Transcripts For CSPAN2 Hearing Focuses On Rural Development

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