One More For The Road

[{"type":"text","text":"We're not experts, but isn't this supposed to work differently??"}]

One more for 4 22 24

Cowboy State Daily is Wyoming’s largest newspaper with Wyoming’s most experienced journalists. 

<title>One More For The Road: Monday, April 22, 2024 | Cowboy State Daily</title>

By no means are we experts, but isn't this supposed to work differently??

One More For The Road: Monday, April 22, 2024

 We're not experts, but isn't this supposed to work differently??

Headshot of Cowboy State Daily's general assignment reporter, Clair McFarland.

Clair McFarland

Government & Politics

Legislature

The Joint Appropriations Committee majority tried in January to defund the Wyoming Business Council, an agency that gives grants and loans to businesses and communities.

The state Senate, which ran more fiscally moderate this year than the 

, rejected the effort overwhelmingly in February. But then in March, the Legislature passed a budget that funds the Wyoming Business Council’s operations for one year instead of the traditional two-year budget allocation.

The Joint Appropriations Committee is now delving into a monthslong research project into how it can trim the business council, tether it to legislative oversight and refocus it onto what the supermajority Republican Legislature deems proper uses of government.

The committee spent around five-and-a-half hours on that topic while meeting Monday in Lander.

Its members weighed three proposed bills. They also engaged in a spicy back-and-forth with Wyoming Business Council CEO Josh Dorrell.

[{"type":"text","text":"‘Give Me A Number'"}]

“Mr. Dorrell, what do you anticipate will be your ask for the Wyoming Business Council for the supplemental budget? And 

, how much do you need to succeed?” asked Senate Appropriations Chair Tim Salazar, R-Riverton.

Dorrell said the WBC’s figures are still in flux, and he expected it to give its final budget request submission to Gov. Mark Gordon in August. But becoming “whole,” or receiving the rest of its two-year budget, would be the priority, he added.

As of now, the agency’s budget ends June 30, 2027, unless the Legislature acts to restore its second-year money.

Salazar later voiced dissatisfaction with that answer, pressing Dorrell on it again.

“Give me a number. Tell me where that fits into the supplemental budget,” said Salazar.

“I’m not going to give you a number,” 

 Dorrell. “I don’t mean to be obtuse, but I want to work it through the proper channels first.”

Besides having its funding cut to one year of operations, the WBC is slated for a potential makeover.

Both the Appropriations Committee and the Joint Minerals Business and Economic Development Committee are reviewing the WBC’s programs and underpinning laws.

Dorrell said he’s looking for information on which programs the Legislature wants to cut.

[{"type":"text","text":"He also indicated that lawmakers don’t fully understand the agency yet."}]

“I don’t think it’s appropriate for us to really discuss the exact in-and-out if you don’t understand the things that we do,” said Dorrell, adding that WBC has presented program data to lawmakers in recent months. 

“I’d advocate to at least stay whole, as a minimum, (but also) we should look at investing in our communities, and the state agency that unlocks those,” he said.

[{"type":"text","text":"Humble Ask This Time"}]

[{"type":"text","text":"Rep. Ken Pendergraft, R-Sheridan, also parried with Dorrell."}]

“Honestly, I’m not trying to be confrontational, but I’m frustrated,” said Pendergraft. “You were asked what does it cost to be successful — no answer. No answer, no money.”

[{"type":"text","text":"Dorrell reiterated that he’d know the answer in August."}]

Salazar’s line of questioning is an echo of one he launched in December, but which Dorrell then handled very differently. 

At that time during the committee’s budget-planning marathon, Salazar asked how much money WBC needs to fix the economic problems facing the state.

[{"type":"text","text":"Dorrell answered $1.7 billion."}]

“Thank you for giving us the courtesy of the truth,” said Salazar at the time.

Around seven weeks later, the committee advanced two pieces of legislation — both of which later failed — that had sought to defund the agency and strip it from state law.

Ahead of next year’s January lawmaking session, the two committees are working on a plan to refocus the Wyoming Business Council and reevaluate its many programs.

