[Congressional Record Volume 153, Number 99 (Tuesday, June 19, 2007)]
[Senate]
[Pages S7897-S7900]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself and Ms. Snowe):
  S. 1657. A bill to establish a small business energy efficiency 
program, and for other purposes; to the Committee on Small Business and 
Entrepreneurship.
  Mr. KERRY. Mr. President, in March of this year, I convened a hearing 
in the Committee on Small Business and Entrepreneurship to look at what 
small businesses can do to confront global warming. In February, the 
Intergovernmental Panel on Climate Change put forward a report that has 
been referred to as ``the smoking gun'' on global warming, written by 
more than 600 scientists, reviewed by another 600 experts, and edited 
by officials from 154 governments, the report provides indisputable 
evidence that the ice caps are melting, the sea level is rising, and 
the earth's surface is heating up at an alarming and potentially 
catastrophic rate.
  Senator Snowe and I have worked together on a number of initiatives 
to combat global warming, including introducing the Global Warming 
Reduction Act of 2007, an effort to reduce greenhouse gas emissions by 
65 percent by the year 2050. Today, we continue this partnership as 
chairman and ranking member of the Committee on Small Business and 
Entrepreneurship by introducing the Small Business Energy Efficiency 
Act of 2007.
  There are nearly 26 million small businesses in this country, nearly 
26 million business owners that are focused on keeping their doors open 
and putting food on the table for their families. And while climate 
change and national energy security sometimes seem like distant threats 
compared to rising health care costs and staying competitive in an 
increasingly global economy, small business owners are telling us that 
energy costs are indeed a concern. The National Small Business 
Association recently conducted a poll of its members, asking how energy 
prices affected their business decisions. Seventy-five percent said 
that energy prices had at least a moderate effect on their businesses, 
with roughly the same number saying that reducing energy costs would 
increase their profitability. Despite these numbers, only 33 percent 
have invested in energy efficient programs.
  The Environmental Protection Agency estimates that small businesses 
consume roughly 30 percent of the commercial energy consumed in this 
country, that is roughly 2 trillion kBtu of

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energy per year, and it is costing small business concerns 
approximately $29 million a year. 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.
  The Small Business Energy Efficiency Act of 2007 seeks to assist 
small business owners in doing all of these things. First, the bill 
requires the Small Business Administration, SBA, to implement an energy 
efficiency program that was mandated in the 2005 Energy Policy Act. To 
date, the SBA has dragged its feet in implementing a program that could 
help small business owners to become more energy efficient. 
Administrator Preston should implement this important program today, 
and this bill directs him to do so.
  Second, the bill establishes a program to increase energy efficiency 
through energy audits at Small Business Development Centers, SBDCs. The 
Pennsylvania SBDC currently operates a similar program, and has 
successfully assisted hundreds of businesses to become more energy 
efficient. As a result of the program, six of the eight winners of the 
2006 ENERGY STAR Small Business Awards given by the EPA went to 
Pennsylvania businesses. This program should be replicated so that 
small businesses across the country have the same opportunity to cut 
energy costs through the efficiency measures.
  In addition, this bill authorizes the Administrator to guarantee on-
bill financing agreements between businesses and utility companies, to 
cover a utility company's risk in entering into such an agreement. The 
federal government should encourage utility companies to pursue these 
agreements with businesses, where an electric utility will cover the 
up-front costs of implementing energy efficiency measures, and a 
business will repay these costs through the savings realized in their 
energy bill.
  This bill also encourages telecommuting through a pilot program at 
SBA. The Administrator is authorized to establish a program that 
produces educational materials and performs outreach to small 
businesses on the benefits of telecommuting.
  Finally, the bill encourages increased innovation by providing a 
priority status within the SBIR and STTR programs that ensures high 
priority be given to small business concerns participating in energy 
efficiency or renewable energy system research and development 
projects.
  As a Nation, we have much to do to secure our future energy supply 
and to solve the international crisis that is global warming. This bill 
represents one step in that process--to engage our small business 
owners in this effort, and to assist them in becoming more aware of 
what is possible. I urge my colleagues to support this bill, and I 
thank Senator Snowe for her work in this area.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1657

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Energy Efficiency Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Implementation of small business energy efficiency program.
Sec. 5. Small business energy efficiency.
Sec. 6. Small business telecommuting.
Sec. 7. Encouraging innovation in energy efficiency.
Sec. 8. Express loans for renewable energy and energy efficiency.

