Thursday, March 3, 2011 | 2:01 a.m.
Dean Heller
Harry Reid
Sun archives
- Reid: Solar thermal project near Tonopah to create more than 500 new jobs in Nevada (12-20-2010)
- NV Energy agrees to purchase Crescent Dunes solar power (12-22-2009)
- The cost of building a solar powered economy (8-16-2009)
- Interior bets big on Western solar energy (7-3-2009)
- Obama, Reid tour Nellis solar facility (5-27-2009)
- Solar developers shoot to beat buzzer for cash (3-22-2009)
Sun Coverage
Since it was officially announced in late 2009, the Crescent Dunes Solar Energy Project in Tonopah has been one of Nevada’s flagship commercial renewable energy projects.
The planned 110-megawatt energy storage facility — nearly twice the capacity of the state’s next largest solar plant — is expected to power about 75,000 NV Energy customers and create 600 jobs on-site. It would also be the first time that U.S.-developed, molten-salt technology has been put into operation anywhere in the world.
But the whole enterprise depends on federally backed loans that House Republicans marked for the chopping block in the budget they passed two Saturdays ago.
If the loans go away, project developers SolarReserve of Santa Monica, Calif., say, so will the Tonopah project.
“This will be the first large-scale tower project with storage,” said Kevin Smith, CEO of SolarReserve. The storage capacity, which allows for uninterrupted solar power distribution even when the sun’s not out, is what makes the project unique. “It’s U.S. technology and U.S. jobs — it would just be ridiculous for the U.S. government to clip its wings at the last minute.”
As far as the Republican caucus is concerned, the renewable energy loan guarantee program underlying projects such as the Tonopah solar facility — technically designated Section 1705 of the Energy Policy Act — has two strikes against it: It favors renewable energy projects; and it’s a creation of the American Recovery and Reinvestment Act, the stimulus bill of 2009.
Under that bill, the Obama administration created an incentive for companies such as SolarReserve to move quickly: Provided you break ground by the end of fiscal 2011, we’ll back you.
But that was before the midterm elections.
Republicans swept into Washington on a pledge to pull back all unobligated stimulus funding. Republicans identified more than $10 billion in unspent funding under energy efficiency, or renewable energy accounts — a significant percentage of their $61 billion budget reduction aims. They didn’t cut all that — $5.4 billion was excised from energy and water-related projects — but the Republicans’ budget did identify reductions in what they termed “loan guarantees for lower-demand programs.” In the case of the Section 1705 program, that’s a total stripping of what’s left.
But loan guarantees are politically tricky. Although some loan programs do carry the stigma of their stimulus origins, they’re also primarily geared toward encouraging private-sector investment. Neither are they handouts — they’re loans that have to be paid back.
Senate Majority Leader Harry Reid, who envisions rebuilding Nevada’s economy with a green-jobs revolution, recently called the loan guarantee program “exactly the kind of public-private partnership that Nevada and the nation need to help us lead the world in clean energy jobs.”
Affordable loans can be hard to come by in the renewable energy industry — projects are often so new that ideas are pretty much the only collateral.
But one has to believe in those ideas to back them — and that’s where Nevada’s Republicans find themselves at odds with other Republicans.
Nevada Republicans may not side with Democrats on every clean energy vote, but all the delegation’s Republicans in Congress have supported the initiatives behind various projects in the past.
That’s not the case with the GOP nationwide. Solar and wind energy projects simply don’t have the same cachet in oil-rich Texas, an area of the country far more concerned with oil and gas subsidies. Likewise in the South, another conservative Republican stronghold, environmental conditions just don’t make solar, wind or geothermal energy viable enterprises.
And even though they’re loans, the short-term price tag is considerable.
Nevada’s much-praised One Nevada high-speed transmission line — which breaks ground this year — received a Section 1705 loan guarantee last month, for $363 million of the $500 million the project is expected to cost.
The Tonopah project is even more expensive: Developers are looking for about $600 million in loan guarantees that they say will help draw another $200 million or so from private investors.
NV Energy has signed a 25-year contract to purchase the energy produced.
But even with those guarantees, backers say they simply won’t be able to get the project off the ground without the government’s help.
“We are nervous about it ... but we’re so far down the road in the program, that there’s no turning back,” Smith said. “We certainly are making sure that the political parties are well aware where this project is.”
But even if they are aware, there may be little they can — or will — do, given the political climate.
“Congressman Heller supports renewable energy development in Nevada and believes it has the potential to be a growing industry in the state,” said Stewart Bybee, communications director for Republican Rep. Dean Heller, whose district encompasses the Crescent Dunes project.
Heller, who backs the Tonopah-based project, is no shrinking violet when it comes to bucking the party line — last month, he waged a vocal campaign against a line item in the House Republicans’ budget that sought to preserve Yucca Mountain as a nuclear dumpsite, fighting back with an amendment that ultimately failed on a voice vote. Heller did end up voting for the bill.
But Heller’s not signaling that he plans to wage anywhere near a similar fight for this project — suggesting that its potential untimely death may just be what Nevada has to take for the team.
“Since coming to Congress, (Heller) has supported federal policies such as tax credits and a renewable portfolio standard that promote the production of renewable energy in our country,” Bybee continued. “However, with government spending at record levels, it is necessary to evaluate what the best role for the federal government is in encouraging growth in this industry.”
Section 1705, like all points of the House bill, are subject to negotiations in the next two weeks. The clock runs out at midnight on March 18.
Practically all the big ideas have been government funded, or backed. Erie Canal, Transcontinental Railroad, Panama Canal, Hoover Dam, Rural Electrification, Hoover Dam, Nuclear and Space Program, Interstate Highway Program, computers, elimination of polio, and other diseases, etc.
The investment in Hydro-power projects in the 1930's helped provide the power to smelt and refine materials that were strategic in WWII.
