THE PRESIDENTIAL VISIT:

Obama here for the sunshine

As president applauds Nevada’s green efforts, two bills to foster industry’s growth make their way through Carson City

Tiffany Brown / photos by tiffany brown / las vegas sun

President Barack Obama speaks Wednesday at Nellis Air Force Base. He praised the base’s use of a solar array that provides 25 percent of its power.

By David McGrath Schwartz (contact), Michael Mishak (contact)

Thursday, May 28, 2009 | 2 a.m.

Obama Speaks At Nellis

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President Barack Obama delivers remarks about solar energy and the economy at Nellis Air Force Base in Las Vegas.

Obama speaks at Nellis

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Obama tours solar array

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Nevada steps closer to solar economy (12-22-2007)
Nellis to put the sun to work by 2008 (4-21-2007)

Archive of Sun politics stories

Politics: The Early Line

Some people visit Las Vegas for the sights. Others, for the sounds.

But Wednesday, President Barack Obama said he came here for the sun, touring a solar array at Nellis Air Force Base, the largest facility of its kind in the Western Hemisphere.

He used the opportunity to highlight the first 100 days of his economic stimulus package. Speaking to about 400 military and civilian personnel in a hangar at the base, in North Las Vegas, Obama said the solar plant “serves as a shining example of what’s possible when we harness the power of clean, renewable energy to build a new, firmer foundation for economic growth.”

The plant provides 25 percent of the military base’s electricity, the equivalent of powering about 13,200 homes on any given day. The project created 200 jobs, saves the U.S. government nearly $1 million a year and reduces carbon pollution significantly.

“Now, that’s the kind of foundation we’re trying to build all across America,” Obama told the crowd. “In this case, what happens in Vegas should not stay in Vegas.”

Yet even as the president announced new funds to replicate the success of the Nellis plant, the future growth of the solar industry in Nevada was in doubt Wednesday.

State lawmakers in Carson City are considering a package of financial incentives that could make Nevada a leader in renewable energy. But the bills had been caught in political gridlock, and even if they emerge today they might still be vetoed by Gov. Jim Gibbons.

Assembly Bill 522 extends tax abatements for renewable energy generation plants that are set to expire by July, and offers the operators greater property tax relief. Already, Nevada’s tax accommodations to renewable energy producers exceed what surrounding states offer, according to a study paid for by the solar industry this session.

Solar developers and renewable energy advocates see the legislation as a critical boost to the state’s nascent solar industry.

But political horse-trading has stalled the bill in the Legislature for much of the session.

Senate Majority Leader Steven Horsford had held hostage the tax abatements in his chamber because of Assembly opposition to one of his key bills, legislation related to green jobs. The ice thawed Wednesday when the Assembly passed his bill out of a key committee, after brokering a compromise.

In return, the Senate is expected today to hear and pass the bill offering additional tax abatements for renewable energy producers.

But even if the bills make it through the Legislature, their future is uncertain. Gov. Jim Gibbons could veto them after the session ends June 1, preventing any attempt at a veto override. Solar advocates say such a move would be the death knell for the fledgling industry.

“The tax abatements put us in competition with other states,” said Tom Clark, a renewable energy lobbyist. “The large developers of renewable energy will look elsewhere if Nevada does not have the abatements.”

Jim Baak, a director of policy for the nonprofit Vote Solar, said tax abatements are crucial to companies seeking financing to build new facilities, in large part to help offset manufacturing costs.

“Solar developers are looking where they can locate plants for the lowest cost, so they can deliver the lowest-cost energy to utilities,” he said. “Nevada has a young but growing industry with so much promise. Without those abatements, the state would be missing a tremendous opportunity.”

The competition is considerable.

Nevada has been eclipsed by other states — notably New Mexico — in attracting solar part manufacturers that want to be close to the expected solar generation boom in the Southwest.

Schott Solar, for instance, opened a plant in Albuquerque this month that employs 300 workers and is expected to eventually employ 1,500.

Gibbons had not formally taken a position on the bill, but his chief of staff, Josh Hicks, was in talks with legislators throughout Wednesday. Sources say he had concerns about the requirement in the bill that renewable energy projects would be required to pay workers 150 percent of the state average wage to qualify for the abatement.

But industry sources said they have agreed to that provision.

Another possible reason Gibbons might veto it: The bill requires that the state’s new energy commissioner be approved by the Legislature — oversight unwelcomed by the governor.

The bill’s primary sponsor, Assemblywoman Marilyn Kirkpatrick, D-Las Vegas, said she would be open to striking that provision.

