Carbon capture and sequestration.

23LSO-0258
2023
STATE OF WYOMING
23LSO-0258
ENGROSSED
3.0

SENATE FILE NO. SF0142

Carbon capture and sequestration.

Sponsored by: Senator(s) Scott, Barlow, Boner, Dockstader and Landen and Representative(s) Allemand, Allred, Banks, Berger, Chadwick, Haroldson, Harshman, Heiner, Olsen, Strock, Walters and Zwonitzer, Dn

A BILL

for

AN ACT relating to public utilities; providing requirements for the capture and use of carbon dioxide from coal-fired electric generation facilities; requiring public utilities to offer coal-fired electric generation facilities for sale for purposes of carbon capture for enhanced oil and gas recovery; specifying requirements for the sale of byproducts from carbon dioxide streams; specifying purposes; seeking to identify already incurred liabilities for decommissioning and cleanup of coal-fired electric generation facilities as specified; specifying intent for the reduction of waste of carbon dioxide; providing penalties for violations; providing definitions; making conforming amendments; requiring rulemaking; requiring studies; requiring reports; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

37
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18
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201 through 37
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18
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208 are created to read:

ARTICLE 2
UTILITY REQUIREMENTS AND CARBON CAPTURE
PROCEDURES FOR PUBLIC UTILITIES

37
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18
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201.

Definitions.

(a)

As used in this article:

(i)

"Carbon capture, utilization and sequestration technology" means technology that has the principal purpose of capturing, reusing, storing, sequestering or using carbon dioxide emissions to prevent carbon dioxide from entering the atmosphere whether constructed integral or adjacent to a coal
‑
fired generation unit;

(ii)

"Carbon capture customer" means any person who purchases or seeks to purchase a carbon dioxide stream from a coal
‑
fired electric generation unit, including any person who is using or plans to use the carbon dioxide stream for enhanced oil or gas recovery or sequestration;

(iii)

"Carbon capture party" means:

(A)

A public utility that generates carbon dioxide through the production of electricity;

(B)

A carbon capture customer;

(C)

Any person who owns, alters or creates a carbon dioxide stream between a generator of carbon dioxide and customers of the person;

(D)

The Wyoming oil and gas conservation commission.

(iv)

"Carbon dioxide stream" means a flow or unit of carbon dioxide and any other related gases, materials or contaminants within carbon dioxide that is going to a carbon capture unit or from a carbon capture unit to a carbon capture customer. "Carbon dioxide stream" does not include any flow of gases that is intended for release into the atmosphere;

(v)

"Coal
‑
fired electric generation facility" or "facility" means any electric generation facility that uses coal to generate electricity and shall include any unit or portion of a facility;

(vi)

"Coal
‑
fired electric generation unit" means a unit of not less than three hundred (300) megawatts that uses coal to generate electricity;

(vii)

"Commission" means the public service commission;

(viii)

"Marginal cost" means the additional cost of creating a byproduct that is not incurred in the creation of a principal product. For purposes of this article, if the creation of a byproduct alters the cost of producing the principal product, any increase in the resulting cost shall be considered a marginal cost and any decrease in the resulting cost shall reduce the marginal cost. "Marginal cost" shall not include any allocation of any costs or investments incurred for the production of the principal product. "Marginal cost" shall include the recovery of investments in producing the principal product that are required to produce the byproduct but that are not required to continue to produce the primary product;

(ix)

"Net salvage value" means the value of any land sold, plus the value of the components of the unit, less any decommissioning costs and decommissioning and reclamation costs that the purchaser may be liable for. The commission may adjust the net salvage value to include any amounts necessary to comply with state and federal constitutional requirements associated with takings;

(x)

"Output reduction" means a reduction of output of a coal
‑
fired electric generation facility into a range of percentages of the nameplate capacity of the facility as determined by the commission in accordance with this article.

37
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18
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202.

Implementation by the public service commission and state agencies; carbon capture in public interest.

