WY 2026 SF 123 Wyoming Energy Dominance Fund - April 22, 2026

1. Enduring Local Prosperity

Will this policy encourage families to set down roots, leading to long-term economic

development through better local opportunities for the next generation?

Result: Caution

If the Wyoming Energy Authority chooses projects that produce long-term economic

benefits, SF 123 could lead to good-paying jobs and generational wealth creation based

upon new productive economic activity. If the Authority picks poorly, an initial heavy

government investment may send a false signal to families, which could be left in the

lurch if no private investment follows the government funds for projects they are

involved with. American history is replete with central planning grant issuers who exhibit

a generally poor record of choosing winning projects: there is the temptation to choose

new, unproven, ideologically-palatable technologies which are not in the best economic

interest of the people. Even benevolent, altruistic planners cannot possibly compare

applications in an objectively fair manner.

2. Flexible Self-Reliance

Does this policy give individuals, communities and/or the state the flexibility to adapt to

changing political and economic circumstances? Will this help individuals and

communities move away from ongoing reliance on government programs, subsidies and

mandates, and toward independence and resilience?

Result: Caution

On the negative side, SF 123 creates an incentive structure in which businesses seek

out subsidies to partially fund their ideas, the opposite of self-reliance. The language

suggests the temporary “start-up” nature to these funds, but this is no guarantee. On the

positive side, the grants provided under the Energy Dominance Fund are flexible in

regards to the type of research provided for. These include “grants for private or federal

funding for applied research, demonstration, pilot projects or commercial development

projects related to Wyoming energy needs, including coal innovation, coal-fired

electricity, trona and bentonite development projects, natural gas, enhanced oil

recovery, pipeline infrastructure, energy exports, uranium conversion, uranium

enrichment, fuel fabrication, rare earth and critical mineral processing, separation and

manufacturing, baseload energy development and deployment and grid innovations.”

3. Private Property Rights

Does this policy remove institutional barriers, so that individuals or businesses may

more easily use their land, property and labor in ways that do not violate the rights of

others?

Result: NA

4. Transparent Constitutional Government

Is this policy limited to carrying out the functions of a small and transparent government

as described in the U.S. and Wyoming constitutions, while dividing power appropriately

between the legislative, executive and judicial branches of Wyoming’s government?

Result: Fails

SF 123 appears to violate Section 6 of the Wyoming Constitution, even if the courts

have not recently interpreted it this way: “Neither the state nor any county, city,

township, town, school district, or any other political subdivision, shall: loan or give its

credit or make donations to or in aid of any individual, association or corporation, except

for necessary support of the poor.” The bill expands executive administrative by

authorizing the Wyoming Energy Authority to review applications for grants and loans at

its discretion. There is some legislative oversight of this spending: the Wyoming Energy

Authority is required to notify the Legislature at least 30 days before an expenditure

from the Energy Dominance Fund is made. Still, the decision to issue grants or loans to

specific companies is entirely at the discretion of the Authority.

5. Responsible Taxation & Spending

Question: Will this policy reduce government spending, broaden the tax base, simplify

tax policy or lower tax/fee intake?

Result: Caution

This would slightly complicate tax policy, but wouldn’t increase overall government

spending. SF 123 allocates $51.6 million (2027) and $53.4 million (2028) in severance

tax funds and deposits these in the Energy Dominance Fund. This money would have

gone from the Permanent Mineral Trust Fund to Wyoming’s General Fund.

6. Local and State Control

Will this policy return power to Wyoming families or local governments from state

government? Or will this policy transfer power to state government from the federal

government?

Result: NA

7. Voluntary Exchange & Individual Choice

Does this policy remove obstacles from business and consumers engaging in voluntary,

mutually beneficial transactions, ultimately giving consumers more choices?

Result: NA

8. Profit Motive & Fair Competition

Does this policy encourage entrepreneurs and businesses to seek profits through

calculated risks based on market prices rather than government signals, lowering prices

for consumers?

Result: Caution

The Energy Dominance Fund requires that businesses put up half of the money ($1 in

private funding for $1 in grants and below-market rate government loans). Investing

one’s own money makes one a more careful steward. Taking calculated risks could lead

to greater investment in fields that have recently proven highly productive. However, the

Energy Dominance Fund still encourages rent-seeking, rather than profit-seeking

behavior: businesses necessarily become less productive as they devote greater

resources toward securing grants and loans, while removing resources from energy

production itself. Businesses that are rejected for grants and loans will necessarily be

worse off because of their wasted effort. If the numbers of grant and loan losers far

exceed the number of winners, this cost could be significant. The academic literature

suggests that a good portion of government grants and loans will subsidize activities

that the firms were already planning to execute. The projects on the margins of

profitability are the only ones that SF 123 will actually push over the finish line.

9. Electoral Accountability

Does this policy assist Wyomingites in voting more securely and/or easily for eligible

candidates in transparent elections for public office? Or provide mechanisms for holding

elected or nonelected officials accountable for their actions to the people of Wyoming?

Result: NA

10. Generational Resource Stewardship

Would this policy ensure Wyoming’s natural resources can be shared across current

and future generations of Wyomingites?

Result: Pass

Result: SF 123 could benefit future generations as new technologies are developing

energy extraction. It will likely be difficult to determine how many of these natural

resources would already have been developed absent government intervention.

Final Verdict: Caution on the WyLiberty Policy Compass

Score: 1 Pass | 4 Caution | 1 Fail | 4 Not Applicable

Summary:

Wyoming SF 123 establishes the Wyoming Energy Dominance Fund to support the

state’s energy sector through targeted government investment. For 2026 and 2027,

0.5% of severance taxes will be diverted to the Fund, for a maximum of $105 million.

Wyoming Energy Authority will use this money to provide grants and loans for projects

such as applied research, infrastructure, and technologies in Wyoming’s fossil fuels and

mineral extraction industries. Firms will submit applications for proposed projects,

investing $1 themselves for every $1 in loans and grants they receive.