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SF 181

Eminent domain-energy collection systems-2.

2025 Regular Session Introduced by Dalton Banks and 5 co-sponsors

Wyoming now requires a 66% landowner/owner-consent threshold and negotiated settlements with protections before condemning land for energy collector systems, plus clearer compensat

Assigned Chapter Number 72
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Bill Summary · SF 181

Summary — SF 181 (Enrolled Act No. 39, Chapter 72, 2025)

Status: Enacted (Signed by Governor). Assigned Chapter No. 72. Effective date: July 1, 2025. Fiscal note: no fiscal or personnel impact.

Main purpose

SF 181 narrows and conditions the use of eminent domain (condemnation) to acquire land or easements for “energy collector systems” (the conductor infrastructure that gathers and moves power from commercial generation facilities). The act establishes procedural safeguards, compensation standards, notice and evidentiary requirements, limits on using existing easements, definitions, and explicit exceptions.

Key provisions and changes

  • Definitions

    • “Energy collector system” — conductor infrastructure (conductors, towers, switchgear, etc.) to deliver power from a commercial generating facility up to, but not including, electric substations or interconnection facilities associated with transmission lines.
    • “Commercial facility generating electricity” — a facility producing electricity for the purpose of selling it.

  • Preconditions to condemnation (W.S. 1-26-818(b))

    • A condemnor must first negotiate and finalize land-use/compensation agreements that either:
    • Grant the condemnor the right to occupy/use at least 66% of the land where the collector system will be constructed; or
    • Obtain agreements from owners representing at least 66% of the owners if three or more landowners are involved.
    • The 66% threshold replaced an earlier 85% figure in committee amendment.

  • Court filing and confidentiality

    • Complaints for condemnation must allege and provide proof of the above compliance and list all terms and consideration (monetary or otherwise) provided to negotiated owners.
    • The court must keep those alleged terms confidential except as necessary to provide them to the opposing party.

  • Compensation and valuation

    • Compensation for takings for energy collector systems must follow existing eminent domain compensation standards (W.S. 1-26-701 et seq.), include improvements in fair market value, and provide a statutory minimum — the act requires minimum compensation “not less than the average paid” under the statute’s referenced subsection.

  • Easement limits

    • A commercial generator cannot rely on an existing easement to place additional energy collector systems unless the existing easement expressly:
    • Authorizes initial/additional collector systems; or
    • Contemplates a method to enlarge or amend the easement; or
    • Authorizes renegotiation of the easement.

  • Notice and order content

    • Entities must notify the county board of commissioners and local governing body at least 30 days before commencing condemnation.
    • Any order granting an easement must include liability and reclamation requirements tied to the condemnor’s activities.

Exceptions and applicability

  • Exemptions (W.S. 1-26-818(h))
    • Public utilities holding a certificate of public convenience and necessity under W.S. 37-2-205 are not subject to the new section.
    • Energy collector systems that began serving load or exporting energy from Wyoming before July 1, 2025 are also exempt.
  • The act applies to condemnation actions initiated on or after July 1, 2025.
  • The act does not impair existing contracts or prohibit projects that had begun local permitting processes before July 1, 2025 (per enrolled language and legislative findings).

Procedural notes / amendments

  • Percent threshold adjusted from 85% to 66% by committee amendment.
  • Confidentiality language added to protect alleged terms in condemnation complaints (court to maintain confidentiality except for providing to opposing party).
  • Final enrolled bill deletes the “retail market price” phrase in the definition of commercial facility.

Who is affected

  • Private developers or other persons seeking to exercise eminent domain to build or expand energy collector systems for commercial generating facilities (now face preconditions and evidentiary burdens).
  • Landowners along proposed collector routes (gain stronger negotiation leverage, minimum compensation protections, notice).
  • Public utilities with certificates and pre-existing systems serving load before July 1, 2025 are excluded.

This law modifies eminent domain practice in Wyoming specifically for the siting and expansion of energy collector infrastructure associated with commercial generation, adding negotiation thresholds, compensation protections, procedural transparency (with limited confidentiality), and local notice and reclamation requirements.

Compiled from official sources — confirm details with the bill’s official record.

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