Rising Energy Costs Strain Small Businesses
According to a recent study conducted by the National Small Business Association, 93 percent of small business owners anticipate negative consequences to their businesses because of higher energy prices. Half said lack of money or other resources have prevented them from doing more to invest in energy-saving technology. The House Small Business Committee has examined a proposal, The Small Energy Efficient Business Act (SEEBA), to assist small businesses struggling with climbing energy prices through loans, investment, and education.
"Spikes in energy prices like those we have recently experienced can be a major setback for even the best prepared entrepreneur," said Chairwoman Nydia M. Velázquez. "For small businesses, controlling these costs is important to ensuring entrepreneurs are able to put their resources back into their businesses."
With gas prices expected to hit $4 per gallon this summer, small businesses are being hit especially hard by the skyrocketing energy costs. However, many anticipate the problem only getting worse as energy consumption is expected to grow one percent annually over the next 25 years, further burdening supplies and driving up costs. These trends can be especially damaging for small businesses that lack financial reserves to weather temporary spikes in prices or invest in energy efficient technologies. Instead, entrepreneurs are often forced to raise prices, making it more difficult for them to compete. Increasing demand for energy can also create opportunities for small businesses, who have taken the lead in the renewable energy sector.
"As costs continue to escalate, small businesses need the best resources to deal with today's energy challenges and to be part of tomorrow's solutions," said Chairwoman Velázquez. "Today's discussion laid out exciting possibilities for entrepreneurs who are educated and proactive about these changes."
At a May hearing, the committee heard testimony in support of SEEBA, legislation that modifies existing Small Business Administration (SBA) programs to assist small companies in adapting to today's changing energy environment. The bill provides for more flexible loan terms for small businesses to acquire and develop energy efficient technologies, helping small businesses use SBA's premier loan programs to expand their capacity to producer renewable fuels such as biodiesel or ethanol. It also directs the SBA to develop a strategy for disseminating information on energy efficiency to small businesses. SEEBA will expand the Small Business Investment Company program to spur investment in the production and development of energy efficient technology and establish an energy efficiency program for Small Business Development Centers (SBDCs). These improvements will direct capital and other resources to small businesses so that they can be better prepared for future energy challenges and actively participate in creating new solutions.
"Small businesses are the first to be affected by rising energy prices," said Congressman Shuler, Chair of the Subcommittee on Rural and Urban Entrepreneurship. "Small businesses will be the first to find the solutions. This bill gives them the tools they need to lead our nation to energy efficiency and independence."
In response to ongoing concerns about rising energy prices, the committee continues to explore the role of small business in renewable energy production and the economic development it is creating.
CSUSB'S Green Effort Earns Statewide Honors
Cal State San Bernardino (CSUSB) has been named a recipient in several categories in the 2007 Best Practice Awards of the California State University/University of California Energy Efficiency Partnership Program and Sustainable Transportation program.
The energy conservation projects by CSUSB's facilities department earned the university the honors, which will be formally presented at the Sixth Annual UC, CSU, CCC Sustainability Conference 2007, June 24-27 at the University of California, Santa Barbara.
These are the latest in a list of awards the campus has earned in recent years from state and federal agencies.
Out of 12 categories, Cal State San Bernardino won three 2007 Best Practice Awards and two honorable mentions. The university was in competition with 22 other CSU and 10 University of California campuses. The categories in which CSUSB won are:
Lighting Design/ Retrofit, for its high-efficiency lighting retrofit program.
Projects in this category demonstrate leadership in a new design or retrofit of lighting delivery systems and lighting control systems. Examples include: energy efficient fixture selection and deployment; and use of advanced lighting control technologies.
HVAC Retrofit, for its direct digital control upgrades.
Projects in this category demonstrate leadership in HVAC equipment selection, distribution system design and controls specification. Laboratory retrofits are included in this category. Examples include: appropriate equipment sizing; energy efficient equipment selection; maximizing the benefits of local climate; and air distribution system innovation.
Monitoring-Based Commissioning, for a project in University Hall.
Projects in this category optimize building operations and secure long-term energy savings through what is known as a "Monitoring-Based Commissioning" program, or MBCx. The program includes a review of building operations; the installation of comprehensive equipment control measures with built-in measurement and verification capability; and appropriate operational adjustments.
The categories in which the university earned honorable mentions are:
HVAC Design, for its thermal energy storage tank design
Projects in this category demonstrate leadership in HVAC equipment selection, distribution system design, and controls specification. Laboratory designs are included in this category. Examples include: appropriate equipment sizing; energy efficient equipment selection; maximizing the benefits of local climate; air distribution system innovation; and fume hood control innovation.
Student Energy Efficiency, for the students' Green Campus Program.
This award spotlights a program, organization, or group that has demonstrated real leadership in student-led energy efficiency and conservation efforts. Award candidates are engaged in campus activities that seek to leverage student interest and commitment to sustainability in order to increase energy awareness on campus; realize environmentally-friendly campus policies and commitments; and involve students in efficiency activities that compliment their campus' goals and that result in measurable energy savings.
This year Cal State San Bernardino launched a $12.5 million Energy Services Infrastructure Improvements Project that will yield nearly $1.1 million in annual savings, with a payback period of just more than 11 years. The savings will come in energy costs and the use of other resources.
The university also is one of the first to utilize "The Energy Services Master Enabling Agreement," designed by the California State University Chancellor's Office Plant, Energy and Utilities group, which enables the 23 CSU campuses to aggressively seek and implement energy conservation opportunities. Through this effort, Cal State San Bernardino was recently selected to receive the Association of Physical Plant Administrators Effective and Innovative Practices Award.
CSUSB's green effort earned the university a listing among the 16 CSU campuses on the federal Environmental Protection Agency's Top 25 list of the largest national green power purchasers and the EPA's Top 10 College and University Green Power Partners. The ranking was based on power consumption information through September 2006.
Cal State San Bernardino (www.csusb.edu) was already building on a foundation of energy conservation. In June 2006, citing its commitment to energy awareness and conservation, the state of California awarded the university with its Flex Your Power Award for its efforts at making students more energy savvy.
The campus was also recognized in the Education and Leadership category for the university's program designed to help students increase their energy awareness under the Green Campus Pilot Program. As part of the program, students equipped rooms with compact fluorescent lamps and ENERGY STAR appliances to demonstrate savings.
"Green power" is defined as electricity that is partially or entirely generated from environmentally friendly resources, such as solar, wind, geothermal, biogas, biomass and low-impact hydro. These renewable energy sources are cleaner than conventional sources of electricity that produce carbon dioxide (CO2) emissions - a greenhouse gas linked to global climate change.
