Bill Overview
Title: Offshore Wind American Manufacturing Act of 2022
Description: This bill establishes a new, refundable tax credit for investment in manufacturing facilities that produce offshore wind turbine components. The credit amount is equal to the sum of the offshore wind manufacturing investment credit (30% of the investment amount) and the offshore wind manufacturing production credit.
Sponsors: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Target Audience
Population: Persons employed in the global offshore wind energy sector
Estimated Size: 150000
- The bill targets manufacturing facilities producing offshore wind turbine components.
- There will be a boost in employment opportunities in manufacturing sectors related to offshore wind energy components.
- The renewable energy industry, particularly offshore wind providers, will benefit from cost reductions associated with manufacturing credits.
- Investment in manufacturing infrastructure will be encouraged, potentially impacting local communities with new facilities.
- Potential environmental benefits through increased offshore wind capacity may have indirect effects on global populations.
Reasoning
- The bill primarily impacts individuals in the manufacturing sector, especially those involved in the renewable energy sector like offshore wind turbine manufacturing.
- The economic benefits of the bill will directly affect those who are employed or will be employed due to increased investment in manufacturing facilities.
- Indirect effects on communities near manufacturing facilities through job creation and potential environmental benefits could impact quality of life and well-being.
- The variation in impact is significant due to differences in geographical locations, current employment in related industries, and socio-economic backgrounds.
Simulated Interviews
Factory Supervisor (Houston, Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I think this policy could bring more work stability to our area.
- If our plant shifts some production to wind components, I see more job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Logistics Coordinator (Los Angeles, California)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I hope this leads to more environmentally friendly production processes.
- It might create more demand for shipments that I coordinate, which is good for my job stability.
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 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Wind Energy Engineer (Raleigh, North Carolina)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This policy seems like it could really boost the industry.
- I'm optimistic about the opportunities this could create for engineers and technicians.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Community Organizer (Chicago, Illinois)
Age: 51 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- If this policy brings more job opportunities here, it could really help the community.
- I'm hopeful about the potential benefits, but also cautious about any negative environmental impacts.
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 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Unemployed (Scranton, Pennsylvania)
Age: 23 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- This could be my chance to get into the job market and work in a sector I'm passionate about.
- The potential of finding a job through this policy gives me hope.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Retired (Cape Cod, Massachusetts)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I think supporting local manufacturing for renewable energy is essential for our future.
- I'm curious but optimistic about the environmental impacts this could address.
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 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Automotive Parts Supplier (Detroit, Michigan)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I'm interested in diversifying our operations, but it depends on how feasible the transition is.
- This policy could offer a lifeline if demand for our components declines.
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 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Manufacturing Manager (Cleveland, Ohio)
Age: 56 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 11/20
Statement of Opinion:
- Our plant could benefit significantly from the tax credit, securing jobs.
- I believe this will have a lasting positive impact on our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 2 |
Environmental Activist (Denver, Colorado)
Age: 31 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- This initiative aligns with my advocacy goals.
- I hope it sets a precedent for further renewable energy policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Economics Professor (New Orleans, Louisiana)
Age: 43 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- This policy is an example of integrating economic incentives with energy goals.
- I'm interested in seeing how the manufacturing sector responds.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $700000000 (Low: $560000000, High: $840000000)
Year 3: $800000000 (Low: $640000000, High: $960000000)
Year 5: $1000000000 (Low: $800000000, High: $1200000000)
Year 10: $200000000 (Low: $160000000, High: $240000000)
Year 100: $200000000 (Low: $160000000, High: $240000000)
Key Considerations
- Uncertainty in the speed and scale of private sector adoption of the tax credit.
- Influence on domestic supply chains as the wind energy sector scales up.
- Long-term benefits versus short-term fiscal costs due to the nature of tax credits.