[{"type":"text","text":"Neither committee has adopted any WBC makeover bills yet."}]

But the Joint Appropriations Committee on Monday discussed four in this vein.

[{"type":"text","text":"The Bill About Federal Money"}]

One of the bills would authorize lawmakers to review and appropriate federal funds seeking to pass through the WBC for capital and investment projects.  

[{"type":"text","text":"Dorrell cast that one as peculiar.  "}]

Congress authorizes federal money for governmental investments, the U.S. Treasury allocates those investments and enforces their terms, and the executive branch of Wyoming runs the program.

“And then all of a sudden, somehow the state Legislature is inserting itself into this process,” said Dorrell. “And while I am happy to report, I’m happy to bounce ideas off of, it feels like gumming up the system …  is exactly what this is going to do. It doesn’t help us act at the speed of business. I’m open to understanding why.”

House Appropriations Chair John Bear, R-Gillette, said lawmakers would consider that concern carefully so they don’t create undue burden. 

Of the 11 companies involved in this system, he said he hopes “the preponderance of them” have been traditional energy companies.

Bear referenced allegations Wyoming continues to wage in federal court litigation with other red states that large investors colluded to kill coal and other fossil fuels by banding together in green-energy compacts.

“Even though these are federal funds, they’re still taxpayer funds,” said Bear, who went on to ask about the WBC’s administration of its investment projects.

Dorrell said WBC’s investment committee can meet spontaneously to consider and authorize those projects, and 

 employee to serve as investments analyst.

[{"type":"text","text":"The Bill To Stop Feeding Airports"}]

The Wyoming Business Council’s Business Ready Community program generally involves WBC sending a grant or loan to a community entity, which then works on economic development and business infrastructure projects.

But WBC doesn’t call it that anymore. The agency rebranded the controversial program this year as the Building Resilient Communities program.

The Appropriations Committee is considering a bill that would ban airports from benefitting from the program, as well as recreational and convention facilities, and infrastructure projects of the WBC’s choosing.

That would leave the program free to fund or invest in land, buildings, facilities, telecommunications infrastructure, rights of way, sewer and water projects, roads and landscaping.

The bill also seeks to add a requirement that the WBC can’t grant or loan money for assets that the applicant owns or will own.

A lawsuit between Gunwerks and the Cody-based economic development group that secured funding for it has been 

over the allegedly dismal state of a building Gunwerks doesn’t own, but which the economic development group arranged to be built for the company with WBC money.   

The bill pertaining to the BRC program would also require WBC to send grant and loan plans to two lawmakers — one state House representative and one senator — for review and comment before sending them to the executive branch for final approval.  

The biggest bill the committee considered would eliminate 13 Wyoming Business Council programs, 

Others Dorrell hopes to keep, he indicated to Rep. Jeremy Haroldson, R-Wheatland.

He asked why the Wyoming Partnership Challenge Loan program is on the chopping block. That’s a loan program in which WBC partners with banks to secure loans for businesses.

Dorrell insisted the WBC is not competing with banks, but is helping businesses get loans on components on which banks aren’t authorized to lend, like the more speculative success prospects called “blue sky.”

Disaster loans are “a challenge,” but outside disaster loans, the program is at industry-standard or higher rates of success, Dorrell said.

[{"type":"text","text":"Pendergraft raised an ideological roadblock."}]

“My problem with this is ideological. Essentially, it sounds to me like you’re not in competition with the banks,” said Pendergraft. “But if a business goes to a bank and the bank turns them down — presumably because of risk — why is it justifiable to take public moneys and … risk public funds, which to me should be, probably, more cautiously invested?”

Dorrell said banks have to refuse certain investments due to other reasons besides risk.

Pendergraft countered again, asking why the government should be involved in the fate of businesses that don’t provide essential public services.

[{"type":"text","text":"Sen. Mike Gierau, D-Jackson, rebutted Pendergraft’s logic."}]

On the Select Water Committee, he said, lawmakers are willing to “dole out” significant 

“You want to talk about blue sky?” asked Gierau. “Oh my Lord. And we do it. And we do it because it’s right.”

