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, base load 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.
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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.