(a)

This article is enacted to seek and promote carbon capture, utilization and sequestration technology associated with the continued and prolonged operation of coal
‑
fired electric generation facilities. To the extent practical and not otherwise inconsistent with law, the commission shall seek to:

(i)

Reduce the amount of carbon dioxide that is released into the atmosphere because of electric power generation and satisfy demands from electricity customers and from other states while accomplishing this reduction;

(ii)

Reduce the waste of a valuable natural resource by reducing the amount of carbon dioxide that is released into the atmosphere;

(iii)

Make carbon dioxide streams available to customers in the oil and gas industry who wish to use carbon dioxide streams to produce additional oil or gas by using enhanced oil recovery techniques as a result of recovering and utilizing those valuable natural resources;

(iv)

Allow potential customers of the carbon dioxide stream to earn federal or other subsidies associated with carbon sequestration;

(v)

Enhance the revenue of the state of Wyoming and its political subdivisions through existing taxes, leases and royalties;

(vi)

Ensure that decommissioning and reclamation costs caused by past activities are adequately funded and are not passed on to current and future customers;

(vii)

Improve the reliability of the electric grid serving Wyoming and other western states;

(viii)

Prevent carbon capture from causing material rate increases for electric customers;

(ix)

Provide interested parties an opportunity to earn a profit and incentivize their participation in carbon capture, utilization and sequestration efforts;

(x)

Retain and improve employment opportunities for Wyoming residents.

(b)

The commission shall consider carbon capture, utilization and sequestration and the use of any resulting carbon dioxide stream for enhanced oil and gas recovery as a factor in its public interest determination.

(c)

Nothing in this article shall be construed to supersede or alter the provisions of W.S. 35
‑
11
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313 through 35
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11
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320.

37
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18
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203.

Carbon dioxide stream regulation; considerations.

(a)

Except as otherwise provided in this subsection, no public utility subject to this article shall intentionally alter a carbon dioxide stream within its generating facility or unit or alter a generating facility with the effect of making the use of carbon dioxide captured impractical or materially more expensive. The prohibition specified in this subsection may be waived by agreement between the public utility and carbon capture customers for seventy
‑
five percent (75%) of the available carbon dioxide. Any party aggrieved by the actions of the public utility under this subsection may apply to the commission for an order directing the utility to comply with this subsection. The commission may issue an order to correct any violation of this subsection after considering W.S. 37
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18
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202, the relative expense of correcting the problem at the power plant level or the customer level, and any relevant federal regulations.

(b)

The prohibition in subsection (a) of this section shall not apply to the conversion of a coal
‑
fired electric generation unit to natural gas if the commission determines that it is in the public interest to convert the unit rather than maintaining its availability for carbon capture.

(c)

Before January 1, 2024, each electric public utility that owns, leases or controls a coal
‑
fired electric generation facility or unit in Wyoming shall provide a report and plan to the commission detailing how the public utility intends to operate and maintain its coal
‑
fired electric generation facilities or units in Wyoming so that the facility or unit may be potentially augmented with carbon capture, utilization and sequestration technology in the future and the steps the public utility will take to avoid unreasonably causing carbon capture, utilization and sequestration technologies to be more expensive to implement in the future. The commission shall review each report submitted under this subsection and, if the commission determines the report and plan to be deficient or unreasonable, may order the public utility to take any actions as may be in the public interest and consistent with the objective of preserving the ability of Wyoming coal
‑
fired electric generation units or facilities to be augmented in the future with carbon capture, utilization and sequestration technologies.

37
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18
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204.

Reclamation and decommissioning costs; identification of costs already recovered in rates; protection of current and new customers from costs incurred serving previous customers.

(a)

This section shall apply to each coal
‑
fired electric generation unit, regardless of size, slated for retirement or closure before 2034 that is identified in a public utility's integrated resource plan submitted to the commission before July 1, 2022. This section shall apply to the expected costs of decommissioning all units of the facility and reclaiming the site at the facility, including but not limited to any fly ash, hazardous waste or other solid or liquid waste disposal sites for which the present or any future owner of the facility site may be liable for damages and cleanup costs.

(b)

For facilities subject to subsection (a) of this section, the commission shall undertake an analysis of the extent to which rates charged by the public utility before the effective date of this article included an allowance for decommissioning and reclamation costs. The commission shall consider rates charged in Wyoming and all other states where power generated by the facility was sold. For power sold outside of Wyoming, the commission may impute a share of the rate for decommissioning and reclamation similar to that charged in Wyoming if the rate
‑
setting practices of the relevant state or an applicable multi
‑
state protocol justify this treatment. The commission may, to the extent useful, hire outside consultants and assess their costs to the utility involved. If the commission is unable to reasonably separate the amounts charged to customers receiving power from the facility or a unit thereof from those charged for all Wyoming facilities or units of the public utility, the total for all units and facilities owned by the public utility in Wyoming shall be identified. The commission shall prepare a report based on the analysis performed in accordance with this subsection. When a draft report is available, the commission shall hold a hearing. Not later than October 1, 2023, the commission shall report to the joint corporations, elections and political subdivisions interim committee on the progress of the analysis required by this section and if any legislative action is needed to adequately complete this analysis.

