Bill Overview
Title: FARM Act of 2022
Description: This bill makes solar and wind electricity ineligible for certain renewable energy tax credits if the electricity was generated by facilities that a public utility placed on agricultural land.
Sponsors: Rep. Tiffany, Thomas P. [R-WI-7]
Target Audience
Population: People involved in agricultural land use and renewable energy sector
Estimated Size: 6000000
- The bill targets solar and wind energy facilities on agricultural land, thus potentially impacting energy developers and public utilities involved in these projects.
- Farmers who lease or sell their agricultural land for renewable energy installations might be economically affected.
- The bill may influence the renewable energy market by discouraging new projects on agricultural land, which could impact overall renewable energy generation and availability.
- If the availability of tax credits decreases the profitability for solar and wind projects on agricultural land, energy prices may change, indirectly affecting energy consumers.
Reasoning
- The majority of the impacted population includes farmers and renewable energy developers involved with land used for solar and wind projects.
- A portion of energy consumers might see an indirect impact due to potential changes in energy production costs and availability.
- Not every farmer or developer will be equally affected; some regions may be more reliant on agricultural land for renewable projects than others.
- The financial scale of the impacts may vary based on the specific dependency on renewable projects on agricultural lands.
- Diverse perspectives are considered, from directly involved farmers and developers to consumers and those unaffected, like agricultural operators not using their land for renewables.
Simulated Interviews
Farmer (Iowa)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm concerned. Losing tax credits makes it less attractive for companies to lease my land for renewables.
- I rely on this extra income to support my farming operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Renewable Energy Developer (California)
Age: 52 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy restricts our ability to develop new projects in prime locations.
- It's potentially increasing project costs, making solar less competitive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 5 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 9 |
| Year 10 | 5 | 9 |
| Year 20 | 6 | 9 |
Public Utility Worker (Texas)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Our plans for expansion may need to be adjusted. Tax credits were essential for funding.
- Local farmers might be less willing to partner without additional incentives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Environmental Activist (New York)
Age: 28 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This policy seems counterproductive to increasing renewable energy use.
- We need more incentives, not restrictions, to combat climate change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 9 |
| Year 2 | 7 | 9 |
| Year 3 | 7 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Farmer (Florida)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I'm not really affected by the policy, as I'm not leasing my land to any energy projects.
- Focus remains on traditional agriculture.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired Energy Consultant (Nebraska)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The policy could slow down renewable growth, which is concerning.
- Less incentive for distributed solar can have long-term consequences.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Electrician (Ohio)
Age: 31 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- The policy might reduce the number of projects, affecting available work.
- Diversification in project sites could offset these impacts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Wind Farm Technician (Montana)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The policy could mean fewer wind projects starting, affecting job security long term.
- Good news is older farmers may still lease without tax credits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Agricultural Landowner (North Dakota)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I’m uncertain about the policy’s financial impact on potential leasing.
- Tax credits would be a major incentive for renewable companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Energy Policy Analyst (Minnesota)
Age: 55 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This policy needs to balance agricultural interests with renewable goals.
- It’s a step back for renewable energy incentives on important land areas.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $10000000)
Year 2: $8000000 (Low: $5000000, High: $12000000)
Year 3: $10000000 (Low: $7000000, High: $14000000)
Year 5: $12000000 (Low: $9000000, High: $16000000)
Year 10: $15000000 (Low: $12000000, High: $20000000)
Year 100: $15000000 (Low: $12000000, High: $20000000)
Key Considerations
- The policy could influence the geographic distribution of solar and wind projects, driving them away from agricultural lands to other types of land, possibly having environmental, regulatory, and economic implications.
- The potential decrease in renewable energy investment could slow advancements towards CO2 reduction goals.
- Farmers may seek alternative revenue streams if leasing land for renewable energy is less economically attractive.