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: Sen. Burr, Richard [R-NC]
Target Audience
Population: People benefiting from increased use of renewable natural gas worldwide
Estimated Size: 70000000
- The bill provides a tax incentive for the use of renewable natural gas (RNG) until 2032.
- RNG can be used as a fuel in various types of vehicles, boats, and planes, impacting industries related to transportation and energy.
- Individuals and companies that produce, distribute, or use renewable natural gas for transportation purposes could see financial benefits and operational changes due to this incentive.
- The environmental impact includes potential reductions in greenhouse gas emissions if more vehicles and sectors switch to RNG due to tax incentives.
Reasoning
- The policy primarily benefits individuals and organizations involved in the production and use of renewable natural gas (RNG), particularly in transportation sectors such as freight trucking and public transit, as well as aviation.
- Given the limitations of the budget, the impact on individual consumers is likely indirect, benefiting more from potential stabilization or reduction in natural gas prices rather than direct tax credits.
- Farmers and rural communities involved in producing RNG will see direct benefits, potentially increasing their wellbeing by ensuring a steady market for their production.
- Truck drivers and companies using fleet vehicles that can transition to RNG will find financial incentives significant enough to influence their operational decisions.
- Considering that not everyone can readily switch to RNG, the policy impact will vary heavily between individuals who can utilize RNG and those who cannot, such as typical urban private vehicle owners.
Simulated Interviews
Farmer (Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I think it's a great policy. It encourages us to produce more biogas, and having a tax credit will help the farm financially.
- The incentives make the whole process more viable economically, so we might expand our production in the future.
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 | 6 | 5 |
Public Transit Planner (California)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This policy provides the necessary push to incorporate more RNG buses into our fleet. It aligns with our sustainability goals.
- However, the scale might be limited unless further funding or subsidies are introduced.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Truck Driver (New York)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I think it sounds good. It could make job conditions better, especially with the rising costs of fuel.
- If my company shifts to RNG, it could lower costs which might reflect in better wages or stability for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 7 | 5 |
Retired (Illinois)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Indirect benefits are hard to see, but any environmental improvement could be advantageous.
- As a retiree, I'm hoping energy costs will stabilize, which impacts my fixed budget.
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 | 5 | 5 |
| Year 20 | 4 | 4 |
Environmental Scientist (Florida)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I appreciate policies that push toward cleaner energy.
- This could help reduce emissions. However, more action might be needed globally.
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 | 8 | 8 |
| Year 20 | 6 | 7 |
Small Business Owner (Michigan)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- We could definitely benefit from the tax credits since we already use natural gas vehicles.
- It could lower our operating costs.
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 | 7 | 6 |
| Year 20 | 6 | 5 |
Airline Pilot (Washington)
Age: 40 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- The RNG incentive could push airlines to explore more sustainable fuels, reducing aviation's carbon footprint.
- However, the cost and practicality need thorough consideration.
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 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Environmental Lawyer (Louisiana)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- Policies like this can drive significant change, but we need rigorous enforcement and monitoring.
- It's a move in the right direction for cleaner energy.
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 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Construction Worker (Ohio)
Age: 42 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 9/20
Statement of Opinion:
- I'm not sure how much this will affect me directly, but I hope for cleaner air and possible new construction work related to RNG infrastructure.
- Policies usually take a long time to trickle down.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Restaurant Owner (Colorado)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- I think it's great for the farmers I source from. If they can save costs, that might trickle down to me.
- I'd love to highlight more sustainable practices in my restaurant.
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 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $1500000000 (Low: $1200000000, High: $1800000000)
Year 2: $1550000000 (Low: $1250000000, High: $1850000000)
Year 3: $1600000000 (Low: $1300000000, High: $1900000000)
Year 5: $1700000000 (Low: $1400000000, High: $2000000000)
Year 10: $2000000000 (Low: $1700000000, High: $2300000000)
Year 100: $10000000000 (Low: $8500000000, High: $11500000000)
Key Considerations
- The rate of adoption of RNG for vehicles and aviation compared to traditional fuels.
- Technological advancements that may impact RNG production and costs.
- Environmental benefits related to RNG usage and their valuation against cost estimates.
- Market dynamics, such as changes in oil prices, that may influence the RNG sector.