Coal being thrown onto a bigger pile of coal by industrial equipment.

Wyoming cuts coal taxes and creates fund to support oil recovery

Wyoming lawmakers approved tax cuts for coal producers and set up a $10 million fund to encourage carbon dioxide use in oil recovery, aiming to prop up struggling fossil fuel industries.

Dustin Bleizeffer reports for WyoFile.


In short:

  • House Bill 75 reduces the severance tax on surface-mined coal from 6.5% to 6%, lowering state revenue by about $10 million annually.
  • Senate File 17 establishes a $10 million fund to subsidize companies using carbon dioxide for enhanced oil recovery, with qualifying firms eligible for up to $10 per metric ton.
  • Critics argue these incentives won’t significantly boost production and will divert funds from public services like schools and roads.

Key quote:

“It’s just a redistribution of wealth from schools and roads to coal companies.”

— Bob LeResche, Powder River Basin Resource Council

Why this matters:

Wyoming is doubling down on fossil fuels despite a declining coal market and growing calls for cleaner energy. By cutting coal taxes and subsidizing carbon dioxide use for oil extraction, the state is betting on industries facing long-term uncertainty. The global energy transition, driven by market forces and climate concerns, continues to challenge the long-term viability of coal.

For now, Wyoming’s leaders are making a calculated bet: that technological advancements and policy support can keep fossil fuels viable, even as economic and environmental pressures mount. But with major utilities moving away from coal and investors increasingly wary of long-term commitments to carbon-heavy energy, the state’s approach faces an uncertain future.

Learn more: Wyoming continues legal battle against coal regulations despite Supreme Court decision

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