Kerry, Snowe Press SBA on Energy Efficiency to Ease Crisis

WASHINGTON, July 31 /PRNewswire-USNewswire/ -- Senators John F. Kerry (D-Mass)
and Olympia J. Snowe (R-Maine) today 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, 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," said Senator Snowe. "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, Senators Kerry and Snowe, Chairman and Ranking Member
of the Committee on Small Business and Entrepreneurship, called on Acting SBA
Administrator Jovita Carranza 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.

The full text of the letter is below:

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
(1201). 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 Snowe, Ranking Member

SOURCE U.S. Senate Committee on Small Business & Entrepreneurship

John High (Kerry), +1-202-224-5175, or Claire Howard (Snowe), +1-202-224-7417,
both of the U.S. Senate Committee on Small Business & Entrepreneurship