STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Full Committee Hearing: “Regulating our Nation’s Waterways the Impacts on Small Businesses and Family Farmers”
Wednesday, July 22, 2009

In our nation’s recovery efforts, green policies have been a top priority. And with good reason. Already, investments in sectors like efficiency and renewable energy are creating jobs and driving growth. At the forefront of this growing movement are our entrepreneurs-- the innovators who are leading the way in both conservation and economic resurgence.   

It’s no surprise that entrepreneurs and family farmers are powering the green economy. They recognize that a clean, sustainable environment is critical to the health of both the planet and the business world. And it makes sense, because small firms--like all other businesses-- rely on natural resources to run their operations. Of those critical resources, water is one of the most important.

Our nation’s waterways play a vital role in all acts of commerce. In one form or another, water is used for everything from paving roads to raising livestock. In recent years, however, the process for regulating our waterways has become complex. Today, we will examine the current regulatory framework, and look for ways to make sure small firms can comply.

When first introduced, the Clean Water Act sought to restore and maintain the integrity of our nation’s “navigable waters”. Today, that term is increasingly hard to define. How, exactly, does one identify a “navigable water?” If a ditch drains into a stream that flows into a river, does the ditch then need to be regulated? A 2006 Supreme Court ruling sought to answer that question. But rather than clearing up ambiguity, the court only compounded it further. The resulting red tape now reaches all aspects of the CWA, including the permitting process.

Before starting projects that affect our waterways, entrepreneurs must obtain federal permits. Ninety-five percent of the time, those licenses are granted. Still, small firms say that the authorization process is overly complicated, and that a tangle of regulations has created significant backlogs. In fact, the current number of unmet requests falls somewhere between 15,000 and 20,000. On average, a business will wait anywhere from 2 to 3 years to secure an individual license. These kinds of delays are particularly challenging today, as small contractors vie to win shovel-ready stimulus projects--the sort that have to begin right away, not 2 or 3 years down the road.

Nearly four decades ago, the Clean Water Act cemented America’s commitment to conservation. We want to continue that legacy today. But in order to do so, we’ll need to be sure small firms understand their options, and know what’s at stake. When it comes to the navigable waters issue, a clarification of terms could go a long way. So could efforts to streamline the permit process.

Everyone wants a clean, safe water supply. That goes without saying. But in protecting our waterways, it is critical that entrepreneurs not be unduly burdened. Hindering small firms would cripple efforts to create a greener, more efficient economy. Small businesses need common sense solutions, the kinds that are both environmentally sound and economically viable. I know that-- given a voice in the process-- entrepreneurs can help us find that middle ground.