Haroldson said he’d be happy to put a “question mark” next to this program, and he emphasized that this is only a draft bill set for more contemplation later this year.

[{"type":"text","text":"Here Bear answered Gierau’s rebuke."}]

“As you’re forming that ideology in your mind as to how you’ll approach this, I hope you’ll also not compare water infrastructure to helping mom and pop shops have a successful program,” said Bear. 

Small business success is “quite different from water infrastructure,” he added.

Water infrastructure serves small family farms, which are businesses, said Gierau.

“Water infrastructure,” countered Bear, “would be much similar to the road in front of the small mom and pop shop. ... It’s got a common usage.”

[{"type":"text","text":"The County Infrastructure Bill"}]

One of the bills contemplates a revival of the old budget appropriation called the County Consensus Funding program by which counties, if at least half of the governing boards of the local governments within them agree, could receive construction and infrastructure grants through the State Loans and Investment Board.

The Wyoming County Commissioners’ Association has asked the Legislature to send $75 million per year into that program. The draft bill says “XX” where the appropriation would go.

Three-quarters of the allocations to counties would hinge on population, and one-quarter on how poor their property values are.

Apropriations Business Council IMG 6584 6 22 26

<title>Wyoming Business Council Chief Spars With Committee That Tried To Kill Agency | Cowboy State Daily</title>

The head of the Wyoming Business Council sparred Monday with the Joint Appropriations Committee, which has tried to kill it. "No answer, no money," was the reply CEO Josh Dorrell got when he said he won't know the WBC's budget ask until August.

Wyoming Business Council Chief Spars With Committee That Tried To Kill Agency

Headshot of Cowboy State Daily's business and tourism reporter, Renée Jean

Renée Jean

Energy

Black Hills Energy faces a future where individual data centers are proposing projects that demand power on the scale of a small state. 

Project Jade, as just one example, will come into Wyoming with a “bring-your-own-power” mentality for an initial 2.7 gigawatts of power, which is nearly three times what industry analysts have said Wyoming uses now. 

Ultimately, the data center could scale to a total of 10 gigawatts, which is almost as much power as Wyoming’s existing power plants could produce at peak capacity, based on Energy Information Administration data, which lists net summer power generation capacity for Wyoming at 10.8 gigawatts in 2024.

Project Jade’s developers have promised county officials a “bring-your-own-power” model, calling its campus “very self-sufficient,” and saying its approach will ensure there’s no pressure on the existing Laramie County power grid. 

But Black Hills Energy is also a partner on the project, officials have confirmed. So, even as a “self-powered” campus, the development is still, at some point, depending on Black Hills for infrastructure and interconnection. 

Project Jade is just one of several data centers looking to build within the Black Hills service territory, but the question for each of them is essentially the same, said Wes Ashton, Black Hills Energy’s vice president of utilities for Wyoming, South Dakota, and Montana.

[{"type":"text","marks":[{"type":"textStyle"},{"type":"bold"}],"text":"Cost-Causer Is Cost-Payer"}]

“Overall, the idea is to prevent any large loads or large customers from shifting any other cost to customers,” he told Cowboy State Daily. “And typically, LPCS (large power contract service) tariffs these days, I think most people (equate) it to data centers. 

"That’s certainly the hot conversation and where a lot of the customer growth around the country is coming from.”

Customers coming into Black Hills' service territory are told up front about the large-load tariff and the company’s expectation that such customers will have to pay for any and all new infrastructure required to serve them.

That applies to their shares of the grid, as well as any other enhanced upgrade to transmission, or other sides of distribution. 

“Anything like that has to be covered there,” he said. “Or the simple way to say it is, and you may have heard before out of our company, the cost-causer is the cost-payer.”

The Black Hills large-load tariff was created more than a decade ago in response to Microsoft building a data center in Cheyenne, which became Black Hills’ first commercial, large-load customer. 

Under this system, large-load customers can expect a detailed analysis of their power requirements to happen in the early stages. 

In practice, that means the data center is expected to build or contract for its own dispatchable, onsite power, which will ultimately be integrated into the wider grid. 

