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Committee backs two‑year Energy Dominance Fund to redirect severance tax for large projects
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Summary
The committee recommended passage of Senate File 123, creating a two‑year fund that would divert a portion of the 1% severance tax (roughly $105 million anticipated) into grant and loan programs for large energy projects; the measure passed the committee unanimously with amendments.
Lawmakers on the minerals committee advanced a bill to create a temporary Energy Dominance Fund that would redirect a portion of severance tax receipts into grants and loans to finance capital‑intensive energy projects.
Sponsor testimony framed the measure as a way to leverage minerals tax dollars already paid by industry to accelerate work on high‑cost projects — from enhanced oil recovery and coal units to uranium conversion and rare‑earth processing — while capital and permitting windows remain open at the federal level. “We’re intercepting a portion of the severance tax ... to build out infrastructure that we need,” the sponsor said, estimating about $105,000,000 over two years.
Rob Krieger, executive director of the Energy Authority, told the committee the program would require a 1:1 private match for grants and would not accept in‑kind contributions as counting toward that match. He said the authority planned a concept‑paper phase, full application, public comment, attorney general review and governor approval before any expenditure; the authority would report projects to the committee and Appropriations at least 30 days prior to spending.
Stakeholders from industry and mining associations — including testimony from Rare Element Resources, the Petroleum Association of Wyoming and the Wyoming Business Alliance — urged swift action to capture federal partnership opportunities and to keep projects onshore. Members asked how to maximize the impact of a finite pool of funds and how the energy authority would prioritize awards; witnesses said competitive applications, loans versus grants, and focused ROI analysis would be the tools to do so.
Committee debate included a floor amendment to tighten language about eligible uses (removing a broad “but not limited to” phrase and adding technical terms related to rare‑earth processing). After discussion, the amendment carried and the committee recorded a do‑pass recommendation.
Vote: committee recorded a 9–0 do‑pass with amendments.