     SEC. 2. FINDINGS.

       Congress finds that:
       (1) Small business concerns represent roughly 50 percent of 
     the economy of the United States, employing 50 percent of all 
     private sector employees, and producing more than 50 percent 
     of nonfarm private gross domestic product.
       (2) The Environmental Protection Agency estimates that, 
     based on data from the 2003 Commercial Buildings Energy 
     Consumption Survey of the Department of Energy, small 
     business concerns consume roughly 2,000,000,000,000 kBtu of 
     energy per year, costing small business concerns 
     approximately $29,000,000,000.
       (3) The Environmental Protection Agency estimate does not 
     include additional energy that is used by small business 
     concerns located outside of commercial buildings, such as 
     home-based small business concerns. Additional, peer-reviewed 
     research studies must be conducted to assess the amount of 
     energy consumed by small business concerns.
       (4) A recent survey conducted by the National Small 
     Business Association revealed that 75 percent of small 
     business concerns believe that energy efficiency can make a 
     significant contribution to reducing greenhouse gas 
     emissions. And yet, only 33 percent of those small business 
     concerns had successfully invested in energy efficiency 
     programs for their businesses.
       (5) Small business concerns have demonstrated that they are 
     capable of achieving realistic energy consumption reductions 
     of 30 percent as a result of implementing the recommendations 
     of targeted energy audits. These reductions have been 
     demonstrated by clients of the Pennsylvania Small Business 
     Development Centers and are supported by the national 
     experience of the ENERGY STAR Small Business program of the 
     Environmental Protection Agency.
       (6) Small business concerns are a source for the 
     technological innovations at the heart of the effort to find 
     a solution to the challenge of climate change and to 
     establish energy independence for the United States.
       (7) On-bill financing arrangements, involving small 
     business concerns, utilities, banks, and certified energy 
     efficiency professionals, have demonstrated success in 
     reducing energy usage by small business concerns across the 
     country, and greater use of on-bill financing agreements 
     should be encouraged.
       (8) Telecommuting represents an established method for 
     reducing fuel consumption, and information regarding the 
     benefits of telecommuting should be made available to owners 
     of small business concerns.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``association'' means the association of small 
     business development centers established under section 
     21(a)(3)(A) of the Small Business Act (15 U.S.C. 
     648(a)(3)(A));
       (3) the term ``disability'' has the meaning given that term 
     in section 3 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12102);
       (4) the term ``electric utility'' has the meaning given 
     that term in section 3 of the Public Utility Regulatory 
     Policies Act of 1978 (16 U.S.C. 2602);
       (5) the term ``on-bill financing'' means a low interest or 
     no interest financing agreement between a small business 
     concern and an electric utility for the purchase or 
     installation of equipment, under which the regularly 
     scheduled payment of that small business concern to that 
     electric utility is not reduced by the amount of the 
     reduction in cost attributable to the new equipment and that 
     amount is credited to the electric utility, until the cost of 
     the purchase or installation is repaid;
       (6) the term ``small business concern'' has the meaning 
     given that term in section 3 of the Small Business Act (15 
     U.S.C. 636);
       (7) the term ``small business development center'' means a 
     small business development center described in section 21 of 
     the Small Business Act (15 U.S.C. 648);
       (8) the term ``telecommuting'' means the use of 
     telecommunications to perform work functions under 
     circumstances which reduce or eliminate the need to commute; 
     and
       (9) the term ``veteran'' has the meaning given that term in 
     section 101 of title 38, United States Code.

