I call the committee back to order. Thanks to the first panel and we appreciate your testimony and i would like to welcome the second panel of witnesses before the committee. First we have ms. Botts, executive director for agriculture and rule of element, position which she was named in 2013, she has over 15 years of experience working in agriculture and helping individuals in rural areas understand issues related to policy and financing. You could be of help to individual sentors i would imagine. She pent ten years working in agriculture at federal level as policy staffer in the house of representatives. She grew up in a farm in kentucky. We see her ms and currently live on a small farm with husband and two children. We look forward to your testimony. General manager, kansas america, he is the general manager of the kansas rural Water Association. His career who has spent five decades has been focused to ensure all of kansas Rural Communities have access to affordable water. Critical to the development and facilitation and furthermore under his leadership the Water Association has developed a statewide water gps Mapping Program and the program called kenstep, has been responsible for construction of nearly 90 Community Facilities using local volunteer labor services. He and his wife kathleen from bailey bill, kansas. Im glad that youre here to join us today. Our next witness is mr. Christopher stevens. Mr. Stevens is president and ceo of i think im doing that war. Electric Membership Corporation headquartered in palmetto, georgia. Graduated in 1987 and attended Georgia Institute of technology where he graduated with bachelor and in 91 pertfication in 1998. Once out of college he worked as design engineer in georgia and utility consultants in atlanta before becoming super vising of engineering at emc in 1996. A native of georgia where he lives with wife and two children. We look forward to your testimony, sir. Senator thune gave a marvelous introduction. We will let that stand. Our next witness mr. Bret, director of the Engineering Center of biorenewable from iowa state university. Iowa state university, dr. Shanks the director of Engineering Research center for biorenewable chemicals and distinguished professor in engineering. Hes been on the faculty of iowa state since 1989 where he has focused on converting biomass feed stocks into chemicals and fuels, we become you, dr. Shanks. Last week is doctor, mark is responsible for developing, Harvest Operating strategies and all external adviser relationships. He holds a bba degree from Michigan State university, obviously why the Ranking Member we wanted to introduce you, green and white, distinguished Ranking Member had me decorated in green and white when we had our hearing up there. So i just want you to know that. When you come to kansas, you can wear purple. An mba from the university of michigan. Thank you for joining us today. Mr. Bots if you can start with your testimony, ms. Bots. Thank you for the opportunity to testify here today on Rural Development issues and thank you for having the hearing. The programs being discussed today touch every person living in Rural America. The Kentucky Center for Agriculture Development has provided Technical Assistant services for agriculture producers, organizations, coops and businesses for 16 years in the Common Wealth of kentucky. Through this work we see firsthand the conditions facing ag producers as they start new businesses, seek to add value to commodities to capture more of the food dollar and face significant challenges to their bottom line. In kentucky this work means that we help businesses develop ag producers at all stages of development. This work would not be possible without the support of rural Grant Program. The program authorized in the farm bill provides support to be development of kentucky. Farmers are able to achieve games that would be out of reach if they were facing the market alone. In kentucky . Just the past few years kcarrd has worked with sweet potato coop and multiple Farmers Market and right now we are working with a group of producers seeking portion and creating a way for producers to gain a stake in a business correctly serving them. The rcg programs have developed centers nationwide, created over 10,000 jobs in just a documented eightyear time span. It deserves to be reauthorized in the farm bill and funded at highest possible level in annual appropriation bill. Through combined resources of rcg, complicated ag business situations every day. Through work with businesses, we see ground level there are experiences with very various federal grant and loan programs. We have worked with the vast majority of value recipients in the past five years. We have seen the application, the recordkeeping required and paperwork challenges. This program is important because the funds go to producers and producer groups themselves to advance the goal of producers securing dollar, the program is a good investment from the federal government, it accomplishes this through submission of Business Plan, financial projections, estimates of Customer Growth and pricing calculations. Ive elaborated in written resume in ways to improve program, to quickly summarize, Business Plans are important. We should consider rolling application process for planning grants, we need to maintain producer eligibility and we need to recognize that Rural Development is due to asset that is they have on the ground. Rcg are two Development Programs critically to fostering job creation and rcge is critical to provide support that eligible businesses need to launch and thrive. Respond to notion that economies are harder to achieve in rural areas and that People Living in the rural areas deserve same access to serves and opportunity as those living in metro areas. Kcard staff works with farmers. I live in a rural area. I use Rural Broadband, i buy electricity and i can say that these programs are critical to the health of rural areas. We want rural areas to be strong, we have to support all of these programs working together to deliver needed infrastructure foster job creation and provide a highquality life for rural citizens. Thank you. We appreciate your testimony. Chairman roberts, members of the committee. Im general manager of the kansas rural Water Association. My experience with rural water goes back to 1970s when i was elected to committee and served as board of directors as we formed and developed an constructed a large Regional Water supply in marshal counties. It went onto serve 700 rural residents. That first project was funded with loan only from then farmers administration. Ten years later we needed to expand the capacity due to needs of that water system, we obtained a second loan from then farm association, another loan only. Im here today to ask you for your support to continue the funding for that program which is today known as the water and waste Water Loan Program operated under usda Rule Development. Public water supply systems in the United States number some 60,000. I represent the kansas rural Water Association but also the other 44 state associations that make up the National Rural Water Association and their membership of some 31,000 member utilities. 