The Clean Air Act: 40 Years of Economic Benefits for Small Businesses Presentation by John Arensmeyer Small Business Majority July 18, 2011

About Small Business Majority Public policy advocacy organization – founded and run by small business owners National – based in California – with offices in New York and Washington, DC Research and advocacy on issues of top importance to small businesses (<100 employees) and the self-employed Very heavily involved clean energy policy

Clean energy provides opportunities for small businesses Smart clean energy policies hold strong promise for small businesses. They can lead to: Energy savings Job creation Innovation Small business growth—and overall economic growth and stability

Small businesses want smart clean energy policies Small business owners know comprehensive clean energy legislation will boost their bottom line and lead to greater business prospects We surveyed 800 small business owners across the country and found that 61% agree moving to clean energy is a way to restart the economy and help small businesses create jobs A majority also supported clean energy and climate legislation

Critics’ arguments fall short Critics of commonsense clean energy laws claim small businesses will be hurt, especially by new emissions rules. What they fail to mention is that an overwhelming majority of small businesses aren’t impacted by many of these regulations – the emissions rules are designed to limit greenhouse gas emissions from the biggest polluters, and the biggest polluters are not small businesses. Small businesses will gain opportunities from many of these rules

A smart policy: The Clean Air Act In October 2010, Small Business Majority released a study of the Clean Air Act’s impact on small businesses It found that the economic benefits of the law far exceeded the costs of controlling air pollutant emissions Monetized Benefits of the Clean Air Act StudyBenefitsCosts Benefit-Cost Ratio CAA $690 billion$180 billion4:1 * Central estimate

Economic benefits of the CAA In the last 2 decades, emissions of the most common air pollutants have declined by 41%, while Gross Domestic Product (GDP) has increased by more than 64% Comparison of growth measures and emissions, (EPA) PM, SO 2, NO x, VOC, CO, Lead

CAA spurs technological innovations Small Business Majority report: The CAA has spurred important technological innovations that have made the US a world leader in the export of environmental export technologies These exports grew by 130% between 1993 and 2003, and were valued at $30 billion in 2004 catalytic converters three-way catalysts direct fuel injection oxygen sensors onboard diagnostic systems cleaner fuels catalytic converters three-way catalysts direct fuel injection oxygen sensors onboard diagnostic systems cleaner fuels Some innovations spurred by the CAA:

Technological innovation = jobs The environmental control industry – spurred by laws like the Clean Air Act – led to the creation of 1.7 million new jobs between 1977 and 1991 Higher crop yields and worker productivity are also positive impacts of the Clean Air Act and aid small businesses that want to keep or expand their workforce

Clean air standards save small businesses money New vehicle standards under the Clean Air Act save small business owners much-needed cash for their vehicle fleets in the long run. Based on fuel prices at $2.61 a gallon, small businesses can save $3,000 over the life of a vehicle for model years Since fuel prices are high, projected savings are even more and will rise for model years , up to or exceeding $7,400 for the life of a vehicle.

Moving forward—commonsense measures Small businesses are the largest job creators and the backbone of our economy. They need commonsense measures that: Give them incentives to invest in energy-saving technologies Reduce utility costs Free up capital so entrepreneurs can expand their companies and hire new employees Spur new innovations that will strengthen this burgeoning sector of our economy

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