     SEC. 4. IMPLEMENTATION OF SMALL BUSINESS ENERGY EFFICIENCY 
                   PROGRAM.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall promulgate 
     final rules establishing the Government-wide program 
     authorized under subsection (d) of section 337 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6307) that ensure 
     compliance with that subsection by not later than 6 months 
     after such date of enactment.
       (b) Plan.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall publish a 
     detailed plan regarding how the Administrator will--
       (1) assist small business concerns in becoming more energy 
     efficient; and
       (2) build on the Energy Star for Small Business Program of 
     the Department of Energy and the Environmental Protection 
     Agency.
       (c) Assistant Administrator for Small Business Energy 
     Policy.--
       (1) In general.--There is in the Administration an 
     Assistant Administrator for Small Business Energy Policy, who 
     shall be appointed by, and report to, the Administrator.
       (2) Duties.--The Assistant Administrator for Small Business 
     Energy Policy shall--
       (A) oversee and administer the requirements under this 
     section and section 337(d) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6307(d)); and
       (B) promote energy efficiency efforts for small business 
     concerns and reduce energy costs of small business concerns.
       (d) Reports.--The Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the

[[Page S7899]]

     Committee on Small Business of the House of Representatives 
     an annual report on the progress of the Administrator in 
     encouraging small business concerns to become more energy 
     efficient, including data on the rate of use of the Small 
     Business Energy Clearinghouse established under section 
     337(d)(4) of the Energy Policy and Conservation Act (42 
     U.S.C. 6307(d)(4)).

     SEC. 5. SMALL BUSINESS ENERGY EFFICIENCY.

