69–010 

Calendar No. 223 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–408 

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 


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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-presentvalue 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. 


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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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