92 of those public water supply systems serve populations less than 10,000 and 80 of the waste Water Utilities in the nation, some 16,000, serve populations less than 10,000. In kansas there are 786 of the 855 public water supply systems that serve fewer than 3,000, the issue of affordability of Drinking Water is a major concern for those public water supply systems that cross the United States. The Rural Development program critical to addressing that effort. The usda Program Provides help to citizens to have more affordable rates because of the provision for longerterm financing than the epa funded or the commercial credit can offer. I try to put the issue of affordability into some perspective in reviewing the cost that were incurred but public wholesale district and chase Water District in kansas. Without usda Rural Development funding of loans and grants and a small portion from the Community Development block grant, the citizens and strong city kansas would have had water rates quadruple to 25 per thousand making 5,000 gallons of water costs 167. 42. 50 minimum and roughly 25 per thousand for total of 167 for 5,000 gallons. Thats absolutely not affordable in most communities. Strictly relying on commercial credit and the epa loan and loan program which addresses compliance, the usda rule Development Program various from that because it takes affordability as a primary factor in the consideration of those loans. We complement the agency for developing Online Program for the application process, its certainly helped the agency. Thank you, chairman roberts for the opportunity to comment. I will be happy to take questions years. I want to thank you for your long service in kansas. Has a great rodeo and obviously you cant afford water at those kinds of prices. Excellent example, thank you so much. Mr. Stevens. Thank you ranking roberts and committee for inviting me to testify. A nonfor profit electric cooperative in georgia. We provide electricity to nearly 70,000 members, operate 6,000 miles of line and employ 200 people. The farm bill is essential because it contained tools to keep lights in Rural America. Renewable resources, modernize the grid. For decades the Rural Utilities Program has been our foundation providing lowcost financing to coops and maintaining the grid. Its been the most important Rural Development tool in the countrys history. Today they are adapting to changes and consumer demand, accommodating and protecting against cyber threats. The farm bill helps us fund essential projects to make our systems more modern, efficient and secure. We have enjoyed strong support for u. S. Funding because we are such a good investment, providing valuable services to our communities and reliably paying back our loans. We ask that you help us maintain the support in the farm bill and 21st century, Robust Communications infrastructure just as important to our business as our traditional assets like polls, wire and power plants. My coop is currently conducting an economic study determining the feasibility out of Broadband Network. Main motivation is to take care of internal operational needs to make our system more secure. Once foundation is in place, lots of things we can do wit. One option could be facilitating the connection of members homes and businesses to broadband internet. Some people in our region dont have access reliable internet, consumers, hospitals, and employers that are disadvantaged. Another part of modern siding the grid is deploying new Energy Sources for customers saving money by managing their own energy, Founding Member of green power emc with sources renewablable from low impact hydroplants and solar. At the end of last year, green power emc projects generating 300 mega watts of electricity, enough power to serve 200 homes and that will nearly double in 2020. We also sponsored efforts to bring solar installations to schools and help customers finance money with saving program to make sure that electric coops can continue to meet the demand. Vital Economic Development role in the communities we serve. Since 2009, georgia coops have funded 10 million to the rural Economic Development and Grant Program also known as red leg, the projects include renovations of hospital and cattle feed operations to support local agriculture business. We urge the committee to work with us to ensure ample funding. Lastly, allow me to mention an issue of vital importance of health of electric costs in georgia specifically. Nuclear power plant partially own generation coop, construction underway to add to reactors. The projects general contractor has put the project in jeopardy. Congress must extend existing tax credits in order to make the project completion viable. Most of our countrys food, minerals, manufacturing goods come from rural areas. The help of Rural America should be interest of all americans. You have a great opportunity in the farm bill to make needed investments that will address unique challenges. Again, thank you for the time to testify. Thank you, chairman roberts, members of the committee, thank you for the opportunity to testify on promoting the deployment and sustainability of broadband in Rural America. My name is denny, ceo of Golden West Communications in south dakota, my remarks today are on behalf of golden west, Broadband Association which represents approximately 850 communitybased providers of advanced tale Communication Services in the very most rural parts of the this country. Began operations in 1916, today we provide broadband service, Cable Television and voice tale Communication Services. Golden west serves customers across 24,500 miles in south dakota, thats an area larger than the states of maryland, new jersey, connecticut combined. Just last week, we received approval for our most recent loan. Usda telecom Lending Program have stimulated billions of dollars in private Capital Investment in rural tale Communications Infrastructure around this country. Despite the tremendous success of the usda telecom programs, Rural Broadband deployment would not be possible with fund highcost program as well. The usf Program Helps rural carriers for use of private capital and or securing loans from the Utility Service and limited private lenders committed to willing to finance broadband capable plant in Rural America. Unfortunately while usda programs promote and the usf rules are designed to support, the highcost usf budget is not. Hard cap and resulting budget short fall is driving consumer rates higher, deterring Rural Broadband investment and even cutting usf support for investments that have been made. In fact 40 of u. S. Land mass served by rural carriers, highcost budget is now the greatest barrier to Rural Broadband investment that carriers face right now. Because of this limit, tens of thousands of rural consumers will see lower speeds or no broadband at all precisely what recent reforms were intended to alleviate. We are requesting congress to help fix problem and urge fcc to take as soon as possible. The review process of networks across federal and stateland owning agencies mist also be addressed in any ha listic holistic plan. They may never deliver on their problems if caught up in red tape and delay. Therefore Rural Broadband industries is eager to close the broadband gap by working with congress and the administration on Public Policy that helps to build and sustain broadband in rural markets. Golden west and Member Companies thank for leadership and interest on all of the issues and we look forward to working with you on behalf of the hundreds of small operator members