Reid proposal eyes credits for alternate energy investment

Wednesday, Feb. 7, 2001 | 10:20 a.m.

A bill to encourage investment in wind, geothermal and other sources of renewable energy was introduced by Sen. Harry Reid, D-Nev., on Tuesday.

Reid's bill proposes to make federal tax credits permanent for low-polluting power resources and to expand the credits to include less traditional alternatives such as power from poultry and animal wastes and tree trimmings.

The legislation is intended to expand existing electricity production and spur new development, as energy shortages in California threaten to spread to other Western states, including Nevada.

Relying on wind, geothermal or solar sources removes carbon monoxide, mercury and millions of tons of other dangerous pollutants from the environment, Reid said.

"Unless we expand the use of renewable energy in Nevada and across the nation, air and water pollution will only increase and it will be future generations who ultimately pay the price," the senator said.

Reid also considered the potential for an economic boost to rural Nevada towns converting to renewable sources. Reid said a recently funded wind project at the Nevada Test Site was a perfect example.

The Nevada Test Site and M&N Co. will soon build a state-of-the-art wind farm that could deliver 260 megawatts of electricity, enough to power 260,000 homes. The Test Site was the base for nuclear weapons experiments above and below ground from 1951 until 1992.

The less traditional alternatives include a system called closed-loop biomass generation, which uses tree trimmings and animal waste. Paper pulp, animal or poultry wastes or clippings are burned and turned into a gas in a unit that captures the fumes before they escape and condenses the steam to reuse the water.

Reid's bill also gives a boost to geothermal sources, which take hot water from deep within the earth and uses the steam to turn generators. Many prime spots for geothermal energy development are found in Northern Nevada.

State Consumer Advocate Tim Hay applauded Reid's efforts and those of the Nevada Legislature.

"I think there is a growing sense that Nevada has to be more energy independent," Hay said.

With Nevada Power Co. importing more than 50 percent of the electricity demanded in the summer months, strained sources in other states may not be able to supply the growing Las Vegas Valley, Hay said.

The Legislature is considering an increase in its requirements for renewable energy to 9 percent.

The state Public Utilities Commission has started to lay out the rules for electric service companies to meet the original renewable requirements contained in a bill passed by the 1991 Legislature.

Under the current proposal, up to 1 percent of electricity consumed by customers has to come from renewable sources, PUC spokesman David Chairez said.