$100 Million in Energy Matching Funds Proposed

Summary:

Wyoming Energy Authority has proposed a $100 million grant to support BWXT's planned TRISO nuclear fuel manufacturing facility in Gillette, WY.

1. 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: N/A

2. 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: ❌ Fail

This proposal exceeds the proper scope of state government under the Wyoming and U.S. constitutions. The $100 million grant directs taxpayer funds toward a private corporation, expanding executive power and blurring the line between public and private enterprise. It substitutes political judgment for market discipline and shifts economic decision-making away from transparent legislative processes, undermining the principles of limited and constitutional government.In sum, this violates the spirit ofArticle 16, Section 6 of the Wyoming Constitution, which states that, "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."

3. Responsible Taxation & Spending
Will this policy lower tax intake, reduce government spending, simplify taxation policy and/or broaden the tax base?
Result: ❌ Fail

This policy has the potential to increase tax revenue, but likely not enough to offset the initial $100 million grant. Gillette is expected to increase its annual property tax revenue by around$3.4million on a $500 million facility during the first year of operation. If we assume some depreciation, we could expect Gillette to receive a little more than $60 million in property taxes over 30 years, the standard period heavy industrial buildings used by Gillette. The rate of inflation and a changing property tax rate makes the total amount collected, the further into the future these revenues are projected.

On the positive side of the ledger, new businesses may be launched or relocated in response to the new BWXT facility's operation. New nuclear businesses would increase tax revenues for the state and county governments. Due to the lengthy approval and construction process for new nuclear facilities, this may take decades, if it happens at all. Worse, issuing this grant to BWXT increases the chance that potential market entrants may ask Wyoming for additional grant money themselves. The more grants are issued, the lower the chance Wyoming will break even.

4. 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: ❌ Fail

This policy sets a precedent for greater state government involvement in the administration of local properties. Because BWXT deals with nuclear fuel, the federal Nuclear Regulatory Commission (NRC) will also become involved. While more funds could become available to the state and Gillette, this comes at the cost of a loss of local control.

5. 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: N/A

6. Profit Motive & Fair Competition
Does this policy encourage entrepreneurs and businesses to seek profits through calculated risks, lowering prices for consumers?
Result: ❌ Fail

This policy sends a clear signal to the private sector that Wyoming's government is willing to consider tax breaks for large businesses that have a close relationship with government officials. This may encourage Wyoming businesses to invest capital in lobbying efforts, rather than in devoting resources to fulfilling consumer desires.

7. Honest Elections
Does this policy assist Wyomingites in voting more securely and/or easily for eligible candidates in transparent elections for public office?
Result: N/A

8. Generational Resource Stewardship
Would this policy ensure Wyoming's natural resources can be shared across current and future generations of Wyomingites?
Result: N/A

❌

Final Verdict: Fails the Wyoming Policy Compass

Score: 0 Pass | 0 Caution | 4 Fail | 4 Not Applicable

Relevant News Article: https://web.archive.org/web/20240223155338/https://cowboystatedaily.com/2024/02/20/wyoming-tax-on-electricity-exports-could-touch-off-arms-race/