Committee Examines Workforce Issues for Small Businesses in Renewable Energy

Instability in oil-producing regions and rising energy prices have made it clear that America needs to move towards energy independence. To meet this demand, the renewable-energy sector is increasing rapidly, with small businesses at the forefront of this expansion. Just last year, biodiesel production reached 225 million gallons. Today, with 148 biodiesel plants in operation, and close to 100 factories under construction, this industry is expected only to grow.

During yesterday's hearing, the House Committee on Small Business reviewed the state of the renewable-energy industry, and potential barriers that could limit its expansion -- including access to a well-trained, skilled workforce, and possible solutions to these obstacles. A bill introduced by committee member Bruce Braley [D-Iowa, pictured] provides funding for bioenergy workforce education.

"This field is still in its infancy -- but it is having significant economic impact," said Rep. Braley, chairman of the Subcommittee on Contracting and Technology. "The potential for new business and job creation is huge.

"Without a qualified workforce, the renewable energy industry will have difficulty filling open positions and will run the risk of falling short of its full potential. That's why new training programs are crucial."

Many small producers don't have the capacity to conduct adequate onsite training, yet a skilled workforce is essential for their survival. To surmount this obstacle and encourage continued growth in renewable energy, Braley has introduced the National Endowment for Workforce Education in Renewables and Agriculture [NEW ERA] Act of 2007, which will provide funding and programs to expand the renewable-energy workforce.

Under the bill, grants would be awarded to community colleges to create renewable-energy workforce education and training programs, allowing for increased investment in human capital. These initiatives will provide a new set of bioenergy workers, ensuring that the expansion of the renewable-fuel industry will have adequate support from skilled professionals equipped with the tools to stay competitive in the field.

"In order for this growing industry to truly flourish, our workforce must have the skills and knowledge necessary to stay on the cutting edge of new technologies," Braley noted. "Proper training will ensure that the renewable-energy sector will continue to develop in a sustainable way."

The renewable-energy industry not only serves as a strong alternative source of energy, but it also creates thousands of jobs nationwide. In 2006 alone, the ethanol industry created over 160,000 new, good-paying jobs -- many of which included retirement and healthcare benefits. The industry's growth also helps to replace some of the 3.1 million manufacturing jobs that have been lost in the U.S. since 2000.

During the hearing, committee members examined ways to ensure that there is "smart growth" within the industry -- including implementation of the NEW ERA Act. Members also heard expert testimony on the importance of ensuring the availability of a strong workforce, and viable ways to go about doing so.

"With the vast potential for renewable-energy production right here in the heart of our own country, we have the critical opportunity to reduce our dependence on foreign oil while creating jobs; it's a win-win situation," Braley said. "For the security and prosperity of our nation, it's time to shift our energy dependence from the Middle East to the Midwest."

You can view parts of yesterday's hearing by visiting YouTube: http://www.youtube.com/view_play_list?p=B90F9338F9143970.

Sources: Congress Merge, GovTrack.us, U.S. House Committee on Small Business

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House Opens Federal Marketplace to More Small Business Participation, Helps Fight Fraud in Contracting System

As small businesses continue to struggle to access the $340 billion federal marketplace, the House last Wednesday [May 9] passed the most comprehensive reform of the contracting system for entrepreneurs in over a decade. H.R. 1873, the Small Business Fairness in Contracting Act, which increases small business access to federal contracts, offers protections against contract bundling, and prevents large businesses from receiving small-business contracts, passed by a wide margin of 409 to 13.

"For many entrepreneurs, access to federal contracts provides an important step in developing and expanding a business," said Rep. Nydia M. Velázquez [D-N.Y.], chairwoman of the U.S. House Committee on Small Business. "Today, the House passed legislation that ensures small business owners are competing on a level playing field. This is a major, and long overdue, step forward for entrepreneurs."

Over the past several years, small businesses' federal contracting opportunities have not kept pace with the expanding federal marketplace or small firms' growing share of the economy. Small companies confront numerous obstacles when attempting to access federal contracts, as the government continues to combine work into contracts too large for entrepreneurs to bid on, making the projects less accessible to small businesses.

In the past few years, small businesses have also lost out on opportunities, as contracts intended for small businesses were awarded to large corporations. There are currently few penalties for agencies and companies that misrepresent larges businesses as small.

The combination of barriers such as these has resulted in billions of dollars in lost contracting opportunity each year for this nation's small businesses.

"Awarding federal contracts to small businesses creates jobs, develops companies, promotes competition and yields the best value for the taxpayer dollar," said Chairwoman Velázquez. "Congress acted today to guarantee that our entrepreneurs get the opportunities they deserve and to hold the federal government more accountable for how taxpayer money is spent."

H.R. 1873, introduced by freshman Rep. Bruce Braley [D-Iowa], chairman of the Subcommittee on Contracting and Technology, makes more contracts available to small firms. During consideration of the bill, several measures also passed that raise the level of federal commitment to contracting with small businesses, ensure small firms can compete for overseas contracts, strengthen requirements for agencies to review the economic impacts of large contracts, and provide greater protections for small business subcontractors. These additions enhance improvements for small firms in H.R. 1873 that will allow for greater small business participation in the federal marketplace.

"I am proud that my first bill to pass the House is one that will help small businesses compete," Congressman Braley said. "The Small Business Fairness in Contracting Act ensures that small businesses have the same opportunities as large corporations to earn government business.

"When government contracts are awarded through huge super-contracts, small businesses just can't compete on a level playing field. By forcing government agencies to be held accountable for awarding these so-called 'bundled contracts,' more small businesses will have the opportunity to benefit from earning government business. Furthermore, by providing for the enforcement of these new provisions, this bill will have the teeth to make sure government agencies are following the law. At the end of the day, this means expanded opportunities for small business."

This legislation is part of the committee's ongoing work to restructure how small businesses interact with the federal procurement system. The Small Business Fairness in Contracting Act is the first piece of legislation to address problems outlined in the committee's annual scorecard on federal contracting.

GoodBiz113's take: Little by little, it seems, our rants/wish-list items [e.g., "Welcome to GoodBiz113!" "GoodBiz113 Drafts Small-Biz Wish List for 110th Congress," "GoodBiz113 Issues Open Memo to Leaders of Congressional Small Business Committees"] are helping to attract productive results for small businesses and entrepreneurs. Hats off to U.S. House members for forcing federal agencies to do the right thing for all concerned.
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