I thought the Yermo plant used molten salt? But maybe it was not USA technology.
Republicans...because someone has to represent and be stupid.
Spend, baby, spend! Perhaps they could have used Yucca Mtn rent money to guarentee the loans, create an energy science center...oh, nevermind.
Repugnicans ensure billions in taxpayer subsidies and tax breaks for Exxon Mobil, Chevron Texaco, and the rest of Big Oil. But how about a few government backed loans for clean and renewable energy? No way! The current Repugnican party is the most hypocritical, reactionary, destructively partisan collection of no-knowings in memory.
But what you are failing to tell the public is how many jobs will be lost with this new program. Yes, you will create jobs but more jobs will be lost in this new creation. So stop trying to jerk the people around and be honest. Half honest just doesn't get it. You treat the people in Nevada like they are stupid and they are not. So, folks, wake up and read all the information on this and talk to those that are going to be loosing their jobs.
pegw77 - please provide proof of your claim. Real evidence, not speculation.
Solar should have been required on all the foreclosed properties that the government bailed out for Wall Street bankers.
These loans have to be paid back... What if they are not? Who is signing the personal guarantee? Do they have enough income and collateral to cover $5.4 Billion in loans.
These are the questions the banks and SBA would ask me if I were to apply for this type loan.
Ultimately they would turn down my loan request based on "I am speculating on the cost of energy".
Run this loan through the SBA and see what they say.
You can clearly see the kiss ass loyalty for repugnicans to the oil and gas industry
So why should the Taxpayer guarantee something the private sector apparently will not do? If this is such a sure-thing, with power already sold, why do they need Federal backstops?
Hit-up their partner United Technologies for the guarantees and leave the already broke US Taxpayer alone.
Hey all you liberal greeniac morons! Buy any gas lately. I took the photovoltaic panel off my SUV. It didn't work real well. Here comes 4.00/gallon again. 5.00 is near. Thank you Harry scumsucker. Make sure all you morons blame Bush.
http://abovethecrowd.com/2009/02/18/just...
Seems from even a cursory investigation these type of centralized "green" plants are designed to keep the status quo of centralized energy distribution entrenched.
I suspect the reason they require government backstopping has little to do with need and mostly to do with reducing risk of diversified competition. Green tech works best onsite, not in centralized locations miles from use. Unfortunately that model is too empowering for the user and breaks the Power Company Monopoly.
There is nothing magical about this Tonopah Plant. The Tech is basically reconfigured nuke generation replacing the uranium with the Sun. Molten Salt is used to house solar heat which is then used to boil water turning a power generator. If this "magical Process" can be done in a box at one's home, then you can see the risk investors have in these large scale centralized plants.
This article is boilerplate left/right divide and conquer political noise basically. It does nothing to address the real issues. It is diversion to make people think Green rests on massive Government investment and massive Plants. Nothing could be further from the truth.
@stephenrblv
"It is diversion to make people think Green rests on massive Government investment and massive Plants. Nothing could be further from the truth."
And the world is flat.
republicans don't care about america or american society,,they voted only to protect and increase the their profit,,,remember our corps are iternational....republicans care more about corp, profit,, more than americans or thier values or needs,,,,
You see the funny part of Republicans claiming that Green/Environmentally friendly (use whatever term you like) will somehow kill jobs is a laugh. All Republicans care about is keeping rich people rich. Period. Renewable projects are the last great hope for American Industry and the GOP wants to kill it dead because their billionaire buddies in the non-renewable fields will have to use their brains if they want to stay rich.
Jobs won't mean a damn people if we don't have a planet to live on! And if you think for a minute that running our society on liquified dinosaurs is a good idea then you're more stupid than the Right could even hope you'd be. These people rant about the future and yet want all of us to rely on 19th century technology while the rest of world is speeding on ahead without us. Turning your back on renewable and green technology means bye bye America. Put that in your right wing pipe and smoke it!
I also find it funny that some idiot above is griping about high gas prices and blaming a Democrat. No one should be using petroleum for anything in the 21st century except Vaseline, which we're all going to need a whole lot more of if the Republicans get the Presidency in 2012.
BC clearly shows how completely ridiculous these people are. Where's the outrage about Republicans supporting billion dollars gifts to the oil industry? It was Bush No. 2 who did everything he could to see to it that the millions of acres of corn in America wouldn't be turned into fuel because food prices would skyrocket. Well now a gallon of milk is more than a gallon of gas and the average American worker is now working a half hour out of every work day to buy a head of lettuce and the Oil Industry has seen trillion dollar (yes trillion) profits in the last decade. And why? Because gasoline got so damned expensive that it costs a fortune to move a pickle from end of the country to the other. Get it? Of course not. Too bad we dismantled the rail system fifty years ago and every lobbyist loving Republican sees to it that rail will never see the light of day again so long as oil is over $100 a barrel. Blame Harry Reid? How dumb can you possibly be?
God help us all if the morons get their way.
John Boehner and his even more reactionary caucus with the Tea Party nuts ran on a platform that President Barack Obama didn't create enough jobs.
The real reason, of course, the policies of George W. Bush were even worse than expected. Surprised? What do youe expect from a guy who had four oil companies, ran each into the ground and was repeatedly bailed out by the Saudis?
The GOP is going into its third month of control of the House. They still have NOT introduced any legislation to CREATE JOBS. Welcome to GOP Hypocrisy-101.
Now they have gone to a new level. Their budget cuts would cost an estimated 800,000 jobs. Boehner's response, "So be it."
Now they are launching a war on creating green jobs in Nevada. After all renewable energy would reduce our dependence on Saudi Arabian and other Arab oil. Mr. Boehner have you forgotten 9/11? Or are you just a stooge of the giant oil companies?