have to tell you, you know, as we
start to look at tackling the unprecedented challenges that
come with climate change and unpredictable weather, you guys
know this, it is more important than ever before to continue to
support our clean energy economy. But it is also more important
than ever to be here and listening to each other, and also
making sure that we are tackling this in a way that we are
listening to different districts throughout the country and
bringing folks together about what works in their district,
what they have been doing that has been working well, how do we
do more of what works well, and how do we create the innovation
necessary to tackle the changes that are needed to be made to,
again, address climate change and make sure that, again, we are
bringing folks together as we do it.
I think it is incredibly important, and I am just really
grateful to all the members of the Committee here today where
we can have those conversations and the folks that wanted to,
you know, again testify. And there is a lot going on in all of
our districts. I know I have got my friend in biodiesel here,
but, you know, there is great work being done in wind and in
solar and actually in methane capture too from our farmers as
well. That is actually one of the first bills that I helped
passed through the State house over 5 years ago, and these are
the types of things that have been happening. We need to
continue to support the innovation. And I am just again very,
very grateful.
And also, on top of all of it, as we have heard here today,
small businesses are at the forefront of the clean energy
economy and some of this innovation promoting new technologies
in both renewable energy and energy efficiency. From the field
to the factory floor, small businesses are playing a very key
role.
Our conversations today also underscore the fact that the
clean energy economy supports millions of high-skilled workers
and jobs. With the production of certain energies like wind and
biofuels largely concentrated in rural areas, these industries
can be a boon to small communities around them. Considering
that job growth in rural areas continue to lag behind the rest
of the country, clean energy is a real opportunity to stimulate
economic growth in our rural communities. Federal and State
investment in incentives for clean energy and energy efficiency
have played a signature role in growing these industries and,
in turn, supporting our small businesses.
The testimonies that we heard today demonstrate why these
incentives like the biodiesel tax credit must be consistent.
Business owners need certainty. Mr. Brooks should not be
guessing from year to year whether he can use his important
credit. Our conversations today underscore the need for the
biodiesel tax credit immediate extension, and I will continue
to call for its passage in the House and in the Senate.
The clean energy economy has an outside impact on Iowa's
rural communities and our small towns, as we have discussed
here today, and, you know, these growing industries will
undoubtedly continue to be an important part of our country's
economy for decades to come.
This hearing is just one of the many steps that this
Committee is taking to look at how our small businesses and our
entrepreneurs across the country, especially, again, those in
rural areas, this is Rural Development, Ag, Trade, and
Entrepreneurship Subcommittee, continue to grow and thrive. I
look forward to continuing to work with each of you on these
important issues.
And again, I just want to say thank you to Dr. Joyce for
his work here on the Committee today as well and bringing
perspective again from all across the country.
And I would now like to ask unanimous consent that members
have 5 legislative days to submit their statements and
supporting materials for the record.
Without objection, so ordered.
And if there is no further business to come before the
Committee, we are now adjourned. Thank you.
[Whereupon, at 11:15 a.m., the Subcommittee was adjourned.]
A P P E N D I X
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