“It’s a highly regulated process,” he said. “The requests that come in are negotiated out and there’s a number of different agreements that take place. Those requests and those load studies are evaluated … and all load requirements — generation, transmission system impacts — are studied in detail.”

Once the detailed system analysis is completed, a plan is then developed for serving the project’s power, which will be filed with and overseen by state regulators who evaluate the plan on whether it adequately protects existing ratepayers.

Ashton argues that this approach allows the utility to welcome extremely large data-center loads while isolating the financial risk to those customers themselves, rather than spreading it across households and small businesses.

“That is a process that takes place over a number of months, if not years, to get that set up,” Ashton said. “The core principle is that the tariff keeps away or isolates any risk on behalf of the utility, and it isolates it to that customer, so that customer makes their payments for the investment, and that customer would make their payments to be integrated onto a system. 

"And then that tariff allows, through those individual negotiations, either generation that’s behind the meter, purchasing power over the open market.”

Few Rate Hikes Despite Dozen Data Centers

Black Hills already serves about 12 total data center sites across roughly eight customers, Ashton said. 

Meanwhile, in the last decade it’s only had one rate increase request, according to a statement by Black Hills representative Austin Allen during a recent Cheyenne forum about data centers.

Here, company executives are referring to base-rate cases. Separate fuel and power-cost adjustments are handled through other mechanisms on a customer’s bills.

It’s a track record that has the company confident that its large-load tariff is working as intended, and keeping the costs of scaling up power for such customers from affecting ordinary ratepayers in an undue manner. 

“We’ve probably got another maybe a dozen or so entities that we’re in various stages of conversations or negotiations with,” Ashton said. “There are always conversations and customers at various levels of maturity. 

"Some are introductory conversations, some are actively trying to work a project, and some are developers.”

So far, nothing has suggested that the company’s large-load tariff won’t be scalable to gigawatt territory. 

In fact, Ashton said the infrastructure that these companies have built out has ripple effects that have so far been positive for consumers, improving grid reliability and efficiency for everyone.

“They help by essentially funding the system enhancements that we have, and ultimately those benefits extend to all of our customers,” Ashton said, adding that new value also comes along as many of those customers continue to invest in infrastructure. 

“That system investment not only provides greater reliability to our network, but it also has benefits to all of our customers,” he said. “And that’s why year-in, year-out, our Cheyenne system is one of the best — if not the absolute best — in reliability in the country. It’s always in the top one or two for reliability, because we continually invest in that system.”

The Edison Electric Institute is the body that publishes the ratings, which includes an annual study of interruption minutes. According to that body, Black Hills Energy’s electric utility in Cheyenne has been in the top quartile for reliability for the past 10 years running.

EEI data by the company consistently show outage minutes that land in top tier utilities, a point Black Hills frequently touts when marketing its system to data centers. 

[{"type":"text","marks":[{"type":"textStyle"},{"type":"bold"}],"text":"Could Bills Go Down?"}]

Public concern about the power use of data centers has settled around the simple question of whether their power needs will show up on everyone else’s bill, but Ashton believes it’s actually the opposite way around. 

Because of the data center improvements, rate increases have been slower than they might have been, which is to the regular ratepayers’ advantage.

Ashton doesn’t have a specific figure to encapsulate that, but said “rates have held steady as a result.”

The LPCS tariff has frequently been touted by state regulators, consumer advocates, and even Wyoming legislators as effective. So far, however, no large customers have scaled back or left, so that’s a scenario that has yet to be tested.

“I like to say that as we continue to experience growth on that system, or our system, that has been a good thing for customers, in addition to tax base and jobs,” he said. “We have been very involved in support for being a long-term partner to growing Wyoming’s economy by bringing value to the table, by bringing expertise, and to be a trusted partner for the communities we serve by providing safe, reliable, cost-effective energy.”

As the scale jumps from megawatt to gigawatt, Ashton said Black Hills continues to believe their tariff written for large loads a decade ago is still the right tool. 

Whether that promise holds true as Project Jade and other massive data center projects move from concept to construction will help determine how much of the AI boom Wyoming can absorb — and at what utility cost to people already living on the high plains.

