Wyoming’s Energy Transformation: Insights from Federal Engagement with Coal Communities

Wyoming is heavily dependent on the extraction of fossil fuels, particularly coal, to support its economy. As the United States seeks to reduce greenhouse gas emissions, the federal government has begun to implement policies designed to support fossil fuel–dependent “energy communities.” This report, based on interviews with experts and policymakers at the local, state, and federal levels, examines whether—and to what extent—current federal policies are supporting Wyoming’s goals of an energy transformation to achieve net-zero greenhouse gas emissions.Our interviews and analysis suggest that current federal efforts, while helpful, could do more to boost Wyoming’s communities during the energy transition. A leading cause is the lack of capacity among local and state officials to access the considerable array of federal resources made available through recent legislation. This lack of access has hindered Wyoming’s strategy of developing new technologies that take advantage of the state’s coal resources but avoid the associated emissions. However, some federal efforts, particularly the federal Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization (the “Energy Communities IWG”) and its Wyoming Rapid Response Team (RRT) appear promising and can offer lessons for policymakers seeking to support fossil fuel–dependent communities across the country. In particular, the community-focused approach of the RRT, which emphasizes relationship building, strengthening local governance capacity, and flexibility in program design, can create the conditions that lead to progress in the energy transformation. This progress is particularly notable in Wyoming, where fossil fuels have dominated state economics, culture, and politics for decades.Our main findings are as follows:Wyoming is pursuing a strategy of energy transformation that seeks to continue coal use while developing new technologies that avoid greenhouse gas emissions.The federal IWG, and particularly the Wyoming RRT, has provided useful resources and offers a model for success in place-based policymaking and implementation.Despite the support of the IWG, many local stakeholders still lack the capacity to access complex federal funding opportunities.