Sens. Kerry, Snowe Press SBA on Energy Efficiency to Ease Crisis

Yesterday, Sens. John F. Kerry [D-Mass.] and Olympia J. Snowe [R-Maine] urged the Small Business Administration to implement several energy initiatives aimed at helping small businesses through the current energy crisis. With rising energy prices topping the list of concerns of small-business owners, the senators requested that the SBA redouble their efforts to implement programs passed as part of the Energy Independence and Security Act of 2007.

“Small businesses are hurting, and the SBA can help alleviate the strain of the current energy crisis,” said Kerry. “Small businesses account for more than half of our fuel consumption, and we should give them the tools to become more energy-efficient -- whether it's loans to purchase renewable energy systems, or effective telecommuting programs. Every drop of oil or kilowatt of electricity saved is more money in a company’s bottom line.”

“With over three quarters of small-business owners reporting an inability to cope with exorbitant energy prices,” Snowe noted, “it is vital that the SBA swiftly implement the provisions that Chairman Kerry and I included in last year’s Energy Independence and Security Act.”

“The SBA has the opportunity and the responsibility to play a leading role in combating climate change and curbing skyrocketing energy prices. I hope that the SBA will fully implement the critical provisions to make loans for energy-efficiency improvements, promote small-business energy audits, and establish a priority for energy-efficiency projects under the Small Business Innovation Research program. With energy prices where they are today, the SBA cannot afford to drag its feet and stand by while the American economy suffers.”

In a July 31st letter, Sens. Kerry and Snowe, chairman and ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship, respectively, called on Acting SBA Administrator Jovita Carranza [pictured] to implement a number of initiatives passed as part of the Energy Independence and Security Act of 2007, which became public law 110-140 in December of 2007. Specifically, the bill calls for the SBA to develop and implement programs to do the following:

* Establish an energy clearinghouse program that works with the EPA’s Energy Star program to help educate small businesses on energy efficiency;

* Create a small-business energy-efficiency pilot grant program that would offer grants to Small Businesses Development Centers to conduct energy audits of small businesses and help them reduce their energy consumption;

* Encourage innovation in the field of energy efficiency by requiring federal agencies to give priority to SBIR/STTR program solicitations by small businesses that participate in, or conduct energy efficiency or renewable energy system research and development;

* Allows loans to be made through the SBA’s Express Loan program for the purpose of purchasing a renewable-energy system or financing of energy-efficiency projects;

* Establish a renewable-fuel capital investment company program designed to promote the research, development, production, and marketing of renewable energy resources;

* Initiate the small-business telecommuting pilot program, authorized in the Energy Bill, to provide information regarding telecommuting options to small-business owners and their employees.

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Here's the full text of their letter:


July 31, 2008

The Honorable Jovita Carranza
Acting Administrator
U.S. Small Business Administration
409 Third Street, SW
Washington, D.C. 20416

Dear Acting Administrator Carranza:

There are nearly 26 million small businesses in this country, representing nearly 26 million business owners that are focused on keeping their doors open and putting food on the table for their families. The National Small Business Association’s recently released 2008 survey of small- and mid-sized business reported that spikes in energy costs have negatively impacted 77 percent of small-business owners.

In response to rising costs, 37 percent of businesses have increased their prices, 33 percent have reduced their business travel, 11 percent have cut their production schedule, and 10 percent have reduced their workforce. It is clear that, along with health-care costs and global competitiveness, energy prices are at the forefront of challenges confronting America’s small businesses.

In fact, according to a 2008 National Federation of Independent Business [NFIB] survey entitled, “Small Business Problems and Priorities,” NFIB members ranked the cost of natural gas, propane, gasoline, diesel and fuel oil as their second-greatest concern -- behind access to affordable health insurance -- with 42 percent of NFIB members surveyed indicating that this problem is “critical.”

As you may know, the Senate Committee on Small Business and Entrepreneurship recently held a hearing to examine the dramatic increase in home heating oil prices. This was the fourth hearing our Committee has held on rising energy prices this Congress. With gas prices in New England averaging over $4.00 per gallon, and heating oil prices approaching $5.00 per gallon, it is clear that we are facing an energy crisis where short and long-term solutions must be put on the front burner.

As Chairman and Ranking Member of this Committee, and as longstanding stewards of the environment, we firmly believe that small businesses should play a leading role in forging a solution to global climate change and rising energy prices. That is why we introduced small-business energy-efficiency legislation that was included as a title in the Energy Independence and Security Act [H.R. 6], which became public law on December 19, 2007. This title will not only help protect the environment by incentivizing small businesses to make a smaller carbon footprint, but will also significantly lower the energy costs for cash-strapped small businesses.

The SBA has had adequate time to review the small-business requirements included in this law and make plans for carrying them out. We request that the SBA provide the Committee a progress report on implementing these vital provisions. Please provide a list of concrete steps SBA has taken to implement these, as well as what specific steps you will take within the near future to complete implementation.