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<title>How Black Hills Energy Is Preparing For Surge Of Power-Hungry Wyoming Data Centers | Cowboy State Daily</title>

Black Hills Energy says it’s ready for a surge of power-hungry Wyoming data centers that can each use as much electricity as a small state. The bottom line is making those projects pay their own way, said a company official. 

How Black Hills Energy Is Preparing For Surge Of Power-Hungry Wyoming Data Centers

Headshot of Cowboy State Daily's Feature Reporter, Andrew Rossi.

Andrew Rossi

Outdoors

Public Lands

Almost a week after a semitruck carrying 

 flipped over in Yellowstone National Park and destroyed hundreds of hives, bees are still swarming around the area.

Thousands of bees are still homeless and visibly trying to survive in large groups on “bee trees” along U.S. Highway 191. 

Jim Holstein with Yellowstone Tour Guides has been passing through the area where the accident occurred. He took a photograph of one of the bee trees, where thousands of bees had completely covered a small lodgepole in a vast, buzzing swarm.

“They were still there on Monday,” Holstein told Cowboy State Daily. “It’s in the park between Big Sky and West Yellowstone. All the hives have been cleaned up, but there are quite a few bees left.”

[{"type":"text","marks":[{"type":"bold"}],"text":"Bee Trees"}]

Cheyenne beekeeper Michael Jordan is familiar with bee trees. They’re an indication that a colony of bees is actively house-hunting.

“It’s what's called a swarming mechanism,” he said. “The queen leaves and takes about half or more of the colony and moves to a new safe location.”

Jordan said this is common behavior for honeybees when a hive gets overpopulated. The existing queen will take nurse bees and guard bees to sustain herself in a temporary location while scouts search for a permanent 

“The scouts will search until they find a permanent location,” he said. “In the meantime, you'll have groups and colonies hanging in the trees as they regroup.”

A new permanent home could be a hole in a tree, a cave, or “anywhere that’s out of the water and elements,” said Jordan. 

Bee trees are meant to be staging locations so the scouts can lead the hive to their new home.

[{"type":"text","marks":[{"type":"bold"}],"text":"Sugar High"}]

When the scout bees find a suitable location for a permanent hive, their next priority is

“Right now, they’re looking for a sugar source,” Jordan said. “Bees need sugar to produce wax from their glands. Once they produce the wax and form it, they'll actively engineer foam in what we call a pendulum manner to make honeycombs.”

Bees instinctively know how to build hives, and their goal is to start propagating as soon as possible after a hive-destroying incident.

Once they find a suitable spot with plenty of sugar in the vicinity, maybe a rock formation or building near a flower-filled meadow, the queen will follow the scouts to the new hive. Instinctively, all the bees on the bee tree will follow her.

Jordan didn't think there would be any bee trees for tourists to see by Wednesday.

“Those clusters will be gone within 24 to 48 hours if they find a good location,” he said. “After that, there’s nothing you can do to recover them, because tracking them is very hard.

The fact that bee trees can still be seen along U.S. Highway 191 six days after the June 16 crash might indicate the bees are having trouble finding an ideal place for a new home. But it definitely means the colonies can be safely recovered.

[{"type":"text","marks":[{"type":"bold"}],"text":"Get Those Bees, Please"}]

Within 24 hours of the semitruck incident, people were at the scene removing the damaged honey boxes and trying to recover whatever remained of the bee colonies that had been residing in them.

Jordan said the first 48 hours are crucial in a bee recovery situation like that.

“If you can’t get new hives set up in 48 hours, the queens will migrate and leave a pheromone trail that the bees accommodating her in that hive will follow,” he said. “That’s what the bee trees are: thousands of bees accumulating around the queen.”

That means there’s a small window to safely save these bees before they become permanent Yellowstone residents.

Jordan’s strategy would be to place a mobile swarm trap. It’s basically a column of PVC pipes with buckets attached to either end. The height can be adjusted to get as close as possible to the colony clusters.

“If the bees accumulate in the buckets as a temporary hive, you can relocate them to an apiary and manage them there,” he said. “You can even hold a bucket up to the colony and shake them inside. That’s how you can naturally collect and remove a colony.

