STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Full Committee Hearing: “Climate Change Solutions for Small Businesses and Family Farmers”
Wednesday, April 29, 2009

Within the scientific community, a clear consensus has formed about the need to address the dangers of climate change.  The effects of global warming are indisputable, from rising sea levels to increasingly violent natural disasters. Repercussions like these would be disastrous not only in terms of human suffering, but also for our global economy. 

Across the country, America’s small businesses are stepping up to help address this problem. Today, the Chicago Climate Exchange boasts 3,500 members, and trades $9 million worth of carbon offsets. That’s enough to mitigate annual emissions for 320,000 cars.  Entrepreneurs and family farmers are pioneering innovative ways to reduce carbon in the atmosphere.  Whether it’s trading carbon credits or developing renewable fuels, small firms everywhere are making critical investments in a greener future.

If it is done right, reducing greenhouse gas emissions will mean more opportunities for our small business economy.  As legislation to address climate change goes forward, we need to make sure that the final proposal not only protects our environment, but creates jobs.   Properly constructed legislation will result in a win-win—it will expand small business jobs, while protecting the planet. 

Despite these opportunities, some businesses understandably worry about the expense of addressing climate change.  And, of course, it is important that entrepreneurs not be unfairly burdened as we transition to a carbon constrained economy.  Let’s not forget—small businesses are some of the largest energy consumers, so we need to carefully consider how capping carbon emissions will affect them.

In grappling with these issues, one thing has become clear—the only option not on the table is doing nothing.  For better or worse, the EPA’s recent decision to classify carbon dioxide as a dangerous pollutant means that it will now be regulated under the Clean Air Act.  The Clean Air Act laws, which were enacted in 1970, simply were not written with this purpose in mind.  Trying to regulate carbon dioxide emissions through the existing Clean Air Act laws is like trying to put a square peg in a round hole.  That means the question is no longer if we are going to reduce greenhouse gas emissions, but rather when andhow.  

If we are going to both address climate change and create new growth opportunities for small business, leadership will be required on all fronts—not just from the EPA, but from Congress, as well.  That is the right way to go about this monumental task.

The panel before us today can testify about some of the ways in which small businesses and family farmers are pioneering the green revolution.  I look forward to hearing about their experiences in this growing field.  However, if they are going to continue this impressive work, they will need the proper support from all of us.