of ntca and millions of Rural American that is we serve. Thank you for your time and i look forward to your questions later. Thank you, dr. Law, dr. Shanks. I thank you very much for the opportunity to testify. Clearly near to the state of iowa but broadly the country but i think whats important about the area relative to testimonials, this is one that not only impacts farm security, rural infrastructure, but also broader impact on society so its a case where we can see that Rural America really has a strong impact on the grater society and i think thats important thing to always keep front and center. Timeline has very important aspirational goal of producing advanced biofuels and this is a wonderful aspirational goal. Underneath that, we have established biorefinery which would not only produce biofuels but also products of biobase chemical, renewable chemicals and biobase products. Importantly the way the title is constructed is it looks at the challenge of aspirational goal which includes technological challenges, market challenges and infrastructure challenges and says, how do we build actions authorized actions underneath it to address those challenges. Thats a very important way to address the problem. I would argue or suggest that theres another way, complementary way to look at it which is how do we take advance biomanufacturing and produce renewable chemicals and biobase products that can actually enable us to pathway to grand vision that we have, what do i mean by judiciously. We can develop technologies that in the nearer term can produce renewable chemicals but as they mature can be leveraged into advanced biofuels. We can develop markets in renewable chemicals that will then be in place for when we are ready with all those pieces to make it work. We can do incremental invest investments on existing infrastructure to make sure that when we come to the biorefinery which would require infrastructure we can lower capital for infrastructure. Its my opinion that if we utilize advance biomanufacturing to produce renewable chemicals, what we can do is create successes on the way to the pathway of what we ultimately want is advanced biofuels. The analogy of this is when i think of nasa, nasa creates a vision an says we are going to mars and what we do is we establish technologies along the way but the technologies have value in their own right and nasa does a wonderful job of articulating the value of that. I think we need to do that in biomass utilization. We have a wonderful objective to create biofuels but we also have the ability to create opportunity, successes on the way to ultimate success. Thank you very much for your time. Thank you very much, doctor. Thank you, chairman roberts, Ranking Members, distinguished members of the committee for inviting me to speak to you today. My name is mark, president and ceo of Harvest Energy solutions, Solar Energy Design sales and Installation Company based in jackson, michigan. Ive been in and out of the Agriculture Sector most all of my life. I was raised on my farm and farmed on my own for a while, farm manager for the largest farm in the state of michigan in 1980s, i owned a grain elevator, 11 million bushes of grain for usda. After that, i got into manufacturing. But i missed the farmers and people of agriculture and i was looking for a way to reconnect with them. In 2006 i was approached to work in the renewable arena and thought this was may way back to working with farmers in the midwest. We started a Company Called Harvest Energy solutions, over the past few years, weve grown from a twomen and a truck operation to over 50 professionals and growing. Our main focus is farmers and rural customers in the states of iowa, illinois, indiana, michigan, ohio, kentucky, tennessee, missouri and pennsylvania. Agriculture customers include dairy, poultry, hog, grain, greenhouse, hop, food and vegetable farms as well as wineries and breweries and we were policed to be joined by you, Ranking Member in 2015 at ribboncutting ceremony for installation at winery in michigan. The project like so many others in this space was made possible by the usdas initiative. Grants are available through usda to assist farmers and Rural Business owners to invest in Renewable Energy systems or make efficiency improvements. Harvest energy has been successful in part because of the smart federal investments in Rural Communities. Reap has been a component of 25 to 35 of sales. Allow me to give you a quick example of the immediate example that reap has on an investment. Typically customers will see a 7year payback when they purchase solar on their farm or business after which the electricity from that investment is virtually free. With the award, the same farmer or Business Owner will see an approximate fouryear return on investment. Many times the grant is the determining factor of their buying decision. Thereare typically three times more grant applications than any funding in a given year. I would strongly recommend to this potential panel not only to reauthorize but consider increasing the mandatory funding associated with it. That means more clean, Renewable Energy, more jobs and Economic Growth in our struggling Rural Communities. I know that this committee has a lot of Big Decisions to make, but please know that harvest and others like us deal with conversations on a daily basis. I want to thank the committee again for inviting me to washington, d. C. To share my perspective and to perspective of countless farmers and countless small Rural Business owners throughout the country. I look forward to your questions. Senator, mark. Senator grassley. Thank you, mr. Chairman, for your courtesy letting me go out of turn. Dr. Shanks, given your experience in biorenewables, what Lessons Learned or effective practices do you feel should be included in the farm bill in order for the u. S. To continue being a Global Leader in biorenewables . Thank you for that question, senator grassley. One of the challenges is how do you pose a problem and when the agency carries out that, how they respond to the language. As i mentioned in my testimony, the way we currently set up is the vision of biorefinery and so most of the opportunities are set up around how do we impact the production of advanced biofuels. I think theres opportunity to say, we need successes along the way which lets consider technologies that maybe arent ready for advanced biofuels but produce renewable chemicals that have great values an get us on the path. These are some of the things that we need to consider to get where we are and where we want to go. Very tightly controlled relative to the price of crude oil. There is opportunities with renewable chemicals, bilebased products that have advantaged and unique Performance Properties that create Value Proposition that are not, now you can decouple them from the price of fossil carbon and thats a tremendously important part of the path forward in my opinion. Why do you characterize renewable chemicals as ancillary in the current bio refinery strategy . When we look at the objective of a bio refinery which is to make advanced biofuels, theres now an acknowledgment theres an Important Role for bio based products and renewable chemicals with that. However, the language that comes out is how do we take a byproduct stream, the side streams that are not being used for advanced biofuels. This is limiting innovation