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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1657 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1657

To establish a small business energy efficiency program, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 19, 2007

 Mr. Kerry (for himself and Ms. Snowe) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
To establish a small business energy efficiency program, and for other 
                               purposes.

    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 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--
                    ``(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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