Senators call for action to tackle small businesses' energy bills

The US Small Business Administration (SBA) has received a thinly veiled warning from the Senate's Committee on Small Business and Entrepreneurship to step up its efforts to promote energy saving measures amongst its members.

Under the Energy Independence and Security Act, passed late last year, the SBA was required to implement a number of incentive and support programmes designed to make it easier for small firms to invest in energy efficiency measures.

However, eight months on it appears that none of the programmes have been formally enacted, prompting committee chairman Senator John Kerry and ranking member Olympia Snowe to last week write an open letter to SBA acting administrator Jovita Carranza demanding an update on the schemes.

The letter notes that a survey recently undertaken by the US National Small Business Association revealed that over three quarters of small and medium sized businesses operating in the US have been adversely affected by spikes in energy prices with a third having to increase prices as a result and one in 10 having to reduce their workforce.

It adds that such concerns were the reason behind the introduction of a package of energy efficiency incentives in the Energy Independence and Security Act and argues that the SBA has "had adequate time to review the small business requirements included in this law and make plans for carrying them out".

As such, the letter demands that the SBA deliver detailed progress reports on the "concrete steps" it has taken to implement the package of measures, including plans for an "Energy Clearinghouse" to help SMBs procure energy star approved equipment, proposals for new loans for companies purchasing renewable energy and energy efficiency equipment, and the development of pilot projects to assess how best the SBA can encourage adoption of energy efficiency and telecommuting best practices amongst small business owners.