Bill Overview
Title: CLAW Act of 2022
Description: This bill allows an eligible lobstering business a new tax credit for 30% of the cost of any adaptive gear required to prevent the entanglement of right whales.
Sponsors: Rep. Moulton, Seth [D-MA-6]
Target Audience
Population: Commercial lobstering businesses and associated workers
Estimated Size: 8000
- The bill affects the lobstering industry, which involves businesses and individuals who catch lobsters for commercial purposes.
- Adaptive gear to prevent whale entanglement is primarily a concern in regions where right whales are present, notably in the North Atlantic Ocean.
- North Atlantic right whales are primarily found along the eastern coast of the United States and Canada, so lobstering businesses in these regions would be impacted.
- The tax credit incentivizes adopting new technology or gear to prevent entanglements, impacting businesses financially and operationally.
Reasoning
- The target population consists of approximately 8,000 commercial lobstering businesses and associated workers, primarily in the Northeast U.S.
- The total budget allows for an average aid of about $3,000 per business annually, assuming equal distribution among all affected parties.
- The policy's benefits are more pronounced for individuals directly involved in lobstering, while others might be marginally impacted.
- Some individuals may not see a drastic change in wellbeing due to this policy, especially those not directly involved in policy target regions or operations.
- The policy's effect on wellbeing is projected over a long period, with varying impacts based on adoption of adaptive gear and resultant profit shifts.
Simulated Interviews
Lobsterman (Maine)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- The tax credit will help alleviate the financial burden of purchasing new gear.
- Concerned about the initial costs despite the credit.
- Believes it will help protect the whale population, which is positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 4 |
Marine conservationist (Massachusetts)
Age: 29 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The policy positively supports conservation efforts without being punitive.
- Happy to see commercial interests aligned with conservation goals.
- Worries about proper implementation and monitoring.
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 | 9 | 8 |
| Year 10 | 9 | 7 |
| Year 20 | 10 | 7 |
Retired lobsterman (New Hampshire)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This bill will increase demand for new gear, which benefits my business.
- I'm hopeful that this policy will lead to safer practices across the board.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Lobster fisherman (Georgia)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The policy is crucial for my work as it combines conservation with business.
- The tax credit makes adopting new gear feasible within our budget constraints.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Lobster supply chain manager (Maine)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The logistical changes for new equipment can be challenging.
- However, it is rewarding to support a sustainable supply chain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Entrepreneur (Rhode Island)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy will increase demand for my products, which is great for business.
- It is a step forward in aligning business incentives with environmental goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Marine ecologist (Florida)
Age: 41 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Supportive of efforts to reduce whale entanglement but concerned about enforcement.
- Believes policies like these are essential but must be part of broader strategies.
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 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Lobster wholesaler (Maine)
Age: 48 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Supporting smaller lobstermen with equipment changes ensures continuity of the supply.
- It adds a layer of complexity to operations but is manageable.
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 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Equipment manufacturer (Massachusetts)
Age: 63 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- The policy presents a challenge to quickly adapt products.
- It is an opportunity to innovate and lead in sustainable practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Policy analyst (New York)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The policy is an interesting case study for balancing economic and ecological concerns.
- Eager to see detailed outcomes and gathered data.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $24000000 (Low: $20000000, High: $28000000)
Year 2: $24000000 (Low: $20000000, High: $28000000)
Year 3: $24000000 (Low: $20000000, High: $28000000)
Year 5: $24000000 (Low: $20000000, High: $28000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Extent of adoption and utilization of the adaptive gear tax credit by eligible businesses.
- Potential offset of reduced tax revenue through maintained or increased employment and GDP impact in the lobster industry.
- Environmental compliance and conservation benefits from the reduced risk of whale entanglements.