Facebook
Fark
Digg
Reddit
Stumble
Tuesday, March 9, 2010 | 2 a.m.
Sun Coverage
Sun Archives
CASH GENERATED FROM THE GROUND
Money Nevada counties collected on geothermal plants in 2009:Nevada’s congressional delegation is scrambling to try to reverse a 5-month-old change in federal appropriations that is costing some of the state’s rural counties hundreds of thousands of dollars each month.
At issue is the way the federal government divvies up royalty and lease payments from geothermal power companies that are using federal land.
The 2005 Energy Policy Act allocated a quarter of that revenue to counties where geothermal plants are located, half to those counties’ states and a quarter to the federal government.
Since the law was first implemented in 2007, Nevada counties have taken in nearly $17.8 million from royalties and leases, and the state has gotten nearly $35.6 million.
With expectations that Nevada will see a boom in geothermal plants, many rural counties in Northern Nevada were counting on getting even more of this money this year to bolster their budgets.
But the appropriations bill for the Interior Department approved in September changed the formula and gave the federal government what used to be the counties’ share.
Nevada’s congressional delegation voted in favor of the bill. Whether they all knew about the change it contained is unclear.
The Senate version of the bill included language giving home counties their share of geothermal energy income. But the House version removed the provision and that version of the bill won out in conference committee.
In November, a month after the change went into effect with the start of the new federal fiscal year, the National Association of Counties Western Interstate Region sent letters to Senate Majority Leader Harry Reid, Sen. John Ensign and Rep. Dean Heller, R-Nev., whose congressional district includes some of the affected Nevada counties, complaining the counties had been robbed.
Now a bipartisan effort is under way to try restore the counties’ share of the money. The amendment to restore the counties’ share of the geothermal money was introduced by Reid and Ensign. The co-writers of the legislation on the Senate side are Democrats Dianne Feinstein and Barbara Boxer of California and Republicans Orrin Hatch of Utah and Mike Crapo of Idaho.
Heller and Democrat Mike Thompson co-wrote similar legislation in the House.
With a boom in geothermal energy expected over the next decade, the counties stand to lose hundreds of millions of dollars from leases and royalties.
Nevada could add as much as 3,743 megawatts of geothermal energy in the next decade. Up to 1,207 megawatts of that projected energy development is in the final stages of planning or construction. The state leads the nation in geothermal exploration and development and is getting the lion’s share of federal funding for demonstration projects, with more than $73.6 million in Energy Department funding.
California, the current geothermal energy production leader, got about $47.3 million from the Energy Department.
Most geothermal energy development in Nevada is on public land administered by the Bureau of Land Management, which sets the royalty rate and auctions off parcels for lease.
Because geothermal involves extracting a resource from the ground (in this case, heat or hot water) it is considered a mineral resource. That means geothermal companies must pay royalties on the revenue they generate from the resource. BLM collects 1.75 percent of gross income for the first 10 years of a project and 3.5 percent after that.
The issue doesn’t directly affect Clark County because the county doesn’t have geothermal plants. Similar legislation regarding wind and solar plants would significantly affect Southern Nevada, but that legislation has gone nowhere and isn’t expected to advance unless Congress takes up the carbon cap debate, which isn’t likely to happen soon.
"Nevada's congressional delegation is scrambling to try to reverse a 5-month-old change in federal appropriations that is costing some of the state's [Nevada]rural counties hundreds of thousands of dollars each month.
-------------------------------
Under Harry Reid "the appropriations bill for the Interior Department approved in September changed the formula and gave the federal government what used to be the counties' share."
"Nevada's congressional delegation voted in favor of the bill"
????????????????????????????????
How did Harry Reid let this happen. Harry is in charge of the Senate.
He said this was a done deal like Yucca mountain.
Why does everything Harry Reid touch fall apart.
I am not a fan of someone that takes the opportunity to blame the wrong person. Future in this case you are worse then the politicians. Get your facts straight and I don't know who I am going to vote for, but I am going to vote based on the facts.
Harry Reid is in charge of the senate and the senate bill had the appropriations going to the county. It was the house bill that did not. Committee to combine is often ran by the respective house and senate committees that sent the bills to the floor. I don't know if Harry Reid or John Ensign were part of those.
The fact is the house, our congressman, and not the senators are to blame for this one including Dean Heller as they voted for a version of the bill from the beginning that did not have the appropriations.
If you going to smash someone for their voting record or leadership then fully understand how things work first.
FUTURE, think before you write.
Nevada gives away gold to mining companies for practically nothing so it might as well make the same deal for our federal government.
