[Senate Report 114-408]
[From the U.S. Government Publishing Office]
Calendar No. 223
114th Congress } { Report
SENATE
2d Session } { 114-408
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SMALL BUSINESS ENERGY EFFICIENCY ACT OF 2015
_______
December 20, 2016.--Ordered to be printed
Filed, under authority of the order of the Senate of December 10
(legislative day, December 9), 2016
_______
Mr. Vitter, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
[To accompany S. 1756]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 1756) to help small businesses
take advantage of energy efficiency, having considered the
same, reports favorably thereon without amendment and
recommends that the bill do pass.
I. INTRODUCTION
The Small Business Energy Efficiency Act of 2015 (S. 1756)
was introduced by Senator Jeanne Shaheen, for herself and
Senator Christopher A. Coons and Senator Mazie K. Hirono on
July 14, 2015.
The Act amends the Small Business Investment Act of 1958 to
allow a state development company to use the economic
development objective of helping small businesses achieve
savings through energy efficiency to qualify for loan
assistance. During the markup of the bill, the bill was
approved unanimously by voice vote.
II. HISTORY (PURPOSE & NEED FOR LEGISLATION)
The Certified Development Company (CDC)/504 loan program at
the SBA provides financing for major fixed assets such as
equipment or real estate. To be eligible for 504 loans,
applicants must meet several eligibility requirements,
including, but not limited to: operating as a for-profit
company; conducting or proposing to conduct business in the
United States or its possessions, and having the ability to
repay the loan on time from the operating cash flow of the
business. While small businesses can and do utilize the 504
loan program for energy efficiency projects, the law currently
does not identify energy efficiency as a public policy goal of
the program. In order for small entities to have additional
certainty that the 504 loan program is available to undertake
energy efficiency projects, language to that effect should be
codified in statute.
III. HEARINGS & ROUNDTABLES
The Committee held a hearing on July 14, 2015 entitled
``Challenges and Opportunities for Small Businesses Engaged in
Energy Development and Energy Intensive Manufacturing.'' At the
hearing, witnesses noted that, according to the National
Federation of Independent Businesses, energy use is among the
top costs of doing business for many small businesses. However,
the barriers and challenges for small businesses to take
advantage of energy efficiency are much greater than in the
case of large companies.
IV. DESCRIPTION OF BILL
The bill amends the Section 504 lending program at the SBA
to clarify that energy efficiency is a category under which
projects can qualify for the program.
V. COMMITTEE VOTE
In compliance with rule XXVI (7)(b) of the Standing Rules
of the Senate, the following vote was recorded on July 29,
2015.
A motion to adopt the Small Business Energy Efficiency Act,
a bill to help small businesses take advantage of energy
efficiency was approved unanimously by voice vote with the
following Senators present: Senators Vitter, Scott, Fischer,
Gardner, Ernst, Enzi, Shaheen, Cantwell, Heitkamp, Booker,
Hirono, and Peters.
VI. COST ESTIMATE
In compliance with rule XXVI (11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts discussed in the
following letter from the Congressional Budget Office:
July 29, 2015.
S. 1756 would broaden the activities that the Small
Business Administration (SBA) may consider when determining
whether to offer loan guarantees under the Small Business
Investment Company (SBIC) program. The bill would allow the SBA
to consider whether an applicant would help small businesses
use energy more efficiently.
Under current law, businesses participating in the SBIC
program are required to pay various fees that are sufficient to
offset the program's estimated subsidy cost, that is, the
estimated long-term cost to the government of a loan guarantee,
calculated on a net-present-value basis. Based on information
from the SBA, CBO expects that broadening the activities that
would make firms eligible to receive a loan guarantee would not
affect the estimated net subsidy cost of the SBIC program, nor
would the changes significantly increase the cost to administer
the program, which is recorded in the budget on a cash basis.
Therefore, CBO estimates that implementing S. 1756 would have
no significant effect on discretionary spending. Enacting S.
1756 would have no effect on direct spending or revenues;
therefore, pay-as-you-go procedures do not apply.
S. 1756 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Susan Willie.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VII. EVALUATION OF REGULATORY IMPACT
In compliance with rule XXVI (11)(b) of the Standing Rules
of the Senate, it is the opinion of the Committee that no
significant additional regulatory impact will be incurred in
carrying out the provisions of this legislation. There will be
no additional impact on the personal privacy of companies or
individuals who utilize the services provided.
VIII. SECTION-BY-SECTION ANALYSIS
Section 1. Title
This section clarifies the title of the bill. This Act may
be cited as the ``Small Business Energy Efficiency Act of
2015''.
Section 2. Energy efficiency
This section amends existing code to expand the Small
Business Administration's 504 lending program to businesses
looking to invest in energy efficiency. It achieves this by
adding ``energy efficiency'' as a public policy goal under the
program's statutory objectives.
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