Bill Overview
Title: Renewable Natural Gas Incentive Act of 2022
Description: This bill allows a tax credit through 2032 equal to $1 times the number of gallons of renewable natural gas or gasoline gallon equivalent of nonliquid renewable natural gas for use as a fuel in a motor vehicle or motorboat or for use as a fuel in aviation.
Sponsors: Rep. Sánchez, Linda T. [D-CA-38]
Target Audience
Population: People impacted by the transition to renewable natural gas usage
Estimated Size: 250000000
- The legislation specifically aims to incentivize the use of renewable natural gas by offering tax credits, thus targeting entities involved in the production, distribution, or usage of renewable natural gas.
- Renewable natural gas is used in a range of applications, including in motor vehicles, motorboats, and aviation, affecting industries and individuals across transportation sectors.
- This bill promotes the transition from traditional fossil fuels to more sustainable options, impacting industries reliant on fuel, particularly those with significant fuel consumption like transportation and logistics.
- Producers and distributors of renewable natural gas will be directly impacted due to the increased potential demand for their products driven by the financial incentive.
Reasoning
- The policy targets entities involved in the production, distribution, or usage of renewable natural gas, thus directly impacting those in related industries such as transportation, logistics, and renewable energy production.
- Given the budget limit of $50 million in the first year and $2.75 billion over 10 years, the policy will have varying impacts depending on industry size, current use of renewable natural gas, and eligibility for these tax incentives.
- The policy is more likely to influence industries with significant fuel consumption, potentially reducing fuel costs and indirectly impacting employment and market pricing for renewable natural gas.
- The American target includes both individuals directly in the renewable gas chain and those peripheral to it, such as consumers and other industry workers potentially benefitting from reduced transportation costs.
- The scope of impact for each individual will vary, with some experiencing direct economic benefit, while others see more indirect community or environmental impacts.
Simulated Interviews
Truck driver (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Switching to renewable natural gas could reduce fuel costs for my employer, potentially increasing my job security.
- I'm concerned about the availability of fueling stations for renewable natural gas.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Urban planner (San Francisco, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- The incentive will help accelerate the adoption of renewable energy within urban transport systems.
- More transportation options using renewable natural gas can help reduce citywide emissions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Farmer (Des Moines, IA)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Tax credits might indirectly affect natural gas prices, which could lower my processing costs.
- Adoption could be slow due to initial infrastructure costs.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Automotive engineer (Detroit, MI)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- The policy paves the way for advancements in hybrid vehicle technologies utilizing renewable natural gas.
- Tax incentives could push for more innovation in the automotive industry.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Commercial pilot (Seattle, WA)
Age: 61 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- If airlines adopt renewable natural gas, it might lead to less environmental impact in my field.
- The shift could make operations sustainable but needs infrastructure support from airports.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Homemaker (Phoenix, AZ)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I hope this policy will lead to broader adoption of cleaner fuels, enhancing community health.
- Long-term, it should bring down health-related costs due to lower pollution.
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 | 8 |
| Year 20 | 9 | 8 |
Public transit manager (New York, NY)
Age: 47 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- The shift to renewable fuels could lower operational costs for public transit systems.
- If successful, it sets a precedent for other major cities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Environmental scientist (Chicago, IL)
Age: 26 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- This policy might significantly reduce urban pollution levels.
- It will be interesting to study its long-term impacts on air quality.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 9 | 8 |
Oil refinery worker (Dallas, TX)
Age: 56 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- The policy could threaten the traditional oil and gas sectors, impacting jobs.
- There might be new opportunities if the industry adapts to renewable trends.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Renewable energy consultant (Portland, OR)
Age: 31 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- This policy is a positive step towards supporting sustainable business practices.
- The tax incentives are crucial for motivating industry shifts and consumer adoption.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 10 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $100000000 (Low: $80000000, High: $120000000)
Year 3: $150000000 (Low: $120000000, High: $180000000)
Year 5: $250000000 (Low: $200000000, High: $300000000)
Year 10: $500000000 (Low: $400000000, High: $600000000)
Year 100: $1000000000 (Low: $800000000, High: $1200000000)
Key Considerations
- The long-term impact of fossil fuel reduction on climate change and subsequent economic benefits.
- Potential for market destabilization if transitions are not managed carefully.
- The administrative cost of implementing and managing the tax credit mechanism.