Right, a few geothermal crumbs and the gold boys rake in the lion's share, but don't worry Republican Crap O is on the job.
Harry Reid and his office once again fell short for the State of Nevada.
His obsession with Healthcare,along with the rest of the Democratic leaders,has clouded very important issues that effect the State of Nevada and it citizens.
Mr.Reid,Nancy Pelosi,ane the President have pushed so hard to pass a healthcare bill that the majority of this country does not want.This push has required all the U.S. leaders attention and has forced them to neglect other detremental legislation that effects many people.In regards of counties losing income from the Geothermal Plants now not comming in will force those counties to cut jobs and public services.
I have said this before and I will say it again.
Mr. Reid does not care about the average person of the State of Nevada and has wasted valuable time that could have been spent on issues of economic recovery.If anything the new legislation on the Geotherm revenue should have been to allocate more of the revenue to the counties.This would help the counties maintain thier current budget and maintain current jobs and possibly bring about new jobs.
So Mr Reid what do you have to say for yourself and hows is this consistant to you T.V. ads you are running for your re-election bid.
Mr.Reid as citizen of this State give me a logical answer to this question (not an excuse) and tell with a straight face the healthcare bill is what the citizens of Nevada wantand where are we goig to get value from it.
Tell the Citizens that you have not wasted time on the healthcare bill when their is much more important things to address right now.
Mr. Reid show me that the tax payers 10 years from now, want have tax increases if the Healthcare bill passes.
Mr.Reid what about your home State who generously put you into office many years ago and gave you the opprotunity to be where you are today.
Mr.Reid can you not come home and listen to what the Citizens of Nevada need and not pal up with corperations like MGM/Mirrage.
Mr.Reid have you forgotten (not remember) where you came from.
I know the LV Sun is a huge supporter of Mr.Reid
but I challange the LV Sun to ask him these questions and confront Mr.Reid with some of these apparenet facts.
rodtig
Save it for a book. Do you really think anyone will take time to read your latest 500 word anti-Harry Reid rant which is probably no different from the previous one? Believe it or not, you're really aren't that important.
I recomment that you cut down on the Kool-Aid consumption.
Thank You senior Reid for all those give aways, now where is my Acorn money,
Hang in there Mr. Ensign, soon will get you somebody that will actually work with you to rebuild our state. Nevada will have a fresh face this fall! (Thank God)
If you think Nevada doesn't get enough now, try this on for size. The last time we didn't have a senior Democrat in the Senate, they sent Yucca Mountain our way whether we wanted it or not--and not with an offer to give us billions if we'd take it. Reid and his colleagues have to work hard to get everything they can for Nevada, and they do a good job.
Meanwhile, I would add that Nevadans, according to polls, want health care reform. They may disagree over the details, but is there anyone out there who wants us to stay with what we have now? Oh, yes, Republicans who never get sick and never have pre-existing conditions.
And we are supposed to TRUST the incompetents reid, pelosi and obama with our healthcare. NO WAY HOSEA.
Another reason to toss out Back Door Reid!
Lowden thinks geothermal is the steam table, at a casino buffet line.
LastThroes
Unfortunatly you must alliegn you thoughts with the Democrats in this State.
That is you right though and it is my right to voice my observations of the political leaders of this state.
The sad thing is I have only lived in Nevada just over a year and see that Nevada is not only
suffering from the Economy turn down but it also is suffering from the tunnel vision of our State Elected officials in Washington Wasting time and neglecting to reading legislation changes before voting for it.
The reason I attacked Harry Reid is,he has done nothing this year but focus on healthcare bill.
And his constant push to pass it through has distracted others from do their job effectivly
Ohhh you mean what gReid was pushing for and fully wanted in the beginning, NOW He's changing his message.
You remember Ensign was opposed and gReid was chastizing Ensign for opposing - NOW gReid wants to appear he's all for Nevada.
Remember it was also gReid who did the happy dance over Yucca Mtn. closure - Which would have brought us at 1+billion annually from the Feds.
And now his spawn wants to be Gov. HA get em out!
As was pointed out - the Nevada delegation voted to screw the rural counties and all of Nevada.
Seems these people were all living large at Harry Reid's Mustang Ranch for lobbyists and forgot they were sent to Washington to represent the people, not corporations and Wall Street.
Plus, they were too busy being clowns to read and comprehend what they were voting for.
So whose fault is it? Time to say sayonara to Hot Lips Harry and his crew of clueless fools.
And make sure we send his kid back to Searchlight so he can go out and pick up rocks to sell to tourist at the rock hound roundup.
Fred Conquest
Democratic Candidate for Governor 2010