       (a) Authority.--The Administrator shall establish a Small 
     Business Energy Efficiency Pilot Program (in this section 
     referred to as the ``Efficiency Pilot Program'') to provide 
     energy efficiency assistance to small business concerns 
     through small business development centers.
       (b) Small Business Development Centers.--
       (1) In general.--In carrying out the Efficiency Pilot 
     Program, the Administrator shall enter into agreements with 
     small business development centers under which such centers 
     shall--
       (A) provide access to information and resources on energy 
     efficiency practices, including on-bill financing options;
       (B) conduct training and educational activities;
       (C) offer confidential, free, one-on-one, in-depth energy 
     audits to the owners and operators of small business concerns 
     regarding energy efficiency practices;
       (D) give referrals to certified professionals and other 
     providers of energy efficiency assistance who meet such 
     standards for educational, technical, and professional 
     competency as the Administrator shall establish; and
       (E) act as a facilitator between small business concerns, 
     electric utilities, lenders, and the Administration to 
     facilitate on-bill financing arrangements.
       (2) Reports.--Each small business development center 
     participating in the Efficiency Pilot Program shall submit to 
     the Administrator and the Administrator of the Environmental 
     Protection Agency an annual report that includes--
       (A) a summary of the energy efficiency assistance provided 
     by that center under the Efficiency Pilot Program;
       (B) the number of small business concerns assisted by that 
     center under the Efficiency Pilot Program;
       (C) statistics on the total amount of energy saved as a 
     result of assistance provided by that center under the 
     Efficiency Pilot Program; and
       (D) any additional information determined necessary by the 
     Administrator, in consultation with the association.
       (3) Reports to congress.--Not later than 60 days after the 
     date on which all reports under paragraph (2) relating to a 
     year are submitted, the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives a report summarizing the information 
     regarding the Efficiency Pilot Program submitted by small 
     business development centers participating in that program.
       (c) Eligibility.--A small business development center shall 
     be eligible to participate in the Efficiency Pilot Program 
     only if that center is certified under section 21(k)(2) of 
     the Small Business Act (15 U.S.C. 648(k)(2)).
       (d) Selection of Participating State Programs.--
       (1) Groupings.--
       (A) Selection of programs.--The Administrator shall select 
     the small business development center programs of 2 States 
     from each of the groupings of States described in 
     subparagraphs (B) through (K) to participate in the pilot 
     program established under this section.
       (B) Group 1.--Group 1 shall consist of Maine, 
     Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode 
     Island.
       (C) Group 2.--Group 2 shall consist of New York, New 
     Jersey, Puerto Rico, and the Virgin Islands.
       (D) Group 3.--Group 3 shall consist of Pennsylvania, 
     Maryland, West Virginia, Virginia, the District of Columbia, 
     and Delaware.
       (E) Group 4.--Group 4 shall consist of Georgia, Alabama, 
     North Carolina, South Carolina, Mississippi, Florida, 
     Kentucky, and Tennessee.
       (F) Group 5.--Group 5 shall consist of Illinois, Ohio, 
     Michigan, Indiana, Wisconsin, and Minnesota.
       (G) Group 6.--Group 6 shall consist of Texas, New Mexico, 
     Arkansas, Oklahoma, and Louisiana.
       (H) Group 7.--Group 7 shall consist of Missouri, Iowa, 
     Nebraska, and Kansas.
       (I) Group 8.--Group 8 shall consist of Colorado, Wyoming, 
     North Dakota, South Dakota, Montana, and Utah.
       (J) Group 9.--Group 9 shall consist of California, Guam, 
     American Samoa, Hawaii, Nevada, and Arizona.
       (K) Group 10.--Group 10 shall consist of Washington, 
     Alaska, Idaho, and Oregon.
       (e) Matching Requirement.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall apply to assistance made available under the 
     Efficiency Pilot Program.
       (f) Grant Amounts.--Each small business development center 
     selected to participate in the Efficiency Pilot Program under 
     subsection (d) shall be eligible to receive a grant in an 
     amount equal to--
       (1) not less than $100,000 in each fiscal year; and
       (2) not more than $300,000 in each fiscal year.
       (g) Evaluation and Report.--The Comptroller General of the 
     United States shall--
       (1) not later than 30 months after the date of disbursement 
     of the first grant under the Efficiency Pilot Program, 
     initiate an evaluation of that pilot program; and
       (2) not later than 6 months after the date of the 
     initiation of the evaluation under paragraph (1), submit to 
     the Administrator, the Committee on Small Business and 
     Entrepreneurship of the Senate, and the Committee on Small 
     Business of the House of Representatives, a report 
     containing--
       (A) the results of the evaluation; and
       (B) any recommendations regarding whether the Efficiency 
     Pilot Program, with or without modification, should be 
     extended to include the participation of all small business 
     development centers.
       (h) Guarantee.--The Administrator may guarantee the timely 
     payment of a loan made to a small business concern through an 
     on-bill financing agreement on such terms and conditions as 
     the Administrator shall establish through a formal rule 
     making, after providing notice and an opportunity for 
     comment.
       (i) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section--
       (A) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of this Act; and
       (B) $5,000,000 for each of the 3 fiscal years following the 
     fiscal year described in subparagraph (A).
       (2) Limitation on use of other funds.--The Administrator 
     may carry out the Efficiency Pilot Program only with amounts 
     appropriated in advance specifically to carry out this 
     section.
       (j) Termination.--The authority under this section shall 
     terminate 4 years after the date of disbursement of the first 
     grant under the Efficiency Pilot Program.

     SEC. 6. SMALL BUSINESS TELECOMMUTING.

