Clean State Energy Actions 2011 Update. nevada

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1 Energy Efficiency Appliance/Equipment Efficiency Standards Building Energy Codes Utility Demand-Side-Management Utility Rate Realignment Energy Savings Targets/Energy Efficiency Resource Standards Requires efficacy standards of 25 lumens per watt for lamps, bulbs, tubes, or other lighting devices between 2012 and 2015 (to be increased in 2016) Residential and Commercial: 2003 IECC mandatory for all jurisdictions that have not adopted an energy code; jurisdictions in Southern Nevada have adopted the 2006 Southern Nevada Energy Code, which is based on the 2006 IECC with amendments; jurisdictions in Northern Nevada have adopted the 2006 IECC Residential: Updated code to 2006 IECC, mandatory for all jurisdictions. Local governments are allowed to adopt more stringent standards provided they give notice to the Office of Energy Commercial: Updated code to 2006 IECC with reference to ASHRAE , mandatory for all jurisdictions. Local governments are allowed to adopt more stringent standards provided they give notice to the Office of Energy Allows a bonus rate of return for DSM that is 5% higher than authorized rates of return for supply investments Adopted a Lost Revenue Recovery mechanism that provides for annual recovery of both the utility s efficiency program expenses and the revenues lost from the reduced sales caused by energy efficiency programs. Nevada s Energy Portfolio Standard requires the state s two investor-owned utilities to derive or save 20% of retail sales from renewable energy resources or energy efficiency measures by 2015 (IOUS can earn credit for up to 25% of the standard from energy efficiency); included in the standard is a Portfolio Energy Credit (PEC) trading program Provides a partial abatement of property taxes for property that has a building or structure that meets or exceeds LEED Silver rating Renewable energy and energy efficient technologies added to the list of projects eligible for special financing districts (SB 358) Allows for Property Assessed Clean Energy (PACE) financing (SB 358) Adopted appliance rebate program for residents who purchase Energy Star certified refrigerators, freezers, washing machines and dishwashers. Authorized loan Fund for Renewable Energy, Energy Efficiency and Energy Conservation for the construction of an energy efficiency project or an energy conservation project, related to construction, expansion or operation of a renewable energy system or the manufacturing of components of a renewable additional funding. Allowed the use the interest earned from money in loans from the Fund and interest earned on loans made from the Fund to defray certain costs and expenses (SB 60 See also Clean Electricity and Clean Energy Economic Development). Localities in Nevada have suspended most PACE programs due to the The Federal Housing Financing Agency s (FHFA) July 2010 concerning the senior lien status associated with most PACE programs. Adopted regulations that require providing energy use information for 12 months preceding the sale of the property as well as information about the energy efficiency characteristics of the property, if such information is reasonably available.

2 Clean Electricity Renewable/Alternative Energy Portfolio Standards and Goals Net Metering and Interconnection Standards Nevada s Energy Portfolio Standard requires the state s two investor-owned utilities to derive or save 20% of retail sales from renewable energy resources or energy efficiency measures by 2015 (no less than 5% from solar energy); included in the standard is a Portfolio Energy Credit (PEC) trading program Energy Portfolio Standard increased the requirement to 25% by 2025 (SB 358) Utilities required to meet 6% of their portfolio requirement through solar energy beginning in calendar year 2016 Interconnection standards for customers of Nevada Power and Sierra Pacific Power with on-site generation up to 20 MW in capacity; systems up to 1 MW in capacity that generate electricity using solar, wind, geothermal, biomass and certain types of hydropower are generally eligible, although systems greater than 100 kw in capacity may be subject to certain costs at the utility s discretion Allows meter aggregation for owners of hydropower facilities up to 1 MW in capacity. Also allows meter aggregation for wind turbines installed in 2012 on property owned or leased by an institution of higher learning and used for research and workforce training (AB 359). The Solar Generations Rebate Program offers rebates for grid-connected PV installations on residences, small businesses, public buildings, non-profits and schools Provides a 10-year, 50% property tax abatement for real and personal property used to generate electricity from renewable energy resources (over 10 kw) or for a facility for the production of an energy storage device; subtracts any value added by a qualified renewable energy system from the assessed value of any residential, commercial or industrial building for property tax purposes Established the Fund for Renewable Energy, Energy Efficiency and Energy Conservation Loans and the Account for Set-Aside Programs (NRS ) The Fund and the Account for Set-Aside Programs may be used only for the purposes set forth in the American Recovery and Reinvestment Act (ARRA) and to make loans available at a rate of not more than 3% to renewable energy systems for the construction of renewable energy projects Property tax abatement increased to 55% for 20 years (AB 522) Extended to additional technologies and increased the qualification requirements to ensure that incentivized projects result in more high quality jobs New or expanded businesses eligible to apply for a sales and use tax abatement for qualifying renewable energy technologies The amount of taxes abated can be everything in excess of 0.6% for a period of three years Generation facilities must have a capacity of at least 10 megawatts (MW) Applies to property used to generate electricity from renewable energy resources including solar, wind, biomass, fuel cells, geothermal or hydro Allows for Property Assessed Clean Energy (PACE) financing (SB 358) Expanded the Renewable Energy system Proprety Tax Exemption to include systems installed on one or more buildings and supplying energy to adjacent buildings or an irrigation system in an agricultural operation (SB 426). Localities in Nevada have suspended most PACE programs due to the The Federal Housing Financing Agency s (FHFA) July 2010 concerning the senior lien status associated with most PACE programs.

