Once again, Wyoming is planning ahead in the energy department, now considering state supported transmission and pipelines.  The Wyoming legislature is debating state vs. free market investment:

The Legislature's Minerals, Business and Economic Development Interim Committee approved two proposals this week that could allow the state to directly invest in pipelines and electrical transmission facilities. Supporters say the ability to invest in pipe and wire would allow the state to control its own destiny by stabilizing energy markets.

Others say the state shouldn't meddle in free enterprise.

"Our free-market economy operates on the principle that potentially profitable projects will attract investors," said Dan Neal, executive director of the Equality State Policy Center. "If private investors are not stepping up to pipeline, transmission line or energy projects, it must be because these investors see more risk than they can tolerate."

The electrical transmission and natural gas pipeline infrastructure in the American West is suffering from a 30-year investment glut, according state energy officials, and few investors want to be the first to lay their dollars down on a new project.

The most interesting subject of the debate, however, is CO2.  State development of a CO2 distribution process would not only attract IGCC development, but also a system to revitalize existing oil fields.  The state would then also face a liability question, particularly CO2 sequestration. 

 Doelger said one of the first investments the state could make in the realm of pipelines is a more extensive network to distribute carbon dioxide, which could prolong production in Wyoming's aging oil fields. The Wyoming Enhanced Oil Recovery Institute is also studying ways to capture the material from flue gas emissions from existing and future power plants in the state.

"Our (carbon dioxide) infrastructure is inadequate right now and needs a lot of attention," Doelger said. "This is a case where industry is not getting the job done. But I think industry will see the potential and be encouraged to become involved."

Some committee members expressed concerns about the state's liability exposure in the ownership of power lines and gas pipelines. In fact, assuming liability may be one way that Wyoming dresses up its incentive package for attracting new energy development, particularly integrated gasification combined cycle power plants, suggested Rep. Tom Lockhart, R-Casper.

He noted that Texas, in its bid to compete for IGCC power plants, passed a state law protecting any company involved in the sequestration of carbon dioxide from liability associated with a catastrophic accident.

At the committee meeting Monday, Lockhart directed Wyoming Infrastructure Authority executive director Steve Waddington to seek input from potential IGCC partners about whether the same type of liability protection would convince them to set up shop in Wyoming.

Waddington said the liability issue of sequestering carbon dioxide is certain to come up in negotiations with an IGCC partner.

There are certainly issues to be discussed, debated, and ultimately decided.  It is commendable Wyoming can have these issues on the table, thinking far ahead.  Once again, Montana seemingly falls further behind, as our neighbors tackle the difficult questions.