Reid: State must act to ‘realize its renewable energy potential’

By Karoun Demirjian

Monday, March 12, 2012 | 2:28 p.m.

WASHINGTON - Sen. Harry Reid issued a report today noting Nevada’s renewable energy accomplishments and highlighting where he thinks the state industry can go.

The 18-page report is mostly a review of facts and figures, and synopses about each of the six major, federally backed renewable energy projects under construction in the Silver State.

But it’s also a platform for Reid, and highlights his planned focus over the next year promoting renewable energy-related programs and tax incentives in Congress.

The project that receives the most attention is a renewal of the Section 1603 tax credit program, that lets project developers monetize tax credits into a cash grant to invest in their project. The program, which helped finance a number of renewable energy projects in Nevada while it was ongoing, expired at the end of last year.

An extension of that program is coming up for a vote in the Senate Tuesday, as an amendment to the transportation bill currently under consideration – but getting enough support for the extension will be an uphill battle.

“The challenge then for Nevada is to beat back these short-sighted attacks so we can build on our successes,” Reid said Monday in a call formally unveiling the bill.

Congress’s appetite for federal renewable energy investments, once a huge part of the stimulus bill, has waned. While most Republicans aren’t opposed to renewable energy per se, they question whether the federal government should be underwriting the industry.

Democrats counter that the federal government already subsidizes oil and gas companies through tax breaks.

“With no significant fossil fuel resources in Nevada, investing in clean energy economy is investing in Nevada,” said Lydia Ball, executive director of the Clean Energy Project, which promotes investments in renewable energy in Nevada.

Reid also had strong, but more subtle, words of warning for the state of Nevada.

Despite Nevada’s impressive accomplishments in renewable energy – the state is in the top 5 nationally for solar capacity, 3rd for utility-scale solar projects, and 1st for geothermal – it risks falling behind because of lagging investments.

“If we’re going to continue to get investments in the future, we have to work together to develop the state’s clean energy resources,” Reid said. “We’re fortunate to live in a state with an abundance of renewable energy resources. But the projects don’t happen by accident and they do not happen overnight. It takes important state actions for Nevada to realize its renewable energy potential.”