If a recent surge in permitted energy facilities is any indication, the next phase of Wyoming's energy boom will include more traditional coal burning, more newfangled wind farms and some old coal made anew as 87-octane gasoline.

Growing demand for both traditional and "alternative" sources of fuel has led to a statistical explosion in the number of large energy production facilities proposed and permitted for construction in Wyoming over the past two years.

And this trend looks only to accelerate for at least the coming year or two, state officials said.

The Wyoming Department of Environmental Quality has jurisdiction to permit most "major" industrial projects, and its division dedicated to this task has seen its workload increase four-fold since 2006.

The proposed projects have included "new" kinds of power facilities, such as wind farms and a coal gasification plant, along with traditional coal-fired power plants.

The DEQ's Industrial Siting Division - and its decision-making body, the Industrial Siting Council - is responsible for assessing the potential socio-economic impacts of most large projects in the state.

In general, but with some exceptions, if a project is going to cost at least $178.9 million to construct, its owner must seek a permit from the Industrial Siting Council.

The minimum dollar amount that triggers this oversight is regularly adjusted for inflation.

Through the permitting process, the Industrial Siting Council works to ensure that the potential socio-economic impacts identified during a public vetting process are alleviated, one way or another.

Explosion in 'major' projects

Big energy projects can mean big changes for Wyoming's small communities, so one of the Industrial Siting Division's roles is to help make funding available to local governments to help them deal with the sudden influx of people, vehicles and equipment associated with the new industry.

Generally, the money is funneled to towns and municipalities to help them improve infrastructure such as roads and sewers, and bolster protective services such as police and fire departments.

The Industrial Siting Division began operation in 1975, and from that year to 2006 it permitted 32 major projects in the Cowboy State.

But during 2007 and 2008, the division permitted eight projects.

In other words, 20 percent of the 40 facilities permitted since 1975 were done in the last two years.

And the division expects to review up to six new projects in 2009.

"I think there are a few reasons for that," said Todd Parfitt, deputy director of the DEQ. "One is increased demand for energy sources. You've seen it with a few coal-fired power plants up in the northeast part of the state. Also, there is increased demand for green energy, such as wind power. We've seen an increase primarily with wind energy projects the last two years. Also natural gas development in the southwest part of the state, gas processing plants. It's all energy related."

So far the division's increased workload has been "manageable," he said, and DEQ employees have been able to keep up, in part because they are a good team and also because they've been fortunate in the way some projects have been spaced out in time.

"We've been able to handle that, but if this continues, there may be a need for additional staff," Parfitt said.

Payments to communities

In the permitting process, the applicant is required to come up with a housing plan for the projected workers, and the applicants are also required to "give reasonable consideration to hiring a local work force" before exploring out-of-state options, Parfitt said.

If a project receives a permit, the Industrial Siting Division is notified, and it in turn notifies the state Department of Revenue, Parfitt said. The Department of Revenue then calculates the sales and use taxes for the county for the previous 12 months, which establishes a baseline.

"The amount over the baseline is what goes into the impact assistance payments," Parfitt said. "Some months the sales and use tax may be below the base, and some months it will be higher, and then the calculation is made. The theory is, when you bring in this large industrial process and workers and materials come in, you'd expect to see an increase in sales and use taxes based on revenue."

The process works for the most part, he said, and the impact assistance payments to affected communities continue until construction on the project is 90 percent complete.

"(Payments) can range from six months to four years, depending on the complexity of the project," Parfitt said.

Coal-to-gas in Carbon County

Jerry Paxton of Encampment, vice chairman of the Carbon County Commission, said new major projects, such as DKRW Advanced Fuels' coal gasification plant - scheduled to begin construction in 2010 - will present challenges for the region.

But the state, county and local governments have a good process in place to help localities deal with the influx of people, vehicles and materials, he said.

The biggest issue tends to be a shortage of housing, Paxton said, which the Industrial Siting Council's permitting process does address.

DKRW's coal-to-liquids operation will be constructed between Medicine Bow and Elk Mountain, and is expected to create 400 to 500 new jobs in the area.

A plant of this size will require some preparation from the local communities, Paxton said, but area residents and the county commission are "excited" by the prospect because it promises to be an "environmentally friendly" industry.

"There's definitely going to be an impact, probably all the way from Rawlins clear to Laramie, because of the number of workers involved in that thing," Paxton said. "The town of Medicine Bow upgraded its water and sewer, and they're updating gas lines. They're ready for a change; they've been through a boom and bust cycle before in that area, so they know what that's all about."

Paxton expects some workers will live at the Walcott Junction RV camp, some in Hanna, some in Medicine Bow and Elk Mountain, and some will commute out of Laramie, which is about an hour's drive away, he said.

The county has secured a $10 million grant from the state to improve a county road and complete its connection from Medicine Bow to Interstate 80, near Elk Mountain, Paxton said.

"We need to do some pretty extensive road work, a bridge has to be replaced and relocated, so there are some challenges for the county, as well as the municipalities," Paxton said.

But the commission has been in "constant contact" with DKRW, he said, and the county and municipalities do have enough lead time to get everything in place before construction begins.

Asked how the plant might affect county revenues, Paxton said the commission has "no concrete numbers yet, but it's going to have a significant financial impact on the county."

Reporter Chris Merrill can be reached at chris.merrill@trib.com or at (307) 267-6722.