Legislature created energy czar, now funding in doubt

By Cy Ryan (contact)

Thursday, June 25, 2009 | 2:21 p.m.

CARSON CITY – The 2009 Legislature created a new energy czar office but there were questions today about whether there would be enough money to fund the program.

The Legislative Interim Finance Committee has approved starting the Renewable Energy and Energy Efficiency Authority with two workers and $500,000 in a reserve fund from the state Public Utilities Commission to finance the office for the next two years.

Assemblyman Joseph Hardy, R-Boulder City, said a new “bureaucracy” is being created but he has doubts about the future funding. Tax revenues are still flat and there is no predictable revenue source to guarantee the agency will continue after this biennium, he said.

The committee agreed with the recommendation of the state Personnel Department to put the salary of the office head at $117,000, the same as members of the Public Utilities Commission.

Assemblyman Mo Denis, D-Las Vegas, questioned if that salary would attract the type of person needed. He said the position is being compared to others in state government and there has been no look at what people in other states and in private business earn.

The law requires the Nevada energy commissioner to have experience and expertise in the financing of energy generation or energy transmission projects. The individual should be experienced in professional engineering on energy efficiency or in the field of renewable energy.

At the suggestions of Denis, the committee agreed to revise the salary upward if the state could not find the person needed for the new job.

Assemblyman Pete Goicoechea, R-Eureka, said the law allows the new commissioner to hire a lawyer. But there’s no money available for legal help.

Hardy said the hiring of the commissioner and an assistant will take $242,000 of the $250,000 available each year. There is some money to come in from renewal energy sources but he said that is unpredictable.

And he questioned what person would take the commissioner’s job with the funding in doubt in two years.

This new office is separate from the Energy Office in the governor’s office that is headed by Hatice Gecol. And that office came under criticism.

That office qualified for $34.7 million in federal stimulus funds but so far hasn’t got any of the projects off the ground. Gecol said she has authority to hire nine people.

Assembly Speaker Barbara Buckley, D-Las Vegas, complained there are no specifics on how to spend the money. “We need to get this rolling,” she said.

She said the workers from these federal funds could be doing retrofitting energy saving projects and “getting these people to work.” Buckley said the legislative committee needs time lines and work plans on how this money will be used.

Gecol said 10 percent of the money would be used to hire staff and 40 percent would go for projects.

But Sen. Bernice Mathews, chairwoman of the Interim Finance Committee, told Gecol “I don’t know what you’re doing and I don’t think you do either.”

Gecol will return to the finance committee in September with definitive plans.