STATEMENT
of the
Honorable Nydia M. Velázquez, Chairwoman
House Committee on Small Business
Hearing on Small Business Energy Priorities
October 17, 2007

Our nation’s small business owners face many challenges in operating a successful company.  The rising cost of energy continues to be one of their major concerns.  As negotiations begin on comprehensive energy legislation in the coming weeks, it is critical to ensure the needs of small firms – whether as producers or consumers of energy – are included in those discussions. 

Today’s panelists will outline their priorities as Congress moves towards a final product.  This hearing presents an opportunity to identify outstanding matters and solicit the input of the small business community.  Our nation’s energy policies are a public/private partnership and will only work if small firms are able to carry them out.  

In August, the House took a major step towards greater energy independence when it passed H.R. 3221, the New Direction for Energy Independence, National Security, and Consumer Protection Act.  This legislation included the input from ten different House committees.  It encourages the development of new technologies, promotes greater conservation and efficiency, and calls for more green energy production.

H.R. 3221 contained key initiatives from this Committee that will assist small businesses improve their energy efficiency. With enhanced loan guarantees and lower fees on SBA loans, more small businesses will be able to purchase efficient technology. 

The House-passed bill also creates private equity investment companies that will spur funding for additional renewable fuel production. It also requires that the SBA set up a national effort to educate entrepreneurs on potential energy efficient products and techniques that can save businesses money.  These are a just a few of the targeted measures aimed at small firms.

This hearing will allow us to assess the direct and indirect impact of some of the proposed changes.  Our focus will be on working to address the unique concerns for small businesses.  Representatives of the construction, maintenance, installation and design industries are here to talk about how these reforms can work, but only if they are properly implemented.

The goal of the comprehensive legislation is to move America forward toward increasing energy supplies and creating smarter usage.  This will reduce overall energy consumption and greenhouse gas emissions – all while moving our economy in the right direction. 

Small businesses obviously will have an enormous role in achieving these goals.  Based on the testimony from the panelists, it is critical that the federal government and affected industries have an ongoing dialogue to implement this shift in policy.  There must be flexibility in these reforms that allows small businesses to work with regulators to craft workable standards even after the bill is signed into law.

Small firms have been at the forefront of energy efficiency and the development of new technologies.  From breakthroughs in green design and construction to the developments in cellulosic ethanol, small businesses are the leaders in the field.  They have not only been involved in the push for efficiency, but now have a role as suppliers of energy.

The energy legislation being examined only seeks to build upon these efforts.  I look forward to hearing the small business community’s recommendations to improve upon the final comprehensive energy package.  The Committee can draw on this as this Congress works to increase our nation’s energy independence.

I appreciate the witnesses coming here today to talk about these important issues and I look forward to today’s discussion.