3 (continued) Created a Renewable Generations Rebate Program for the installation of small wind, PV and hydroelectric systems which are sited at schools and at commercial, residential, public, nonprofit and agricultural locations. Authorized loans from the Renewable Energy, Energy Efficiency and Energy Conservation Fund for the construction of an energy efficiency project or an energy conservation project, related to construction, expansion or operation of a renewable energy system or the manufacturing of components of a renewable additional funding. Allowed the use the interest earned from money in loans from the Fund and interest earned on loans made from the Fund to defray certain costs and expenses (SB 60 See also Energy Efficiency and Clean Energy Economic Development). Alternative Fuels & Vehicles The Department of Conservation and Natural Resources is required to develop and administer a program to provide incentives to encourage the use of alternative fuels in motor vehicles, specifically by individuals and others not required by state statute to purchase alternative fuel vehicles A portion of any penalty assessed for violations of air pollution control laws must be deposited in the county school district fund of the county where the violation occurred; expenditures from such a fund must be approved by the local air pollution control board and are limited to: 1) programs of education on topics relating to air quality; and 2) projects to improve air quality, including the purchase and installation of equipment to retrofit school buses within the school district using biodiesel, compressed natural gas, or a similar fuel formulated to reduce gasoline and diesel fuel emissions Provisions governing the use of alternative fuels and clean vehicles revised (NRS 486) Limits the applicability of provisions concerning acquisition to certain larger fleets Modified the tax on ethanol and methanol, subjecting dealers, suppliers, and transporters of such fuels to the same requirements applicable to gasoline, including licensing and bonding requirements (SB 332, 2009, NRS 366) Provides for the taxation of biodiesel and blends of biodiesel Provides for the licensure of, and collection of taxes from, special fuels manufacturers

4 (continued) Allowed drivers of Alternative Fuel Vehicles (AFVs) to use HOV lane regardless of the number of occupants in the vehicle (AB 511). Allowed hybrid electric vehicles (HEVs) operating as taxicabs may remain in operation for an additional 24 months beyond the existing limits, which restrict the operation of vehicles used as taxicabs to a period of up to 67 months for new vehicles or 55 months for used vehicles. Exempted Alternative Fuel Vehicles from emissions testing requirements. A new Hybrid Electric Vehicle is exempt from emissions inspection testing for the first six years. Lead By Example Appliance/Equipment Efficiency Standards Building Efficiency Alternative Fuel and Vehicle Fleets Requires the Chief of Purchasing Division to adopt regulations establishing standards favoring the procurement of appliances, equipment, lighting, and other equipment that bear the ENERGY STAR label (SB 395) Requires state agencies, departments, and other entities in the Executive Branch to reduce grid-based energy purchases for state-owned buildings by 20% by 2015; must adopt guidelines establishing Green Building Standards for all occupied public buildings whose construction will be sponsored or financed by the State or a local government; two public buildings biennially must meet LEED Silver requirements; all school districts in Nevada that are reconstructing older schools are encouraged to use daylighting, multiple stories, solar and other renewable energy sources, and other innovative building designs and plans Fleets containing 10 or more vehicles that are owned, leased, or operated by the state, a state agency, or a political subdivision of the state in a county whose population is 100,000 or more are mandated to acquire AFVs or certified ultra low emission vehicles (ULEVs); requires 90% of new vehicles obtained by covered fleets to be either AFVs or certified ULEVs Required fleets containing 50 or more vehicles that are owned, leased, or operated by the state, a state agency, or a political subdivision of the state in a county with a population of 100,000 or more must acquire AFVs or certified Ultra Low Emission Vehicles. Created a reqirement that transportation equipment purchased with county school district general funds and used for transporting pupils must fall into one of the following categories: 1) motor vehicles that use biodiesel, compressed natural gas, or similar fuels that reduce emissions; 2) equipment to retrofit motor vehicles to use these fuels; or 3) equipment for the transportation, storage, or dispensing of these fuels.

5 GHG Emissions GHG Policies Participant in Climate Registry; Climate Action Plan in progress, due 2008; WCI observer Clean Energy RD&D Partnerships, Grants, Awards, and Dedicated Funding Established the Nevada Renewable Energy Consortium consisting of the Desert Research Institute, the University of Nevada-Las Vegas Renewable Energy Center and the University of Nevada-Reno Renewable Energy Center to strengthen the Southwest s renewable energy research, and development capabilities Clean Energy Economic Development Task Force, Workforce Development, Incentives, Analysis, Etc. Green Jobs Initiative provides job training and promotes energy efficiency and renewable energy (SB 152) Requires the Department of Employment, Training and Rehabilitation and the Housing Division to contract with nonprofit collaboratives to provide training in weatherization, energy retrofitting and audits Requires the Public Works Board, schools and universities to contract for projects to weatherize and retrofit public buildings, facilities and structures Authorized loans from the Renewable Energy, Energy Efficiency and Energy Conservation Fund for the construction of an energy efficiency project or an energy conservation project, related to construction, expansion or operation of a renewable energy system or the manufacturing of components of a renewable additional funding. Allowed the use the interest earned from money in loans from the Fund and interest earned on loans made from the Fund to defray certain costs and expenses (SB 60 See also Energy Efficiency and Clean Electricity). Other Renewable Energy and Energy Efficiency Programs Created the Renewable Energy and Energy Efficiency Authority (SB 358) The State and Local Government Panel on Renewable and Efficient Energy advises the Nevada Energy Commissioner and the Authority on issues relating to the viability and progress of energy efficiency and renewable energy retrofit projects at public buildings and school The New Energy Industry Task Force advises the Authority on measures to promote the development of renewable energy and energy efficiency projects

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