Bill Overview
Title: Home Front Energy Independence Act
Description: This bill prohibits the importation of petroleum and petroleum products from Russia until Russia recognizes the sovereignty and territorial integrity of Ukraine. The bill allows a new tax credit for the sale or blending of ethanol fuels. It also extends through 2025 the income tax credit for biodiesel and renewable diesel used as fuel. The bill modifies requirements relating to the waiver of ethanol reid vapor pressure limitations and E15 labeling. The bill requires the Department of Agriculture to award grants to certain governmental entities for expanding the biofuel infrastructure and agriculture product market.
Sponsors: Sen. Ernst, Joni [R-IA]
Target Audience
Population: People dependent on petroleum and biofuels
Estimated Size: 200000000
- The legislation impacts global oil markets by restricting Russian petroleum imports.
- Countries dependent on Russian oil will need to find alternatives, affecting their economies.
- US farmers and biofuel producers will benefit from tax credits and grants for biofuel production and infrastructure.
- Consumers might face changes in fuel prices and availability due to market adjustments.
- Renewable fuel sectors globally will see changes as the bill promotes biofuels.
Reasoning
- The policy primarily affects those in the petroleum and biofuel sectors, which includes consumers of oil and agricultural producers involved with biofuels.
- A budget of $2.5 billion in the first year will limit the number of grants and credits available, focusing mainly on the transition towards renewable fuels.
- The policy can lead to increased fuel prices due to reduced imports, impacting consumers who are reliant on gasoline.
- Biofuel producers may see increased market demand due to tax credits and infrastructure investments, positively impacting rural communities involved in agriculture.
- Overall, the impact will vary significantly based on geographical location, occupation, and existing reliance on fossil fuels or biofuels.
Simulated Interviews
Corn Farmer (Kansas)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The policy seems beneficial for us as it increases demand for ethanol, which we produce.
- Tax credits will ease some of the financial pressure we face during annual crops.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 7 | 5 |
Oil Refinery Worker (Texas)
Age: 36 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I worry about job security as the import ban might reduce our output.
- It's good to push for more renewables, but I'm concerned about the transition impacts on jobs like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 6 | 7 |
Biofuel Company CEO (California)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The act is a boon for our company as it increases both market visibility and demand.
- Grants and tax credits will help us expand operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 9 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 6 |
| Year 20 | 9 | 7 |
Environmental Activist (New York)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- It's a positive step towards reducing dependence on fossil fuels.
- I support the focus on biofuels, though there should be equal attention on solar and wind.
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 | 8 | 8 |
Retired School Teacher (Illinois)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I'm concerned that fuel prices could rise, affecting my cost of living.
- I'm hopeful that the transition to biofuels might eventually stabilize prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Agricultural Engineer (Nebraska)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- There's a good opportunity for us to innovate within the biofuel sphere.
- Rural economies could really benefit from the emphasis on biofuels.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
College Student (Florida)
Age: 22 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- If fuel prices increase, it could make commuting more expensive, which concerns me.
- I'm optimistic about the environmental benefits of reducing fossil fuel usage.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Gas Station Owner (Pennsylvania)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- I'm concerned about changes in fuel availability and potential costs.
- If biofuel uptake increases, we might need to adjust our offerings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Biofuel Research Scientist (Ohio)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- Funding likely will boost our research efforts significantly.
- This policy could spur innovation in the sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Truck Driver (New Jersey)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I worry I'll have to spend more on diesel, impacting my earnings.
- I'd like to see these changes lead to eventually more stable prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 4 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $2500000000 (Low: $2000000000, High: $3000000000)
Year 2: $2600000000 (Low: $2100000000, High: $3100000000)
Year 3: $2700000000 (Low: $2200000000, High: $3200000000)
Year 5: $2900000000 (Low: $2400000000, High: $3400000000)
Year 10: $3100000000 (Low: $2600000000, High: $3600000000)
Year 100: $3500000000 (Low: $2900000000, High: $4100000000)
Key Considerations
- The policy creates immediate fiscal costs due to tax credits and biofuel infrastructure grants.
- There are potential long-term savings through energy independence and environmental benefits.
- Short-term economic disruptions may occur due to changes in the petroleum market.
- The policy supports domestic agriculture and biofuel industries, potentially boosting economic growth long-term.