On October 14th TWW submitted comments to the Nevada Climate Initiative, recommending pragmatic policy steps that the state of Nevada could implement to help boost rural economies and make a positive environmental impact.
Thanks to technological innovations there has been a revolution in the energy sector over the last decade leading to a rapid and unforeseen drop in prices for renewable and clean energy which will have a profound effect on the climate and provide a significant boost Nevada’s economy. Nevada is poised to take full advantage of this energy revolution due to its strong solar, geothermal, hydroelectric, wind and lithium resources.
These developments are key to ensuring that Nevada can realize economic benefits while taking steps to address climate issues. Last year, TWW partnered with the Carson Valley Chamber of Commerce to study the economic impacts of rural renewables across the state of Nevada and the potential impacts of increased development. The study (See attached), found that renewable energy projects in rural Nevada benefit the state and rural communities with a significant amount economic impact. From 2006 to 2017, 29 rural renewable projects led to a total output of $7.9 billion that flowed into the Nevada economy, created 12,056 Nevada jobs, paid $947.3 million in wages paid to Nevada employees, and resulted in over $152 million in tax payments to state and local governments. These projects help drive investment and jobs to regions of the state that often go overlooked.
With the economic slow-down due to COVID-19 hitting Nevada especially hard in terms of job losses and major sectors of the economy being shut down for months, Nevada should look to policies within the climate initiative which can deliver job growth and investment across the state. Large scale infrastructure projects like the 690MW Gemini Solar, the largest solar project in the country located northeast of Las Vegas, will drive over $1 billion in investment and create an estimated 700 jobs over the next two years. Paving the way for more infrastructure projects like Gemini Solar and the announced investments from NV Energy, especially in rural regions of the state, would ensure that Nevada remains a leader in clean energy and climate action while maintaining a strong economy.
TWW recommends the following policy concepts for consideration by the Nevada Climate Initiative:
1. Advance policies that expand electrification and connect rural communities. Examples include:
Expand rural infrastructure for electric vehicles and other alternative fuel vehicles.
Connect incentives for rural economic development projects to expansion of infrastructure including transmission infrastructure.
Promote electrification of irrigation ditches/ water delivery where economically feasible.
Ensure that rural energy transmission and storage projects are connected.
2. Remove barriers to renewable energy development through zoning, designations, and tax policy. Examples include:
Remove zoning barriers to energy production and storage while upholding private property rights for landowners that choose to develop energy projects.
Streamline siting and easements for renewable development and transmission such as exemptions and permitting.
Work with local counties to collaborate with federal land managers to put renewable projects on public lands by streamlining federal permit processes. The bi-partisan Public Land Renewable Energy Development Act (PLREDA) in Congress creates a strong framework for better coordination with Federal agencies.
3. Drive rural renewable energy development through zoning, designations, and tax policy. Examples include:
Provide incentives for rural landowners to create distributed energy to power their own operations.
Replicate at the state and local levels the BLM’s model of “solar energy zones” (SEZ). These are areas designated to be well suited for utility-scale production of solar energy and where the BLM prioritizes solar energy and associated transmission infrastructure development.
Create ‘Enterprise Zone’ tax credits, which are designed to promote a business-friendly environment in economically distressed areas through state income tax credits, to apply to renewable energy investments.
4. Position the rural Nevada as an easy choice for renewable energy investments. Examples include:
Support regional share benefits/multi-county revenue sharing state policy, such as Intergovernmental MOUs, to streamline the approval process for renewable energy projects. This would allow interested counties and local governments to opt into, thus signaling they are willing to attract projects.
Seek expansion of manufacturing wind farm and solar components near sites to increase local economic impact and jobs.
Re-designate existing state economic development staff whose exclusive job it is to help rural counties develop and publicize their pricing menu for permits and applications, as well as an access portfolio (e.g. transmission, right-of-way, etc.) for renewable energy development.
Explore policies to create competitive wholesale electric markets as a non-mandate approach towards helping utilize renewables at a higher capacity across the region.