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STATEMENT

Of the Honorable Patrick Murphy, Ranking Member

Committee on Small Business Subcommittee on Agriculture, Energy, and Trade

Hearing on the President’s Climate Action Plan

July 18, 2013

Thank you Chairman Tipton.  I will unfortunately need to step out of the hearing early today, but want to emphasize how important I believe it is for our Committee to hear from small businesses, like those represented here, on how federal policies  may affect their livelihoods.

Climate change is already having a serious impact throughout many of our nation’s communities.   In southern Florida, where my district is located, we are seeing these changes first hand.  As sea levels rise, the storms we face every hurricane season are becoming more violent and dramatic, increasing the threat to public safety, and jeopardizing infrastructure, homes and businesses more than ever before.   These changes also impact the local economies that are most vulnerable to these rising sea-level conditions.

For small businesses, the effects of climate change are significant.  Extreme weather events have become more common, causing billions of dollars in damages during the last two years.  Small firms are left not only with physical damages, but often with lower consumer demand.  As a result, many shut their doors altogether.

In addition, climate change is now affecting human health and for small businesses, this is a real concern.  Heat waves continue to blanket parts of the country, while respiratory illness and asthma associated with pollution remains a problem.   This is a double-edged sword for small firms – fewer customers and a less healthy workforce.

To address these challenges, the President has put forth a Climate Action Plan, which contains a wide range of proposals to reduce emissions of carbon dioxide and other greenhouse gases, and to help our nation adapt to expected changes in the climate.  Among its most important provisions are directives to reduce pollution from power plants, incentivize greater use of renewable energy sources, and encourage the development of energy-efficient technologies.  Taken together, these steps have the promise to reduce U.S. greenhouse gas emissions while spurring investment in new industrial sectors.

While these steps would reduce our country’s CO2 emissions, increase efficiency, and move the US toward an “all of the above” energy strategy, it is critical to assess the Plan’s impact on small businesses.  Small firms could face higher energy bills as lower polluting – but potentially more costly – energy sources come on-line.  Small businesses are some of the largest energy consumers, so we need to carefully consider how the President’s Plan will affect them.

Another outcome of the President’s Plan would be to stimulate further energy innovation.  By prioritizing cleaner energy broadly, new technologies would be developed and brought to market.  Such stimulus is often accompanied by job growth – providing many communities with a foundation for a more prosperous future.  From the development of next generation turbines, to the construction of more efficient buildings, small businesses are ready to lead America forward. 

All of these factors are important as we evaluate the best way to address climate change, as they touch on all aspects of our economy.  The panel here today will help us understand the potential impacts – both positive and negative – of the President’s Plan on the small business community.  Ensuring that the Plan helps us reduce carbon emissions – but in a way that minimizes economic disruption – is critical.  I look forward to hearing from our witnesses today.   I yield back the balance of my time.  

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