The small-business requirements contained in H.R. 6 include:

* Ensure that the SBA completes its requirements under the Energy Policy Act of 2005 [Sec. 1203]. Within 90 days of enactment, the SBA must complete all of its requirements under the Energy Policy Act, including setting up an Energy Clearinghouse that builds on the Environmental Protection Agency’s Energy Star program. Has this program been fully implemented? What specific steps, in addition to establishing a website link, has SBA taken to complete these requirements? What furthers steps will SBA take on this matter?

* Create a Small Business Energy Efficiency Pilot Grant Program [Sec. 1203]. This pilot competitive grant program would be administered through the national network of Small Business Development Centers [SBDCs], which would provide energy audits to small businesses to enhance their energy-efficiency practices, as well as providing access to information and resources on energy-efficiency practices, including on-bill financing options. Has this program been fully implemented? Why or why not?

* Encourage Innovation in Energy Efficiency [Sec. 1203]. Federal agencies shall give priority to Small Business Innovation Research [SBIR] and Small Business Technology Transfer [STTR] program solicitations by small businesses that participate in, or conduct energy efficiency or renewable energy system research and development. SBA will issue guidelines to assist federal agencies and departments in determining whether priority has been given. Has SBA issued these guidelines yet? Why or why not?

* Allowing SBA Express Loans for Renewable Energy and Energy Efficiency [S. 1201: Clean Power Act of 2007]. The bill allows loans under the SBA’s Express Loan program to be made for purpose of purchasing a renewable-energy system, or financing an energy-efficiency project for an existing small business. How many small businesses have taken advantage of this key initiative? How can we increase the amount? How is the SBA conducting outreach of these loans?

* Establishes a Renewable Fuel Capital Investment Company program. The purposes of this Renewable Fuel Capital Investment Company are: 1] to promote the research, development, production and bringing to market of renewable energy sources; 2] establish a venture capital program to address the unmet investment needs of small businesses engaged in the production and distribution of renewable energy sources; and 3] to make grants to the Renewable Fuel Capital Investment Companies. Has this program been implemented? Why or why not? Please provide a detailed update on SBA’s specific actions to implement this program.

* Small Business Telecommuting. The bill instructed SBA to initiate a telecommuting pilot program to provide information regarding telecommuting to employers that are small-business concerns and to encourage such employers to offer telecommuting options to employees. Which regions have been selected, and what was this selection based upon? What steps have been taken thus far to implement the telecommuting program? Have their thus far been any success stories?

These vital provisions are even more necessary at this critical juncture, as there is no doubt that our country’s current rising gas and energy costs are hurting the competitiveness of America’s small businesses. With small businesses accounting for over half of our fuel consumption, this bill puts small businesses in the driver’s seat in the fight for a cleaner, greener future.

Through efforts to increase energy efficiency, small businesses can contribute to America’s energy security, help to combat global warming, and add to their bottom line all at the same time. Please provide the Committee with the information requested above within one month from the date of this letter. We believe that the SBA can play a significant role in assisting small businesses to become more energy-efficient, and implementing the requirements of this law is a crucial example.

Should you have any questions, please do not hesitate to contact me or have a member of your staff contact Jeremy Marcus [Senator Kerry] or Alex Hecht [Senator Snowe] on the Senate Small Business Committee at [202] 224-5175.

Sincerely,

John F. Kerry
Chairman

Olympia J. Snowe
Ranking Member


GoodBiz113's take: The innovative initiatives proposed by Sens. Kerry and Snowe, and passed by Congress, promise to deliver far-reaching, win-win-win results for small businesses, the U.S. economy, and the environment. SBA needs to act swiftly to see that these bipartisan initiatives are fully enacted, post-haste, to help small businesses prosper and be good environmental stewards.

SOURCES: GovTrack.us, Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Entrepreneur Magazine and OPEN from American Express® Name Katrina Markoff as 2007 Woman of the Year

Last week, Katrina Markoff, owner/chocolatier of Vosges Haut-Chocolat, was announced as the 2007 Entrepreneur magazine and OPEN from American Express® Woman of the Year. Markoff will accept her award and speak at the next "Women in Charge: Winning Strategies for Women Business Owners" conference, to be held in Miami Beach, Fl., on Jan. 29, 2008.

Entrepreneur's editorial staff and OPEN from American Express® chose Markoff for her creativity, solid business acumen and passion for her community. Markoff turned inspiration into a highly successful business by using her culinary passion to create an entirely new chocolate experience with Vosges Haut-Chocolat.

This Woman of the Year first discovered she had a passion for trying new flavor combinations while attending Le Cordon Bleu in Paris. She later began experimenting with exotic ingredients for truffles like wasabi, anise and ancho chili powder, eventually leading her to start her gourmet chocolate company in 1998. The unusual flavors in her chocolates have helped her make her mark -- one worth almost $12 million in 2007 sales alone.

