ment agency to which such funds are allocated or 
transferred. 
(2) NOTIFICATION.—The Foundation shall no-
tify the appropriate congressional committees not 
less than 15 days prior to an allocation or transfer 
of funds pursuant to paragraph (1). 
TITLE III—SMALL ENERGY 
EFFICIENT BUSINESSES 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘Small Energy Effi-
cient Businesses Act’’. 
SEC. 3002. FINDINGS. 
Congress finds the following: 
(1) Energy efficiency is in our national interest 
for our long term economic well being, for the health 
and safety of our citizens and the world, and for our 
independence and security. 
(2) Small businesses are more efficient, nimble, 
and innovative than large businesses and therefore 
more likely to integrate and benefit from energy effi-
cient technology advances and upgrades, but they 
are less likely to have the capital to institute these 
advances quickly. 
(3) The majority of businesses (two-thirds) say 
they have been unable to invest in comprehensive en-
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ergy efficiency programs for their businesses thus 
far, though they know of them and believe they are 
effective. 
(4) A pilot program has demonstrated that in-
dividualized counseling and training combined with 
loan and grant availability and other incentives are 
very popular and effective in helping small busi-
nesses learn about and adopt energy conservation 
methods. 
(5) The energy saving benefit of such programs, 
if they can be implemented on a national basis, 
would contribute significantly to our energy inde-
pendence and security. 
(6) New and emerging technologies are on the 
rise, and small businesses are leading the way, for 
example the vast majority of renewable fuels pro-
ducers, such as biodiesel and ethanol, are small busi-
nesses. 
(7) Small businesses currently use almost half 
of the Nation’s business related energy consumption 
and employ half of the Nation’s workforce, yet the 
Energy Star program, the lead Federal energy effi-
ciency program allocates less than 2 percent of its 
resources to its small business program and should 
allocate more to educate small businesses. 
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(8) Therefore, it is in the national interest for 
the Federal Government to invest in incentives in 
the form of improved loan terms, additional invest-
ment inducements, and expert counseling and infor-
mation to assist small businesses to develop, invest 
in, and purchase energy efficient buildings, equip-
ment, fixtures, and other technology. 
SEC. 3003. LARGER 504 LOAN LIMITS TO HELP BUSINESS 
DEVELOP 
ENERGY 
EFFICIENT 
TECH-
NOLOGIES AND PURCHASES. 
(a) 
ELIGIBILITY
FOR
ENERGY
EFFICIENCY 
PROJECTS.—Section 501(d)(3) of the Small Business In-
vestment Act of 1958 (15 U.S.C. 695(d)(3)) is amended— 
(1) in subparagraph (G) by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (H) by striking the period 
at the end and inserting a comma; and 
(3) by inserting after subparagraph (H) the fol-
lowing: 
‘‘(I) reduction of energy consumption by at 
least 10 percent, 
‘‘(J) increased use of sustainable design or 
low-impact design to produce buildings that re-
duce the use of non-renewable resources, mini-
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mize environmental impact, and relate people 
with the natural environment, or 
‘‘(K) plant, equipment and process up-
grades of renewable energy sources such as 
micropower or renewable fuels producers includ-
ing biodiesel and ethanol producers.’’. 
(b) LOANS FOR PLANT PROJECTS USED FOR EN-
ERGY-EFFICIENT PURPOSES.—Section 502(2)(A) of the 
Small Business Investment Act of 1958 (15 U.S.C. 
696(2)(A)) is amended— 
(1) in clause (ii) by striking ‘‘and’’ at the end; 
(2) in clause (iii) by striking the period at the 
end and inserting a semicolon; and 
(3) by adding at the end the following new 
clauses: 
‘‘(iv) $4,000,000 for each project that 
reduces the borrower’s energy consumption 
by at least 10 percent; and 
‘‘(v) $4,000,000 for each project that 
generates renewable energy or renewable 
fuels, such as biodiesel or ethanol produc-
tion.’’. 
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