EPA Makes Progress In Small Business Regulatory Relief

WASHINGTON – The U.S. Environmental Protection Agency (EPA) has "made good progress in some areas" in reducing regulatory burdens on small manufacturers but still can do more to speed the process, according to testimony today by Chief Counsel for Advocacy Thomas Sullivan before the U.S. House of Representatives Committee on Government Reform, Subcommittee on Regulatory Affairs. Sullivan said that implementing additional reforms would "yield reduced regulatory burden without sacrificing environmental protection."

Sullivan's testimony came in response to the Subcommittee's request for comments on EPA's progress in reducing regulatory burdens on manufacturers. Regulatory reforms were recommended to the Office of Management and Budget by public commenters as a means to improve America's global competitiveness and strengthen the country's manufacturing base.

America's small manufacturers face a disproportionate regulatory compliance burden. A new Office of Advocacy study shows that America's smallest firms bear the heaviest burden of federal regulatory compliance costs. For manufacturers with fewer than 20 employees, the annual per employee compliance cost is $21,919 – two and half times the burden on large manufacturers. Small firms also spend four and half times as much per employee on environmental compliance as their larger counterparts do.

Sullivan recognized the EPA for proposing to streamline the requirement faced by businesses to file annual reports on their use and management of chemicals. A simpler form would be available for facilities that report handling small amounts of chemicals. With this approach, akin to the 1040-EZ short form for taxes, businesses will save an estimated 165,000 hours that otherwise would be spent filling out the longer form. At the same time, toxic materials management of concern to communities will continue to be reported on the longer form.

Sullivan noted that this win-win manufacturing regulatory reform would bring meaningful burden reduction while maintaining environmental protection and communities' access to information.

The Office of Advocacy, the "small business watchdog" of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues. For more information, visit the Office of Advocacy website at www.sba.gov/advo.

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo.