Task Force on Wind Energy Meeting Minutes

COMMITTEE MEETING INFORMATION

August 26-27, 2009

McMurray Training Center, Casper, Wyoming

COMMITTEE MEMBERS PRESENT

Senator Jim Anderson - Chairman

Representative Rodney "Pete" Anderson

Senator Marty Martin

Senator Drew Perkins

Representative Seth Carson

Representative William "Jeb" Steward

Representative Tim Stubson

Commissioner Kent Connelly

William J. "Bill" Miller

COMMITTEE MEMBERS ABSENT

(none)

LEGISLATIVE SERVICE OFFICE STAFF

Ian D. Shaw, Staff Attorney

Matt Sackett, Research

OTHERS PRESENT AT MEETING

Please refer to Appendix 1 to review the Committee Sign-In Sheet

EXECUTIVE SUMMARY

The task force met for two days. The task force received public testimony and educational presentations the first day. The second day, the task force continued hearing public testimony and receiving educational presentations. The task force then started formulating potential recommendations for the Legislature, considered new tax issues and set a schedule and method for completing its interim tasks.

The task force will meet again on October 12, 2009 in Casper, Wyoming.

CALL TO ORDER

Chairman Anderson called the meeting to order at 8:00 a.m. Roll call was taken and all members were present.

The task force then considered the items on its agenda, included as Appendix 2.

Brian Riley of Wirlwind, LLC made the first presentation to the task force. He described Wirlwind, LLC's projects in Wyoming and discussed how agreements are negotiated between wind developers and landowners and the terms of landowner leases. Mr. Riley explained that royalty payments made to landowners provide a viable way for Wyoming to retain its agricultural heritage by allowing ranchers to generate considerable revenues from their lands. Mr. Riley discussed the items included in his slide presentation, included as Appendix 3.

Terry Henderson provided the task force with testimony regarding a rancher's perspective on wind development. She is a member of the Renewable Energy Alliance of Landowners ("REAL"), an association of land owners in favor of wind development. She described wind energy associations and how REAL works. Ms. Henderson discussed the items included in her slide presentation, included as Appendix 4.

Lynne Boomgaarden, director of the State Lands and Investments Board ("SLIB") provided a summary of how SLIB works and how it handles the lease of state lands for gathering wind data, constructing wind operations and generating wind power. Mrs. Boomgaarden explained that 90% of all revenues generated by state lands come from subsurface mineral rights. Wind development on state lands offers a means of making the surface estate more economically productive. Presently, all state lands that are within sage grouse core areas have been withdrawn from wind energy development in an effort to prevent the sage grouse from being listed as an endangered species under the Endangered Species Act. Mrs. Boomgaarden discussed the items included in her slide presentation, included as Appendix 5.

Janelle Wrigley from the U.S. Bureau of Land Management explained federal land leasing and development to the task force. She explained the types of rights-of-way that the BLM offers to wind energy developers. She provided maps of both wind resources in Wyoming and current commercial wind development. Ms. Wrigley discussed the items included in her slide presentation, included as Appendix 6.

Next, Mark Stacy from Iberdrola Corporation made a presentation to the task force. He outlined the process for the development, building and operation of a commercial wind farm. He discussed various issues that can pose obstacles to development, including taxation structures, uncertain regulatory schemes and limited infrastructure. Iberdrola believes all three of these roadblocks exist in Wyoming. Mr. Stacy discussed Iberdrola's efforts to negotiate payments in lieu of taxes with counties. In response to a question by Senator Perkins, Mr. Stacy indicated that neither of Iberdrola's two, existing Wyoming wind projects were built under the jurisdiction of Wyoming's Industrial Siting Council. Mr. Stacy discussed the items included in his slide presentation, included as Appendix 7.

The task force then offered the floor for public comment and there was none.

The task force members provided comment. Representative Anderson asked industry to provide the task force with a proposed regulatory scheme that would be acceptable to them.

