H.R.112 - Farewell to Unnecessary Energy Lifelines Reform Act of 2025; FUEL Reform Act (119th Congress)
Summary
H.R. 112, the FUEL Reform Act, seeks to repeal Department of Agriculture bioenergy subsidy programs and other related subsidy programs. The bill, introduced in the House of Representatives, targets Title IX of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101 et seq.). It aims to eliminate what proponents consider unnecessary energy subsidies.
The bill was referred to the Committee on Agriculture, and in addition to the Committees on Oversight and Government Reform, and Science, Space, and Technology. These committees will determine the period of consideration for provisions falling within their respective jurisdictions.
The short title of the bill is the "Farewell to Unnecessary Energy Lifelines Reform Act of 2025" or the "FUEL Reform Act".
Expected Effects
If enacted, the FUEL Reform Act would eliminate federal subsidies for bioenergy programs administered by the Department of Agriculture. This could lead to decreased investment in bioenergy and related industries.
It may also result in lower government spending and potentially reduce the tax burden on citizens. The impact on energy prices and the environment would depend on how the market adjusts to the absence of these subsidies.
The repeal could affect agricultural producers who have come to rely on these subsidies, potentially requiring them to adapt their business models.
Potential Benefits
- Potential reduction in government spending and national debt.
- Could lead to a more market-driven energy sector, potentially fostering innovation.
- May reduce the tax burden on citizens by eliminating subsidy programs.
- Could encourage more efficient allocation of resources in the energy sector.
- Promotes fiscal responsibility by eliminating programs deemed unnecessary.
Most Benefited Areas:
Potential Disadvantages
- Potential negative impact on the bioenergy industry and related jobs.
- May reduce investment in renewable energy sources, hindering the transition to a sustainable energy economy.
- Could disproportionately affect agricultural producers who rely on these subsidies.
- Possible increase in reliance on traditional energy sources.
- May slow down research and development in the bioenergy sector.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on repealing specific subsidy programs falls under the purview of Congress's legislative powers, as outlined in Article I, Section 8 of the Constitution, which grants Congress the power to collect taxes, pay debts, and provide for the general welfare of the United States. The Constitution does not explicitly address energy subsidies, leaving the decision to Congress.
However, the bill must adhere to the Fifth Amendment, ensuring that any changes do not unfairly deprive individuals or entities of property rights without due process or just compensation. The repeal of subsidies could be challenged if it is deemed to violate these protections.
Furthermore, the bill should be evaluated in light of the Commerce Clause (Article I, Section 8, Clause 3) if the bioenergy programs being repealed have a substantial effect on interstate commerce.
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).