CASPER — On the same day that Environmental Protection Agency Administrator Lee Zeldin formally announced a proposal to repeal an Obama-era rule that declares greenhouse gas emissions to be dangerous, Wyoming lawmakers debated how effective carbon capture is as a tool to promote the burning of Wyoming coal.
The 2009 “Endangerment Finding” has served as the legal basis for U.S. regulations targeting greenhouse gases under the Clean Air Act.
Zeldin on the Ruthless podcast singled out that rule as "the Holy Grail of the climate change religion" and said he was thrilled to end it, "as the EPA does its part to usher in the Golden Age of American success.”
Meanwhile on Tuesday, Wyoming lawmakers debated the future of the state's coal industry and voted down a draft bill that threatened to gut carbon capture efforts.
The draft legislation before the Joint Minerals, Business and Economic Development Committee, would have repealed Wyoming's Reliable and Dispatchable Low-Carbon Energy Standards and killed House Bill 200 from 2020 that requires utilities to evaluate carbon capture technology on their coal plants.
The repeal was opposed by Gov. Mark Gordon's office, which argued that the current law is effective and should be given more time to produce results.
"It is working! Without HB 200, utilities probably would not be analyzing the costs and benefits of carbon capture to extend the life of coal fired plants," according to a presentation from Gordon's office.
Randall Luthi, the governor's policy director, told the committee that HB 200 requires utilities operating coal-fired power plants to consider the possibilities offered by carbon capture — while also potentially making coal more appealing to states looking to reduce their carbon footprint.
"Coal just isn't for Christmas stockings anymore," Luthi said, noting coal’s non-thermal uses. Luthi also pointed out that coal consumption has declined 40% since 2015 and "renewables actually passed coal” nationally when it comes to electricity generation.
"Most people don't realize what a marketable product it is,” said Luthi, emphasizing how captured CO2 can be used for everything from carbonating soda to enhanced oil recovery.
Utility Perspectives
Utilities provided mixed assessments of carbon capture costs during Tuesday's committee meeting.
David Bush, state government affairs manager with Black Hills Energy, said installing carbon capture equipment would cost about $500 million spread across 45,000 Wyoming utility customers.
"It wasn't economically feasible to bolt on a carbon capture unit," Bush said.
When Rep. Scott Heiner, R-Green River, asked if carbon capture technology could result in a 50% rate increase, Bush acknowledged the potential cost burden but didn’t confirm such a large price spike caused by carbon capture.
Bush did state that HB 200 inspired research initiatives into carbon capture. Black Hills Energy, in partnership with Babcock & Wilcox and supported by the Wyoming Energy Authority, is conducting a project to produce hydrogen from coal using an innovative chemical looping technology called BrightLoop.
"That is a project that has come to light based on HB 200," Bush said. "Prior to House Bill 200, we are not looking at carbon capture. Utilities are pretty conservative. R&D is not our business. Our business is providing power and natural gas."
Market Realities
Rep. Christopher Knapp, R-Gillette, raised concerns about continuing to charge customers for carbon capture evaluations that may not prove economically viable.
"We continue to charge the end user for something that probably will not pan out in the market," Knapp said. "Why not let the free market actually take care of that and get rid of the mandates? It does nothing but add costs to the end user."
Luthi responded that HB 200 provides utilities a basis for understanding carbon capture feasibility, noting the legislature limited rate increases to 2% and made energy matching funds available to help with costs.
The revived debate over carbon capture comes as Wyoming's coal industry hopes to leverage Trump administration support to reverse utility trends moving away from coal. Gordon's office noted the state lost about 900 coal mining jobs in 2024 — around 20% of the workforce — with continued decline expected.
Wyoming remains the nation's largest coal producer, accounting for 40% of all U.S. production with 11 mines in Campbell County alone. Coal production in 2024 was about 190.8 million tons with employment of around 4,300 workers.
While some jobs were lost, overall coal production was up as Wyoming produced 2.7 million more tons over the first quarter of 2024, according to the governor’s office.
Wider Debate
Luthi from the governor’s office described the wider energy market as a place where Wyoming coal faces competition from natural gas, wind and solar.
Last summer, said Luthi, at a time of year when California is vulnerable to rolling blackouts, the state met its needs with clean energy sources and batteries.
“That makes me nervous,” said Luthi, in a nod to the competitive marketplace for Wyoming coal.
During the public comment period, Travis Deti, executive director of the Wyoming Mining Association, asserted that California and other states that increasingly rely on clean energy still face the threat of rolling brownouts, which involves a partial drop in voltage.
Deti noted the major news of the day at the federal level, with “repealing the endangerment plan, the whole basis of this carbon dioxide stuff.”
By voting down the repeal of carbon capture requirements for utilities, the Minerals Committee left more options on the table for Wyoming as it tries to sell more coal to more states, according to the governor’s office.
"States have passed renewable standards, even our customer states,” said Luthi, who noted that 65% of Wyoming coal goes to states with low or zero carbon standards.
Those states have yet to respond formally to the announced repeal of the endangerment finding by the EPA, but the backlash from states moving away from coal has begun.
“Rolling back these protections puts our communities — especially our children, seniors, and vulnerable populations — at greater risk from the harmful effects of greenhouse gas pollution,” stated Connecticut Gov. Ned Lamont.
As Deti acknowledged Tuesday, “It’s going to go to court, whether it holds up remains to be seen.”
David Madison can be reached at david@cowboystatedaily.com.