Matt Grant from Rocky Mountain Power summarized a voluntary tour many task force members attended on August 25^th. The tour was conducted at Rocky Mountain Power's wind farm near Glenrock, Wyoming. Mr. Grant referred to a package of information provided to the members during the tour and that information is included as Appendix 8. Mr. Grant also explained that Rocky Mountain Power is a part of PacifiCorp and, unlike many wind power generators, is regulated by the Wyoming Public Service Commission ("PSC"). Mr. Grant explained that most of Rocky Mountain Power's investments and its rates must be approved by the PSC. Rocky Mountain Power recommends that the Legislature not adopt more stringent regulations for wind energy development than those already imposed by the Industrial Siting Council and the PSC.

Steve Ellenbecker from the Wyoming Infrastructure Authority provided a summary of the Authority and explained the issues facing electrical transmission in Wyoming. He described the Western Governor Association's study on renewable energy hubs and which ones are located in Wyoming. He explained the large gap between potential renewable energy portfolio standards and existing renewable energy production capacity. There is as much as 15,000 megawatts of potential renewable energy development in Wyoming but no excess transmission capacity. Mr. Ellenbecker also discussed the areas of potential environmental conflicts within areas that could be developed. Mr. Ellenbecker believes that renewable resources can be economically developed in Wyoming, even considering the costs of transmission. Finally, Mr. Ellenbecker described the Wyoming Collector System Task Force which has been organized for the purpose of providing a coordinated effort to develop transmission capacity in Wyoming. The task force recognizes the improved reliability and flexibility available with an interconnected transmission system. A task force study on line separation is available on the task force's web site. Mr. Ellenbecker discussed the topics indicated in his slide presentation, included here as Appendix 9.

Craig Knoell, transmission infrastructure program manager with the Western Area Power Administration, provided testimony regarding funds available for transmission from the American Recovery and Reinvestment Act. Mr. Knoell discussed the topics indicated in his slide presentation, included here as Appendix 10.

The task force then opened the floor for public comment. Scott Zimmerman delivered a land owner's perspective. He explained that land owners would prefer annual payments, rather than one-time damages payments, when power lines cross their property. He explained this would be a significant incentive which might promote greater land owner participation. Mr. Zimmerman explained that land owners understand the need for regulation but do not support an expansion of regulations that will inhibit development. Landowners want to be free to maximize the value of their property.

Daly Edwards from Audubon of Wyoming presented Audubon's position to the task force. That position is included as Appendix 11 which was read to the task force. Audubon supports wind development in areas where there is already a human footprint and not in sage grouse core areas. Audubon also does not believe that research should be conducted in core areas.

The floor was opened to additional public comment and there was none.

After a break for lunch, Mary Flanderka, Wyoming Game and Fish Department Habitat Protection Unit, described the Game and Fish's efforts to identify environmental conflicts in areas with Class 4 or higher winds. She displayed various maps showing conflict areas. Ms. Flanderka discussed the topics indicated in her slide presentation, included here as Appendix 12.

John Emmerich, deputy director of the Wyoming Game and Fish, provided testimony about sage grouse and the sage grouse core area concept. He described the gravity of the problem and reviewed what is known about wind development impacts on sage grouse. Very little is known and considerable research needs to be done. Core areas overlap approximately 25% of class 5 winds in Wyoming. Core areas occupy approximately 14% of class 6 and 7 winds. Mr. Emmerich discussed the topics indicated in his slide presentation, included here as Appendix 13.

Bob Budd, executive director of the Wyoming Wildlife and Natural Resource Trust, also discussed sage grouse issues related to wind development. He described the recent reductions in nationwide sage grouse populations and the pressure it has placed on getting the sage grouse listed as an endangered species. Wyoming hosts approximately 54% of the world's sage grouse population. Mr. Budd described the core area concept and how it was developed. He showed a map of core areas and how they overlap various energy producing sites. Mr. Budd explained that the identified core areas may need to be adjusted as more information about sage grouse populations and industrial development is revealed. A decision from the federal government will be issued in February 2011 indicating whether the sage grouse will be listed as an endangered species. Early indications are that the federal Fish and Wildlife Service has accepted Wyoming's core area concept and may be directing other states to follow Wyoming's lead. Mr. Budd's slide presentation is included as Appendix 14.

The floor was opened for public comment and there was none.

Sophie Osborn from the Wyoming Outdoor Council then presented. The Wyoming Outdoor Council ("WOC") supports the development of wind energy as a means of meeting renewable energy needs, but encourages broad consideration of wildlife and land impacts. Some areas should be declared off-limits to development. Development is not appropriate within core sage grouse areas and research should not be conducted within these areas. They encourage wind development east and north-east of I-25 where there are few environmental issues. WOC is working on a best management practices manual to avoid environmental problems.

The floor was opened to public comment and there was none.

In response to several questions by Senator Perkins, Lynn Alder from Wasatch Wind explained collaborative research approaches and how they will create viable and defensible wildlife research. Wyoming needs to find 3 sites to study for 5-7 years. These sites need to have significant sage grouse populations and be in areas where wind farms will be built.

Mary Hopkins from the Wyoming State Historic Preservation Office made a presentation to the task force detailing how special lands and historic places can be protected from development. She discussed current issues with wind energy development and those issues contained in her slide presentation, included as Appendix 15.

Ken Lay then presented on behalf of the Northern Laramie Range Alliance, an alliance of land owners concerned about commercial wind development in the Laramie Range. Mr. Lay summarized the wind projects proposed in the Laramie Range and indicated that Rocky Mountain Power is considering rerouting one transmission line. The Alliance assembled 600 petitions which were delivered to the task force and which are available for inspection at the LSO office, State Capitol Building, Room 213, Cheyenne, Wyoming. The alliance would like a moratorium on wind development until all areas of conflict can be resolved. Mr. Lay explained the variety of interests, both pro-development and anti-development, held by land owners. Development tends to advantage a few while serving to the detriment of many. Mr. Lay presented those issues contained in his slide show, included here as Appendix 16. Mr. Lay suggested developing simplified public and private programs to fund conservation easements on lands which might otherwise be developed. Mr. Lay wants funding available to help keep pristine recreational areas and mountainous areas free of development, while compensating those land owners who would have gained by allowing wind development on their property. Mr. Lay suggested that funding might come from a new production tax.

Bob Whitton presented as the chairman of the Renewable Energy Alliance of Landowners ("REAL"). Mr. Whitton stated that the right to develop wind should be a guaranteed property right which allows people to earn revenue from their land and which provides a common benefit to all. Mr. Whitton recounted the various benefits that accompany development. REAL believes that wind is a property right that runs with the surface estate and that should not be severable from the surface estate. REAL's position is that wind developers should pay taxes. Mr. Whitton encouraged the task force to work on transmission issues so that lands can be developed. REAL suggests the development of landowner transmission associations composed of landowners who are willing to dedicate a portion of their lands to transmission corridors in exchange for fair compensation. Mr. Whitton presented those issues contained in his slide show, included here as Appendix 17.

Jim Magagna summarized a letter delivered to the task force by the Rock Springs Grazing Association. The letter is included as Appendix 18. Mr. Magagna is concerned about the lack of appropriate local guidance on wind development in and around Sweetwater County. Mr. Magagna emphasized how wind power development could provide badly needed economic viability to ranching operations. Mr. Magagna suggested the organization of a wind energy commission which would be tasked with all regulation of the wind industry. He felt that a new commission, among other things, could provide industry-funded decommissioning processes. He stated his concerns about the exercise of eminent domain by the federal government and encouraged the siting of transmission lines through negotiation, not government takings.

Walt George from the Bureau of Land Management described transmission line planning and approval on federal lands. He explained the different types of processes involved, depending on the type of use contemplated. He discussed the fees and financial assurances required. He described the differences between the non-exclusive rights-of-way granted for transmission lines and the exclusive grants given for the development of wind farms. The process is coordinated with National Environmental Protection Act requirements, which, in turn, incorporate the requirements of other federal mandates like the Endangered Species Act and the National Historical Preservation Act. The approval process takes between 30 and 48 months and requires the drafting of an environmental impact statement. The BLM has designated certain corridors for development with various exclusion and avoidance areas. However, siting within these corridors can raise reliability issues since lines must be placed in close proximity to each other. BLM is working with the Wyoming Industrial Citing Council on an MOU which will promote consistent development and siting decisions between the agencies. The BLM is studying the possibility of coordinated development of up to 5 lines in order to increase efficiency and limit the total footprint of development. Mr. George discussed those issue contained in his slide show, included here as Appendix 19.

Steve Oxly, deputy chairman of the PSC, explained how the PSC regulates only those power producers who deliver power to the public. Regulated power producers must get a certificate of public convenience and necessity to build new projects. The producer must obtain approval before it can incorporate the costs of a new project into their Wyoming rates. Mr. Oxly discussed how the PSC rules do cover decommissioning of regulated producers. Representative Stubson suggested making sure any state-wide decommissioning standards are consistent with any standards required by the PSC. Mr. Oxly discussed those issues contained in his slide show, included here as Appendix 20.

Todd Parfitt from the Wyoming Industrial Siting Council ("ISC") provided an overview of the ISC and Wyoming Industrial Siting Act. Mr. Parfitt provided a package of information to the task force, including suggested changes to the Industrial Siting Act, included here as Appendix 21. Mr. Parfitt explained that DEQ and PSC conditions and regulatory requirements still can be applicable after the ISC has acted. However, other requirements are satisfied. The task force discussed the importance of incorporating any duplicative county regulatory requirements into the ISC process. Mr. Parfitt explained the availability of impact assistance payments for projects sited by the ISC. Such payments are based on any increases in sales tax revenues upon the construction of a new project. Currently, there is a sales tax exemption for the development of wind farms which limits the amount of impact assistance available to counties. Mr. Parfitt discussed the jurisdiction of the ISC. Only projects with a construction cost of approximately $173 million are required to go through the industrial siting process. It generally takes the construction of 50-58 towers to reach this jurisdictional threshold. The task force discussed whether some commercial wind energy projects have been constructed with budgets just under this jurisdictional amount, or have been built in phases to avoid the ISC's jurisdiction. Electrical transmission lines under 500kv are exempted from ISC jurisdiction. Mr. Parfitt discussed changes to the Industrial Siting Act which could be made including: 1) changing the jurisdictional threshold to 30 towers or 50 megawatts of generation (approximately $100 million in construction costs); 2) allowing county commissioners to request that the ISC permit a project that is otherwise under the ISC threshold; 3) requiring parent and holding companies to comply with ISC requirements; 4) lowering the transmission line exemption; 5) increasing the application fee to cover the true costs of the process, including compliance issues; 6) expanding notice provisions to include additional agencies who play a part in the process; 7) amending time limits to provide time for thorough review and comment; and 8) requiring every applicant to certify that they have given counties the opportunity to review an ISC application within 30 days of filing the application.

County commissioner Ed Werner and Cindy DeLancey, Carbon County Attorney, presented information regarding the current extent to which counties regulate wind development. Mr. Werner presented a proposed statute which would provide a county-managed, state-wide standard for wind development. The standards would not dictate the placement of wind towers, but would provide a procedural framework. The proposed legislation is included as Appendix 22. Mr. Werner discussed those issue presented in his slide show, included here as Appendix 23. The counties would like for impact assistance to be based on actual impact and actual revenue from development. Upon suggestion from Representative Stubson, Mr. Werner agreed that counties should not have requirements that are duplicative of those which would already be required by the Industrial Siting Council.

