Environmental quality-irrevocable letters of credit.

Plain English Breakdown

The official text does not provide detailed information about the Environmental Quality Council, only that rules will be promulgated based on recommendations from the Department of Environmental Quality.

Environmental Quality Act - Letters of Credit

This act allows operators of noncoal mining operations and solid waste management facilities to use irrevocable letters of credit from banks or credit unions, instead of bonds, for financial assurance with the Department of Environmental Quality.

What This Bill Does

• Allows operators of noncoal mining operations and solid waste management facilities to provide an irrevocable letter of credit from a bank insured by the Federal Deposit Insurance Corporation (FDIC) or a credit union insured by the National Credit Union Administration (NCUA), in lieu of a bond.
• Requires that provisions requiring rulemaking take effect immediately upon enactment, while other parts of the act become effective on July 1, 2025.

Who It Names or Affects

• Operators of noncoal mining operations and solid waste management facilities
• Financial institutions such as banks and credit unions

Terms To Know

irrevocable letter of credit

A financial document issued by a bank or credit union that guarantees payment to the Department of Environmental Quality if certain conditions are met.

Limits and Unknowns

• Rules necessary for implementing this act must still be created by the Environmental Quality Council based on recommendations from the Department of Environmental Quality.
• Does not specify how existing bonds will be handled before the new rules take effect.

Official Summary Text

Bill Summary - 25LSO-0223

Bill No.:

HB0041

Effective:

7/1/2025

LSO No.:

25LSO-0223

Enrolled Act No.:

HEA No. 0007

Chapter No.:

6

Prime Sponsor:

Lawley

Catch Title:

Environmental quality-irrevocable letters of credit.

Has Report:

No

Subject:

Authorizing irrevocable letters of credit from credit unions in lieu of bonds for mining and solid waste facility permits.

Summary/Major Elements:

Current law allows operators of mining operations and solid waste management facilities to provide, among other options, an irrevocable letter of credit from a bank in lieu of a bond.

This act authorizes operators for noncoal mining operations and solid waste management facilities to provide an irrevocable letter of credit from a credit union in lieu of a bond.

The act requires irrevocable letters of credit to be issued by a bank insured by the Federal Deposit Insurance Corporation or by a credit union that is insured by the National Credit Union Administration.

The act authorizes the Environmental Quality Council, upon recommendation from the Department of Environmental Quality, to promulgate necessary rules.

Comments:

This act has a split effective date. Provisions requiring rulemaking are effective immediately, and the remainder of the act is effective on July 1, 2025.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

25LSO-0223

ORIGINAL House

Bill No
.
HB0041

ENROLLED ACT NO. 7,

HOUSE OF REPRESENTATIVES

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session

AN ACT relating to environmental quality; clarifying the financial institutions from which operators may obtain irrevocable letters of credit to deposit with the department of environmental quality in lieu of a bond; specifying applicability; authorizing rulemaking; and providing for effective dates.

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

Section 1
.

W.S. 35
‑
11
‑
418 and 35
‑
11
‑
504(e) are amended to read:

35
‑
11
‑
418.

Cash or securities in lieu of bond.

(a)

For coal mining operations, i
n lieu of a bond, the operator or its principal may deposit federally insured certificates of deposit payable to the Wyoming department of environmental quality, or cash
,
or government securities, or irrevocable letters of credit issued by a bank organized to do business in the United States, or all four
(4)
.

(b)

For noncoal mining operations that take place on land that is not owned or operated by the United States or a federal agency, in lieu of a bond, the operator or the operator's principal may deposit federally insured certificates of deposit payable to the Wyoming department of environmental quality, or cash, or government securities, or irrevocable letters of credit issued by a bank or credit union organized to do business in the United States, or all four (4).

(c)

Irrevocable letters of credit deposited under this section shall be issued by a bank that is insured by the federal deposit insurance corporation or a credit union that is insured by the national credit union administration.

35
‑
11
‑
504.

Bonding for solid waste management facilities.

(e)

In lieu of a bond, the operator may deposit federally insured certificates of deposit payable to the Wyoming department of environmental quality, cash, government securities, or irrevocable letters of credit issued by a bank
or a credit union
organized to do business in the United States, or all four (4).
Irrevocable letters of credit deposited under this subsection shall be issued by a bank that is insured by the federal deposit insurance corporation or a credit union that is insured by the national credit union administration.

Section 2.

This act shall apply to irrevocable letters of credit deposited under W.S. 35
‑
11
‑
418 and 35
‑
11
‑
504(e) that are issued on and after the effective date of this act.

Section 3.

The environmental quality council, upon recommendation by the department of environmental quality, shall promulgate all rules necessary to implement this act.

Section 4.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2025
.

(b)

Sections 3 and 4 of this act are 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)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1