    [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

    --------------------------------------------------------------------------------------

                       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.]
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