Matt Grant from Rocky Mountain Power provided a handout to the task force which comments on the proposed state-wide county standards, included as Appendix 24.

Professor Dennis Stickley and students Brian Marvel and Benjamin Kenny from the University of Wyoming Law School provided legal research to the task force. They discussed the ownership of wind, the severance of wind from the surface estate, the nature of federal regulations which impact wind development and various other legal issues. They conclude that the right to wind is a right which runs with the surface estate and which should be made non-severable from the surface estate. An executive summary of their research was provided to the task force and is included as Appendix 25. Representative Steward asked whether the right to wind might be best modeled after water law. Mr. Marvel explained that current law indicates wind is a personal right that does not belong to the state, as does water. Perhaps the law of diffused surface water (e.g. rain and melting snow) is more applicable. Professor Stickley described the current drive to develop state laws to regulate wind development, but acknowledged potential preemption issues under the Energy Policy Act of 2005. The Federal Energy Regulatory Commission ("FERC") has allowed states to approve transmission line siting, but it has the authority to preempt states and do it themselves. FERC may exercise that authority in the near future.

The task force then took public comment. Lynn Welcher from the Wyoming Mining Association provided a handout and slides, included as Appendix 26. She talked about the significant potential conflicts between mining interests and wind development. Representative Anderson invited her to submit to the task force proposed legislation which she believes would address this issue.

Dwayne Meadows from the Wyoming Wildlife Federation and National Wildlife Federation discussed the importance of tourism, hunting and fishing in Wyoming and the importance of preserving Wyoming's public lands. He suggests that wind energy be developed with an open and transparent process including ample opportunity for public comment. Some lands should be protected and development should be prioritized toward lands that already have human impact. Permitting decisions should be made in formal and documented procedures, utilizing the best available science. Wildlife impacts should be closely monitored and a fund should be established from permitting fees to fund mitigation and reclamation projects. A paper copy of Mr. Meadows' recommendations was provided to the task force and is included as Appendix 27.

Terry Henderson suggested a competitive bidding process be used for wind energy development.

Mark Tollman, Vice President of Rocky Mountain Power, clarified the decommissioning / bonding issues for publicly regulated power providers. The PSC already monitors a utility's financial health and so bonding is unnecessary and would increase customer's utility rates. He also clarified that a regulated utility cannot abandoned its facilities, thereby necessitating decommissioning, without seeking permission from the PSC. Finally, industrial siting applications include decommissioning and so the issue already is addressed as part of a regulated utilities' application for a certificate for public convenience and necessity.

Meeting Recess

The Committee recessed at 5:40 p.m. and then continued on August 27^th at 8:00 a.m. Chairman Anderson called the meeting to order.

Ian Shaw, LSO staff attorney, provided the task force with a summary of state law which provides private companies the right to exercise the power of eminent domain for the purposes of developing transmission lines. A legal memorandum was presented to the task force and is included as Appendix 28.

Industry representatives then provided testimony to the task force. First was Craig Cox, Interwest Energy Alliance. Mr. Cox testified that inconsistent regulations and transmission constraints may limit wind development in Wyoming. However, wind energy is cost-effective and important to water conservation. Wind energy has a small carbon footprint, creates jobs and is wildlife-friendly when compared to other energy production methods. Mr. Cox discussed those issues identified in his slides, included as Appendix 29.

Peter Wold, Whirlwind LLC, presented Whirlwind's activities in the state. Mr. Wold provided recommendations to the task force: 1) develop and promote transmission; 2) encourage wildlife impact studies to make clear how industry can mitigate its impact; and 3) avoid oppressive taxes that will negate Wyoming's competitive advantages and push development out of Wyoming, just as Montana pushed out the early coal industry.

