In the aftermath of the U.S. presidential election, many expect national climate action to slow to a crawl — or be reversed entirely. Since its passage in August 2022, the Inflation Reduction Act and related legislation have accelerated a boom in clean energy investment through tax credits and subsidies that are mobilizing private capital and reshaping the energy landscape. Energy-producing states like Wyoming have been on the front line in working to build new clean energy projects. A second Trump term puts the future of the IRA into question.  Opinion Yet, change always creates opportunity. Acting on climate is no longer only about combatting carbon emissions; it’s also about creating the new clean energy industries that will power the future. Putting climate concerns aside, clean energy also makes sense financially because it’s often cheaper. The key industries driving demand for electricity want cheap, clean energy, and will go to where they can find it.  In this changed national landscape, Wyoming can lead the way. Gov. Mark Gordon’s “all-of-the-above” carbon-negative energy vision provides a roadmap for Wyoming to take the innovative, rather than regulatory, approach to climate interventions and energy development. State programs pave the way for Wyoming to become a hub for new commercially ready technologies that will help grow good jobs and economic vitality. Now, the road ahead is clear: It’s time to double down on smart, targeted policies that make Wyoming the nation’s No. 1 energy state. We can lead on climate action the Wyoming way — with sensible, forward-looking, economically sound, state-first policies that strategically unlock Wyoming’s energy opportunity. Energy Matching Funds In 2022, the Legislature approved $100 million from the state’s budget to be distributed as energy matching funds. Another $50 million was allocated to the program the following year, along with $80 million set aside for a parallel “infrastructure matching funds” program and another $200 million proposed for “large energy projects.”  Administered by the Wyoming Energy Authority, the energy matching funds provide a dollar-for-dollar match for private or federal funds supporting innovative and transformative energy projects in Wyoming. Approved projects must directly serve Wyoming’s diverse energy needs and demonstrate a clear public benefit. That means new job creation, expansion and improvement of the state’s core industries, and genesis of new ones. The program is already indicating strong results. Early award-winner Cowboy Clean Fuels sited its first commercial venture in Campbell County, supporting 66 new jobs and producing 0.7 billion cubic feet of renewable natural gas annually. The other seven awards so far include three more carbon capture projects, one nuclear energy company, two that produce hydrogen, and one that utilizes machine learning to detect pipeline leaks. As Pete Obermueller, president of the Petroleum Association of Wyoming, said in the Cowboy State Daily, “It’s all about adding more and more, it’s not about doing less of anything.” The energy matching funds program is one of the sharpest tools available for carving out Wyoming’s future as a pro-energy state. It creates a competitive edge in attracting developers and stimulates growth in promising new industries. In the upcoming legislative session, there is an opportunity for the Legislature to reaffirm support for the funds, preserving the state’s ability to create jobs, lower energy costs and keep innovative Wyoming youth in Wyoming. Wyoming regulatory environment The state that produces 12 times more energy than it consumes, Wyoming benefits from revenue in the form of taxes and royalties from its energy and mineral exports and will continue to profit from the nation’s growing demand for power. In the coming years, as more clean energy projects come online, it will be crucial to create a regulatory environment that incentivizes developers to build in Wyoming. With the largest uranium reserves in the country and over 50% of the nation’s top-quality wind, Wyoming has the unique opportunity to become a clean energy powerhouse. Key policies, like offering competitive lease terms for renewable energy projects, or providing tax credits, grants and matching funds, would lower initial investment costs and make Wyoming more attractive to developers. One of the biggest drivers of clean-energy-sector growth recently is data centers. Data centers house the physical infrastructure — the supercomputers — that power artificial intelligence. The growing demand for AI as a technological tool multiplies energy demand. Where better to produce that clean, reliable power than in the energy state? Welcoming data center development here in Wyoming has the potential to generate substantial tax revenue and accelerate the deployment of clean power. Energy Communities Tax Credit  Within the IRA, tax credits incentivize production, sale and investment in clean electricity. The investment tax credit covers a percentage of the upfront cost of installation of clean energy projects. The base credit is 30% but can increase if the project meets specific conditions. For example, there is a 10% bonus for projects in energy communities — areas impacted by the fossil fuel industry, or brownfield sites — that’s most of Wyoming. Another 10% bonus is available for projects situated in low-income communities or on tribal land. Both of these bonuses can be applied, stacking up to a 50% stimulus. The tax credits in the IRA have been praised for focusing on lower carbon outcomes rather than selectively “picking winners,” and balancing the need to reduce emissions with the need to supply affordable energy. The IRA often benefits oil and gas companies. At this year’s COP29 in Azerbaijan, for example, ExxonMobil CEO Darren Woods praised the credits as being essential to Exxon’s investments in low-carbon hydrogen and carbon capture. Woods explained that the incentives encourage investment in the energy transition, creating a market opportunity that is good for the climate and for the economy. “What the world needs is a transition that companies can make money on and generate returns on,” he said. “Otherwise, you’re not going to drive the investment that you need.” The IRA does exactly that. Major investments have already been made, mostly in Republican-led states and districts, with 18 House Republicans writing a letter of support for the legislation back in August. They signed in favor of “an all-of-the-above approach to energy development” and noted that “prematurely repealing energy tax credits … would undermine private investments and stop development that is already ongoing.” Wyoming has directly benefitted from energy sector growth generated by the IRA.  Wyoming added 3,429 jobs this quarter, a 1.3% increase compared to Q1 last year. Notable growth occurred in heavy and civil engineering construction and electrical equipment and appliance manufacturing, in part because the IRA and adjacent legislation have boosted manufacturing and added hundreds of thousands of well-paying jobs nationwide, increasing the need for hard-skilled workers who are plentiful in Wyoming. The Energy Permitting Reform Act In July 2024, Senate Energy Chairman Joe Manchin (I-WV) and Sen. John Barrasso (R-WY) released a highly anticipated bipartisan agreement on permitting reform. The permitting process is a significant inhibitor of new clean energy infrastructure in the United States because of long wait times and a complicated review process. Currently, it takes 4.5 years for an energy project and 7.5 years for a transmission project on average to get approval to begin construction. Here in Wyoming, it took the TransWest Express transmission line a whopping 15 years to secure the necessary permits. The Energy Permitting Reform Act would remediate this issue. If passed, it would tighten deadlines for judicial and administrative reviews and simplify the permitting process, saving between two and five years on the path to groundbreaking. Building new transmission is key to modernizing the U.S. electrical grid, which experts say needs to triple in capacity in the next 30 years to effectively distribute cheap and reliable clean electricity. The permitting reform bill also supports regional transmission planning, which is crucial for Wyoming — situated in between the eastern and western grids — to export power to faraway metropolitan areas. Equally important, the bill encourages diverse energy sector growth by promoting expansion of both renewables and traditional fossil fuels. It clears hurdles to lease sales on federal lands — a critical step for Wyoming, where public land comprises almost half of the state’s acreage. Permitting reform will expedite the deployment of wind, solar, geothermal, energy storage and critical mineral projects on public land here in Wyoming, helping us build a robust clean energy sector. The bill sponsors hope to pass it during the lame-duck session before inauguration day. If successful, this legislation would represent a bipartisan win for clean energy. The all-of-the-above energy strategy works uniquely well in Wyoming because of its unbeatable advantages — limitless energy resources, a business-friendly tax structure and a hard-skilled workforce. Let’s embrace clean energy and innovation by taking advantage of these pragmatic policies that are good for the economy and good for the country. The post Wyoming poised for energy dominance with all-of-the-above, carbon-negative approach appeared first on WyoFile .