NEW REPORT: Balancing The Scales: How Wyoming Can Protect Its Energy Revenues

Wyoming Liberty Group, working with Always On Energy Research, released a policy report titled "Balancing the Scales: How Wyoming Can Protect Its Energy Revenues," authored by Trevor Lewis and Gabriel Collins, with project oversight by Isaac Orr.

For the past several decades, Wyoming has benefited enormously from tax revenues generated from extracting coal, oil and gas. As global demand for these resources has declined over the past 15 years, revenues have also declined. This trend is likely to continue, giving Wyoming little leeway to change the negative outlook for coal, oil and gas extraction.

This report finds that the only feasible way Wyoming can prepare itself for this decline in revenues is by looking elsewhere for new revenues. Wind generated electricity is currently taxed at a rate significantly less than oil, gas or coal. Solar generated electricity is not taxed at all. Wind and solar developers are expected to drastically expand their operations over the next 15 years, giving Wyoming the opportunity to consider a tax rate that is more in line with current tax rates on coal, oil and gas. To soften the blow to developers, legislators should consider adopting a renewable royalty tax on the price a developer receives for wind and solar, rather than the current excise tax model.