Dave Throgmorton from the Carbon County Higher Education Center described Carbon County's ability to educate a work force. Wind energy promises to bring a more steady development and economic backbone to Wyoming. He hopes component manufacturing and repair, industrial maintenance, testing facilities, research facilities, warehousing and other facilities will move to Wyoming with wind energy development.

Fred A. “Rocky” Clark, International Brotherhood of Electric Workers, provided a slide presentation to the task force, included as Appendix 30. The IBEW has an extensive training curriculum for green energy. The IBEW has adopted the Code of Excellence Program that demands best practices of workers and employers. Mr. Clark explained that IBEW hires locally until it has drained the pool of qualified workers and then hires nationally.

Mark Stacy and Chris Bergen of Iberdrola Renewables summarized the tax position paper of the Wyoming Power Producers Coalition, provided to the task force and included as Appendix 31. Wyoming needs to develop a tax policy which promotes development and is consistent with the tax policies of our neighboring states. They believe Wyoming is at a competitive disadvantage because of high sales taxes, if the current sales tax exemption for renewable energies is allowed to expire. Existing property taxes are higher than most states. They warn that any new generation tax may force industry out of the state. Wyoming's lack of income tax and corporate tax are good, but operate in the long-term and do little to reduce the up-front costs of development. Mr. Bergen provided suggestions for Wyoming's regulatory framework including providing certainty, minimizing redundancy, promoting communication between agencies, closely protecting intellectual property rights and adopting reasonable fee structures.

Next, attorney John MacPherson provided testimony on his legal research regarding wind as a property right. The legal memorandum he prepared and presented to the task force is included as Appendix 32. He agrees with the law school's presentation that the wind right is a property right that runs with the surface estate. He provided the task force with draft legislation that would codify the surface owner's right to the wind. He believes the right should, however, be severable so as not to deny a surface owner's right to use his property as he sees fit. Other property rights in Wyoming are generally severable and there is no reasons to treat wind rights differently. The proposed statute would confirm that the mineral estate is dominant. Mr. MacPherson agrees that the right to wind is not like water because unappropriated water belongs to the state.

Kara Choquette presented on behalf of the Power Company of Wyoming, LLC. She described the current effort to develop the largest wind project in Wyoming, south of Rawlins. Current plans would place 1000 turbines in carbon county. She provided a white paper which gives details of the project, included as Appendix 33. She discussed the benefits of the project to Carbon County and the state of Wyoming. The white paper makes various recommendations including respecting property rights, allowing development within sage grouse core areas with significant conservation measures and research, imposing no new taxes and developing a streamlined permitting process.

Indy Burk then presented from the Ruckleshaus Institute. She discussed the issues included in her handout, included as Appendix 34. She offered the Institute's help, particularly on issues of collaborative negotiations and consensus building. The Institute can help bring together experts, collect stakeholder input and evaluate policy alternatives.

The task force then took public comment. Terry Weickum, Carbon County Commissioner, testified that there is little benefit being received from wind development in Wyoming, while there are significant burdens and costs. He supports a new tax and explained that the costs of maintaining fire services, hospital care, roads and infrastructure do not decline as a wind farms grow older. Despite this, wind farms are allowed to rapidly depreciate their equipment and so property tax revenues quickly decline. Ann McKinnon suggested that the Industrial Siting Council dictate the exact placement of wind towers. She also suggested that the Industrial Siting Council may need additional staff to deal with more wind farm applications and complex siting procedures. Barbara Dobis from the Alliance for Historic Wyoming discussed the South Pass Historic Site and asked the task force to consider the damage that could be done to that site if wind development were allowed within its view shed. Stan Mundy testified about Converse County's failure to follow its own zoning and siting standards when it permitted the construction of the Chevron wind farm. Mr. Mundy supports a ½ mile set-back standard.

Bill Degrave provided testimony detailing the terms of leases that are negotiated with land owners. He discussed the clauses that provide land owner protections. He stated that it would not be logical to impose significant taxes on an industry that is being heavily subsidized, as is the wind industry. He also asked that the task force try to limit duplicative regulatory requirements. He said some of the decommissioning clauses he has seen require that a bond be in place within 5 years, in an amount adequate to pay for all decommissioning.

