Meeting Minutes) Is Prepared by the Legislative Service Office (LSO) and Is the Official Record of the Proceedings of a Legislative Committee Meeting
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D r a f t O n l y A p p r o v a l P e n d i n g SUMMARY of PROCEEDINGS J O I N T M I N E R A L S , B U S I N E S S & E C O N O M I C D E V E L O P M E N T C O M M I T T E E COMMITTEE MEETING INFORMATION June 24-25, 2021 | 8:30 a.m. Wyoming Oil & Gas Conservation Commission 2211 King Blvd. Casper, Wyoming COMMITTEE MEMBERS PRESENT Senator Jim Anderson, Co-Chairman Representative Mike Greear, Co-Chairman Senator Bo Biteman (via Zoom) Senator Ed Cooper Senator Chris Rothfuss Senator Jeff Wasserburger Representative John Bear Representative Donald Burkhart, Jr Representative Shelly Duncan Representative Danny Eyre Representative Chuck Gray Representative Scott Heiner Representative Trey Sherwood Representative Cyrus Western LEGISLATIVE SERVICE OFFICE STAFF Brian Fuller, Senior Staff Attorney Heather Hunter, Legislative Editor Clarissa Nord, Associate Research Analyst OTHERS PRESENT AT MEETING Please refer to (Appendix 1-02) to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting. The Committee Meeting Summary of Proceedings (meeting minutes) is prepared by the Legislative Service Office (LSO) and is the official record of the proceedings of a legislative committee meeting. This document does not represent a transcript of the meeting; it is a digest of the meeting and provides a record of official actions taken by the Committee. All meeting materials and handouts provided to the Committee by the Legislative Service Office, public officials, lobbyists, and the public are on file at the Legislative Service Office and are part of the official record of the meeting. An index of these materials is provided at the end of this document and these materials are on file at the Legislative Service Office. For more information or to review meeting materials, please contact the Legislative Service Office at (307) 777-7881 or by e-mail at [email protected]. The Summary of Proceedings for each legislative committee meeting can be found on the Wyoming Legislature’s website at www.wyoleg.gov. PAGE 2 OF 8 EXECUTIVE SUMMARY The Joint Minerals, Business and Economic Development Interim Committee met for two days in Casper to begin its interim work. The Committee received updates from the Wyoming Business Council, Wyoming Energy Authority, Wyoming Department of Environmental Quality, and the University of Wyoming School of Energy Resources. The Committee received information regarding the TerraPower Nuclear Demonstration Project and considered the implementation of a voluntary carbon market. The Committee requested bill drafts regarding the assigned trust concept as related to coal mine reclamation, pore space liability, and amendments to the Business Council’s Business Ready Community Grant Program, Challenge Loan Program, and Natural Gas Fueling Infrastructure Loan Program. The Committee also voted to resurrect 2020 SF0100 – Business ready community program-amendments and 2021 SF0082 – Local impact assistance payments. CALL TO ORDER (THURSDAY, JUNE 24, 2021) Co-Chairman Greear called the meeting to order at 8:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to ( Appendix 1-01) to review the Committee Meeting Agenda. Video of the meeting is available on the Wyoming Legislature’s YouTube page – Joint Minerals, Business & Economic Development, June 24, 2021, (AM), (PM); June 25, 2021 (AM). The Committee recognized Mark Watson, Supervisor, Wyoming Oil and Gas Conservation Commission, for his work with the Commission as he retires as Supervisor. Adoption of Interim Rules The Committee adopted the proposed interim committee rules, (Appendix 1-03). WYOMING BUSINESS COUNCIL Josh Dorrell, CEO, Wyoming Business Council (WBC), reviewed the WBC’s economic development strategic plan, the Business Ready Community (BRC) Grant Program, performance metrics, COVID-19 business trends, and new economic opportunities for Wyoming (Appendix 2-03). Mr. Dorrell discussed the WBC’s efforts in finalizing the State’s economic-development strategic plan and noted the WBC is working with Governor Gordon’s Office in assessing potential uses of the American Rescue Plan Act funds. Mr. Dorrell further described the WBC’s goal to activate new economic sectors and enhance existing portions of Wyoming’s economy using technology. Mr. Dorrell presented a broad overview of the WBC’s programs and described the WBC’s process in providing services throughout the State and promoting various growth opportunities. Mr. Dorrell additionally