(c)

The commission may, if practical given the needs of the new owner to operate the facility or unit and if necessary given the legal rights and desires of the public utility, segregate the lands with waste and fly ash disposal from the facilities required to be sold under this article and require that those disposal facilities remain with the public utility.

(d)

Determining which party is responsible for decommissioning and reclamation shall be governed by the contract between the public utility selling the facility or unit and the purchaser, provided that no contract shall be represented as relieving any party to a contract of any liability that the party may have under federal law if a party fails to perform under the contract between the purchaser and the public utility that is entered into pursuant to this section;

(e)

Parties entering into a contract under this section shall be independent. For purposes of this subsection, parties are independent if they have not more than twenty
‑
five percent (25%) common ownership.

37
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18
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205.

Output reductions and retirements; regulation; prohibitions on output reductions.

(a)

No public utility owning or operating a coal
‑
fired electric generation unit shall close or retire a unit without first giving the commission notice not less than four (4) years before the intended closure, retirement or output reduction of the public utility's intention to close, retire or complete an output reduction at a coal
‑
fired electric generation unit. For purposes of this subsection, including the unit to be retired, closed or subject to an output reduction in an integrated resource plan submitted to the commission before July 1, 2022 shall be construed to satisfy the notice requirement of this subsection unless the public utility, not later than July 1, 2023, gives the commission notice that it does not wish to have the statement in the integrated resource plan construed as satisfying the notice requirement of this subsection, in which case the four (4) year period preceding a closure, retirement or output reduction shall commence upon the public utility providing notice as required by this subsection.

(b)

No public utility owning or operating a coal
‑
fired electric generation unit shall close, retire or complete an output reduction at the unit without first making a good faith effort to sell the unit for not less than one (1) year, commencing not later than July 1, of the fourth year before the year of the planned closure or retirement or July 1, 2023, whichever is later, to persons willing to purchase and continue operating the facility with carbon capture, utilization and sequestration technology. Any public utility required to offer a facility for sale under this subsection shall report any purchase offer received to the commission within ten (10) days, subject to the following:

(i)

Public utilities required to offer a coal
‑
fired electric generation unit for sale under this section shall not be subject to the requirements of W.S. 37
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3
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117 unless expressly provided in this article;

(ii)

In determining whether a public utility has made a good
‑
faith effort to sell a facility, the commission shall rely on the factors specified in W.S. 37
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3
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117(b).

(c)

A lease of not less than twenty (20) years of a coal
‑
fired electric generation unit for purposes of installing and operating carbon capture technology complying with this section shall be construed as a sale for purposes of subsection (b) of this section.

(d)

A public utility selling a coal
‑
fired electric generation unit under this article shall, before offering the unit for sale, provide to the commission adequate notice of the sale and how an interested party may contact the public utility for further information. The commission shall publish the information provided under this subsection not later than the day on which the public utility offers the facility for sale.

(e)

In addition to making a good faith effort to sell a coal
‑
fired electric generation unit as required under this article, a public utility required to offer a facility for sale shall provide to a potential purchaser upon request:

(i)

Access to the maintenance records for the unit or facility for sale and access to employees who understand the physical condition of the facility or unit for sale and likely future maintenance needs;

(ii)

A description of the reclamation and decommissioning needs and obligations that may affect the sale and access to employees who understand these needs and obligations;

(iii)

A description of the current procedure for the disposal of fly ash and chemicals and other substances used by or generated by the unit offered for sale and access to employees who understand these procedures;

(iv)

Information regarding whether the contracts for coal and its transportation to the unit are transferable to any purchaser and, if so, the content of those contracts;

(v)

The arrangements for the transmission of electricity to customers and what changes, if any, would be contemplated as a result of a sale of the facility;

(vi)

Any other information that a prudent buyer approaching an arms
‑
length transaction should know, including information relevant to the operation of the coal
‑
fired electric generation unit.

(f)

Public utilities subject to this section shall comply with the provisions of W.S. 37
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2
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133 and 37
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2
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134.

