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March 29, 2024

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Gibbons: Plan would make Nevada energy independent

Updated Tuesday, March 31, 2009 | 12:24 p.m.

CARSON CITY – Gov. Jim Gibbons has called on the Legislature to pass a bill with tax abatements and tougher environmental standards to make Nevada energy independent by the year 2020.

Gibbons, making his first appearance before lawmakers since his State of the State address, told a Senate committee that $2 billion a year is going outside Nevada to import energy. Keeping it within Nevada would produce a $4-$12 billion impact on the state’s economy.

Sen. Mike Schneider, chairman of the Energy, Infrastructure and Transportation Committee, questioned where the profit was for Nevada in building these renewable energy plants. Schneider said Nevada would be exporting its energy to surrounding states that have corporate and other taxes.

“We’re nervous that we are giving away the farm and not getting anything in return,” Schneider said. Once the plant is built, it doesn’t create a lot of high-paying jobs.

Schneider said there are questions about Gibbons’ proposal. Schneider and Sen. Randolph Townsend, R-Reno, said a section of the bill limiting companies from selling electricity only in Nevada would be unconstitutional.

Townsend, the senior Republican on the committee, asked Gibbons’ energy office to supply information from surrounding states to show what benefits they are granting to encourage renewable energy. He also wanted to know how surrounding states tax such projects.

“It’s important we see a side-by-side comparison” before giving tax breaks, said Townsend.

“Just because it’s the governor’s bill, doesn’t mean it will happen,” Schneider said of its chance at passage.

Gibbons told reporters after the hearing that Nevada residents will benefit from lower energy costs and construction workers would remain here to build other plants.

He said he opposes imposing any taxes on the emerging industry.

Senate Bill 395 would change existing tax abatement programs for new or expanded businesses. It would offer abatements to plants that transmit electricity from renewable resources as well as facilities that manufacture, research or design renewable energy equipment.

The governor is also proposing tax abatements for lines and collector systems that transmit electricity from renewable energy, while removing the sales and use tax abatement from local school support tax. That would mean more money for schools.

“By removing the local school support tax, the tools needed to recruit new companies will be balanced with the need to protect funding for our children,” he said.

Nevada is two years ahead of the surrounding states in pushing for renewable energy, a prime goal of his administration, he said.

“We have to maintain our competitiveness,” he said, adding he does not support adding a corporate income tax on these prospective industries.

His bill will require the state purchasing division to adopt regulation to require the state to buy energy efficient appliances, equipment and lighting.

The state Public Works Board will adopt guidelines so state buildings are using energy and water in the most efficient and cost-effective means available. And the public works board would be authorized to use renewable energy to supply state buildings.

The goal is to have 25 percent of the electricity sold to consumers produced from renewable energy.

The amount of greenhouse gases would be restricted in new power generation plants. Auto dealers would be required to disclose the amount of carbon dioxide emission for all new vehicle sales starting with 2012 models.

The committee Monday approved SB152 that will use federal stimulus money to train some 3,200 workers for weatherization projects. The bill would require the state, universities and the school districts to identify and weatherize public buildings.

That bill will go to the floor of the Senate.

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