Kerry-Snowe Bill Provisions Help Small Businesses Increase Energy Efficiency

Today, as the Senate debated a comprehensive energy bill, Senators John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine] introduced legislation to press the Bush Administration to take action to help small businesses increase their energy efficiency.

The bipartisan bill also holds the Bush administration accountable for failing to implement an energy-efficiency assistance program enacted into law in 2005, and provides tools that will help small businesses reduce their dependency on fossil fuels.

As GoodBiz113 previously reported, in March, the Committee on Small Business and Entrepreneurship held a hearing that revealed the federal government needs to play a more aggressive role in assisting small businesses in becoming more energy efficient.

Then, in April, Kerry and Snowe wrote to the U.S. Environmental Protection Agency [EPA], seeking details on the Bush administration’s progress in implementing the ENERGY STAR Small Business Program. They also wrote to the Small Business Administration [SBA], asking for information about how the agency has implemented the energy-efficiency program mandated by the Energy Policy Act of 2005 [EPAct].

“Improving energy efficiency isn’t just good for the environment; it’s good for the bottom line,” declared Kerry, chairman of the committee.

“Many small businesses want to be part of the solution to addressing climate change -- one of our generation’s greatest challenges," he noted. "But we need leadership from this administration to promote and provide resources to help small firms that want to take the next step and reduce their energy use and costs. I am working to get provisions passed in the energy bill that will help small businesses achieve this goal.”

“As the ranking Republican on the Small Business Committee and as a longstanding steward of the environment," Snowe noted, "I firmly believe that small businesses have a pivotal role to play in forging a solution to global climate change and rising energy prices.

“According to a recent survey conducted by the National Small Business Association, 75 percent of small businesses believe that energy efficiency can make a significant contribution to reducing greenhouse gas emissions. And, yet, only 33 percent of those respondents had successfully invested in energy-efficiency programs for their businesses. Our measure will help to incentivize small businesses to make a smaller carbon ‘footprint.’”

The Kerry-Snowe bill:

* Requires the [SBA] to implement, within 90 days, an energy efficiency program that was mandated in EPAct -- passed in 2005 to ensure jobs for our future with secure, affordable and reliable energy;

* Establishes an audit program to increase energy efficiency, using Small Business Development Centers [SBDCs];

* Promotes financing agreements between small businesses and utility companies to increase energy efficiency;

* Creates a telecommuting pilot program at the SBA, responsible for educational materials and outreach to small businesses on the benefits of telecommuting;

* Allows small businesses conducting energy-efficiency or renewable-energy research and development to be given priority consideration in the SBA-administered Small Business Innovation Research [SBIR] and Small Business Technology Transfer [STTR] programs; and

* Establishes loans for small firms to invest in use of renewable sources of energy in their business.

GoodBiz113's take: Despite myopic, misguided and purely nonsensical arguments to the contrary, climate change is real. We're pleased that Sens. Kerry and Snowe are leading this bipartisan effort to simultaneously hold America's 26 million small businesses accountable and incentivize us to do our part to help reverse the far-reaching and devastating effects of global warming.

Sources: Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Senators Kerry and Snowe Press SBA for Action on Energy Program

Three weeks after pressing Environmental Protection Agency Administrator Stephen Johnson re EPA's inadequate allocation of resources for its ENERGY STAR for Small Business program [see GoodBiz113's "Kerry, Snowe Seek Energy Star Details from EPA" post on April 9], Senators John Kerry [D-Mass.] and Olympia Snowe [R-Maine] are now looking to the U.S. Small Business Administration for answers regarding SBA’s implementation of a federally mandated energy efficiency program.

At a hearing last month, the assistant administrator for SBA's Office of Policy testified that, although the program was created as part of the Energy Policy Act in August 2005, the program has not been implemented by the Administration.

Following, is the text of Kerry-Snowe letter to SBA Administrator Steven Preston:


April 24, 2007

The Honorable Steven Preston
Administrator
U.S. Small Business Administration
409 Third Street, SW
Washington, D.C. 20416

Dear Administrator Preston,

As Chairman and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, we recently held a hearing to explore the ways in which small businesses can help to address the global warming crisis. We thank you for the testimony of Dan Horowitz, Assistant Administrator for the Office of Policy, on behalf of the Small Business Administration [SBA]. The purpose of this letter is to follow up on Mr. Horowitz’s testimony -- specifically, as it addressed the SBA’s responsibilities that were mandated by the Energy Policy Act of 2005 [EPAct].

The EPAct, which President George W. Bush signed into law on August 8, 2005, requires, inter alia, that the SBA, working with several other agencies, “shall develop a governmentwide program, building on the ENERGY STAR for Small Business program,” to assist small business with:
[A] Becoming more energy-efficient;
[B] Understanding the cost savings from improved energy efficiency;
[C] Understanding and accessing Federal procurement opportunities with regard to ENERGY STAR technologies and products; and
[D] Identifying financing options for energy-efficiency upgrades.

In addition, the SBA, as part of the outreach to small businesses under the Environmental Protection Agency’s ENERGY STAR for Small Business program, may enter into cooperative agreements with qualified partners to establish, maintain, and promote a “Small Business Energy Clearinghouse.” This Clearinghouse would provide a centralized resource where small businesses may access, telephonically and electronically, technical information and advice to help increase energy efficiency and reduce energy costs.

We are, frankly, concerned by the lack of progress SBA has made in implementing these requirements. Twenty months have passed since the EPAct was signed into law, and SBA appears to be nowhere close to satisfying these requirements.

Mr. Horowitz addressed the Administration’s efforts to implement this program, testifying that, although this program was not yet operational, “there are several people working on it,” and that the hearing “provided a catalyst for making [the program] a priority.” Mr. Horowitz also testified that the SBA would provide to the Committee a progress report on the four mandated requirements under the Energy Policy Act.

Small business is the engine that drives the American economy, employing half of all private-sector employees, producing half of the nation’s non-farm private gross domestic product, and creating nearly three-quarters of all net new jobs each year. Some estimates project that small businesses also use approximately half of all commercial and industrial energy in this country.

Despite these statistics, and despite Mr. Horowitz’s testimony to the contrary, there is little evidence that promoting energy efficiency for small businesses is a priority within the Administration. More than a month has passed since the date of the hearing, and the Committee has received none of the information that SBA promised to supply.

We request that you provide, within 30 days of receipt of this letter, an update on all of SBA’s small business requirements under the EPAct, including:
[1] Any and all resources required to implement the program, as well as whether additional appropriations are needed for SBA to effectively implement the EPAct requirements;

[2] Any and all staff that are dedicated to implementing and administering the Small Business Energy Clearinghouse; and

[3] A timeframe that details a schedule for completion of all SBA requirements under the EPAct.

We believe that the SBA can and must play a significant role in assisting small businesses to become more energy-efficient.

Thank you for your attention to our request. Should you have any questions about the substance of the hearing, please do not hesitate to contact us directly, or to contact Brian Rice [with Senator Kerry] at [202] 224-5175 or Alex Hecht [with Senator Snowe] at [202] 224-7884.

Sincerely,

John F. Kerry
Chairman

Olympia J. Snowe
Ranking Member

GoodBiz113's take: As champions of small business and the environment, we again commend Sen. Kerry and Sen. Snowe on their collaborative and persistent efforts to promote entrepreneurship and energy efficiency. Keep fighting the good, bipartisan fight!

For grass-roots information about how we can all help halt global warming, go to StopGlobalWarming.org.
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