discussed the BRC Grant Program and mentioned recent applications the WBC considered from March 2020 to present. Josh Keefe, Finance Manager, WBC, presented the annual Challenge Loan Report (Appendix 2-02) and summarized the status of the Challenge Loan Program rules and policies. Mr. Keefe also highlighted the analysis of the Challenge Loan Portfolio that the Wyoming Division of Banking completed. Mr. Keefe described some of the difficulties of business succession planning within the State and suggested the Committee consider creating a new program to help address this challenge. Mr. Keefe also mentioned the possibility of establishing a contract lending program so the WBC could help businesses in acquiring raw materials and assist with large, up-front expenses. Mr. Keefe provided additional recommendations for the Committee to consider, including revising the loan guarantee program and amending the Natural Gas JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 3 OF 8 Fueling Infrastructure Loan Program to permit hydrogen or electric fueling stations in addition to natural gas. Public Comment No one from the public commented on this topic. Committee Action Representative Gray moved to have the Legislative Service Office (LSO) redraft 2020 SF0100 – Business Ready Community Program-Amendments. The motion passed by a voice vote. WYOMING ENERGY AUTHORITY Strategic plan update Dr. Glen Murrell, Executive Director, Wyoming Energy Authority (WEA), updated the Committee on the State’s Energy Strategy (Appendix 4-02). Dr. Murrell discussed several strategic opportunities, challenges related to Wyoming’s energy exports, and key initiatives the WEA is pursuing. Dr. Murrell also provided information related to the WEA’s intent to develop a strategy where Wyoming is providing net-zero energy through carbon capture, utilization, and storage (CCUS) deployment and commercialization. Dr. Murrell further summarized the WEA’s current projects including focusing on hydrogen energy projects at the School of Energy Resources and the potential public-private commercialization of CCUS. Dr. Murrell updated the Committee on the status of the CCUS funding and Request for Proposal process. Dr. Murrell mentioned the WEA will extend the solicitation period for the RFP if co-funding opportunities are available through the U.S. Department of Energy or other sources. Mechanisms of bonding for Energy Authority Dr. Murrell summarized the WEA’s bonding authority including historic utilization of the bonds. Dr. Murrell also provided some recommendations for the Committee to consider and how the State might incorporate the bonds as part of the State’s economic development strategic plan. Brian Fuller, Staff Attorney, LSO, provided an overview of the WEA’s bonding authority and discussed some of the State’s constitutional provisions regarding the bonding mechanisms (Appendix 4-01). Patrick Fleming, Chief Investment Officer, State Treasurer's Office, provided an overview of municipal bonds and described the current U.S. municipal bond market as well as the different types of municipal bonds (Appendix 4-03). Mr. Fleming also discussed the advantages and disadvantages of the State incurring debt in the current economic climate. Public Comment Representative Pat Sweeney, Casper, stated that the Committee should consider forming a public-private partnership to develop CCUS projects and engage the private sector similar to North Dakota's efforts. Jason Begger, U.S. Gold Corp., expressed support for statutory changes for the WEA bonding process to make financing more readily available for the minerals industry. Bruce Hinchey, Glenrock Energy, expressed concern about the closure of coal-fired electric generation facilities and testified that the State should prioritize CCUS technology. JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 4 OF 8 DEPARTMENT OF ENVIRONMENTAL QUALITY Current bonding structure for reclamation Todd Parfitt, Director, Department of Environmental Quality (DEQ), introduced and described Wyoming’s Coal Reclamation History (Appendix 5-02). Director Parfitt described the mechanics of an assigned trust for reclamation and noted that each participating entity would be responsible for full reclamation bonding. Kyle Wendtland, Land Quality Administrator, DEQ, explained the reclamation bond calculation procedures and specifically referenced coal reclamation bonds. He noted that the required amount for reclamation bonds is calculated annually for each entity. Kimber Wichmann, Management Services Administrator, DEQ, introduced the assigned trust conceptual model and how the State could implement