At Nellis, Sen. Harry Reid marveled at the state’s potential. He said the base’s solar plant “indicates to me there is so much more that needs to be done and can be done — and much of it should be done here in Nevada.”

He added: “We’ve got it all here. We are the Saudi Arabia, potentially, of renewable energy.”

Key word: potentially.

David McGrath Schwartz reported from Carson City.

Discussion: 8 comments so far…

By dante805

5/28/09 at 5:09 a.m.

Suggest removal

Obama here to scoop up money fro mthe liberal elite - after taking in millions here he went to beverly hills to rake in millions from more liberal suckers. Harry Reid is in good company. Don't fall for the Nevada values that Reid is pushing. Harry Reid is a far left zealot who always comes back before election and says he is for the little guy. I'm from searchlight and grew up with no shoes. Bullfeathers, time to throw the bum out of office. Send him and Obama a message.
By SgtRock

5/28/09 at 6:52 a.m.

Suggest removal

Is it toooooo much to ask the newspaper to get basic relevant information?

How much did it cost to build the system?

What is the annual operation cost?

What is the life of the system?

What?......Oh.....you do not want to give out that information because it would reveal that the "$1 million" in savings is pure hxxsesxxt.
By vegasj

5/28/09 at 7:20 a.m.

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Is the title racist? Like he needs a tan???
By cignettis

5/28/09 at 9:48 a.m.

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Ah yes the two losers in one place. Obamination and the rotating Searchlight on a course to destroy the USA. Obamination couldn't recognize technology if it hit him between the eyes and as far as Searchlight goes he a long time ago had far too many hits to the head. Anybody want to do a calculation on the ROI on the plant out at Nellis. What????? Obamination thinks that ROIs are racist?????? So much for common sense and good business practices.
By rusty57

5/28/09 at 9:50 a.m.

Suggest removal

"Subsidizing renewable energy in the U.S. may destroy two jobs for every one created if Spain's experience with windmills and solar farms is any guide."

http://www.bloomberg.com/apps/news?pid=n...

Whats good is Obama is setting up voting booths in the unemployment line for his nest election.
By scherf_com

5/28/09 at 12:49 p.m.

Suggest removal

OBAMA STILL BELIEVES GORE'S LIES OF GLOBAL WARMING:
It is of course very smart to utilize solar for power generation, especially here in Nevada, and any effort and advances in this regard must be applauded.
But in his speech at Nellis, Obama revealed that he still believes in the old Al Gore fairy tale of Global Warming. Of course Obama has to, because of Cap and Trade as he needs to squeeze approx. $3,200 annually out of each U.S. household in order to finance his crazy agenda. But c'mon, basing his nutty agenda on a fairy tale is completely nuts.

As far as I remember, it snowed on the Strip this winter, ... wasn't that the first time since the 20s or so?
And the last couple of winters were extremely cold in the Salt Lake City area. Oh yeah, btw it also snowed in Dubai and according to records it has never snowed there before.
Geeee, global warming is really hitting us, ... the polar ice caps are melting ... help.
Of course not, because as was expected scientists just discovered new additionals areas of glacier in the antartic.

I think Obama also believes the story of Robin Hood as he has set out to rob the rich, but wait a minute, not only the rich, but everybody to finance his crazed agenda. BTW, last month he has raised SEC fees by 359% and almost nobody noticed. Meaning, Obama more than quadrupled fees and it's just the beginning of what is to come, ... not just a few percentage points on gas, food, water, power, etc., but we're talking increases by hundreds of percentage points on virtually everything. And for what? ... I know there's lots of talk about universal health care, etc., but it's not going to work as virtually every other country who implemented it went bankrupt. Impeach this guy before he bankrupts us all.
By Bertsos

5/28/09 at 5:45 p.m.

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Sherf, don't keep tossing out your stupidity.......it's snowed on the strip many tomes since the 1920's, and flurries have been seen almost yearly in the winter.
By dnewton

5/28/09 at 11:45 p.m.

Suggest removal

It seems like the whole stimulus thing started as a bailout to solve the problem of toxic assets. A toxic asset is creating the responsibility (home loan)to pay for something that you can not afford. This solar array is another toxic asset in that the $100 million dollar cost, as reported in the Washington Post, is yielding a million dollars a year. If anybody thinks that is a good deal. Send me your $100 million and I will send you back, and your chilren and grand children one million dollars a year until they are all dead. Bernie Madoff would love this deal. How can we fix the problem of toxic assets by issuing more toxic assets? Spending the same amount of money drilling for oil would do more damage to the foreign producers than this mess ever will.

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