and progress. Ms. Hazlett, what rex im sorry. Ive got one more question for you. In your testimony you stated that use Chemical Market is over 200 billion in annual sales. What percent of the 200 billion to renewable chemicals currently account for . Are there any projections for where renewable chemicals might result be in ten years . Yes. This is always a challenging question and theres complete, there are chemical Consulting Companies that make their business to project what that is. Im certainly not in the position to be as definitive or as for looking at some of them. But we are less than 1 , you can envision 10 of the market is a reasonable capture strategy. Clearly theres a number of things that have to be advanced to get to that point. To put any more concrete term, the stat state of vital passed a renewable chemical production tax credit. This is the first year thats in place. Its five cents per pound produced Building Block chemical from renewable products. Already there are 15 Companies Looking at applying for the credit which would be for production for this year. The bill officially apply for in january. So the answer is theres a lot of opportunity out there, a lot of innovation out there so i think that 10 is not an unreasonable objective. Thank you, mr. Chairman. Senator heitkamp. Thank you, mr. Chairman. This is an issue that is near and dear to my heart. My colleague senator holds and i represent one of the most rule states in america. We appreciate and understand how critically important the Rule Development piece of this is, in fact, i have two tests on whether i think a rural area will survive. First is to have world water, which is absolutely critical Going Forward for many, many families to make sure the water is pure and clean. The other test is can the stream netflix. Because if you cant stream netflix come if you cant get access to broadband, its going to be increasingly more difficult not only to keep our agricultural economy in the rural areas thriving but to build out and develop value added opportunities that will keep our children at home. We are very, very interested in making sure that the historic commitment that the federal government has made general development which has paid off, either repayment of loans but absolutely producing the highest quality food source in the world making it possible for us to continue to do what we do in world america. None of that would be possible if we had not electrified, now look at broadband, if we have not made these investments. I want to thank you all for the roles that all of you play in doing exactly that. I want to talk a little bit about what would happen if, in fact, you probably also the budget, that the administration advanced. We will start down at the end and welcome. Its good to see it again. I have to give her a shout out. Lets ask all of you what do you think the consequences would be if we adopted this administrations budget as a relates to Rule Development . We will start on that end. Thank you, senator. Certainly, we have to recognize that the Rural Development programs that are in place have no arrival in federal government. They are not duplicative to other programs, and we have to dedicate enough resources for these programs to do what theyre designed to do, which is helhealthy Rural Communities survive and thrive. And so we would say any effort to reduce the resources to these programs will be detrimental to rural areas. Senator, when it comes to rural water, if funding from usda Rural Development is not available, many of those projects will simply not be built. If i could just take a minute. What will happen to operation and maintenance is the opportunity not only to build new facilities but maintain what you currently have . The Rural Development finances circuit rider programs, and we provide to our association is a Technical Assistance provider daily Operation Maintenance and technical funding application assistance to those communities. The communities in kansas and many across the midwest have a declining capital, human capital. We typically have 25 turnover of operators annually in the state of kansas. These field techs are essentially to maintaining critical services. A town yesterday lost to operators and one of our people is in their today and was already yesterday afternoon helping that town maintain service. Thank you. Mr. Stephens. Thank you, senator kirk we appreciate this and we really want to continue supporting the electric utilities of course amn building out the basic infrastructure. We also see a need i continue to support the rural energy of America Program in Energy Efficiency and also the Rural Energy Savings program to help those that also red lake and helping Economic Development in our communities. Thank you. Thank you, senator. We would continue to support roprobust funny for broadband efforts including the rural Utility Services broadband Development Program as well as the various Grant Programs that are available as well as the traditional infrastructure program. Its my understanding that budget proposed for that is relatively stable at that time but certainly is a process evolves we will continue to advocate for strong funding. If i can just make a point there. Stable budget is going to maintain and help us keep what weve got. We desperately need to expand Rural Broadband along with shelley capital, we are working very hard in my office. If i could get just two more questions. Thank you, mr. Chairman. Theres no question infrastructures tremendously important. Even when getting to manufacturing of some these products we need to have that infrastructure. I would say whats also important is actually creating value in these communities, and great example is three years ago there was 148 million facility building osage iowa to make bilebased products. So theres great opportunity here as well. Thank you. If the Grant Initiative was disbanded for whatever reason, it would make it very difficult for many farmers to tip their toe in two renewables. We sell to farmers because typically they have space and that friendly townships. We look forward to working with this group, and as i talked to hundreds or maybe thousands of farmers at different tradeshows that we can, they bring up r. E. A. P. And they bring it up more and more all the time pics of the momentum is growing, and to pull the rug out from under a program like this would be detrimental. Thank you. Thank you, mr. Chairman. Thank you, senator. Senator hoeven. Thank you, mr. Chairman. Thanks to the witnesses for being here. Somewhat along the same lines. What are your priorities . As you look at Small Businesses, is is is throughout Rural America, what are your priorities in the farm bill like one, two, three, for each of you . The reauthorization of the program is critical to providing services for world businesses. North dakota has excellent Rural Cooperative developments to this program. Reauthorization of Rural Cooperative development grant. The of the grant and maintaining a business focus for the program, having applicants put together a strong applications that include financial projections and estimates of customer base, those are two key pieces of for what would be necessary in the next farm bill. Certainly look at all these partners together to see how the programs Work Together to provide resources for Rural Development and how they can be done, more