Markoff has made sure to grow her business with the environment in mind -- Vosges Haut-Chocolat's headquarters is run with 100 percent renewable energies. She's also planning to attain LEED platinum-level certification as well, a special recognition for sustainable green building and development practices with the U.S. Green Building Council.

"Katrina is the total embodiment of the creative, passionate and socially conscious entrepreneur," says Rieva Lesonsky, senior vice president and editorial director of Entrepreneur magazine. "She is a wonderful example of how entrepreneurial success can be achieved while maintaining a sense of connection to community and responsibility for the environment."

As the Woman of the Year, Markoff will share her insights with other women business owners during the luncheon portion of the Women in Charge conference, designed by Entrepreneur. This one-day, second-annual event will feature breakout sessions, speakers, giveaways and special opportunities for women entrepreneurs looking to start a business or make one grow.

"OPEN from American Express® is committed to supporting initiatives that empower women entrepreneurs," says Marcy Shinder, vice president, OPEN from American Express®. "We are proud to partner with Entrepreneur magazine to recognize and celebrate Katrina's success. She is among the growing number of women business owners across the country who are achieving their vision and making positive contributions to the economy and their communities."

Markoff is featured in the January 2008 issue of Entrepreneur magazine, on newsstands now. For more information on the Women in Charge conference and to register to attend for free, visit http://www.entrepreneur.com/womenincharge.

About Entrepreneur Media Inc.
Entrepreneur Media Inc. is the premier content provider for and about entrepreneurs. Its products engage and inspire every day with the advice, solutions and resources that fuel the bold and independent way entrepreneurs think.

After 30 years, nobody reaches more growing businesses. As the original magazine for the small and midsize business community, Entrepreneur continues to be the definitive guide to all the diverse challenges of business ownership. Entrepreneur.com is the most widely used website by entrepreneurs and emerging businesses worldwide. Entrepreneur Press publishes the books that turn entrepreneurial skills into business success.

About OPEN from American Express®
OPEN from American Express® is dedicated exclusively to the success of small-business owners and their companies. OPEN supports business owners with unparalleled service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business.

Specifically, business-owner customers can leverage an enhanced set of products, tools, services and savings -- including charge and credit cards, business gift cards, convenient access to working capital, robust online account management capabilities, and savings on business services from an expanded lineup of partners. To obtain more information about OPEN®, visit OPEN.com, or call 1-800-NOW-OPEN to apply for a card or loan. Terms and conditions apply.

GoodBiz113 ad partner American Express Company [http://www.americanexpress.com] is a leading global payments, network and travel company founded in 1850.

SOURCES: American Express, Entrepreneur Media Inc., For the Love of Chocolate [photo]
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House Passes Energy Efficiency Package; Small Business Committee Bill Included to Support Innovations in the Energy Sector

Yesterday, the U.S. House passed H.R. 3221, the New Direction for Energy Independence, National Security and Consumer Protection Act, legislation that provides incentives for the production of clean energy, aids our nation’s farmers in producing the next generation of America’s fuel, and supports energy efficient technology. It also creates an environment for creating jobs, stimulating the economy and helping small businesses.

The historic legislation includes a number of measures that had passed through the House Small Business Committee in May to help entrepreneurs cope with rising energy costs, become more resourceful in their usage, and continue developing new technologies.

“This is a major step forward for improving our environment and helping this nation’s small businesses to lead the way in that charge,” said Chairwoman Nydia Velázquez [D-N.Y.]. “This legislation includes critical provisions that will empower entrepreneurs to create a more eco-friendly environment, and help achieve the overall goals of H.R. 3221 to spur investment in biofuels, new energy technologies, innovation and job creation.”

Small businesses have been particularly affected by the rising cost of fuel, as any additional expense is more difficult for them to absorb than their corporate counterparts. According to a survey conducted by the National Small Business Association [NSBA], over 60 percent of small businesses use vehicles on a daily basis, and a majority of those who use vehicles travel more than 50 miles a day. This has forced many entrepreneurs to consider scaling back their daily operations and reducing their staff in an effort to save money.

“The rising cost of energy has hit small businesses hard,” Chairwoman Velázquez noted. “This bill focuses not only on supply, but it also focuses on usage. These two factors are key in helping small businesses to manage increasing energy prices, and in becoming more resourceful.”

A critical piece of the New Direction for Energy Independence, National Security and Consumer Protection Act, is H.R. 2389, the Small Energy Efficient Business Act [SEEBA], introduced by Subcommittee Chairman, Rep. Heath Shuler [D-N.C., pictured above], and approved by the full House Small Business Committee this spring. The bill provides loans, education and investment to small firms to help them become more energy independent, thereby helping them take advantage of their role as leaders in the search for solutions.