       (a) Pilot Program.--
       (1) In general.--In accordance with this section, the 
     Administrator shall conduct, in not more than 5 of the 
     regions of the Administration, a 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 (in this section 
     referred to as the ``Telecommuting Pilot Program'').
       (2) Special outreach to individuals with disabilities.--In 
     carrying out the Telecommuting Pilot Program, the 
     Administrator shall make a concerted effort to provide 
     information to--
       (A) small business concerns owned by or employing 
     individuals with disabilities, particularly veterans who are 
     individuals with disabilities;
       (B) Federal, State, and local agencies having knowledge and 
     expertise in assisting individuals with disabilities, 
     including veterans who are individuals with disabilities; and
       (C) any group or organization, the primary purpose of which 
     is to aid individuals with disabilities or veterans who are 
     individuals with disabilities.
       (3) Permissible activities.--In carrying out the 
     Telecommuting Pilot Program, the Administrator may--
       (A) produce educational materials and conduct presentations 
     designed to raise awareness in the small business community 
     of the benefits and the ease of telecommuting;
       (B) conduct outreach--
       (i) to small business concerns that are considering 
     offering telecommuting options; and
       (ii) as provided in paragraph (2); and
       (C) acquire telecommuting technologies and equipment to be 
     used for demonstration purposes.
       (4) Selection of regions.--In determining which regions 
     will participate in the Telecommuting Pilot Program, the 
     Administrator shall give priority consideration to regions in 
     which Federal agencies and private-sector employers have 
     demonstrated a strong regional commitment to telecommuting.
       (b) Report to Congress.--Not later than 2 years after the 
     date on which funds are first appropriated to carry out this 
     section, the Administrator shall transmit to the Committee on 
     Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives a 
     report containing the results of an evaluation of the 
     Telecommuting Pilot Program and any recommendations regarding 
     whether the pilot program, with or without modification, 
     should be extended to include the participation of all 
     regions of the Administration.
       (c) Termination.--The Telecommuting Pilot Program shall 
     terminate 4 years after the date on which funds are first 
     appropriated to carry out this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administration $5,000,000 to carry 
     out this section.

     SEC. 7. ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.

       Section 9 of the Small Business Act (15 U.S.C. 638) is 
     amended by adding at the end the following:
       ``(z) Encouraging Innovation in Energy Efficiency.--
       ``(1) Federal agency energy-related priority.--In carrying 
     out its duties under this section to SBIR and STTR 
     solicitations by Federal agencies, the Administrator shall--

[[Page S7900]]

       ``(A) ensure that such agencies give high priority to small 
     business concerns that participate in or conduct energy 
     efficiency or renewable energy system research and 
     development projects; and
       ``(B) include in the annual report to Congress under 
     subsection (b)(7) a determination of whether the priority 
     described in subparagraph (A) is being carried out.
       ``(2) Consultation required.--The Administrator shall 
     consult with the heads of other Federal agencies and 
     departments in determining whether priority has been given to 
     small business concerns that participate in or conduct energy 
     efficiency or renewable energy system research and 
     development projects, as required by this section.
       ``(3) Guidelines.--The Administrator shall, as soon as is 
     practicable after the date of enactment of this subsection, 
     issue guidelines and directives to assist Federal agencies in 
     meeting the requirements of this section.
       ``(4) Definitions.--In this subsection--
       ``(A) the term `biomass'--
       ``(i) means any organic material that is available on a 
     renewable or recurring basis, including--

       ``(I) agricultural crops;
       ``(II) trees grown for energy production;
       ``(III) wood waste and wood residues;
       ``(IV) plants (including aquatic plants and grasses);
       ``(V) residues;
       ``(VI) fibers;
       ``(VII) animal wastes and other waste materials; and
       ``(VIII) fats, oils, and greases (including recycled fats, 
     oils, and greases); and

       ``(ii) does not include--

       ``(I) paper that is commonly recycled; or
       ``(II) unsegregated solid waste;

       ``(B) the term `energy efficiency project' means the 
     installation or upgrading of equipment that results in a 
     significant reduction in energy usage; and
       ``(C) the term `renewable energy system' means a system of 
     energy derived from--
       ``(i) a wind, solar, biomass (including biodiesel), or 
     geothermal source; or
       ``(ii) hydrogen derived from biomass or water using an 
     energy source described in clause (i).''.

     SEC. 8. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY 
                   EFFICIENCY.

       Section 7(a)(31) of the Small Business Act (15 U.S.C. 
     636(a)(31)) is amended by adding at the end the following:
       ``(F) Express loans for renewable energy and energy 
     efficiency.--
       ``(i) Definitions.--In this subparagraph, the terms `energy 
     efficiency project' and `renewable energy system' have the 
     meanings given those terms in section 9(z).
       ``(ii) Loans.--Loans may be made under the `Express Loan 
     Program' for the purpose of--

       ``(I) purchasing a renewable energy system; or
       ``(II) an energy efficiency project for an existing 
     business.''.

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