The task force then engaged in its own discussion of potential recommendations. Each member shared his list of issues and relative priorities. The Chairman assigned task force members to the various potential recommendation issues and asked that the members work to draft proposed recommendations for each issue. Representative Stubson was assigned the issue of state-wide minimum standards for wind development. The task force will consider draft legislation on this issue at its next meeting. Senator Martin and Bill Miller were assigned the task of considering transmission issues, including the siting and regulation of collector/gathering systems in Wyoming. Senator Perkins will consider revisions to the Industrial Siting Act. Draft legislation will be considered at the next meeting on this issue. Senator Schiffer, who is not a task force member, will present legislation concerning taxation of the wind industry at the task force's next meeting. Representative Carson and Senator Schiffer will consider how impact assistance payments are made and whether the payments should be adjusted to better compensate counties for the impacts of wind development. Senator Perkins and Representatives Stubson and Steward will consider the various property right questions surrounding wind energy. Chairman Anderson and Representative Steward will present a draft joint resolution at the next meeting which supports the Governor's executive order regarding sage grouse core areas and the need to promote additional, scientifically valid wildlife research. The task force also agreed to have the Ruckelshaus Institute come to the task force and provide ideas on how they might be able to help the task force address the challenges posed by wind development. Finally, Senator Perkins agreed to consider means to prevent Wyoming utility rates from being increased in a way that subsidizes the development of renewable energy sources in states with renewable energy portfolio standards.

The task force then heard public comment. Richard Grant supports the development of wind energy and believes it will provide a more reliable and consistent tax base to support local school districts. He asked the task force to try to protect private property rights and local control. Commissioner Ed Werner stated that we need a tax that does not damage a fledgling industry, but noted that Wyoming enjoys a higher quality wind resource that other states and that this may offset marginally higher taxes.

Chairman Anderson then gave the floor to the chairs of the Joint Revenue Committee, Representative Anderson and Senator Schiffer. Senator Schiffer provided testimony to the task force regarding the reasons for imposing a tax on the wind industry and proposed an outline for a generation tax. The generation tax would be imposed on all power producers in Wyoming, but would provide a severance tax credit, up to the amount of generation tax paid, to all energy producers who also pay severance taxes. Senator Schiffer suggested a 2.5% tax measured at the point at which energy is dumped onto the grid. A certain portion of revenues generated from the tax would be given 1) to counties to help defray the cost of continuing services and impacts and 2) to private property owners who cannot host development because of sage grouse core areas on their lands.

The task force asked to have the Department of Revenue make a presentation at the next meeting regarding the formula used to make impact assistance payments and an explanation of its current effectiveness.

Representative Anderson asked that the LSO research department prepare a summary of all taxes imposed on the wind industry in other states.

Larry Wolf provided public comment on behalf of Duke Energy. He cautioned that the tax issue is very complex and that there may be significant legal issues involved. Mr. Wolf agreed to ask his clients if he could prepare a legal memorandum outlining the issues surrounding Senator Schiffer's tax proposal.

Mark Grant, a fourth generation rancher in Converse County, testified that he likes the idea of creating state-wide development guidelines without trying to regulate every detail. He believes many of the issues presented are addressed in wind energy contracts. He suggested that the task force recognize the ancillary sales taxes and other economic activity that will be created by wind development.

In addition to the documents and presentations mentioned above, the task force was provided with a note book containing the following additional documents:

Letter concerning Albany County wind regulations, from Hickey & Evans, LLP to the Albany County Board of Commissioners, included as Appendix 35.

R & R Rig Service, LLC position paper, included as Appendix 36.

MEETING ADJOURNMENT

There being no further business, Chairman Anderson adjourned the meeting at 2:15 p.m.