(g)

The commission may define by rule what qualifies as an output reduction at a coal
‑
fired electric generation facility in accordance with the following:

(i)

This subsection shall apply only to facilities with a nameplate capacity of not less than three hundred (300) megawatts;

(ii)

Unless the commission has otherwise specified in accordance with this paragraph, an output reduction occurs if a facility operates at ten percent (10%) or less of the nameplate capacity on an annual basis. The commission may adjust the percentage specified in this paragraph by not more than twenty
‑
five (25) percentage points above or below the percentage specified in this paragraph in order to achieve the purposes specified in W.S. 37
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18
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202;

(iii)

Upon petition by any interested carbon capture party, or upon the commission's own motion, and after notice and a hearing, the commission may modify any percentage established in paragraph (ii) of this subsection for any one (1) coal
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fired electric generation unit. The percentage established under this subsection shall not exceed the percentage needed to reasonably support carbon capture on the specific unit.

(h)

In reviewing purchase offers, reviews of a rejection of a purchase and a public utility's efforts to offer a coal
‑
fired electric generation unit for sale under subsection (a) of this section, the commission shall:

(i)

Consider the purposes and goals specified in W.S. 37
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18
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202;

(ii)

Consider the factors specified in W.S. 37
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3
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117(c);

(iii)

Consider the compensation requirements of the United States constitution and the Wyoming constitution in the taking of private property for public purposes;

(iv)

Consider any practical factors facilitating or impeding implementation of actions necessary to allow for the purchase of a coal
‑
fired electric generation unit to allow continued operation with carbon capture, utilization and sequestration technology;

(v)

Give priority for purchasing the unit to carbon capture customers and potential carbon capture customers who will use not less than fifty
‑
one percent (51%) of a resulting carbon dioxide stream for enhanced oil or gas recovery or production;

(vi)

Subject to paragraph (v) of this subsection, give priority to those persons or entities with actual previous experience with carbon dioxide sequestration, either for enhanced oil or gas recovery or deep sequestration;

(vii)

Extend, for good cause shown, the time in which the sale of the unit must be offered, provided that the extension or combination of extensions under this paragraph shall continue until the unit is retired or closed.

(j)

In reviewing purchase offers and a public utility's efforts to offer a coal
‑
fired electric generation unit for sale under subsection (a) of this section, the commission may:

(i)

Determine the minimum bid that the facility shall be sold for, provided that nothing shall prevent a public utility from accepting a good
‑
faith purchase offer for a higher or lower amount. The minimum bid shall be not less than the net salvage value of the facility or unit;

(ii)

Permit, for good cause shown, an output reduction for a specified time during the period in which the facility is offered for sale in accordance with subsection (a) of this section;

(iii)

Order the rejection of any purchase offer for a unit that is not made in good faith or made by a person who does not have a reasonable prospect of successfully operating the facility with installed carbon capture, utilization and sequestration technology;

(iv)

Establish a deadline not to exceed three (3) years after the purchaser takes possession of the purchased unit for the installation of carbon capture technology at the purchased facility and utilization and sequestration of the captured carbon.

(k)

The commission shall not approve a purchase agreement that does not comply with the requirements of W.S. 37
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3
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117(e).

(m)

If the public utility does not make a good faith effort to sell the facility as required by this section, the commission shall proceed to order the limitation of recovering costs under W.S. 37
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3
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117.

37
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18
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206.

Sale of carbon dioxide stream byproducts; requirements.

(a)

A public utility deciding to retain a coal
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fired electric generation unit in lieu of closure or retirement or a public utility entering into an agreement to buy a coal
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fired electric generation facility from another person in accordance with W.S. 37
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18
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205 shall attempt to negotiate the terms of the sale of the carbon dioxide stream with carbon capture customers.

(b)

If an agreement is unable to be reached in accordance with subsection (a) of this section in a reasonable time, the commission shall, upon petition by any carbon capture party, determine if the public utility complied with subsection (a) of this section.

(c)

Any public utility selling a coal
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fired electric generation unit under W.S. 37
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18
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205 or a carbon dioxide stream under this section to a carbon capture customer may request the commission determine whether the public utility's actions satisfy the utility's obligation to produce dispatchable and reliable low
‑
carbon electricity under W.S. 37
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18
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102.

37
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18
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207.

Violations; penalties.

