News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release
June 28, 2007

CONTACT: Kate Gilman/Erin Donar,  (202) 225-4038

Committee Explores the Greening of American Businesses
Small Ventures at the Forefront of the Sustainability Movement

WASHINGTON – With rising energy prices, America’s dependence on foreign oil, and global warming posing constant threats, many businesses are starting to “go green” in an effort to become more efficient. Small businesses are well suited to modify their power usage and have been leaders in this sustainability movement, creating innovative technologies to broaden the green marketplace and boost the economy. But while many local governments are promoting eco-friendly businesses, there is more that can be done to help companies excel at green efforts, particularly at the federal level.  Today, the Committee on Small Business heard testimony from environmentally-friendly entrepreneurs, advocates and Mayors whose cities are taking the lead in the greening of America. Members considered their recommendations and discussed incentives to promote these practices.

“Small businesses are hit hardest by the rising cost of fuel, making it no surprise that they are one of the main sources of innovation when it comes to energy efficient technologies,” said Chairwoman Nydia M. Velázquez. “These business owners are not only greening their own firms, but are creating the products necessary for our nation to become energy independent.”

The green movement has been the most successful at the local level, with states and municipalities enacting legislation and initiatives to help businesses reduce energy consumption. While the federal government has taken steps in the right direction, there is still a need for increased education, tax incentives and funding to help businesses meet their full potential. The practice of building green benefits the environment and is economically advantageous.  According to the United States Green Building Council, these structures use 32% less electricity, 26% less natural gas, and 36% less total energy than a conventional building – a potentially enormous savings. They have also introduced a new sector into the workforce with the advent of the “green collar” worker, creating well-paying jobs in ecologically responsible trades. Yet financial and knowledge barriers still exist for many small business owners.  Many recognize that energy-efficient appliances save money in the long run; however the initial investment may be too expensive, or small firms may not be aware of the long term benefits of such technology. Incentives and education are necessary to help businesses that are on the path to becoming more environmentally sound.

“These firms have proven that they not only benefit the environment, but they are good for the economy and are an important engine for job growth,” Chairwoman Velázquez said. “Congress has an opportunity to foster green industries, help businesses save energy and money, and promote healthier surroundings for our children and grandchildren.”

During the hearing, the Mayors of Washington, DC, and Santa Barbara, CA, discussed efforts their municipalities have made to become more environmentally friendly. They recommended ways the federal government could learn from their successes and encourage energy efficiency on a nationwide scale. Business owners, investors and representatives from green building organizations testified as to the economic and ecological benefits of green construction.  Witnesses also suggested ways the government could help small firms reduce energy usage and become more profitable. Members discussed incentives to promote green initiatives, such as tax credits, and programs aimed at increasing awareness through the Small Business Administration (SBA). By improving access to these technologies, businesses will be better able to save money while also helping to reduce harmful carbon emissions.

“The future of American business is in sustainability,” Chairwoman Velázquez said. “We must ensure that these entrepreneurs are given the support they need to thrive and help move America towards energy independence.”

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