Respectfully submitted,

Senator Jim Anderson

Chairman, Wind Energy Task Force

Appendix	Appendix Topic	Appendix Description	Appendix Provider
1	Committee Sign-In Sheet	Lists meeting attendees	Legislative Service Office
2	Agenda	Meeting agenda	Legislative Service Office
3	Wind Leasing and Development	Brian Riley-Wirlwind, LLC slide presentation	Brian Riley
4	Wind Leasing and Development	Terry Henderson-REAL slide presentation	Terry Henderson
5	Wind Leasing and Development	Lynne Boomgaarden-SLIB slide presentation	Lynne Boomgaarden
6.	Wind Leasing and Development	Janelle Wrigley-BLM slide presentation	Janelle Wrigley
7.	Wind Leasing and Development	Mark Stacy-Iberdrola slide presentation	Mark Stacy
8.	Public Comment	Matt Grant-Rocky Mountain Power tour materials	Matt Grant
9.	Where Will Development Occur	Steve Ellenbecker –Wyo. Infrastructure Authority slide presentation	Steve Ellenbecker
10.	Where Will Development Occur	Craig Knoell-Western Area Power Admin. slide presentation	Craig Knoell
11.	Where Will Development Occur	Daly Edwards-Audubon of Wyo. position paper	Daly Edwards
12.	Conflicts/Opportunities in Development	Mary Flanderka-Wyo. Game and Fish slide presentation	Mary Flanderka
13.	Conflicts/Opportunities in Development	John Emmerich-Wyo. Game and Fish slide presentation	John Emmerich
14.	Conflicts/Opportunities in Development	Bob Budd-Wyo. Wildlife and Natural Resources Trust slide presentation	Bob Budd
15.	Conflicts/Opportunities in Development	Mary Hopkins-Wyo. State Hist. Preservation Office-slide presentation	Mary Hopkins
16.	Conflicts/Opportunities in Development	Ken Lay-NLRA slide presentation	Ken Lay
17.	Conflicts/Opportunities in Development	Bob Whitton-Renewable energy Alliance of Landowners slide presentation	Bob Whitton
18.	Public Comment	Jim Magagna-Rock Springs Grazing Association position paper	Rock Springs Grazing Association
19.	Current Regulation	Walt George-BLM slide presentation	Walt George
20.	Current Regulation	Steve Oxly-PSC slide presentation	Steve Oxly
21.	Current Regulation	Todd Parfitt-ISC slide presentation	Todd Parfitt
22.	Current Regulation	Ed Werner-proposed legislation-state-wide regulation	Counties
23.	Current Regulation	Ed Werner-county commissioners' slide presentation	Ed Werner
24.	Current Regulation	Matt Grant-Rocky Mountain Power-position paper on counties' proposed legislation	Matt Grant
25.	Law School Presentation	UW Law School Research	Brain Marvel / Benjamin Kenny
26.	Public Comment	Lynn Welker-Wyo. Mining Assoc. materials	Lynn Welker
27.	Public Comment	Dwayne Meadows-Wyo. Wildlife Federation / Nat. Wildlife Federation recommendations	Dwayne Meadows
28.	LSO Presentation	Eminent Domain Research – LSO	LSO
29.	Industry Comment	Craig Cox-Interwest Energy Alliance slide presentation	Craig Cox
30.	Industry Comment	Fred A. "Rocky" Clark-IBEW slide presentation	Fred A. "Rocky" Clark
31.	Industry Comment	Mark Stacy- WPPC Tax Position Paper	Cheryl Riley
32.	Public Comment	John MacPherson research memorandum	John MacPherson
33.	Industry Comment	Kara Choquette-Power Company of Wyoming position paper	Kara Choquette
34.	Public Comment	Indy Burke-Ruckleshaus Institute materials	Indy Burke
35.		Letter regarding Albany County draft wind regulations	Hickey & Evans, LLP
36.		R & R Rig Service, LLC position paper	R & R Rig Service, LLC