Wyoming lawmakers are thinking about future sources of electricity demand – and how it’ll be transmitted – in two bills. Both call on the Wyoming Energy Authority (WEA), a six-year old state entity that’s met previous criticism.
Energy dominance fund
SF123, Wyoming energy dominance fund, reimagines the WEA’s controversial Energy Matching Funds program.
The matching fund was created in 2022 to “spur innovation and bring transformative energy projects to Wyoming,” while giving a nod to “sustainability issues without deteriorating reliability and affordability.” Potential grant recipients had to come to the WEA with a one-to-one match in funds, typically from federal government grants.
Over the years, the fund received $155 million from the state and divvied it out to 30 projects. This included research into carbon capture retrofit on coal plants, a low-profile wind turbine, converting coal to hydrogen and mining critical minerals at a coal mine north of Gillette.
But the fund is out of money and the WEA didn’t request more for the next two years. Over the last few years, some members of the Legislature have tried to defund it. The criticism homed in on the types of projects selected and the governor having final say over which are chosen. Others push back that there’s a thorough vetting process and public comment period before a proposal lands on the governor’s desk.
Enter this year’s SF 123.
The energy dominance fund would operate similarly to the matching funds program, but it would have more stipulations. Specifically, no money could go toward wind or solar energy projects.
“A lot of these energy companies that aren't wind or solar have had a hard time getting access to capital and have had a lot of regulatory uncertainty,” said Sen. Bo Biteman (R-Ranchester) to colleagues in a Senate Appropriations Committee meeting on Feb. 13.
Biteman, the sponsor of the bill, didn’t expand on which companies or projects, but he gave a nod to Pres. Trump’s push for oil, gas, coal and nuclear energy, while scaling back renewable resources.
“Wyoming is at the tip of the spear for President Trump's energy dominance plan,” Biteman said.
Wyoming’s energy dominance fund would sunset in two years unless additional legislation is passed. The source of money for the account would be severance taxes collected from industry when they extract resources, totaling about $105,000,000.
“It's going back to reinvest in energy projects, big projects, like one-time massive projects, that we need in Wyoming,” Biteman explained. “Otherwise we could lose out to other states or we could just miss the boat completely.”
Several industry leaders spoke in favor of the bill. It passed the committee and has passed second reading in the full Senate.
Energy transmission study
SF 102, Wyoming energy transmission study, enlists the WEA to look at how power will be delivered to customers as demands grow.
It was considered by the Senate Corporations, Elections & Political Subdivisions Committee on Feb. 18. Many testified this study is key for Wyoming’s electricity future.
“We do spend a lot of time talking about generation,” said Thom Carter with Rocky Mountain Power, one of Wyoming’s main electricity providers. “Generation is cool and generation is neat and everybody loves talking about generation, but transmission is the highway.”
The study would require a look at how Wyoming’s current power transmission system could be impacted by three power growth scenarios: low growth, moderate growth and high demand.
“Recognizing that there's a lot of discussion about the need for more electricity in general,” said Sen. Brian Boner (R-Douglas), who sponsored the bill. “We're talking about data centers coming online. How are we going to help handle that growth? And what role, if anything, does the government play in doing that?”
For example, a new artificial intelligence data center just outside Cheyenne announced last year is expected to use 1.8 gigawatts of power, with the ability to scale up in the future. That’s more electricity than what’s used by all the homes in Wyoming combined.
A different report from Advanced Energy United shows the West’s power system isn’t designed to handle the rising electricity demand. The key problem is there are 38 different entities across 11 states, which experts say makes moving electricity around more difficult. The advocacy group report pushes for a single energy market across the West.
The goal of Wyoming’s transmission study isn’t to necessarily implement any changes, but rather shed light on different scenarios.
The study will actually happen regardless, but Boner’s bill adds some specifics.
“I think the value of the bill is to give the Legislature an opportunity to provide that input,” he said.
A report back to the Legislature will be due on Nov. 1, 2027 and again Sept. 1, 2028.
An amendment tacked onto the bill requires the WEA to form an advisory group to help guide the study and interpret findings. It’d include rural electric cooperatives, investor-owned electric utilities, municipal electric utilities, the Wyoming Public Service Commission and the Office of Consumer Advocate.
The committee passed the bill. It now heads to the full Senate for further consideration.
