HB 120

ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
        ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
        SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                     2026 BUDGET SESSION
AN ACT relating to administration of the government;
providing   duties    for    the   Wyoming   energy   authority;
providing for the establishment of industrial sovereign
zones   to   encourage     the    production    of  value-added
manufactured products using natural gas; authorizing a
board of county commissioners to nominate an area as an
industrial sovereign zone; providing for certification of
value-added   manufactured     processes;   providing   for   an
expedited licensing and permit process; providing tax
exemptions;    making     conforming    amendments;    providing
appropriations; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
     Section 1.    W.S. 9-20-201 through 9-20-203 are created
to read:
                         ARTICLE 2
    ENERGY PRODUCT RECLASSIFICATION AND SOVEREIGNTY ACT
     9-20-201.    Definitions.
     (a)   As used in this article:
          (i)    "Authority"     means   the   Wyoming     energy
authority;
          (ii) "Manufactured   product"   or   "value-added
manufactured product" means natural gas that undergoes
substantial molecular transformation in Wyoming to produce
a new product;
          (iii) "Methane intensity" means the measure of
methane emissions relative to the natural gas that is
processed;
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
          (iv) "Substantial       molecular        transformation"
includes, without limitation:
               (A) The thermal decomposition of natural
gas into hydrogen and solid carbon, also known as methane
pyrolysis or turquoise hydrogen production;
               (B) The conversion of natural gas and
nitrogen into anhydrous ammonia, also known as ammonia
synthesis or blue or turquoise ammonia production;
               (C) Any   other   process  that   transforms
natural gas to produce hydrogen, ammonia or another
valuable product that is chemically distinct from methane
or from other gases that are part of the natural gas stream
including carbon dioxide, nitrogen, hydrogen sulfide and
helium.
     9-20-202.    Industrial sovereign zones.
     (a) A board of county commissioners may nominate an
area within its jurisdiction as an industrial sovereign
zone. Two (2) or more counties may jointly nominate a
contiguous or related area as a single sovereign zone. Each
county shall adopt a formal resolution approving the
nomination of an industrial sovereign zone under this
subsection. Nominations under this section shall be made in
the form required by the authority and shall include:
          (i) A defined geographic boundary describing the
nominated industrial sovereign zone;
          (ii)    Evidence   of   access      to    natural    gas
resources;
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
          (iii) Information required by the authority to
evaluate the suitability of the area for the production of
value-added manufactured products under this article.
     (b) The authority shall establish an industrial
sovereign zone in an area nominated as an industrial
sovereign zone under subsection (a) of this section if the
authority determines there is an opportunity for the
production and distribution of value-added manufactured
products due to a reduced price paid for sales of natural
gas in that area or other factors determined by the
authority. The authority may modify the boundaries of an
industrial sovereign zone by decreasing the size of the
zone as determined necessary by the authority. The
boundaries of an industrial sovereign zone shall not be
enlarged unless each affected county formally consents to
the enlargement of the zone outside of the boundaries
defined in the nomination under subsection (a) of this
section.
     (c) For any industrial sovereign zone established
under subsection (b) of this section, the following shall
apply:
          (i) Any person seeking to establish a facility
for the production of a value-added manufactured product in
the industrial sovereign zone:
               (A) May    apply   to   the   authority  for
assistance in establishing the facility including, without
limitation, identification and assistance in complying with
state licensing applications or requirements;
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
               (B) Shall be eligible for the expedited
permit process as provided by W.S. 35-11-109(a)(xvi).
          (ii) If a facility is established for the
production of a value-added manufactured product in the
zone, machinery sold or purchased for use in the facility
shall be eligible for the tax exemptions under W.S.
39-15-105(a)(viii)(O)(V) and 39-16-105(a)(viii)(D)(V).
    9-20-203.     Gold standard certification.
     (a) The    authority  shall  establish   standards  of
certification for any value-added manufactured product that
is produced in Wyoming to promote the special attributes of
the manufactured product. The authority shall establish a
certification for any manufactured product that certifies
that the product is a gold standard Wyoming product if the
producer of the manufactured product demonstrates that the
product is produced with not more than two-tenths percent
(0.2%) methane intensity.
     (b) The     use  of   any    certification  standards
established under subsection (a) of this section by any
producer of a manufactured product shall be on a voluntary
basis. The authority may collect fees on an annual basis,
not exceeding the cost of administering the certification
program under subsection (a) of this section, from
producers participating in the voluntary certification
program. Any fees collected under this subsection may be
retained by the authority and shall only be expended to
administer the certification program under subsection (a)
of this section.
     (c) The    authority  may   suspend   or  revoke   a
certification granted under this section if the recipient
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
of the certification fails to meet all of the requirements
adopted by the authority.
