Backers of renewables hope the wait is over

By David McGrath Schwartz

Thursday, Oct. 15, 2009 | 2 a.m.

With the announcement this week that Gov. Jim Gibbons has filled a top energy post, renewable energy advocates said they hope the long months of state inertia on wind, solar and geothermal projects is over.

For months potential developers of renewable energy projects have been in limbo, unable to get answers from the state about the renewable energy tax abatements passed by the Legislature in late May, according to legislators and industry lobbyists.

The delay has led to growing frustration with Gov. Jim Gibbons and the state’s energy policy, which Republicans and Democrats alike have billed as key to the state’s economic future.

“We’ve lost a great deal of momentum,” said Sen. Randolph Townsend, R-Reno, the senior GOP state lawmaker on renewable energy issues. “Some might be because of the economy, but when you have priorities, you make time. You don’t pay lip service to it.”

Assemblywoman Debbie Smith said, “We’re behind. We’ve had unfilled positions for a long time. We have a lot of work to do in this state, a very big hill to climb.”

During this year’s session, renewable energy and creation of a “green economy” were key issues. The Legislature passed more generous tax incentives for renewable energy projects and created the energy commissioner position, which will oversee the Renewable Energy and Energy Efficiency Authority.

But renewable energy lobbyists said that since the session ended, there has been no sense of urgency from the governor’s office to get these projects under way.

“It’s a perception issue,” said one lobbyist with renewable energy clients, speaking on the condition of anonymity because he still has to work with the state. “We get incentives passed in the last session and show everyone we’re serious about creating a new renewable energy industry in Nevada. And basically, since the session, we’ve done nothing. I guess, how serious are we really?”

Another lobbyist said: “If we are truly going to make this a green economy, the administration needs to make it a priority. And waiting 3 1/2 months to appoint the new commissioner tells the industry it’s not a priority.”

The governor’s pick to fill the energy commissioner post is not inspiring confidence for a sudden turnaround, at least among critics of the administration. Hatice Gecol, a former University of Nevada, Reno, professor, had been in charge of the state Office of Energy before being named to the new role, which she said was effective Oct. 9.

The Office of Energy has been criticized by legislators for its handling of federal stimulus dollars earmarked for renewable energy projects. Nevada was the 41st state to gain federal approval of its energy plan, though the Gibbons administration blamed changes in state law for delaying approval.

Robin Reedy, Gibbons’ chief of staff, defended the administration’s work on renewable energy, including Gecol’s new position.

“A lot of work on the infrastructure for renewable energy projects has been done that people don’t see,” she said.

In addition, the Legislature didn’t begin funding the new energy commissioner post until Oct. 1, she said. “Were we supposed to appoint someone and not pay them?” she said.

But Townsend called Reedy’s explanation “nonsense.”

“If the chief of staff wants to blame the Legislature for everything, I don’t think we want to go down that road. It’s not productive. Both sides can toss bombs. People don’t care about inter-branch battles. They’re interested in results,” he said.

“You have an industry thirsting to get ground rules. I’m hoping the governor calls his staff in and says, ‘Come on. Let’s go. I’m tired of waiting.’ ”

Townsend, who heads the Legislative Commission, which approves new regulations, said the application process for the renewable energy tax abatements “shouldn’t take longer (to finalize) than 90 days.”

But Gecol, in an e-mail, said the regulations will be completed in five to six months. A draft of those regulations will be available in November.

She said the slowdown in the development of renewable energy projects is due to tight credit markets.

“This is a nationwide phenomena,” she said.

Responding to criticism that the state has lacked direction, she said, “Now with the authority in place, the Energy Office and the authority will work together to adopt the regulations.”

Mike Skaggs, director of the Nevada Department of Economic Development, said he’s happy the energy commissioner position is now filled. Incentives, he said, are key to Nevada being competitive with surrounding states and getting projects approved and built.

“We can start getting some of these facilities committed that we’ve been dealing with for the last six months,” he said. “Financiers aren’t going to let the developers do the deals until you see the incentives.”

State Senate Majority Leader Steven Horsford, D-Las Vegas, praised Gecol’s qualifications, but said the state needs to move more quickly.

“We’re losing an opportunity to put people to work,” he said. “There are jobs we should be creating to put people to work.”

As to the potential that it will take five to six months before regulations are finalized, Horsford said legislative staff members are prepared to assist Gecol so the state doesn’t lose developers who are waiting to commit to Nevada.

“These abatements are critical at a time when growing our economy and protecting and creating jobs is paramount,” he said.