Bill Overview
Title: Small Business Energy Loan Enhancement Act
Description: This bill increases from $5.5 million to $10 million the maximum amount of certain Small Business Administration loans for plant acquisition, construction, conversion, and expansion. Projects eligible for these increased loan amounts must (1) reduce the borrower's energy consumption by at least 10%; or (2) generate renewable energy or renewable fuels, such as biodiesel or ethanol production.
Sponsors: Rep. Crow, Jason [D-CO-6]
Target Audience
Population: Small business owners involved in energy efficiency and renewable energy projects
Estimated Size: 3000000
- The bill focuses on Small Business Administration loans, indicating that small businesses are the primary target.
- The loans are specifically for energy-related projects, meaning that small businesses interested in energy efficiency or renewable energy projects will be impacted.
- Businesses that are either trying to reduce energy consumption or generate renewable energy/renewable fuels will benefit from this bill.
Reasoning
- To keep the simulation grounded, I considered the policy's focus on small businesses and their involvement in energy-related projects.
- I included a range of small business owners from different industries and with varying degrees of interest in energy efficiency and renewable energy projects.
- Some of the interviews include individuals from underserved communities to incorporate diverse perspectives and potential impacts.
- The policy has a finite budget, so not all small businesses will be affected immediately or at the same level, reflecting the score variations.
Simulated Interviews
Owner of a solar panel installation company (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I'm excited about the policy because it aligns perfectly with our business goals of expanding into renewable energy production.
- Access to larger loans means we can undertake more significant projects and reach more customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 9 |
Owner of a small cafe (Seattle, WA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This policy could help us finally afford to make our cafe more energy-efficient.
- We're looking to reduce our energy bills which would help improve our overall business viability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Industrial plant owner (Chicago, IL)
Age: 54 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I'm cautiously optimistic about policy. We need to reduce energy costs, and larger loans might make projects feasible.
- However, competition for these loans might be high, and there's no guarantee we'll get one.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Freelance graphic designer (Los Angeles, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- While I think it's a good policy for the environment, it doesn't impact me directly.
- I support efforts to help small businesses become more energy efficient.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Owner of a boutique hotel (New York, NY)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This policy could make solar installations viable for us due to larger loan amounts.
- There's a lot of initial cost, but the long-term savings might be high.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 10 | 7 |
Owner of a local hardware store (Detroit, MI)
Age: 41 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- I believe this policy can significantly help reduce our overhead by enabling energy-efficient upgrades.
- Being sustainable aligns with our store's mission and attracts customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Owner of a digital marketing firm (Houston, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- The policy seems beneficial but has no direct impact on my business as we do not have significant energy use.
- I hope it will inspire others in my community to adopt more energy-efficient practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Owner of a small winery (Portland, OR)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- We have considered solar energy to power parts of the winery, and this policy could make that sustainable shift possible.
- It’s good for business and the environment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 10 | 7 |
Owner of a small mechanical repair shop (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm curious about how the policy might help us reduce our energy consumption.
- It might be a good opportunity to learn about renewable energy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Owner of a medical clinic (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Large loans could make it feasible to switch to renewable energy, which reduces operational costs.
- It aligns with our mission to be sustainable in healthcare.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $150000000 (Low: $90000000, High: $210000000)
Year 2: $180000000 (Low: $108000000, High: $252000000)
Year 3: $210000000 (Low: $126000000, High: $294000000)
Year 5: $250000000 (Low: $150000000, High: $350000000)
Year 10: $300000000 (Low: $180000000, High: $420000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The precise uptake of enhanced loans by eligible businesses is uncertain, impacting the overall cost.
- Energy savings and revenue impacts are subject to future energy prices and technology advancements.
- The administrative cost of managing larger and potentially more loans needs consideration.