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Wyoming committee tables bill that would bar using water for industrial hydrogen production
Summary
The Senate Minerals Committee heard competing views on House Bill 116, which would bar treating destruction of water molecules for hydrogen production as a "beneficial use" of water. Technical witnesses proposed narrow amendments; after public testimony the committee declined to move the bill and tabled it.
Senators heard sharply different views over whether state law should bar the use of appropriated water to produce industrial hydrogen and ultimately declined to advance the measure.
Senator Sherry Steinmetz, who presented House Bill 116, said the bill aims to "protect our water" by making clear that "the destruction of water molecules by separating the hydrogen and oxygen atoms for the purpose of the industrial production of hydrogen shall not constitute a beneficial use of water." She said the prohibition targets potable, municipal and irrigation supplies in basins already over-appropriated.
The bill as introduced included a categorical declaration that hydrogen production from water is not a beneficial use; Brandon Gebhart, the State Engineer, told the committee that language would bar his office from issuing permits in any circumstance. Gebhart said his office drafted two amendment options to make the bill workable: (1) allow only byproduct/produced water (the incidental water addressed in WS 41-3-903/904) to be used for hydrogen production, or (2) allow regionalization tied to a 10-year regulation test so permitting could be limited in basins that have seen priority regulation within the prior decade. "Beneficial use is the basis, the measure, and the limit of a water right," Gebhart said, warning the declaration in the original draft would effectively prevent permitting.
Witnesses split along economic and resource lines. Randy McKay, president of the Wyoming Business Alliance, and Ryan McConaughey of the Petroleum Association cautioned that the bill could disrupt existing industrial uses and hydrogen production that arise as an incidental byproduct of fertilizer, refining or coal processes; they welcomed narrow byproduct exceptions. Charles Thomas, CEO of a Wyoming firm that makes hydrogen, told the committee by Zoom: "You can't make hydrogen without splitting water," and argued the quantities involved are small compared with agriculture.
Environmental and agricultural voices diverged: Anna Kaufman of the Wyoming Outdoor Council urged striking the categorical ban so permitting and siting discussions can proceed; Kelly Carpenter of the Wyoming Farm Bureau said members support protecting agricultural water and favor the state engineer's narrower amendments to avoid unintended consequences for ag users.
Committee members pressed technical questions about whether hydrogen ultimately returns to the water cycle and how priority administration and reinjection would apply in scarcity areas; Gebhart said a permit would be treated like other beneficial uses and be subject to priority calls in times of shortage.
After public comment the committee did not make a motion to advance the bill. Chairman Anderson announced, "House Bill 116 dies for lack of a motion," and suggested the subject as an interim study with the state engineer's office. No formal amendments were adopted and no vote on the bill was taken.
The committee indicated lawmakers will continue work to balance protection of over-appropriated basins with industrial and municipal interests before any future proposal is returned for a vote.