cooperatively would be something we would encourage. Thank you. Center, i am not intimately familiar with all aspects of the farm bill but but i do know abt the role developments, water and wastewater loan and Grant Program and there are many more applications and funding needs than fun is presently available. That is a critical component to making water and Wastewater Services available in underserved and low income particularly Rural Communities. Senator, i think for us it is deathly continue to meet the growth of our communities and providing funds to meet electric service. Also to provide Innovative Solutions like weve utilize for ami in making a smarter grid which could include some form of broadband, and also just continue to promote Economic Development by reauthorization. We would song support continued full authorization for the Broadband Loan Program and Traditional Telecom loan opportunities that rural telecommunication providers can take advantage of for affordable financing of expensive Broadband Networks in very rural areas, and as many dont are available for those type of applications to defer to that nation would be our number one, number two and number three. I certainly cant claim expertise in the broad aspects of the farm bill as number of these experts, but i would say i think an important aspect of this strategy perform security and rural investment is making sure that we actually have products that are valuable. We think biomass derived products are tremendous important at the mix of how to help rural economy. And whats most helpful to you there . Partly . Whats most helpful to you in developing those biomass the key process there is to make sure we synergistically use our federal dollars. The department of energy has a very Clear Mission on energy. Usda i think as a much more a mission on rural infrastructure, value to the rural site. I think that doesnt require that energy be the main feature of it. It means how do we create value from the biomass. I think its important those programs complement each other rather than just reinforce one direction. Still a little arcane for me. Okay. So a lot of what we do in the biomass area is absolutely related to make advanced biofuels, and thats a view across speeded are you talk about the biofuel programs across yes. I think those are important. However, usda in the fargo has a unique niche in there that what we care most about is how to create value from the biomass products. Energy is in the absolute only and again we would be interested in. Wer. Were interest in value add products. Value added products are a shorterterm advantage and Success Story than select making a biomass coffee cup for the chairman of the act committee. Yes. I guess i would suggest jobs be one of my biggest concerns. Our young people are leaving the communities. They are coming to big cities, in order to create some of those jobs, im back to Renewable Energy, Renewable Energy produces jobs in the smoking 30s. It reduces the cost of electricity for the farmer allowing them to expand their business and potentially hire more people. As well as they guaranteed loan program. But theres something here that im learning today that im certainly not equipped to speak on, thats the opioid condition we have in our Rural Communities. I think we all need to pay a lot of attention to that. Its real, and its a big concern. Thank you. Thank you. Senator stabenow. Thank you very much , mr. Chairman. Thank you to each of you for your excellent testimony. Mr. Olinyk, its wonderful to see again, and appreciate the great work that you are doing. I wonder if you could talk a little bit more about the r. E. A. P. Program and the fact that its consistently oversubscribed, or interest and is funding to be able to move these opportunities for work for farmers and others. We fought hard in the last farm bill to secure permanent funding for the program. I wonder if you might talk brought about the demand for rural Renewable Energy projects, what youre seeing in the field, what would happen in terms of jobs, jobs for your business. As one example if we were to increase the funding for reap . Thank you, senator, for the question. The more available reap money, the more benefit to farmers and businesses. It produces jobs. Ill be greedy for second and talk about my company. I mentioned that the 2530 of our growth has been directly related to the reap grant. We not only sell and design and install solar panels, but we have the manufacturing sector. We manufacture the structure beneath the solar panels. So there would be increase in manufacturing, design, installation, sales, administrative. And these are professional jobs. They are not minimumwage jobs. Also on the agricultural side, as we educate these farmers one at a time it seems like, and they invest in renewables, it freezes up money for them to expand their business frees up when expanded this is our jobs are had. Our business is double in about the last three years. I expected to double again in the next three years, or faster. Survey with an enhanced reap program. Ive got a quick story, it has to do with kentucky. About six years ago i wanted to show that somebody from michigan could go so someone from kentucky a product. I myself went down there and i was introduced to a young farmer, and we hit it off. He ended up buying a solar array from us. During that conversation his neighbor was there. I finally gave the first guy a really good deal, but we found out that that good deal spread and spread and spread, and they all got a pretty good deal. Long story short, they almost all applied for reap. Within five or six counties, we sold approximately 100 installations of solar in those five or six counties, almost all applied for reap grant. Most go i would say have got their reap grant, half did not but i would say we couldve had another 50 sales or so, many more employment there, more employment for us, had we had more funding for reap. Take you very much. Mr. Ronnebaum, lets talk more about rural water. You highlighted the affordability of Drinking Water, the importance of usdas Rural Development water and wastewater loan and Grant Program in kansas as well as across the country. We had a lot of challenges in michigan from flint, michigan, with a lead in water to Macomb County weather was a big, they call it sinkhole bu with his hue effort whether roaches collapsed and underneath it we saw pipes that i dont know what you call piping out of wood, but thats what we saw. Just extraordinary old infrastructure. I point to the most dirt 64. 