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

      By Ms. SNOWE (for herself and Mr. Kerry):
  S. 1656. A bill to authorize loans for renewable energy systems and 
energy efficiency projects under the Express Loan Program of the Small 
Business Administration; to the Committee on Small Business and 
Entrepreneurship.
  Ms. SNOWE. Mr. President, as Ranking Member of the Senate Committee 
Small Business and Entrepreneurship, I rise today with Senator Kerry to 
introduce the Small Business Energy Efficiency Act of 2007. The energy 
debate now underway in this body is a positive initial step for our 
country, but it is only a first step. Frankly, America must become more 
innovative and invest in infrastructure that provides a lifetime of 
savings, both for its citizens and our global neighbors.
  This year the Senate Committee on Small Business and 
Entrepreneurship, of which I am the Ranking Member, has paid particular 
attention to the effects of climate change and escalating fuel costs on 
small businesses, and the role America's entrepreneurs can play in 
affecting change in these areas. Chairman Kerry and I have already 
devoted two hearings during the 110th Congress to these subjects. 
Clearly, rising gas prices and global warming are having a devastating 
affect on the health of small business in this country.
  As we all know, small business is the backbone of our Nation's 
economy. As the leading Republican on the Small Business Committee and 
as a longstanding steward of the environment, I firmly believe that 
small business has a pivotal role to play in finding a solution to 
global climate change. 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 
had successfully invested in energy efficiency programs for their 
businesses.
  We need to significantly improve energy efficiency investment by 
small businesses. To that end, our measure will ensure that the SBA 
completes its requirements under the Energy Policy Act of 2005. Within 
90 days of enactment, the SBA, through a final rulemaking, would be 
required to complete all of its requirements under the Energy Policy 
Act, including setting up a Energy Clearinghouse that builds on the 
Environmental Protection Agency's Energy Star program.
  Our bill would also create the position of Assistant Administrator 
for Small Business Energy Policy within the SBA. The duties of this 
position include: 1. the oversight and administration the Small 
Business Energy Clearinghouse Program; and 2. the promotion of energy 
efficiency efforts and the reduction of energy costs for small 
businesses.
  It would also create a Small Business Energy Efficiency Pilot Grant 
Program. 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. These 
practices would include ``on-bill financing'' options.
  Our bill would also encourage innovation in energy efficiency. 
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. The SBA 
will issue guidelines to assist Federal agencies and departments in 
determining whether priority has been given.
  Finally, our bill would make the SBA's Express Loan Program available 
to small businesses who wish to purchase renewable energy systems or 
make energy efficiency improvements to their existing businesses. I 
firmly believe that the SBA Express Loan will be an attractive option 
to small business owners looking to make their businesses more energy 
efficient and environmentally sound because of the program's quick 
turnaround time and the ability of participating lenders to use their 
own forms and procedures for approval. Furthermore, lenders and 
borrowers can negotiate the interest rate, which can result in more 
favorable terms for a small business owner. The Express Program is the 
most widely used of SBA's loan products, representing 69 percent of all 
loans made. In fact, the SBA Express lender network is made up of 
almost 2,000 financial institutions nationwide.
  Many small businesses are already leading the charge in combating 
global warming. For instance, in my home state of Maine, Oakhurst 
Dairy, an 86-year-old business, recently announced that it has 
converted its fleet of over 100 trucks and trailers to a bio-diesel 
fuel blend. Oakhurst's President Stanley Bennett sent me a letter 
stating: ``We firmly believe that doing the right thing environmentally 
is almost always the right thing to do for your business.'' It is my 
hope that our bill will spur more small firms to make the same 
investment in the environment and their businesses.
  As we engage in this debate, we must remain mindful that potential 
solutions must fully consider the economic realities facing small 
businesses. According to the SBA Office of Advocacy, compliance with 
environmental regulations costs 364 percent more in small businesses 
than in larger businesses. So, in developing solutions Senator Kerry 
and I have worked to ensure that small businesses possess a range of 
cost-effective alternatives and have avoided a one-sized-fits-all 
approach.
  In conclusion, this bipartisan measure will enable small businesses 
to play a leading role in combating global climate change. Assisting 
small firms in this regard will not only help the environment, but will 
also significantly lower the energy costs for cash-strapped small 
businesses.
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