Governor Dave Freudenthal signed a bill on March 5 that will make Wyoming the first state to tax wind production, reports the Wildlife Management Institute. The governor has been vocal about ensuring parity among the various energy producers in the state citing the potential habitat and community impacts of wind farms. Also signed into law were two other bills that would extend the state's permitting authority over wind farms and collector transmission lines as well as set a moratorium until June 30, 2011, on the use of eminent domain to take private land for collector lines.

"We're not playing games here," Freudenthal stated in February. "This is an industry whose impact on this state will be very real for a long time to come. And it is an industry we should welcome, but we should welcome with some sideboards on it, just like we do with anything else."

The new state law will require a $1-per-megawatt-hour tax on wind energy generated in the state starting in 2012. Earlier versions of the bill would have charged as much as $3-per-megawatt-hour and would have gone into effect in 2011. Based on existing wind production in the state, the new tax, at the rate signed into law, will generate approximately $4.9 million annually. The revenues will be shared between the state government and local governments where the wind development is occurring. In addition, the new siting requirements give counties permitting authority over wind farms and set minimum standards of development, including road, emergency and waste management plans as well as requirements for decommissioning sites.

The three new wind energy laws were key provisions in a proposal made by Governor Freudenthal in early February. That proposal was based on the recommendations of two task forces?a policy-focused group established by the state legislature and one established by the Wyoming Game and Fish Department (WGFD) to evaluate environmental impacts.

"With proper ground rules, wind energy can generate income for the agricultural community, help diversify Wyoming's economy and tax base and perhaps become a significant source of employment," Freudenthal said of the proposal. "The increasingly heated discussions around wind projects and power lines are just the beginning. We must develop a set of fair rules that protect Wyoming people while providing certainty to wind developers." (jas)