5 billion is needed to maintain and upgrade small Water Systems around the country. As our nations infrastructure continues to age, can you describe the role that usda Rural Development programs have in ensuring communities, i know you talked about this but i wanted to talk more, what is being done to provide access to clean, affordable Drinking Water . And any suggestions that you have in terms of usda in terms of being able to finance Drinking Water projects or provide Technical Assistance in a more robust way. Thank you, senator stabenow. The epa funded water supply loan funds and programs in various states, focus by merrily on compliance. Kansas, as an example, when the state ranks the projects for funding, the regulatory agency, they apply 35 points to compliance or consolidation, affordability five points. Affordability is at the bottom of the list, whereas the ust program puts affordability very much to the top. So those programs are not duplicate this. Simply put, the focus is completely different. The usda program replaces, expands and extend services into unserved areas pick the epa program cannot do that. Thank you much. Thank you, mr. Chairman. Senator klobuchar, we have a vote at 12 15, another one at 1 45. Im going to try to make this is because we can because i know we have pertinent questions. Ms. Botts, in your testimony we had a new arrangement here, where the last shall be first and the first shall be last. No problem. But anyway, in your testimony you highlighted important requirements of the valley at a producer Grant Program value. Provides a Business Plan and basic Financial Statements. Deeply it make sense to consider requiring this type of Financial Information for all usda grant and loan businessbased programs to ensure that projects being funded are actually viable . I do. I think if the program is delivered to recipients who are private businesses, it only makes sense to have documentation that the business is thought to the very difficult questions they have the think through to do Business Plan, and they do a basic Financial Statements such as a good profit loss statement hits of the agency and the reviewers for the Grant Program can look at that and see it is a viable going business. Thank you for that. If you see earl pomeroy in the near future, tell the loquacious mr. Pomeroy i miss the dialogue back and forth between he and i when we on the house ag committee. I would do that. As you noted in a tesla, Rural Development, a number of different grant and loan programs to encourage program. These programs address definition of what. [speaking in native tongue] actually constitute broadband. Do you think it makes sense to have a common definition of broadband, and if so what speeds would you recommend bar was committed bill that in order to qualify for a grant or a loan . Thank you for your question, chairman roberts. I do believe there should be some type of coalescence around a consistent speed designation of what constitutes broadband not just in Rural America quite frankly america in general. In terms of speed standards that are a variety in place today in terms of the rural utilities service. There are a variety speed standards used by the federal Communications Commission as well. I would strongly urge if at all possible there be some type of meeting of the minds so to speak between those two entities to try to see what type of agreement or broad guidelines could be put in place for a consistent broadband beats in a in regards a specific speed, mr. Chairman, it is difficult, i will answer your question but id like to preface it first by saying that will be an albert evolving question that im confident this committee and others will ask for many years to come. The needs or desires of a particular Network Capabilities evolve in years to come. Whatever number i tell you today, by the next month, next year or five years while we are all still building networks, that number could be some performance. From a Company Perspective and my organization and i think many in the Rural Telecommunications i think a minimum Broadband Speed should start in the 25 make, three make minimums would be my personal recommendation. But thats written in sand. Because a year from now it should be higher and so on. I appreciate that. A lot of things are written in sand around here. You include a number of policy recommendations for the 22 farm bill. One recommendation includes removing water and Waste Disposal Technical Assistance and training grants from the strategic economic Community Development set aside. Can you expand on why you think this recommendation is the right way to go, white make sense . What you believe there are other grant or loan programs where the multijurisdictional approach is not working as intended . Senator, the program as i understand takes 10 , 10 set aside at the national level. Whether or not that makes sense in the program, it would seem that each state could take its allocation and deal with the full 100 . But as it is presently written it reduces the wastewater tech assistant program by 10 . We have one staff member who covers the entire state of kansas. He measures lots of sludge and lagoons. I could give you harrowing stories but we dont need that now. It would curtail services if those programs are reduced by 10 to many communities that need that assistance. I appreciate, thank you. We have done afterwards here, i will ask you about the governor stating that there is evidence now that the recharge for the reservoir actually is a better situation than we thought. I know you are from the eastern part of kansas but we had that reservoir out there. Thank you very much. Mark, have any of the reap authorities been a coal to produce is located in nonrural areas . Am asking this because the program currently allows urban farmers sounds like a movie to qualify for funding. But as you note the new testament this program is highly oversubscribed every year. What are your thoughts regarding tightening eligibility requirements for rural energy for America Program awards to focus these dollars on providing benefits directly to agriculture producers . I guess im not sure i totally understand the question. Well, theres money for funding going to urban producers under a program that is for rural energy for America Program where it focuses dollars on rural. Okay, i just in. Its my understanding, and let me make sure i understand the question, it is for farmers and Small Businesses in Rural Communities, but when they describe a farmer, that pharma can also be closer to the urban area. Thats my understanding of the rule. If someone is farming tobacco outside of murray, kentucky, and they are very close to the city, not a very good example because murray is not that big, louisville. Its closer to the city and encompass in an area that is too large or larger than that 50,000 population, the farmers are exempt from that and they can still get a loan or a grant. Thats my understanding. Just keep them outside the city limits. Im good with that, too. Appreciate that very much. Senator klobuchar, why did you close out . Very good. Thank you, all of you. I am cochair of the Senate Broadband caucus. Im going to start with that, and i focus on a course our role connectivity and whats going on. We still interested in age have way too many people that cant get broadband, including farmers, Business People who go to the mcdonalds parking lot to do their work. So mr. Stephens and mr. Law, what steps do we need to take to deploy broadbent and how can we overcome the unique challenges we have . Ninety for the question. Ill start. In our coop we currently are in the process of doing Feasibility Study to determine the benefit of building out a Broadband Network specifically for operational needs first, but our id at our focus is to see how we can potentially partner with others to expand that to the unserved areas. We see its not necessarily one size fits all. There some coops who are working, building the last mile. There are some who are not really focus on that and dont have any interest at this time to do that. But what we see and what we believe is making sure theres ample funding for those coops and electric coops who are serving and building these networks, that