Call to Order and Roll Call
The 1st meeting of the Interim Joint Committee on Economic Development and Tourism was held on Thursday, July 16, 2015, at 1:00 PM, at the Indiana/Kentucky/Ohio Regional Council of Carpenters and Millwrights Training Center, Louisville. Representative John Short, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Alice Forgy Kerr, Co-Chair; Representative John Short, Co-Chair; Senators Perry B. Clark, Wil Schroder, Reginald Thomas, and Mike Wilson; Representatives Lynn Bechler, Kevin D. Bratcher, George Brown Jr., Tim Couch, Mike Denham, Bob M. DeWeese, Jeffery Donohue, Myron Dossett, Jim Gooch Jr., Mike Harmon, Richard Heath, James Kay, Dennis Keene, Kim King, Martha Jane King, Tom McKee, Terry Mills, David Osborne, Arnold Simpson, Wilson Stone, David Watkins, and Russell Webber.
Guests: Tim Wireman, Political Representative, Rick Faust, Senior Manager for Kentucky, and Hope Harp, Instructor, Indiana/Kentucky/Ohio Regional Council of Carpenters and Millwrights Training Center and Bob Peckny.
Legislative Guests: Representative David Floyd.
LRC Staff: John Buckner, Louis DiBiase, and Dawn Johnson.
Presentation on the Indiana/Kentucky/Ohio Regional Council of Carpenters and Millwrights Training Center
Mr. Wireman gave an overview of the center’s four-year apprenticeship program. The 100 percent membership-funded program currently has approximately 5,000 participants statewide in training in a variety of commercial industries. The center works with local companies in developing program curriculum and providing skills enhancement through training. The center visits local high schools and works with groups including Job Corps, Skills USA, and Youth Build to attract a diverse group of trainees. Mr. Wireman explained that the apprentices earn wages while they learn. Training at the center is one week per quarter with the remainder of time spent on jobsites under the guidance of a journeyperson mentor. Graduates earn an associate degree from Indiana’s Ivy Tech.
Rick Fouts, Senior Manager explained the center’s recruitment efforts. He said that many high schools no longer encourage vocational training, focusing instead on four-year degree programs. There is a significant shortage of skilled workers as baby boomers reach retirement age. Many companies require a four-year apprentice certificate.
Hope Harp, Program Instructor explained that the Kentucky facility serves approximately 600 trainees with three classrooms, a computer lab, and a shop area. The center creates and publishes its curriculum, and the program is registered and nationally recognized.
Responding to Co-Chair Short’s question, Mr. Wireman said salaries for millwrights and carpenters vary greatly depending on the strength of the construction industry. Representative Short said the industry is very important in eastern Kentucky, particularly with the loss of coal jobs. Mr. Wireman said the only cost for the program’s apprentices is an annual $100 book fee.
Representative Martha Jane King said that her husband’s career as a skilled tradesman helped send their children to college and provided a lucrative retirement. She said blue collar jobs have been devalued.
Representative Stone suggested high schools should again offer residential carpentry training. Mr. Wireman said some area technology centers and KCTCS offer carpentry, welding, and machinist programs. The center actively pursues these students.
Responding to Representative Kay’s question, Mr. Wireman said the center’s program continuously adapts to changes in technological requirements.
Responding to Representative Brown’s question, Mr. Wireman said the program does not exclude felons who have served their time. The center does not consider an applicant’s past but only a person’s plans for the future.
Senator Wilson said his father was a millwright and provided well for the family. With shortages in skilled labor, training programs are beneficial to the state. Today’s machinists require greater technological skills than ever.
In response to Representative Simpson’s questions, Mr. Fouts said the program’s retention rate is good but not all students succeed. Ms. Harp said there is an approximate 78 percent graduation rate. She said in the past five years there has been noticeable improvement in student preparedness. Mr. Fouts said the program receives no outside subsidies, and first-year apprentices earn approximately $12 to $14 per hour.
Pipeline Safety
Representative David Floyd spoke about 2015 HB 272. He explained the different types of pipelines in Kentucky and the easement and eminent domain processes. Recently, there has been an attempt to exercise eminent domain for a new pipeline to carry natural gas liquids. Representative Floyd explained attempts to repurpose existing lines.
Bob Peckny discussed the differences in pipelines and their potential dangers. He said the proposal for the Bluegrass pipeline is to carry natural gas liquids, which is the most dangerous pipeline product.
Representative Floyd said natural gas liquids will be transported through Kentucky. The most efficient way is through pipelines. With increased hazards, there should be increased precautions in place.
Mr. Peckny explained the company monitoring processes. The error rate can be significant. Representative Floyd said there are limitations in the methods used now of remote monitoring to detect small leaks. A more active monitoring process is called for to detect smaller leaks, especially on older, repurposed lines. HB 272 proposed to establish a means by which that could be accomplished to address what is inevitably in Kentucky’s future. The proposal includes local government and emergency responders to offer insight as a pipeline is being planned, and providing funding for training and ongoing equipment needs. The initial suggestion was oversight by the Public Service Commission with monitoring costs borne by an assessment on relevant operators, and the use of federal funds by obtaining additional certification of FEMSA. The proposal is for periodic, geographically separated soil and water sampling and any other regiment recommended by the authorities. Representative Floyd said he hoped members could see the need for additional precautions while not sacrificing the country’s need for additional energy.
Representative Mills said that, as cosponsor of HB 272, it was important to address this issue. He said much of the pipeline has existed for 70 years. Companies should be required to install new lines. He expressed concern about the agricultural impact of the pipelines.
Representative Floyd said the legislation does not reduce the production of energy from any source. The intent is to get ahead of the additional hazards posed by the transmission of natural gas liquids through an area.
There being no further business, the meeting was adjourned at 2:40 PM.