Wyoming committee hears debate on repealing low‑carbon mandates; bill tabled

Representative Christopher Knapp, a Republican from Campbell County, introduced House Bill 209 to the Minerals, Business & Economic Development Committee as a repeal of state requirements tied to low‑carbon standards and carbon capture at coal‑fired power plants.

"This repeal frees up our coal fired plants, our fossil fuel energy to let the market dictate what energy will do," Representative Christopher Knapp said as he described the bill as removing what he called an "onerous" mandate that could require utilities to create plans or projects for CO2 sequestration. He estimated large commercial sequestration projects might cost "up to $500,000,000 to $1,000,000,000 for every coal fired plant."

The governor's office and multiple state agencies urged caution. Randall Luthy, policy director for Governor Mark Gordon, told the committee HB 209 is a straightforward repeal but recommended tabling the bill and directing an interim study instead. Luthy summarized state history on coal and carbon policy, noting the legislature previously enacted House Bill 200 and Senate File 42 to require utilities to evaluate carbon capture and to meet federal 45Q technical standards linked to tax credits. He said those prior laws created mechanisms now being used in integrated resource planning and pilot projects and recommended a possible sunset rather than immediate repeal.

"HB 200 was a part of that. . . It did tell them they had to evaluate carbon capture. They do not have to install it, but it did say they had to evaluate it," Luthy said, adding the law also set a 2 percent cap on cost recovery for ratepayer surcharges related to incremental carbon capture costs.

Mary Throne, chair of the Wyoming Public Service Commission, told the committee the commission has interpreted HB 200 as research, development and planning rather than a requirement to build uneconomic commercial projects. Throne said recent filings by utilities show some carbon capture options are being evaluated as part of preferred portfolios and that the commission can protect ratepayers if projects are not economic.

Representatives of the energy and oil sectors spoke in substance: Lon Whitman, director of the Enhanced Oil Recovery Institute, said Wyoming already uses captured CO2 for enhanced oil recovery and expects growing demand for CO2 from both traditional and shale fields. Industry representatives said the state should continue to support technology development and pipeline buildout to serve EOR and sequestration markets.

Public testimony and stakeholder remarks reflected a split. Supporters of repeal, including a witness from Americans for Prosperity, argued mandates distort markets and increase rates. Industry witnesses emphasized Wyoming's coal resource and called for continued investment in capture and related infrastructure. State officials and regulators recommended a measured, collaborative path that preserves the state's ability to respond to federal requirements, pursue federal tax incentives (45Q), and coordinate infrastructure such as CO2 pipelines and Class VI well permitting.

Committee members discussed interim study options and the interaction between state statutes, federal rules, and market forces. After public testimony and agency presentations, no committee member moved the bill; the chair announced that, "for lack of a motion, that bill will lie on the table." The committee then moved on to other business.

The record contains several factual items relevant to follow‑up: Representative Knapp's cost estimates for full commercial carbon capture projects; testimony that Project Tundra and other federal grant‑supported efforts exist; the presence of an integrated test center (ITC) and School of Energy Resources test activity; and references to the 45Q federal tax credit amounts used in planning (discussed in testimony as $85/ton for sequestration and $60/ton for EOR).