their funding is available. Okay. Thanks dirk. Thank you for your question. I think its accommodation of a couple of things. First is for the Rural Telecommunications providers that are already in the business of providing broadband or trying to provide broadband across rural expanses, is an effort to stabilize both the forms of Revenue Sources that rural carriers rely on specifically the universal service fund in the first panel acting administrator mclain referenced the stability of the fund impacts, our ability to make investments, our ability to keep rates affordable, our ability to provide comparable services, our ability to get loan funds from your rural Utility Services. All of those things cascade into impacting our ability to provide the services in a very difficult Economic Situation in Rural America. The second thing i would briefly say used to ensure we create the proper incentives to focus broadband providers to invest in Rural America with the economic challenges. Okay. Mr. Olinyk, i know you asked about the rural energy part of the farm bill, and a related question picky talked about how reap five saves money will make it their more stable and profitable. How do you take advantage of the opportunities of the Energy Program . As someone who works with reap, what improvements do you think we could make that is more effective for rural users . Thank you for the question, senator. One of the things weve noticed with the reap program, im going to give an example, is that the maximum reap loan or reap grant is up to 500,000. Most all of the states typically dont even have reap opportunity of 500,000. Ill give an example again. The state of michigan in 2017, we had allocation of 909,000 here well, one award was 500,000. That leaves 409,00 409,000 for e other applicants. I suggest maybe that we should consider may be a 20 maximum of the total allocation for the state. So this life hundred thousand dollars recipient who took 55 of the total 500,000. Wouldst have received a nice bit but leaving 727,000 to be shared by smaller projects. In addition to that, the current legislation calls for 20 funding for projects of less than 20,000. This is called restricted funding. I would increase the setaside to 40 for those smaller farmers and Small Businesses. Therefore, spreading the wealth over more people and more farmers. Okay. Very good. I think you all. I put some of the questions on the record. We have to go to the boat and the chairman has been very patient, so im going to end. Thank you. Well, its high noon. High noon. Almost missed my window, mr. Chairman. Same here. Thank you. I appreciate the input from all of you. Thank you for your participation. As i said earlier, we would look a farm bills we look not only at obviously the programs that benefit directly reduction agriculture but also those things that can enhance quality of life in our Rural Communities and the discussion today certainly contributes to that. Mr. Law, you talked about this but what can be provided by Rural Development agencies or others that would enable your coop to provide broadband to your very widely dispersed customers at competitive rates . Thank you, senator thune, for the question. The Funding Sources for any Rural Telecommunications provider is really i will say a threelegged mechanism. There are the revenues we received from customers, the revenues we receive from those who use our network. In other words, other carriers who may desire capacity or need to use our network to transport their services. And then the third item for Rural Telecommunications providers is the support received from the federal universal service fund. Customer revenues and comparable and certain i think with pushing upper bounds of that today for subscribers, are paying more for broadband and related Telecommunications Services than their urban counterparts. In terms of the prices charged by the ability to generate revenue from third parties for user network that is been greatly diminished over the last years. You are left with customer revenues and universal service something with universal Service Funding being dramatically reduced and cut from Many Companies included my own it doesnt leave many choices for where our the future funds for the deployment of Broadband Networks. It will be a combination of customer increases, hopefully stabilization of the universal service fund, and potentially restore of amounts that of intent over the last 18 months. How do your rates and services you provide your customers compared to those in, say for example, rapid city or sioux falls . For a golden west customer in order, because it operates in a high cost market, in order for golden west to even receive universal Service Support at the present time our customers not only have to subscribe to a broadband, they have to subscribe to voice Telephone Service. Its not optional because if we forgo the Telephone Service is a revenue from the Voice Service itself but more importantly also at this point golden west would forfeit any universal Service Funding. Kind of a double edge from the funding side. To answer your question, what happens is for our customers to receive broadband they have to subscribe to Voice Service and broadband service. So thats 100 charge, plus we still receive some u. S. F for that. Customers anymore urban market in this round areas and i think probably for most of the Committee Members in your urban markets a standalone broadband rate is probably much closer to 50 75. Ours begins at 100 and goes up from there. Issues that we need to litigate with the fcc in addition to the other agencies where talking about today. You spoke a farm bill consideration for this committee. Is it fair to say independent the programs directly, that Rural Broadband, that benefit Rural Broadband need increase funding rather than any major modifications . I would strongly support that. As the committee has heard theres a demand for Rural Broadband. There is a willingness by Rural Broadband providers to deploying more, and believe if there was more funding mechanisms available, whether that was in the form of low interest loans, in the form of various grants or perhaps grant loan combinations i believe it would be basis cases that could be made for further expansion of broadband. Mr. Chairman, i think thats well, ive got one. Let me ask this of ms. Botts. In your testimony you spoke highly of the value added producer Grant Program that you indicated the greatest to long, the turn runtime for many and recommended a rolling application process for those planning grants with approval done on an expedited basis. Is this expedited process something rural developing can an active and act administered orza something we need to do to clear the path . Thank you for the question. My thoughts would be you would probably need to make a statutory change to allow them to consider planning grants separately from working capital application. I dont know that for a fact but i think that would probably be necessary. It would be a fundamental change to have considered these applications. The reason i included though, even though it will be a challenge administratively, is because if youre a business ad your wanting to do a Feasibility Study on a project, you dont want to wait for a full grant cycle. So we have many businesses that are agriculture produces started, businesses owned by ag producers. That would be