Renewable Energy-Conservation Measure Passes

Jun 09 - Las Vegas Review - Journal

NEVADA

The Legislature on Tuesday passed a wide-reaching energy bill designed to encourage conservation and boost the usage of renewable energy by the state's utilities.

The bill, which was approved before the Legislature adjourned Tuesday, is expected to be signed into law by Gov. Kenny Guinn.

"It is cutting-edge legislation. There is no question," said Jon Wellinghoff, a lobbyist for renewable energy and conservation interests.

"It was a giant step for the state of Nevada in helping consumers manage their consumption costs and bringing an additional infusion of capital for purposes of conservation," said Sen. Randolph Townsend, R-Reno, chairman of the Senate Commerce Committee. "Anytime we can conserve, consumers' costs drop."

Assembly Bill 3 incorporates key provisions of earlier Senate and Assembly bills. It directs the Nevada Commission on Economic Development to approve a 50 percent property tax reduction for up to 10 years to owners who have buildings that meet energy conservation standards.

Another part of the bill exempts renewable energy systems from sales taxes. Installers of solar photovoltaic systems, which convert sunlight into electricity, however, will need to obtain licenses under the bill.

The bill allows Nevada Power Co. and Sierra Pacific Power Co. to get energy credits for conservation programs that can be used to meet up to one quarter of their renewable energy requirements under the state's renewable energy portfolio law.

The renewable energy law, which was adopted in 2001, ordered electric utilities to obtain increasing amounts of power from renewable sources such as wind, solar and geothermal sources.

The percentage gradually increased to 15 percent by 2013 under the old law, but the new bill raises the minimum to 20 percent by 2015.

Nevada Power has failed to meet the minimum requirements for the past two years, and Sierra Pacific Power failed to satisfy the requirement for solar power.

The bill requires the university and community college system to offer courses about constructing "green buildings" that are energy efficient.

It also expands a solar energy demonstration program to have more kilowatts of capacity generated at schools, public buildings, private residences and businesses. Townsend said the final bill combined measures from his committee with those advocated by Assemblywoman Chris Giunchigliani, D-Las Vegas. "It was a pretty exciting piece to pass," Townsend said.

The Assembly passed the energy bill 38-0 with four members excused and the Senate approved it 19-0 with one member excused and one not voting.