Federal Rule Boosts Wind, Solar in Wyoming, Raises Concerns from Fossil Fuel Sector

The Biden administration's updated renewable energy rule aims to incentivize and expedite wind and solar project development on public lands, offering rent and fee reductions. While this move is welcomed by proponents seeking accelerated clean energy transition, it has sparked concerns from mining and oil and gas interests who view it as an unfair advantage over their industries, creating an uneven playing field.

Federal Rule Sparks Economic Jolt for Wind and Solar in Wyoming, Raising Concerns Among Fossil Fuel Interests

The Biden administration's ambitious renewable energy agenda is reverberating through Wyoming, with a newly issued federal rule promising substantial economic benefits for wind and solar project developers while drawing sharp criticism from traditional fossil fuel industries.

The "renewable energy rule" announced Thursday aims to accelerate the transition to clean power by streamlining approvals and reducing fees for wind and solar development on priority areas of public lands managed by the Bureau of Land Management (BLM). This could incentivize significant clean energy investment in Wyoming, where vast open spaces provide prime opportunities for renewable projects.

Incentives for Clean Energy Development

According to the Department of the Interior, the updated regulation stems from the Energy Policy Act of 2020, which authorizes BLM to reduce rents and fees for wind and solar development on public lands. The new rule further enhances these incentives by:

• Reducing rents and fees for BLM land by approximately 80% compared to rates established in 2022.
• Allowing BLM to accept wind and solar lease applications in priority areas without competitive auctions, if deemed in the public interest.

Renewable energy advocates applaud the rule, arguing that it will expedite project development and help meet the Biden administration's goal of a pollution-free power sector by 2035.

Rachael Hamby, policy director for the Center for Western Priorities, emphasizes the importance of prioritizing certain areas for renewable development: "In areas that have already been identified as most suitable for renewable energy development, this will streamline the leasing process and help develop renewable energy capacity more quickly."

Uneven Playing Field for Fossil Fuels

However, the renewable energy rule has drawn ire from the mining, oil, and gas industries, who view it as creating an uneven playing field.

Travis Deti, executive director of the Wyoming Mining Association, decries the rule as "picking winners and losers" while "throwing out the concept of multiple use of federal lands." He argues that it will drive up energy costs for Americans and undermine grid reliability.

Similarly, the Petroleum Association of Wyoming (PAW) highlights that the rule adjusts rents and fees differently for solar and wind projects compared to oil and gas projects. Ryan McConnaughey, vice president of PAW, emphasizes that this "creates an unlevel playing field among energy sources on federal lands."

Growing Footprint of Renewables in Wyoming

Despite these concerns, Wyoming has already witnessed significant investment in wind and solar projects in recent years. As of January 2021, 45 renewable energy projects have been approved on public lands in the state, including the 590-megawatt Rock Creek wind project, the largest such project in Wyoming.

According to WindExchange, over 3,286 megawatts of wind-producing turbines are currently operating in Wyoming, with another 3,503 megawatts in various stages of planning or construction. Wind currently accounts for 22.4% of the state's electric grid mix, second only to coal-fired power plants at 72.6%.

The renewable energy rule is expected to further accelerate this trend, bringing additional economic benefits to Wyoming while diversifying its energy portfolio. However, the concerns raised by fossil fuel industries will continue to shape the debate over energy development in the state and the broader implications of the Biden administration's clean energy agenda.