Bill Overview
Title: Home Heating Oil Price Reduction Act
Description: This bill increases the cap on the number of barrels of petroleum distillate that may be stored in the Northeast Home Heating Oil Reserve from 2 million to 4 million. It also restricts sales or exports from that reserve to (1) China, Iran, North Korea, Russia, and any other country subject to U.S. sanctions; and (2) entities owned, controlled, or affiliated with any of those countries.
Sponsors: Rep. Kuster, Ann M. [D-NH-2]
Target Audience
Population: people who use heating oil as a primary or significant heating source
Estimated Size: 13750000
- The bill is designed to stabilize or reduce heating oil prices by increasing the reserve supply, which can mitigate price spikes during peak demand periods.
- Heating oil is predominantly used in cold climate regions, where homes and businesses rely on it for warmth during winter months.
- According to the U.S. Energy Information Administration, approximately 5.5 million households in the United States use heating oil as their primary heating fuel, predominantly in the Northeast.
- The bill targets the Northeast U.S. specifically, given the location of the Northeast Home Heating Oil Reserve.
- Countries subject to U.S. sanctions, such as China, Iran, North Korea, and Russia, will be directly affected by the restriction on sales and exports from the reserve.
Reasoning
- The policy is aimed at reducing the cost and stabilizing the supply of heating oil, particularly impacting those in the Northeast who rely on heating oil for warmth.
- The policy will likely have different levels of impact on individuals: direct impact on heating oil users in the Northeast, indirect impact through market stabilization across the country, and potentially no impact on people who do not use heating oil.
- The budget constraints mean that while significant, the policy changes might not completely overhaul the system but provide meaningful relief during high-demand periods.
- There will likely be mixed responses to the policy, with personal opinions colored by direct financial relief, environmental concerns, and geopolitical considerations.
Simulated Interviews
retired teacher (Maine)
Age: 56 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- I'm glad to hear about the increase in the heating oil reserve. As winter approaches, it's always a worry that we'll struggle with heating costs.
- I hope this helps keep prices stable so I can manage my heating budget better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 4 |
IT technician (New York)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- My landlord takes care of heating, but if costs go up, it might affect the rent.
- This policy seems like a good idea to me if it can keep rent stable and my expenses predictable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 6 | 3 |
small business owner (Pennsylvania)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- Heating oil prices have a big impact on my business. Lower prices would help my bottom line.
- With winters being unpredictable, having stability in oil prices could help my planning a lot.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
environmental science researcher (California)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- While I understand the need for stable heating costs, I wish we were moving towards renewables.
- This policy seems like a temporary solution to an ongoing problem of fossil fuel reliance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
nurse (Vermont)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- Every winter, I worry about heating bills. This policy sounds like it could help with that.
- I hope it keeps costs from going through the roof when it's brutally cold and I need the heat.
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 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
factory worker (Ohio)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I don't use heating oil, so this doesn't affect me directly, but I guess it could help some families who do.
- Keeping utilities stable is important for everyone, whether it's oil or something else.
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 nurse (Massachusetts)
Age: 63 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 13/20
Statement of Opinion:
- Heating oil prices are always a worry as Massachusetts winters can be harsh.
- If this policy keeps prices more stable, that would be a big relief for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 7 | 3 |
teacher (New Jersey)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- The policy sounds helpful, especially since school budgets are tight and heating costs can be significant.
- If it helps keep the school's costs down, it benefits everyone, including the students.
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 | 7 | 4 |
| Year 20 | 7 | 4 |
remote worker (New Hampshire)
Age: 30 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- As a new homeowner, it's hard to predict costs. Anything that helps stabilize my budget is welcome.
- I'm worried about rising costs in all areas, so this policy is encouraging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
construction worker (Florida)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 17/20
Statement of Opinion:
- I'm always concerned about energy policies affecting the economy, even if they don't directly impact me.
- It seems like a logical move to restrict exports, keeping resources at home more available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $50000000 (Low: $40000000, High: $60000000)
Year 3: $50000000 (Low: $40000000, High: $60000000)
Year 5: $50000000 (Low: $40000000, High: $60000000)
Year 10: $50000000 (Low: $40000000, High: $60000000)
Year 100: $50000000 (Low: $40000000, High: $60000000)
Key Considerations
- Fluctuations in global oil prices may continue to influence the cost despite increased reserves.
- Infrastructure changes required to support the increased reserve capacity will impact initial costs.
- The long-term fiscal benefits might depend on the level of impact on price stability and energy security.