HB 169: Clean Coal Technology
2007 General Session

Sponsor: Joint Minerals, Business and Economic Development Interim Committee

HB 169 would have created a sales tax exemption for construction of “clean coal” power plants that would have fewer pollution impacts compared to traditional coal-fired power plants. Pollution control equipment would have been exempted from state sales tax, including circulating fluidized bed combustion, low nitrogen oxide burners, supercritical boilers, electrostatic precipitators, scrubbers, flue gas desulphurization equipment, selective catalytic reduction and mercury filtration, and carbon dioxide sequestration equipment. Integrated gasification combined cycle (IGCC) facilities that convert coal into electricity chemically without burning the coal would also qualify for the tax exemption.

The LSO was not unable to determine the likely fiscal impact of HB 169, because of the unknown level of construction activity that might occur in Wyoming, but they speculated that a $600 million construction project might translate to about $10 million in sales tax revenue that the state would lose if this sales tax exemption were in place.

The ESPC opposes sales tax exemptions that target specific industries or narrow constituencies, noting that there is no evidence that such tax breaks are effective incentives for large companies as they decide where to locate a particular facility.

Proponents hoped the tax break might persuade developers to construct an IGCC plant in Wyoming.

The House Minerals, Business and Economic Development Committee passed HB 169 on Monday, 8-1, with Representative Floyd Esquibel (D-H44, Cheyenne) casting the single NO vote against the bill.

The House amended the bill to require that leading edge technologies not in use in Wyoming as of March 1, 2007 would qualify for the exemption as long as their use reduces carbon dioxide and mercury pollution from the plants below current levels with currently-used technology. The House then passed HB 169, 42-17 (1 conflict of interest). The bill died in the Senate without further action.

The votes listed below are the House third reading votes. A YES vote means the representative supported a sales tax break for construction of coal power plants that produced less pollution that traditional plants. A NO vote means the representative did not support this tax break.

LINK TO ENGROSSED VERSION OF HB 169