Electricity production tax-distribution.

11LSO-0415.L1

FISCAL NOTE

This bill changes the General Fund distribution of the tax on electricity produced from wind resources from 40 percent to 38 percent, and creates a new two percent distribution of this tax to the Wyoming Wildlife Trust fund. These funds are to be expended by the Wyoming Wildlife Trust fund Board for the purposes of improving wildlife habitat and enhancing recreational opportunities.

Information on the existing capacity of wind energy was obtained from the American Wind Energy Association (AWEA) and also for capacity of projects under construction.  Installed capacity is 1,410 Megawatt hours of nameplate capacity.  The rated capacity was then multiplied by 8,760 hours per year and the adjusted by a capacity factor of 37% for Wyoming production.  This calculation establishes the annual estimate of production of electricity for Wyoming wind generators.  The estimated production is then multiplied by the tax rate of $1.00 per megawatt hour to derive the tax imposed. Because of the uncertainty of future expansion there is no adjustment for the addition of more turbines.

This change in the tax distribution is estimated to divert $91,400 per year from the General Fund to the Wyoming Wildlife Trust Fund. However, electricity produced from a wind turbine shall not be subject to the tax imposed until the date 3 years after the turbine first produced electricity for sale. It is therefore assumed that this diversion will be less than the $91,400 per year estimate for the first three years.

Prepared by:   Dean Temte, LSO  Phone: 777-7881

(Information provided by Dan Noble, Dept. of Revenue; 777-5220)