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Nevada

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This summary is part of Beyond the Beltway: A Report on State Energy and Climate Policies produced by the Center for Law, Energy & the Environment at Berkeley Law

 

Nevada produces three-quarters of its power from natural gas. Renewables are another 20% (6% hydro, 5% solar, 8% geothermal, with a small amount of wind), while coal provides the remainder. In 2005, coal was about half the power mix, with a steep decline starting in 2006. Nevada has also begun to ensure the availability of electric recharge stations along its highways.[1] Recent developments regarding renewables are favorable, with 129 MW approved in 2016 by the state to service Apple and Switch.[2]

The Republicans control the governor’s mansion, but the state legislature is controlled by the Democrats (though by only a narrow margin in the Senate). Divided government in Nevada has not been uncommon in the past three decades, but the state government had been under united GOP control until the 2016 elections.

There has been a lot of recent political action in the energy sphere. A proposed constitutional amendment to deregulate electricity markets was approved by 72% of voters in 2016 and will require a second vote on the 2018 ballot, when it is considered very likely to pass. If passed, deregulation will take effect in 2023, and the state government is already beginning planning.[3]

In June 2017, the legislature sent three key energy bills to the Governor Brian Sandoval’s desk. Assembly Bill 206 called for an increase in renewables generation to 40% by 2030 and 80% by 2040. Sandoval vetoed the bill, on grounds that it usurped the energy policy role of the state public utilities commission, but said he would consider the issue in connection with the planning for eventual deregulation.[4]

The second bill was Senate Bill 392, which authorized community solar systems. Although the community-solar bill was supported by 70% of state population, Sandoval vetoed it on the grounds that it potentially conflicted with the third bill, Assembly Bill 405, which the Governor did sign.[5] AB 405 reinstated net metering (allowing generators of excess renewable energy to “sell” that excess back to the grid) for rooftop solar customers. The bill provides for reimbursement up to 95% of retail electricity rate, and guarantees consumers the right to self-generate and store electricity, and utilities cannot curtail excess energy sent to the grid. The previous net metering policy had been eliminated in December 2015, followed by a 32% decline in solar jobs.[6]

Governor Sandoval is term-limited, so control of the Nevada government will be up for grabs in the 2018 off-year election. As the recent pattern of legislation passed and then vetoed indicates, a shift to unified Democratic control could result in rapid changes in energy policy. Although much of the national attention will be on the U.S. Senate race, the state elections will also have significant policy implications.

 

  1. Nevada Governor’s Office of Energy, “Nevada Electric Highway,” http://energy.nv.gov/Programs/Nevada_Electric_Highway/.
  2. Renewables Now, “Nevada PUC Clears PPAs for 129 MW of Solar Power” (January 28, 2016) https://renewablesnow.com/news/nevada-puc-clears-ppas-for-129-mw-of-solar-power-510751/.
  3. Nevada Governor Brian Sandoval, “Governor Sandoval Announces Committee on Energy Choice Membership” (April 3, 2017), http://gov.nv.gov/News-and-Media/Press/2017/Governor-Sandoval-Announces-Committee-on-Energy-Choice-Membership/.
  4. Yvonne Gonzalez, “Sandoval Vetoes Community Solar, Higher Clean-Energy Standard,” Las Vegas Sun (June 16, 2017), https://lasvegassun.com/news/2017/jun/16/sandoval-veto-community-solar-higher-clean-energy/.
  5. Ibid.
  6. Julia Pyper, “Nevada’s New Solar Law is About Much More than Net Metering,” Green Tech Media (June 16, 2017), https://www.greentechmedia.com/articles/read/nevadas-new-solar-law-is-about-much-more-than-net-metering.