Bill Overview
Title: Food and Energy Security Act
Description: This bill provides requirements for specified federal financial agencies when regulating activity that could impact the extension of capital or investments to agricultural- or energy-related businesses. Specifically, an agency must analyze the economic impact of any such regulation. If the analysis estimates that the regulation would increase prices, and if the consumer price index exceeds a certain level, the agency is prohibited from implementing the regulation.
Sponsors: Sen. Thune, John [R-SD]
Target Audience
Population: People involved with or consumers of agricultural or energy-related businesses worldwide
Estimated Size: 331000000
- The bill affects regulations that influence capital and investments in agricultural and energy-related businesses, which are significant sectors globally.
- Agriculture and energy are foundational to food security and energy generation across the world, directly affecting supply chains and consumers.
- Any regulation that impacts investment in agriculture can influence food production, prices, and food security globally.
- Energy-related businesses are central to not only local but also international energy supply chains, impacting global energy prices and availability.
- Given the global nature of agricultural trade and the interconnectedness of energy markets, nearly all countries participate in these sectors either directly or through trade.
Reasoning
- The policy targets businesses in agriculture and energy, which directly affects both producers and consumers.
- Consumers will likely experience changes in costs and availability of goods that rely on these sectors.
- Given budget constraints, the policy focuses on preventing regulations that increase costs during high consumer price index periods.
- Industries may experience short-term stability, avoiding sudden regulatory changes that could increase costs while consumers see price stability.
- People with lower incomes may benefit more if consumer prices remain stable, but long-term environmental or sustainability goals may be impacted.
Simulated Interviews
Farmer (Iowa)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I'm concerned about regulations that could make farming more expensive.
- This policy seems like it could help keep prices stable, which is good for my business.
- If prices for equipment or fuel go up, it affects our profits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 3 |
Engineer (Texas)
Age: 32 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- The policy might slow down the adoption of greener regulations.
- I'm worried this would affect long-term sustainability.
- Short-term benefits for stability in prices, but we need to think long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 5 | 6 |
Tech Worker (California)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 4/20
Statement of Opinion:
- I like the idea of keeping food costs stable, but I'm concerned about defensive regulation.
- I care about where my food comes from and how it's produced.
- Regulations that make businesses more accountable are important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 7 |
Educator (New York)
Age: 53 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- Policies like this can have complex impacts on the economy.
- Short-term interventions might curb immediate inflation, but impact innovation.
- Teaching students about these dynamics is crucial.
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 |
Student (Florida)
Age: 23 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- Stable prices make a big difference when you're on a tight budget.
- Concerned about the environment, though the immediate impact isn't significant for me.
- Keeping costs of groceries and essentials down is vital.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Energy Sector Worker (Louisiana)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Policies affecting regulation need careful consideration, especially on cost impacts.
- My job could be affected by sudden regulatory changes.
- I appreciate short-term stability, but we can't ignore longer-term impacts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Grocery Store Owner (Ohio)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 3/20
Statement of Opinion:
- I hope this helps keep costs of my supplies stable.
- Past regulations have sometimes increased my overhead costs.
- Seems like a reasonable way to keep prices steady.
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 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Logistics Coordinator (Illinois)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- Keeping supply chain costs down benefits everyone.
- Support policies that help keep things running smoothly without abrupt changes.
- Long-term effects on innovation are a concern, but not immediate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Journalist (Washington)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- Interesting regulatory approach to stabilizing prices.
- Will be watching for any unintended consequences on market dynamics.
- Important to balance short-term stability with long-term goals.
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 | 7 |
| Year 20 | 7 | 7 |
Small Business Owner (Georgia)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Keeping energy costs down is crucial for my business.
- Regulations can sometimes drive prices up, so this policy might help prevent sudden spikes.
- However, we should not neglect sustainability in the long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $700000000)
Year 2: $520000000 (Low: $310000000, High: $730000000)
Year 3: $540800000 (Low: $320400000, High: $761200000)
Year 5: $582400000 (Low: $344800000, High: $818400000)
Year 10: $675000000 (Low: $400000000, High: $944000000)
Year 100: $6780000000 (Low: $4008000000, High: $9472000000)
Key Considerations
- Impact on regulatory body resources and ability to perform analyses.
- Potential unintended consequences of restricting regulations based solely on consumer price indices.
- Long-term impact on agricultural and energy sector innovation and compliance.