Bill Overview
Title: Facilitating the Reshoring of Energy Grid Component Manufacturing Act of 2022
Description: This bill directs the Department of Energy (DOE) to establish a loan program for the production of energy grid products or components. Under the program, DOE may provide loans for activities related to projects that reequip, expand, or establish manufacturing facilities to produce energy grid products or their components. Energy grid products include large power transformers or any other electrical equipment commonly used for the transmission or distribution of electric energy by public electric utilities.
Sponsors: Sen. Rubio, Marco [R-FL]
Target Audience
Population: People employed in or affected by the energy grid component manufacturing industry globally
Estimated Size: 6000000
- The bill aims to incentivize the reshoring of energy grid component manufacturing, primarily affecting those employed or seeking employment in manufacturing jobs related to energy grid products.
- The bill will impact companies and workers involved in the supply chains for energy grid components, potentially improving job opportunities and economic conditions in regions where manufacturing facilities are located or expanded.
- Energy consumers may indirectly be affected as the reshoring could lead to improved grid reliability and possibly affect energy prices.
- Global workers in the energy grid manufacturing sector could see shifts in demand as US production increases, potentially reducing demand for imported components.
Reasoning
- We need to consider individuals from a variety of backgrounds including those directly employed in the manufacturing of energy grid components, those in related supply chain industries, energy consumers, and those not immediately impacted by the policy.
- The budget for the policy is limited, so its impact will primarily be on existing or new manufacturing facilities that receive a direct benefit from the loans provided through the policy.
- The policy should ultimately lead to increased domestic production of energy grid components, potentially improving job security and economic conditions in specific localities where facilities are established or expanded.
- We must include individuals who may not benefit from the policy directly, to illustrate the breadth of impact.
- Since the target population is around 6 million in the US, this policy affects a segment that is quite common in specific regions, particularly those with existing industrial bases.
Simulated Interviews
Manufacturing Engineer (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- I believe this policy could secure my job for the long term as it might bring more projects to our facility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 3 |
Supply Chain Analyst (Chicago, IL)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- If more manufacturing stays in the US, my company will grow, but this policy needs to be executed well to have an impact.
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 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Software Developer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- While the policy doesn't directly affect me, it's reassuring that our energy grid might become more reliable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Energy Efficiency Consultant (Atlanta, GA)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This could be a great boost for the industry, although not directly affecting my sector immediately.
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 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 7 | 7 |
Machinist (Detroit, MI)
Age: 41 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- The policy might mean more steady work, as we increase production lines for the grid components.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 9 | 2 |
Retired (Little Rock, AR)
Age: 58 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 17/20
Statement of Opinion:
- It might mean a small change in utility bills, but I won't be directly affected.
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 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Electrical Engineer (Raleigh, NC)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The policy could open up more opportunities for designers like me in power networks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Energy Policy Analyst (Los Angeles, CA)
Age: 61 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Reshoring could play a role in improving grid stability and promote local jobs, but execution is crucial.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Environmental Scientist (Phoenix, AZ)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- While the policy increases domestic production which is good, its environmental impacts should be monitored.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Manufacturing Plant Manager (Cleveland, OH)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- This policy could mean growth for our plant, securing jobs and expanding our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 9 | 3 |
| Year 20 | 8 | 2 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $45000000 (Low: $35000000, High: $55000000)
Year 3: $40000000 (Low: $30000000, High: $50000000)
Year 5: $40000000 (Low: $30000000, High: $50000000)
Year 10: $40000000 (Low: $30000000, High: $50000000)
Year 100: $40000000 (Low: $30000000, High: $50000000)
Key Considerations
- The effectiveness and uptake of the loan program by manufacturers will significantly influence the overall cost and impact of the policy.
- Defaults on loans could lead to additional costs if they exceed expected levels, impacting net governmental spending.
- The global trade dynamics and potential retaliatory measures from other countries participating in energy grid component manufacturing could alter the program's effectiveness.
- Environmental regulations and compliance costs might influence the profitability and operational decisions of manufacturers.