(a)

Except as otherwise provided in this section:

(i)

Any carbon capture customer who agrees to purchase a carbon dioxide stream, or a portion thereof, and fails to purchase that stream or purchases the stream or byproduct and subsequently vents the stream shall pay a civil penalty to the state of one dollar ($1.00) for every one (1) ton of carbon dioxide that is not purchased or that is purchased and subsequently vented, except as provided in paragraph (ii) of this subsection;

(ii)

Any carbon capture customer who agrees to purchase a carbon dioxide stream and pledges in the agreement or to the commission to use the stream for purposes of enhanced oil or gas recovery shall pay a civil penalty to the state of two dollars ($2.00) for every one (1) ton of carbon dioxide that is not purchased or that is purchased and subsequently vented. No penalty shall be imposed under this paragraph for a violation if the average daily spot price for West Texas Intermediate (WTI) is less than fifty dollars ($50.00) per barrel for a period of not less than thirty (30) consecutive days.

(b)

The penalties established in this section shall not apply to a purchase agreement for a coal
‑
fired electric generation unit, carbon dioxide stream until three (3) years after carbon capture, utilization and sequestration technology begins operation at the coal
‑
fired electric generation unit.

(c)

The commission shall enforce the requirements of this section.

(d)

Any penalties remitted to the state under this section shall be transferred to the county treasury of the applicable county to the credit of the public school fund of the county.

(e)

Any penalty under this section shall be in addition to any penalties or payments required under contract or a purchase agreement.

(f)

The commission may, for good cause shown, waive any penalty imposed under this section. For purposes of this section, "good cause" includes but is not limited to:

(i)

Venting of carbon dioxide for safety purposes, provided that the venting is reported to the commission within ten (10) days;

(ii)

Releases of carbon dioxide that are caused by a natural disaster, provided that the releases are reported to the commission within ten (10) days;

(iii)

A failure to timely complete necessary construction of carbon capture, utilization and sequestration technology, provided that the failure is not negligent, reckless, knowing or intentional.

37
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18
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208.

Power sale agreements; reliability requirements.

(a)

If a public utility subject to this article sells a coal
‑
fired electric generation facility to a carbon capture customer who agrees to install and operate carbon capture, utilization and sequestration technology at the facility, the commission shall, after notice and an opportunity for a hearing, require a power purchase agreement between the public utility and the purchaser if the commission finds that the agreement is necessary to achieve or maintain a reliable power network or to provide for the continuing commercial operation of the facility or the carbon capture, utilization and sequestration technology at the facility. Any power purchase agreement required by this section shall be in accordance with W.S. 37
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2
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133, the purposes and goals provided in W.S. 37
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18
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202 and shall ensure that the public utility's customers are not materially injured by the purchase agreement or agreement for the installation and operation of carbon capture, utilization and sequestration technology at the facility. The commission's actions under this section shall be subject to the following:

(i)

The commission shall not, after December 31 of the year in which the facility is slated for retirement as provided in an integrated resource plan submitted to the commission before July 1, 2022, require any sale of electricity that infringes on the operation of the carbon capture process without the express consent of the public utility and the carbon capture operator;

(ii)

Electricity generated at a facility may be used or sold for use or resale:

(A)

Within the site of the facility;

(B)

By the operator of the carbon capture technology for use relevant to the capture and sequestration of carbon;

(C)

To the public utility for its use or resale. Any sale under this subparagraph shall be in addition to any requirements imposed by the commission under this subsection;

(D)

To any public utility for use or sale within its certificated territory in Wyoming. Electricity sold under this subparagraph may be resold by contract not subject to commission price regulation to any retail customer that is eligible to purchase electricity under W.S. 37
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2
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133(f). If the public utility owns or partially owns the facility selling electricity under this subparagraph, the commission may regulate the sale of electricity under this subparagraph to ensure that other customers of the public utility within the certificated territory are not harmed by the sale;

(E)

To any municipal or joint powers utility or to any electric cooperative as defined by W.S. 37
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16
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101(a)(iv), provided that any electricity purchased under this subparagraph may be resold by contract to any retail customer that is eligible to purchase electricity under W.S. 37
‑
2
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133(f);

(F)

To any customer for the carbon dioxide captured from the facility or unit or to any other commercial or industrial electric customer, provided that the service is taken not more than forty (40) miles from the facility or unit generating the electricity for sale under this subparagraph and provided that the customer is not in the certificated territory of any public utility exempt under W.S. 37
‑
1
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101(a)(vi)(H);

(G)

To any owner of not less than ten percent (10%) of the facility, the carbon capture facility or the unit on which the carbon capture technology is installed, provided that electricity service provided under this subparagraph is taken not more than forty (40) miles from the facility selling the electricity;

(H)

To any retail customer that is eligible to purchase electricity under W.S. 37
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2
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133(f) that is located in the certificated territory of the previous owner of the facility.

