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Calcasieu Parish Police Jury, 1015 Pithon Street, Lake Charles, LA 70601 Police Jury Meeting Room

Chairman David Vitter

Good afternoon, and thank you for joining me for today’s Senate Small Business Committee field hearing to discuss how Small Businesses are Supporting America's Energy Renaissance.

In my new role as Chairman of the Senate Committee on Small Business and Entrepreneurship, I will make every effort to help small businesses in finding a larger voice in Congress, and shape policies that will grow our energy industry, get rid of the government impediments to growth and reduce the tax burden on small businesses.

Today’s discussion will focus on the changes going on in southwest Louisiana as a result of the capital investments being made in the region, as well as identifying the ways that small businesses are contributing and capitalizing on these developments.

Throughout the abysmal economic recovery that has been confounded by federal policies, our domestic energy industry has continued to create jobs and new revenues, the majority of which can be attributed to small firms and contractors which make up the bulk of the U.S. energy production. It is estimated that nearly 1 million Americans work directly in the oil & gas industry, and a total of 10 million jobs are associated with that industry.

In order to better coordinate the efforts that allow small businesses to support the U.S. energy industry and continue contributing to local economic growth; it is imperative that there is an open line of communication between these regional business leaders and the federal government.

It’s estimated that Louisiana will receive roughly $80 billion in new and expanding development over the next few years. This growth will certainly impact Louisianians’ quality of life as there will be more opportunities to get good-paying jobs and to further stimulate the economy. However, the economic growth in the region is not without its own set of challenges. At its current rate, Louisiana can’t meet the workforce demands of these expansions, which is a problem because it could put our state at risk of losing similar projects in the future.

Right now, Louisiana’s workforce consists of about 2.3 million working adults. Over one million of these individuals do not have a college degree or post-secondary credential, and an additional 600,000 have not obtained a high school diploma. As today’s industries rely more heavily on technology, it is imperative that workers have the training and professional development necessary to meet industry needs.

Beyond the workforce challenges are the regularity challenges being lofted upon our state by an overzealous federal government that neither understands or appreciates the consequences of its actions. This is a direct result of President Obama’s leadership and federal agencies such as the EPA.

What businesses need to thrive is a strong, restrained regulatory system that doesn’t impede their growth. A 2010 Small Business Administration study found that federal regulations cost American businesses $1.75 trillion annually, which adversely affects the many small independent companies that make up the majority of the oil and natural gas industry. We need to ensure that our regulatory environment does not interfere with the ability of these important businesses to grow and remain economically viable.

In closing, I would also like to welcome and introduce our four witnesses who are all business leaders in the Southwest Louisiana community.

1. Joey Jarreau is the owner of Southside Machine Works. Established in 1978 to service local industries on the Gulf Coast, Southside Machine Works specializes in industrial machinery, welding, coded fabrication, metalizing, and more. The Lake Charles facility operates 24 hours a day, seven days a week to serve local client’s industrial machinery needs around the clock. Over the years, the business has expanded to service clients throughout the United States.

2. Bryan Galley is the owner of Bryan Galley Builders. which is a small building and contracting business located in Lake Charles. He established this business in 1995 and has worked to build homes for families in Southwest Louisiana communities ever since.

3. Dr. Neil Aspinwall has served as the Chancellor at Southwest Louisiana Technical Community College since 2012. During his 27 years in education he has served in a wide variety of leadership roles, most recently as the Vice President of Enrollment and Student Services with the University System of George at Waycross College. Dr. Aspinwall holds a bachelor’s degree in education, a master’s and specialist degree in School Administration and Supervision, as well as a Doctorate degree in Educational Administration.

4. Patricia Outtrim is the Vice President of Governmental and Regulatory Affairs at Cheniere Energy. In this role, she is responsible for all government and regulatory affairs while also overseeing the environmental, health and safety groups. She has over 26 years of experience in project management including site selection, development, hazard/risk assessment, and code compliance audits. Prior to joining Cheniere, she was president of Project Technical Liaison Associates, Inc. and assisted in the site development, permitting, expansion, or reauthorization of seven of the LNG import terminals currently operating in the U.S.

Navigating excessive regulations from multiple federal agencies, increased taxes, and higher health costs while continuing to provide quality services to your customers and grow your business is no small task. I appreciate you taking time away from your businesses to share your experiences and concerns about the regional development and opportunities that have come to the area.

Again, thank you for being here today, and I look forward to hearing from our witnesses.

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