HB 143: Integrated Gasification Combined Cycle Electric Generation
2007 General Session

Sponsor: Joint Minerals, Business and Economic Development Interim Committee

HB 143 would have exempted coal that is used for integrated gasification combined cycle (IGCC) electricity generation from all severance taxes except the one and a half percent that is required by the Wyoming Constitution.

IGCC power plants convert coal into electricity chemically without burning the coal, and produce about 95 percent less air pollution than do conventional coal burning power plants. The IGCC process may also be able to contain carbon dioxide emissions, although that technology is not yet fully developed and remains unproven. There are no IGCC power plants in Wyoming, although there is interest in building one or more in the future.

HB 143 was devised to encourage developers to construct an IGCC plant in Wyoming, to help maintain the state’s coal mining industry into the future as conventional coal-fired power plants fall into disfavor due to their high environmental costs. The bill would not have reduced any current revenue to the state, since we have no IGCC plants now, but it was estimated that for each plant that was constructed, the state would forego at least $1.1 million to $1.4 million in tax revenue per year.

Skeptics pointed out that giving large tax breaks to coal mining companies would not necessarily encourage developers to construct IGCC plants, and there was no sound reason to assume that any potential savings to the power plant would be passed on to their customers, electricity consumers. Some opponents viewed the bill as simply another tax break for big industry at the expense of state revenue.

The House Minerals, Business and Economic Development Committee passed HB 143, 7-2. Representatives Floyd Esquibel (D-H44, Cheyenne) and Debbie Hammons (D-H27, Worland) voted against the bill. Then, the full House passed the bill, 43-15 (1 excused, 1 conflict of interest).

The Senate took no action on HB 143, so it died without further votes.

The votes listed below are the House third reading votes. A YES vote means the representative wanted to exempt coal that was used in IGCC power plants from paying state severance taxes. A NO vote means the representative did not want to give this tax break to coal mining companies.

LINK TO ENGROSSED VERSION OF HB 143