(iii)

In implementing this subsection, the commission shall defer to or, if required to, implement any relevant federal law or regulations governing the transmission of electricity;

(iv)

For sales of electricity under paragraph (ii) of this subsection to a customer that is not a public utility or an owner using the owner's transmission facilities, the commission may regulate the sale only to the extent necessary to ensure that the incumbent public utility in its certificated service territory recovers delivery costs and standby costs of any standby needs of the customer. The utility selling electricity under this section and the purchaser of electricity may waive the requirements of this section except paragraph (iii) of this subsection in a contract for the sale or use of electricity under this section. The commission shall not waive any of the requirements of this subsection before receiving a contract from the parties that seek to waive those requirements.

Section 2.

W.S. 37
‑
1
‑
101(a)(vi)(N), 37
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2
‑
134(b) and (e) and 37
‑
3
‑
117(a)(i) are amended to read:

37
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1
‑
101.

Definitions.

(a)

As used in chapters 1, 2, 3, 12, 17 and 18 of this title:

(vi)

"Public utility" means and includes every person that owns, operates, leases, controls or has power to operate, lease or control:

(N)

The provisions of W.S. 37
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18
‑
101 and 37
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18
‑
102
and 37
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18
‑
201 through 37
‑
18
‑
209
shall not apply to any public utility owned or operated by a municipality or any cooperative electrical generation and transmission association operating in interstate commerce whose rates are not regulated by the Wyoming public service commission.

37
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2
‑
134.

Electric generation facility closures; presumption; commission review.

(b)

Before authorizing or approving the retirement of an electric generation facility as proposed in a rate case, integrated resource plan or other submission to the commission, the commission shall consider the effect on available reliable, dispatchable electricity to Wyoming customers
, the feasibility of the installation of carbon capture, utilization and sequestration technology at the facility in accordance with W.S. 37
‑
18
‑
201 through 37
‑
18
‑
208
and the impact that any shortage of available energy nationwide may have on Wyoming customers.

(e)

Nothing in this section shall be construed to relieve a public utility of the requirements to comply with W.S. 37
‑
2
‑
133
,

and
37
‑
3
‑
117
and 37
‑
18
‑
201 through 37
‑
18
‑
208
before the retirement of an electric generation facility.

37
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3
‑
117.

Limitation for recovery of costs associated with electric generation built to replace retiring coal
‑
fired generation facility; exemption.

(a)

Notwithstanding any other provision of this chapter:

(i)

Any electric public utility seeking to retire a coal fired electric generation facility shall first make a good faith effort to sell the facility for continued use as a coal fired electric generation facility
, including continued use as a coal
‑
fired electric generation facility that uses carbon capture, utilization and sequestration technology
;

Section 3.

(a)

The public service commission, in consultation with the department of environmental quality, shall complete a study for each coal
‑
fired electric generation facility that is or potentially may be subject to this act to determine the reclamation and decommissioning obligations for closing or retiring the coal
‑
fired electric generation facility or each unit thereof. The study shall identify the needs for reclamation and how those needs can best be met without materially impeding the sale of the facility or unit.

(b)

The public service commission shall assess the costs of the study to each public utility subject to the study under this section on a pro rata basis.

(c)

The public service commission and the department of environmental quality shall report to the joint minerals, business and economic development interim committee and to the joint corporations, elections and political subdivisions interim committee:

(i)

Not later than October 1, 2023 with a report and status update on the study required under this section. The report and status update shall include recommendations for an appropriation and a timeline for completion of the final report for the study.

Section 4.

(a)

The office of consumer advocate shall study whether a rate reduction should be granted to Wyoming electricity customers to compensate for any failure by a public utility to capture available revenue from the sale of carbon dioxide created by the electricity generation from coal
‑
fired electric generation facilities. For purposes of this study, the release of carbon dioxide whose capture would be economically feasible shall be considered the waste of a valuable natural resource. The study shall not assume a rate reduction commencing before July 1, 2026.

(b)

The office of consumer advocate shall report to the joint corporations, elections and political subdivisions interim committee and to the joint minerals, business and economic development interim committee:

(i)

Not later than October 1, 2023 with a preliminary report and status update on the study required under this section;

(ii)

Not later than July 1, 2024 with a final report on the results of the study required under this section.

(c)

The reports required under subsection (b) of this section shall be made available to the public upon receipt.

Section 5.

Nothing in this act shall be construed to impair any contract entered into before the effective date of this act.

Section 6.

The public service commission shall promulgate all rules necessary to implement this act.

Section 7
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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SF0142