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Why Is the EPA Looking for Your Input?
The current EPA is not shy about touting its outreach efforts and the current administrator’s less-than-shy personality may make you think that the Agency is just gung-ho about finding out how you feel about environmental regulations. However, especially if you are a small business (more about that definition later), lest you think the EPA is your new best friend, you should know that the Agency is required by the Small Business Regulatory Enforcement Fairness Act (SBREFA) to seek your input.
Under the SBREFA, which amended the Regulatory Flexibility Act, the EPA is required to convene a Small Business Advocacy Review (SBAR) Panel for a proposed rule unless the Agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The intent of these panels is to offer an opportunity for small businesses, small governments, and small not-for-profit organizations to provide advice and recommendations to ensure that the EPA carefully considers small entity concerns.
The Panel itself is comprised of federal employees from the EPA, the Office of Management and Budget, and the Small Business Administration’s Office of Advocacy. Small Entity Representatives (SERs) provide advice and recommendations to the Panel.
Each SBAR Panel has 60 days to consider SER comments in addition to other rule-related materials prepared by the EPA, and prepare a report on the potential small entity impacts of the rule and on possible ways to reduce those impacts. The Panel report is supposed to be considered by the Agency as it makes decisions on the proposed rule. The Panel report is made part of the official rulemaking record and includes all written small entity comments. SERs may also submit comments during the standard public comment period after the publication of the proposed rule in the Federal Register.
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You Are a Small Business If . . .
The government groups small businesses with small organizations and small governments as small entities. The definitions for “small organizations” and “small governments” are pretty easy and straightforward. The one for small business—not so much.
Small organization: Any not-for-profit enterprise that is independently owned and operated and is not dominant in its field.
Small government: Governments of cities, counties, towns, townships, villages, school districts, or special districts with a population of less than 50,000.
The “small business” definition is much more complicated. The definition in the Small Business Act says that a small business is one that is independently owned and operated and that is not dominant in its field of operation. The Small Business Act further authorizes the Small Business Administration (SBA) to define small business by regulation, which it does for each of the business categories listed in the North American Industrial Classification System (NAICS).
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What Are Small Business Size Standards?
A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business may be to remain classified as a small business for SBA and federal contracting programs. The definition of “small” varies by industry.
For each NAICS code, SBA size standards are generally set by the number of employees or average annual receipts. For example, the recent SBA size standards table (based on 2012 NAICS) indicates “small” paper mills that produce newspaper are identified by NAICS code 322122 and are defined by those with 750 or fewer employees, whereas, potato farming is identified by NAICS code 111211 and is defined by annual receipts of $750,000 or less. Note: SBA definitions of small businesses apply to a firm’s parent company and all affiliates as a single entity.
The size standard for number of employees can be as few as 50 and up to 1,500, depending on the industry. In determining a business’s number of employees, the SBA counts all individuals employed on a full-time, part-time, or other basis. This includes employees obtained from a temporary employment agency, professional employee organization, or leasing concern.