excellent candidates for planning grants. They want to get started on the Feasibility Study as soon as possible. We would be able to do a lot more of those if we were able to do on a rolling basis. I do think you pop have to consider some sort of change. Whats a fai a fair turnaroue for expedited approval process . I think it would have to be two to three months. Okay, good. Mr. Chairman, thank you. Panel, thank you very much. Appreciate your input. Mr. Olinyk, mark, you tweaked my interest on jobs, jobs, jobs for our rural areas, opportunities for our young people. Everybody knows here on the committee and all of you know the serious problem. And in southeast kansas i was able during the recent break to visit three manufacturing plants. Plants. All three are similar from the standpoint that these jobs are somewhat technical, that they have training program, the pay is significant. Very quickly, any applicant that is except it works of job can get over 20 an hour. Plants range in size 100, the 500. Actually go out and try to recruit workers. Elmer talked about this a little bit, with regard to people who change or leave and you have to have substitute here. With regard to all that you are involved with. What im try to get at is that they tell me that in recruiting the whole area, high schools, or puberty colleges, et cetera, et cetera, one in five actually, they can accept. One in five. And i asked whats going on . You have to fill out a written form, number one. Number two, you have to have a personal interview. And number three, you have to take a drug test. If you are only accepting 15 because of what i think to be a basic requirement here, we are in a world trouble. Im asking about the work ethic. They also indicate that they may pass, they go through training, their onthejob or maybe a month or two and then the quit. I think thats very troubling. You can also apply that to the United States marine corps. Its one in ten walkthrough of recruiters office door who actually fit the requirements with the criteria, im very proud to say the criteria is very high. Im worried about this generations work ethic with regards to jobs that are available at the people simply do not want to do. Theres a Health Program here, Retirement Program here. You get to stay in your hometown and i would think if you can find a job you like and you can make a living, in a row smalltown, one of the best places you can do, or be. Would you like to comment about that . Your sentiments are exactly the same as mine. We have, between my wife and myself, we had six kids. One lives in ann arbor. One lives in new york city. One lives in San Francisco one lives in north carolina, and to our local. They are all educated. But the people that we hire and that we try to hire are from all over the area, and youre right, i would say 15 for our area might be doing well one in five. Part of our company, we are free to even drug test. We might lose half the people, and thats common. Its common in our area. Its probably comment in your area even though you might not know it. So its a serious problem, and as far as the work ethic goes, its tough. I dont see a generation wanting to come in on weekends, but sometimes will offer a day off without pay, and they will take it, as opposed to working over the weekend. So its very difficult, and we are all involved the Rural Community but its a serious problem. They are leaving if there educated, and they are struggling to want to work if they are less educated. Elmer, do you want to comment on that . My wife taught gifted education and school for 30 some years. There are many societal pressures on families. I am not familiar with the drug issues that many of them are personally. I know thats a real problem. There are local manufacturers, local Hometown Boys who have done very well, Manufacturing Companies in seneca kansas. They struggle to have Manufacturing Type jobs that pay and can attract a quality workforce. But i agree with the sentiments that there is a less than less work ethic. The programs or operator income we use selfhelp, volunteer services to just built a new Community Building or a library, a fire station. In some cases we repaired nine Water Systems. We use local volunteers and is a sweat equity program. We supervise the project. There has to be more Stakeholder Involvement and local committees so if you like to have an ownership and they have value and the contributed something to maintain and improve their local quality of life. My staff isnt for me this we dont want to miss that. Anybody else would like to contribute . I raise that issue simply because mark brought up jobs. I got to thinking about it. I didnt realize, i knew we had a problem. I didnt realize we had that big a problem with regards to one in five. For jobs that are good jobs, and it wasnt so much that the jobs are not available. This goes from county to county. He mentioned some have to be always amazed we have traficant and some that they kansas but because of the manufacturing. Home of the fighting blue jays as you know. Anybody else want to comment on this . Just to echo whats been said. The businesses with whom we work are constantly struggling to find labor. It is a constant struggle. We answer more questions on that and how to deal with labor issues and probably any other issue. Somehow we have to find a way. Thats going to conclude our hearing. Again, i found out but but i tk its a very serious problem. Thanks to each of the witnesses for taking time to share your views on the role of the programs and the farm bill. Your testimony was extremely valuable to us and was certainly necessary for the committee to hear firsthand, and for those in the audience who want to provide additional out on the farm bill and the subjects were set up an address on the Senate Ag Committee website to collect your input. Please go to ag dot senate. Gov. Click on the box on the left side of the screen. That link will be open eyed Business Days following todays hearing. To my fellow members, we did ask any additional questions you have for the record be submitted to Committee Clerk no later than five Business Days from today, or 5 p. M. Next thursday on october 5. The committee stands adjourned. Thank you. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] coming up, i was sender joni ernst, the first female combat veteran elected to a u. S. Senate seat. She will discuss foreignpolicy issues live at the center for strategic and International Studies starting at 9 a. M. Eastern on cspan2. George Washington University holds a conference on cybersecurity issues the government and the private sector. Live at 9 a. M. Eastern on cspan3, online at cspan. Org or on the free cspan radio app. Next, remarks by senator ron wyden on the nomination of ajit pai deserve another fiveyear term as fcc chair. Senator wyden spoke about his opposition as it relates to Net Neutrality and Rural Broadband issues. His remarks are followed by senator roger wicker. This is 20 minutes. In mr. President , i rise todayst in opposition to the president s nomination of ajit pai to head the federal Communications Commission. My view is that in particularl mr. Pai will do an enormous amount of damage to one of the foundational principles of the internet, Net Neutrality, and im going to outline why that would be a horrendous mistake for our countr
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