[{"type":"text","marks":[{"type":"bold"}],"text":"No Bears — Yet"}]

Commercial vehicles like semitrucks are banned in Yellowstone, but U.S. Highway 191 is an exception. It hugs the western boundary of the park and is an important 55-mile thoroughfare between West Yellowstone and Big Sky, 

"They've enacted a temporary 35 mph speed limit on the section where the bees are," Holstein said. "People have to keep their windows up, and there's no stopping until crews can get the remaining bees rounded up."

When the bee trees disappear, it means the bees have found a suitable spot to rebuild their hive. Finding and removing the colony would be difficult, if not impossible, especially in the dangerous wilderness of Yellowstone.

[{"type":"text","text":"After all, who loves honey more than bears?"}]

[{"type":"text","text":"“I haven’t seen any bears,” Holstein said. “Yet.”"}]

Jordan was more concerned about the people who lost their honey boxes and bee colonies. He knew how much money they had lost and must have spent trying to salvage whatever they could from the accident.

“From the way it looks. I’d think about 40-50% of what’s there is salvageable, maybe,” he said. “Each honey box can cost around $500 and generate around $2,000 in honey. 

"There could be two or three owners who lost their livelihood in that accident. That’s at least one whole company that has to rebuild.”

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<title>Millions Of Bees Swarm On Trees In Yellowstone After Hives Smashed In Semi Crash | Cowboy State Daily</title>

Almost a week after a semitruck carrying millions of bees flipped over in Yellowstone National Park and destroyed hundreds of hives, bees are still swarming on trees in the area. “It’s what's called a swarming mechanism,” said a Wyoming beekeeper.

Millions Of Bees Swarm On Trees In Yellowstone After Hives Smashed In Semi Crash

Headshot of Cowboy State Daily reporter, Jackie Dorothy.

Jackie Dorothy

Wyoming Life

Around Wyoming

Wyoming's oil boom in the late 1800s quickly became a frontier land war as former gunmen, prospectors and even nobles from Europe converged on the Salt Creek and Teapot Dome oil fields near Casper.

The cowboys of the Hole-in-the-Wall area were just learning their outlaw trade when the first oil claim had been made in the Salt Creek oil field. 

In the fall of 1889, an oil baron from Pennsylvania, Mark Shannon, known to his associates as a successful wildcatter, producer and promoter, saw the possibilities in the land that the cattle barons had scorned. 

Shannon had started secretly drilling the first well the year the Johnson County War was first erupting. 

While the cattlemen saw nothing in the sparse grasslands, alkali creeks and oil film on the soda lakes, Shannon saw a fortune to be made in oil, according to Ed Bille who grew up in the oil fields during the 1920s Teapot Dome Scandal. 

Bille documented these early days of lawlessness in his 1978 book, “Early Days at Salt Creek and Teapot Dome.”

“When the well came in, the derrick was fenced and guarded and an air of secrecy hung over the project for a few months,” Bille wrote. “The reason given was that Shannon wanted to be sure of a clear title to the land.”

In the days before the automobile became commonplace, Shannon hauled his oil to Casper by wagons using 12 to 18 horses. 

The string teams would then return with a load of supplies while people wondered out loud what this oil was even good for. Hundreds of barrels of the black gold went unused for those first decades, and newspapers lamented the waste. 

In the meantime, there was plenty of scandal associated with those early days of the Teapot Dome and Salt Creek oil fields before the oil hit the fan in the 1920s.

[{"type":"text","marks":[{"type":"bold"}],"text":"Wildcatting"}]

Early day wildcatters were prospectors who took a string of tools and drilled for oil in places it was not known to exist. 

Bille said they came from all walks of life, including ranchers, doctors, lawyers and merchants. 

Years before armed Marines invaded Wyoming and a cabinet secretaries went to prison for the Teapot Dome scandal of the 1920s, those same oil fields were already plenty scandalous. Arguments over land were often settled by whoever had the quickest draw.

One More For The Road: Monday, April 22, 2024

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