Nevada Gov. Jim Gibbons presents his renewable energy legislation, SB395, Tuesday March 31, 2009, his first time to go before the Nevada State Legislature in Carson City, Nev. (AP Photo. Lisa J. Tolda/Reno Gazette-Journal) ** MAGS OUT, NO SALES, TV OUT, DO NOT OUT NEVADA APPEAL **
Gov. Jim Gibbons told lawmakers Tuesday his energy plan will bring energy companies to Nevada and help turn the state into a clean energy exporter by 2020.
"We need to harness solar energy in Southern Nevada, harness geothermal energy in Northern Nevada and harness wind energy everywhere in between," he told the Senate Energy, Infrastructure and Transportation Committee.
But Chairman Mike Schneider, D-Las Vegas, questioned the portion of the plan that would give tax abatements to not only energy producers but transmission systems and manufacturers.
"If we give the abatements and they're building renewable plants here in Nevada, where's the profit to Nevada?" Schneider asked.
Other states, he argued, recoup abatements through higher property taxes, corporate income taxes and other levies.
"We almost look like a tax haven here and we have to sweeten the pot? I'm concerned we're giving away the farm."
Gibbons said those companies will bring jobs during construction and that the cheaper, cleaner energy they produce will attract other companies to the state. He also argued Nevada has to provide incentives to counter the "extremely aggressive abatements" being offered by states surrounding Nevada.
Gibbons also pointed out that his bill exempts the Local School Support Tax from the abatements so that public school funding isn't reduced.
He said Nevada sends billions of dollars out of the state to pay for energy the state must now import. He said if that estimated $2 billion stayed in the state, it would have a four- to five-time multiplier effect in the economy " an impact of up to $10 billion.
"Think of what those dollars would mean to Nevada if we could create that energy here in Nevada," he said.
In addition to providing abatements, SB395 would push the state toward buying and using more efficient appliances, equipment and lighting. It would require electric utilities to provide at least 25 percent of electricity from renewable sources by 2025.
The bill would exempt renewable projects less than 70 megawatts from the Public Utility Commission's utility environmental protection act permitting process. He said that would speed permits by at least six months.
"I believe with this bill you are holding a big part of the future of our state in your hands," he said.
Gibbons said after the hearing that the state needs to offer abatements to draw energy companies to Nevada.
"Having 80 percent of something is better than having zero percent," he said.
The committee took no action on the bill.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.