H.R. 2389 also promotes good energy practices by modifying existing Small Business Administration [SBA] programs to provide more flexible loan terms to small firms that are developing or utilizing new technologies.

SEEBA stimulates investment in the production of alternative sources and product development by expanding the Small Business Investment Companies [SBICs]. The SBA will be required to develop a strategy to educate small firms about being resourceful, and establishes an educational program for the Small Business Development Centers [SBDCs]. Additionally, the Renewable Fuel Capital Investment Program [RFCIP] will be created, which will help small firms develop renewable energy sources. These measures will play a vital role in the reaching the goals of H.R. 3221.

“Small businesses are leaders in developing new technologies to spur efficiency, and under H.R. 3221, entrepreneurs will be able to continue on that path,” said Chairwoman Velázquez. “The Small Energy Efficiency Business Act will give the support needed to foster these types of advances, while also encouraging innovation and job creation. I am proud that this legislation is a vital component of the monumental energy package that the House has passed today.”

Sources: Congressional Budget Office, GovTrack.us, U.S. House Small Business Committee, WashingtonWatch.com
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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 Committee Approves Bill to Help Small Business Cope With Rising Energy Costs

Rising energy costs have hit small businesses especially hard over the past few years, impacting their daily operations and forcing many to alter their business models. To help small businesses cope with climbing energy prices, the House Small Business Committee approved legislation, H.R. 2389, the Small Energy Efficient Business Act [SEEBA], to provide loans, education, and investment to small firms for energy efficient buildings, fixtures, equipment and technology.

"Small businesses nationwide are struggling as energy becomes increasingly expensive," said Chairwoman Nydia M. Velázquez [D-N.Y.]. "It is clear that swift action is needed to help firms deal with the record gas and energy prices. One way to do this is ensuring entrepreneurs are educated and aware of the assistance available to them, as well as helping them to remain the top producers of alternative sources of energy."

Addressing these challenges, the committee approved legislation yesterday that modifies existing Small Business Administration [SBA] programs to better assist small companies with adapting to today's changing energy environment. SEEBA, introduced by Congressman Heath Shuler [D-N.C.], gives small firms that are acquiring or developing energy efficient technologies more flexible loan terms.

SEEBA requires SBA to develop a strategy for educating small firms about energy efficiency, and establishes an energy efficiency program for the Small Business Development Centers [SBDCs]. The bill effectively spurs investment in the production of alternative sources, such as biofuels.

H.R. 2389 also promotes development of energy efficient technology by expanding the Small Business Investment Company [SBIC] program, increasing investment in small producers. Creation of the Renewable Fuel Capital Investment [RFCI] program, an initiative designed to help small firms develop renewable energy sources and new technologies, is also included.

Collectively, these measures benefit consumers and producers, thus reducing costs and increasing competition in the market for energy efficient goods and services.

"Small businesses are the first to be affected by rising energy prices, and small businesses will be the first to find the solutions," said Shuler, chairman of the Subcommittee on Rural and Urban Entrepreneurship. "This bill gives them the tools they need to lead our nation to energy efficiency and independence."

SEEBA will make new, energy efficient technology more affordable and accessible. As consumption grows an anticipated one percent annually over the next 25 years, costs for traditional energy sources will continue to increase.

H.R. 2389 will provide technical assistance to help small business owners implement strategies to mitigate energy costs. It also launches a comprehensive plan to disseminate energy efficiency information through programs that are already positioned around the country.

SEEBA will not only help small businesses cope with rising costs, but will also increase investment in small firms that are developing renewable energy solutions, recognizing the leadership of entrepreneurs in the alternative-energy sector.

This bill provides both business development resources and injections of capital that will contribute to creating the next generation of technologies. Simply put, SEEBA is essential to helping small firms cope with rising energy costs and, thus, reducing the nation's dependence on foreign oil.

"Small businesses have proven themselves to be flexible and nimble, adapting to changing to market conditions," said Chairwoman Velázquez. "The legislation approved gives entrepreneurs the tools to implement energy efficient strategies and develop renewable-energy technologies."

H.R. 2389 has garnered support from a wide array of small-business organizations, including: Independent Electrical Contractors, Air Conditioning Contractors of America, National Roofing Contractors Association, Plumbing-Heating-Cooling Contractors Association, National Small Business Association, and Small Business Majority.

GoodBiz113's take: Four months into his new job in Congress, former NFL quarterback Heath Shuler is already scoring on behalf of small businesses -- and everyone else who seeks sustainable energy technologies and energy independence. He's to be commended for taking far-reaching initiative. Congresswoman Velázquez deserves kudos, too, for empowering him to, well, "run with the ball."

Sources: Library of Congress, PBS [photo], U.S. House Small Business Committee
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