Meeting Minutes) Is Prepared by the Legislative Service Office (LSO) and Is the Official Record of the Proceedings of a Legislative Committee Meeting

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

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 and manage the assigned trust option. Ms. Wichmann also noted the benefits of the mine reclamation bonding process for both the State and industry.

Travis Deti, Executive Director, Wyoming Mining Association, provided a brief history of how the assigned trust project began and expressed support for the conceptual model (Appendix 5-03).

Public Comment Shannon Anderson, Power River Basin Resource Council, described concerns with self-bonding and expressed support for further exploring DEQ’s proposal for the mine reclamation bonding process.

Committee Action Representative Western moved to have LSO draft a bill providing for an assigned-trust bonding structure for coal mine reclamation. The motion passed by a voice vote.

Title V/Air Quality Permit Issues Nancy Vehr, Air Quality Administrator, DEQ, updated the Committee on the Air Quality Division fee revisions and mentioned some of the actions DEQ has taken to provide outreach to industry stakeholders regarding the fee revisions (Appendix 5-01).

Public Comment No one from the public commented on this topic.

MEETING RECESS The Committee recessed at 4:58 p.m.

CALL TO ORDER (FRIDAY, JUNE 25, 2021) Co-Chairman Anderson called the meeting to order at 8:30 a.m. The Committee recognized Tom Kropatsch, Interim Supervisor for the Wyoming Oil and Gas Conservation Commission.

SCHOOL OF ENERGY RESOURCES/CARBONSAFE UPDATE Scott Quillinan, Senior Director of Research, UW School of Energy Resources, provided the Committee with an overview of CCUS technology (Appendix 7-01) and the CarbonSAFE initiative, including funding received for the project and federal tax credits available for CCUS. Mr. Quillinan also discussed the phases that have been completed and how the program intends to move forward.

JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings

Public Comment No one from the public commented on this topic.

NUCLEAR POWER GENERATION IN WYOMING Jon Cox, Vice President of Government Affairs, Rocky Mountain Power, discussed potential locations in Wyoming that are being considered for the recently announced nuclear power plant and a decision will be made by end of the year.

Jeff Navin, Director of External Affairs, TerraPower, provided the Committee with an overview of the Wyoming TerraPower nuclear reactor. Mr. Navin explained the process of how the plant will operate and that is designed to last for 60-80 years. Mr. Navin also discussed how long the construction process will take and how many jobs will be created by the construction and the operation of the plant. Mr. Navin and Mr. Cox noted that statutory changes may be necessary to enable construction and operation of the facility.

Public Comment Mr. Deti expressed support for the nuclear power plant and how Wyoming uranium may play a role in the facility.

CARBON CREDITS/OFFSETS Clarissa Nord, Associate Research Analyst, LSO, provided an overview of the market-based climate policies, carbon offsets, and what the public and private sectors can do by reducing emissions and purchasing or selling allowances (Appendix 9-01). Ms. Nord commented how other states are limiting emissions, such as the Regional Greenhouse Gas Initiative.

Kipp Coddington, Director, Center for Energy Regulation & Policy Analysis, University of Wyoming, provided the Committee with an overview of carbon credits and carbon markets, and how they may be relevant in Wyoming's energy economy (Appendix 9-03).

Sarah Fitz-Gerald, Chief Strategy Officer, WBC, discussed involvement in the project, what Wyoming can do to facilitate these markets, and what steps are necessary for outreach to stakeholders (Appendix 9-02). Ms. Fitz-Gerald described the process the WBC is taking to explore how Wyoming can adopt and utilize a voluntary carbon market.

Public Comment John Robitaille, Carbon Asset Network, discussed how his company operates and generates carbon credits in a voluntary carbon-capture market.

Jim Magagna, Executive Vice President, Wyoming Stock Growers Association, discussed the potential for storing and cultivating carbon to create revenue source for members and discussed federal legislation concerning carbon sequestration.

Additional Bill Draft Requests Representative Heiner moved the Committee to have LSO draft 2021 Senate File 82, Local impact assistance payments. The motion passed by voice vote.

Representative Heiner requested LSO to compare other states’ programs for unmitigated impact payments from large industrial projects.

JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings

Co-Chairman Greear directed that a letter to WBC be prepared, requesting additional follow-up information on certain items the WBC discussed.

Representative Bear moved the Committee for a bill draft amending various WBC statutes to include a program for financing business succession planning and other amendments to the Challenge Loan Program. The motion passed by voice vote.

Representative Sherwood moved the Committee for a bill draft to amend the Natural Gas Fueling Infrastructure Loan Program to allow for loans for hydrogen or electric charging stations in addition to natural gas. The motion passed by voice vote.

Representative Gray moved for a bill draft based on 2021 House Bill 110. The motion failed by a show of hands.

MEETING ADJOURNMENT There being no further business, Co-Chairman Anderson adjourned the meeting at 12:27 p.m.

Respectfully submitted,

Representative Mike Greear, Co-Chairman

JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings

Index Agenda Item Document Description Document Provider Number

1-01 Agenda LSO

Call to Order and 1-02 Attendance LSO Announcements

Call to Order and 1-03 Proposed Interim Rules LSO Announcements

2-01 Wyoming Business Council Topic Summary - Wyoming Business Council LSO

Wyoming Business 2-02 Wyoming Business Council Annual Challenge Loan Report Council

Wyoming Business 2-03 Wyoming Business Council WBC Presentation Council

4-01 Wyoming Energy Authority Topic Summary - WEA Bonds LSO

Wyoming Energy 4-02 Wyoming Energy Authority WEA Strategy, CCUS Funding, and Bonding Authority

Wyoming Treasurer's 4-03 Wyoming Energy Authority Muni Bond Presentation Office

Department of Dept of Environmental 5-01 AQD Fee Update Environmental Quality Quality

Department of Dept of Environmental 5-02 Assigned Trust Environmental Quality Quality

Department of Wyoming Mining 5-03 WMA Bonding-Assigned Trust Memo Environmental Quality Association

School of Energy 7-01 Resources/CarbonSAFE CarbonSAFE Update University of Wyoming Update

9-01 Carbon Credits/Offsets Topic Summary - Market-based Climate Policies LSO

9-02 Carbon Credits/Offsets CO2 Slides UW, WBC, WEA

JOINT MINERALS, BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Summary of Proceedings

9-03 Carbon Credits/Offsets Written Testimony Kipp Coddington

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