     Section 2. W.S. 35-11-109(a) by creating a new
paragraph (xvi), 35-12-119(a), 37-5-503 by creating a new
subsection (k), 39-15-105(a)(viii)(O) and by creating new
subdivisions (IV) and (V) and 39-16-105(a)(viii)(D) and by
creating new subdivisions (IV) and (V) are amended to read:
    35-11-109.    Powers and duties of director.
     (a) In addition to any other powers and duties
imposed by law, the director of the department shall:
          (xvi) Establish an expedited process to issue
all permits or licenses required under this act that are
necessary for the establishment or operation of a facility
for the production of a value-added manufactured product in
an industrial    sovereign  zone  established   under  W.S.
9-20-202. The expedited process under this paragraph shall
be prioritized ahead of all other permit applications and
expedited to the extent that the process does not adversely
impact primacy of permitting programs or reduce public
health and environmental protections provided for in the
Environmental Quality Act. The issuance of licenses or
permits shall not be unreasonably delayed. In addition to
an expedited process established under this paragraph, the
director may, by rule, establish a pre-permitting process
for any permit or license required under this act for the
establishment or operation of a facility for the production
of a value-added manufactured product in an industrial
sovereign zone established under W.S. 9-20-201 through
9-20-203.
    35-12-119.    Exemptions; information required.
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
      (a) Nonmineral    processing    facilities     to    be
constructed in existing industrial parks, as designated by
local    governments,  and    industrial   sovereign    zones
established under W.S. 9-20-202 are exempt from payment of
fees and certification procedures but shall furnish the
information required by W.S. 35-12-109(a)(iii), (iv) and
(v) to the division if included in W.S. 35-12-102(a)(vii).
     37-5-503.    Purposes; report.
     (k) The authority shall administer the energy product
reclassification and sovereignty act as created by W.S.
9-20-201 through 9-20-203. The authority, consistent with
the purposes of this section, may take any action necessary
to encourage the production of value-added manufactured
products as defined in W.S. 9-20-201(a)(ii).
     39-15-105.   Exemptions.
     (a) The following sales or leases are exempt from the
excise tax imposed by this article:
          (viii) For the purpose of exempting sales of
services and tangible personal property as an economic
incentive, the following are exempt:
               (O) The sale or lease of machinery to be
used   in  this   state   directly and predominantly in
manufacturing as follows:
                    (IV) Until December 31, 2042, the sale
or lease of machinery to be used in this state directly and
predominantly in manufacturing tangible personal property;
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
                    (V) The sale or lease of machinery to
be used in an industrial sovereign zone established under
W.S. 9-20-202 and used directly and predominantly in the
production of a value-added manufactured product as defined
in W.S. 9-20-201(a)(ii).
    39-16-105.    Exemptions.
     (a) The following purchases or leases are exempt from
the excise tax imposed by this article:
          (viii) For the purpose of exempting sales of
services and tangible personal property as an economic
incentive, the following are exempt:
               (D) The purchase or lease of machinery to
be used in this state directly and predominantly in
manufacturing as follows:
                    (IV) Until December 31, 2042, the
purchase or lease of machinery to be used in this state
directly   and  predominantly in  manufacturing tangible
personal property;
                    (V) The purchase or lease of machinery
to be used in an industrial sovereign zone established
under W.S. 9-20-202 and used directly and predominantly in
the production of a value-added manufactured product as
defined in W.S. 9-20-201(a)(ii).
     Section 3. If nominated by the board of county
commissioners under W.S. 9-20-202(a) as created by section
1 of this act, the Wyoming energy authority shall first
consider establishing an industrial sovereign zone under
W.S. 9-20-202 as created by section 1 of this act in the
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
area of the Opal natural gas hub if the Wyoming energy
authority determines that the price of natural gas that is
sold from the Opal natural gas hub is reduced compared to
other sales of natural gas in other areas of the United
States.
      Section 4. There is appropriated one hundred eighty
thousand dollars ($180,000.00) from the general fund to the
Wyoming energy authority for purposes of providing for
personnel expenses within the personal services series (100
series) or through the contractual services series (900
series)    as   necessary   to  implement this   act.  This
appropriation shall be for the period beginning with the
effective date of this act and ending June 30, 2028. This
appropriation shall not be transferred or expended for any
other    purpose   and any unexpended, unobligated funds
remaining from this appropriation shall revert as provided
by law on June 30, 2028. It is the intent of the
legislature that this appropriation not be included in the
Wyoming    energy   authority's  standard budget   for  the
immediately succeeding fiscal biennium.
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ORIGINAL HOUSE  ENGROSSED
BILL NO. HB0120
       ENROLLED ACT NO. 34, HOUSE OF REPRESENTATIVES
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     Section 5. This act is effective immediately upon
completion of all acts necessary for a bill to become law
as provided by Article 4, Section 8 of the Wyoming
Constitution.
                             (END)
Speaker of the House  President of the Senate
                           Governor
                  TIME APPROVED: _________
                  DATE APPROVED: _________
I hereby certify that this act originated in the House.
Chief Clerk
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