Appropriations committee backs two‑year Energy Dominance Fund to reinvest severance tax in major projects
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Summary
Senate File 123 would create a Wyoming Energy Dominance Fund administered by the Wyoming Energy Authority, seeded by a temporary intercept of 1% of mineral severance tax with a required 1:1 match; the committee adopted an amendment to credit investment earnings back to the fund and reported the bill 5‑0.
The Senate Appropriations Committee voted 5‑0 to report Senate File 123, establishing a short‑term Wyoming Energy Dominance Fund intended to seed large, capital‑intensive energy projects via a 1:1 industry match and a temporary intercept of 1% of the mineral severance tax.
Program design and purpose: The sponsor said the fund is aimed at accelerating one‑time projects in oil, gas, coal, uranium and critical minerals that require large upfront capital and regulatory certainty. The Wyoming Energy Authority (WA) would administer applications through a concept paper and full application process, include a public‑comment period, and require governor and AG review before awards.
Funding mechanics and amendment: The sponsor explained the fund will be seeded by intercepting 1% of the statutory mineral severance tax for a two‑year period and sunsets thereafter. Rob Preer, executive director of the Wyoming Energy Authority, noted a minimum 1:1 match and disallowance of in‑kind contributions to ensure industry has “skin in the game.” Katie Smith of the state treasurer’s office asked that investment earnings be credited to the fund rather than to the general fund; the committee adopted that amendment.
Industry support and expected returns: Speakers from the Petroleum Association and the Wyoming Mining Association praised the plan as reinvesting industry severance taxes and argued it would yield strong returns for the state and local governments and support jobs in energy industries.
Outcome and next steps: With the treasurer’s amendment adopted to credit earnings to the fund, the committee recorded five ayes and reported SF123 'do pass amended.' The bill will now proceed to the full Senate. Committee members and WA said they will continue to refine program rules and application processes before the bill reaches the floor.