Bill Overview
Title: Small Business Wildfire Smoke Recovery Act
Description: This bill includes smoke within the definition of a disaster for the purpose of providing economic injury disaster loans to small businesses, small agricultural cooperatives, and most private nonprofit organizations.
Sponsors: Sen. Cortez Masto, Catherine [D-NV]
Target Audience
Population: Small businesses, small agricultural cooperatives, and most private nonprofit organizations affected by wildfire smoke
Estimated Size: 100000
- The bill focuses on small businesses, small agricultural cooperatives, and most private nonprofit organizations affected by wildfire smoke.
- Wildfires are a common occurrence in many regions prone to dry conditions, particularly in the western United States, impacting air quality and economic activity.
- The bill aims to provide economic relief, suggesting that these organizations are unable to generate normal revenue or face additional costs due to smoke from wildfires.
- Globally, regions like Australia, parts of Europe, and South America also experience significant wildfires, potentially impacted by similar issues if they had analogous legislation.
Reasoning
- The policy targets small businesses, small agricultural cooperatives, and nonprofit organizations in areas affected by wildfire smoke, primarily in states like California, Oregon, and Washington.
- The budget constrains the reach of the policy, with $500,000,000 in the first year and $1,750,000,000 over the next ten years, meaning not every affected entity can be supported fully.
- Variability in the impact on different segments: some businesses may not be significantly affected, while others may face severe economic challenges due to extended periods of smoke.
- Small businesses in the tourism or outdoor services industries, or nonprofits reliant on outdoor events, are likely to be more heavily impacted than those without such dependencies.
- Agricultural cooperatives may benefit greatly from this policy as crop yields and quality can be directly affected by smoke, impeding revenue and operational stability.
- Organizations not in directly affected areas or with less reliance on open-air environments might see little change in wellbeing scores with or without the policy.
Simulated Interviews
Owner of a small vineyard (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The smoke has been devastating for my vineyard, not just for the grapes, but also for our tasting events.
- The loans could help keep us going during bad smoke years, but it’s not a permanent fix.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 5 |
| Year 20 | 5 | 3 |
Executive Director of a nonprofit organization (Oregon)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- We already struggle with funding, and smoke seasons diminish our ability to hold events and activities.
- The loans could provide a safety net during these challenges, allowing us to plan longer-term.
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 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Small business owner, outdoor gear retailer (Washington)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Decreased foot traffic during smoke events is a huge hit on sales.
- This policy could prevent putting us in the red amidst unpredictable smoke seasons.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 5 | 5 |
Member of local agricultural cooperative (Northern California)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Every year, smoke compromises our crops, meaning less revenue and potential layoffs.
- Loans could help weather these unpredictable seasons, maintaining employment and crop diversity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 9 | 4 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 6 |
Owner of a whitewater rafting company (Montana)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Smoke can ruin an entire season for us, really cutting into profits.
- Having a loan option would give some peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 7 | 4 |
Manager of a community center (Idaho)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 4/20
Statement of Opinion:
- It’s tough when people avoid our events due to air quality concerns.
- Economic support through the policy couldn't come soon enough.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 6 |
Owner of a small yoga studio (Colorado)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- We’re only indirectly affected, but every little bit matters for a small business.
- The policy could help cushion unexpected downturns in client visits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Owner of a seasonal café (Nevada)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- It's hard when smoke limits our busiest season.
- Extra financial support would be a relief, helping us through quieter periods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 4 |
Retired, runs a small charity organization (Arizona)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- We struggle to maintain volunteer numbers when air quality is low.
- Loans would help cover our basic costs when donation drives falter.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Manager at a small tech startup (California)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- We’re not directly affected by smoke since most of our work is indoors.
- The policy won't impact us much directly, but it's good for other businesses.
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 | 7 | 7 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $700000000)
Year 2: $500000000 (Low: $300000000, High: $700000000)
Year 3: $500000000 (Low: $300000000, High: $700000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The act provides economic relief for businesses impacted by wildfire smoke, which is increasingly important as climate change contributes to more frequent and severe wildfires.
- Economic recovery for businesses post-disaster is crucial yet can lead to significant and unpredictable expenditure from federal budgets.
- The scope of this act could expand given increased severity of fire seasons.
- Loan programs and federal aid structures may need updates beyond what this mandate entails to fully support recovery initiatives.