H.R.2867 - Farmer First Fuel Incentives Act (119th Congress)
Summary
H.R.2867, the "Farmer First Fuel Incentives Act," amends the Internal Revenue Code of 1986 to modify the clean fuel production credit. The bill aims to incentivize the use of domestically produced feedstocks for clean fuel production by prohibiting the use of foreign feedstocks for the clean fuel production credit. It also adjusts the calculation of emissions rates by excluding indirect land use changes and extends the clean fuel production credit through 2034.
Expected Effects
The bill will likely increase demand for domestically produced agricultural feedstocks used in clean fuel production. This may lead to higher prices for these feedstocks and potentially impact the cost of clean fuels. The exclusion of indirect land use changes from emissions calculations could affect the overall environmental benefit assessment of certain clean fuels.
Potential Benefits
- Increased demand for US-grown agricultural products.
- Potential boost to the domestic biofuel industry.
- Extended clean fuel production credit incentivizes long-term investment in renewable fuels.
- More precise emissions rate calculations by excluding indirect land use changes.
- Greater energy independence by relying on domestic feedstocks.
Potential Disadvantages
- Potential increase in the cost of clean fuels due to the restriction on foreign feedstocks.
- Possible trade disputes with countries that export feedstocks.
- The exclusion of indirect land use changes from emissions calculations may underestimate the true environmental impact of some biofuels.
- Increased pressure on US agricultural land to produce feedstocks.
- Potential for market distortions due to government subsidies and mandates.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8) by promoting domestic agriculture and energy production. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The bill's provisions related to taxation and incentives fall under this enumerated power. There are no apparent infringements on individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).