Southwest Energy Efficiency Project

2007 Nevada Legislative Activities
Updated: January 28, 2008

The 2007 Session of the Nevada State Legislature has ended. SWEEP worked to see passage of the following bills during the session:

ASSEMBLY BILL 178
Effective Ban on Incandescent Lights
Sponsored by Assemblymen Bobzien, (D-Washoe County), Assembly Bill 178 was approved by the Assembly in amended form on April 13 on a vote of 42-0, and adopted with further amendments by the State Senate on May 25 on a vote of 21-0; the Bill was adopted in Conference with further amendments on June 4. Governor Jim Gibbons signed the bill into law on June 14.

Assembly Bill 178 as introduced addressed net metering and the establishment of the Wind Energy Systems Demonstration Program. The Senate Commerce and Labor Committee added an amendment proposed by Senator Schneider (D-Clark County) with technical support from SWEEP. The amendment was also accepted by Assemblyman Bobzien. It will:

Establish a minimum energy efficiency standard of 25 lumens per watt for general-purpose lights sold in this State on and after January 1, 2012; and
Require the Director of the Office of Energy to establish a minimum energy efficiency standard greater than 25 lumens per watt for general-purpose lights sold in Nevada on and after January 1, 2016.

Senator Schneider's amendment, which was not affected by subsequent amendments to the bill, effectively bans today's general service incandescent bulbs. It calls for the Director of the Office of Energy to establish regulations for carrying out the provision of the law in an "attempt to minimize the overall cost to consumers for general purpose lighting, considering the needs of consumers relating to lighting, technological feasibility and anticipated product availability and performance."

SWEEP estimates that the effective ban on incandescent light bulbs will lead to the following savings for Nevadans, after all the old bulbs have burnt out and been replaced with new efficient ones:

1,200 gigawatt-hours of electricity saved annually.
$1.3 billion in net economic benefits for consumers over the lifetime of more efficient lamps installed through 2020.
An annual reduction in carbon dioxide emissions of 850,000 tons - the equivalent of removing 160,000 passenger cars from the road.
300 MW of peak power avoided - the equivalent of 40% of one of the planned new coal-fired power plants in White Pine County.

With passage of AB 178, Nevada joined a growing number of organizations around the world that are backing an initiative to phase out inefficient incandescent light bulbs. Nevada is the first state to pass such legislation. At the time of passage, Australia and Canada had announced plans to phase out incandescent light bulbs within ten years. Several E.U. nations were considering the same, and similar bills to Nevada's were under consideration in California, North Carolina, South Carolina, Rhode Island, Connecticut, and Massachusetts.

ASSEMBLY BILL 481
Motor Vehicle Emissions and Fuel Efficiency
Sponsored by Assemblyman Ohrenschall (D-Clark County), Assembly Bill 481 died in committee. It failed to pass out of the Assembly Committee on Transportation by the April 13 deadline and no further action was allowed.

Assembly Bill 481 would have exempted the purchaser of a fuel-efficient vehicle from licensing and registration fees for 5 years; would have required the Department of Motor Vehicles to issue a decal or other identifier to the owner of a fuel-efficient vehicle to operate the vehicle in a lane designated for use by high-occupancy vehicles; would have exempted the driver of a fuel-efficient vehicle from certain public parking fees; would have exempted fuel-efficient vehicles from the governmental services tax for 5 years; would have exempted fuel-efficient vehicles from certain sales tax; would have required the State Environmental Commission to adopt by regulation the California emissions standards for motor vehicles; would have made it unlawful to transfer ownership of a vehicle that does not meet certain emissions standards; and would have provided a penalty for violations.

ASSEMBLY BILL 621
Changes in the Provision of Tax Abatements and Exemptions Based upon the Use of Energy
Sponsored by the Assembly Committee on Commerce and Labor, Assembly Bill 621 was approved by the Assembly in amended form on May 26 on a vote of 39-0, and adopted with amendment by the State Senate on June 1 on a vote of 20-1; the Assembly concurred with the Senate amendment on June 3. Governor Jim Gibbons signed the bill into law on June 15.

AB 621 was the highest visibility energy bill this session as legislators scrambled to contain the property tax loss to local governments created by tax incentives for green buildings enacted in 2005. AB 621 reduces the amount of the tax incentive for future projects and adds a minimum energy efficiency component to the current Leadership in Energy and Environment Design (LEED) requirement. It also streamlines the process for developers and provides greater control by the Governor's Energy Office.

AB 621 was developed in response to a growing awareness of the magnitude of the fiscal impact of provisions passed in AB 3 in 2005 that provide partial property tax relief for new or existing buildings that meet LEED standards. The AB 3 provisions provide up to 50% abatement of property taxes for up to 10 years. The 2005 provisions for property tax relief have been so successful in stimulating energy efficient and sustainable building practices that property tax abatements in Nevada are estimate to total around $1 billion over the next ten years, mostly resulting in reduced county revenues.

SWEEP worked with other non-governmental organizations in Nevada and provided testimony to support the continuation of meaningful incentives for energy-efficient development. The final bill reduces the amount of the tax incentive for future projects and superimposes a minimum energy efficiency component to LEED in a manner suggested by SWEEP and its colleagues. It also streamlines the process for developers and provides greater control by the Governor's Energy Office.

AB 621 cuts the amount of the tax incentive for future projects in about half and superimposes a minimum energy efficiency component to LEED, adding a minimum point requirement from energy conservation (3 LEED points to meet the LEED silver level, 5 points for the gold level, and 8 points for the platinum level). SWEEP believes that the revisions to the 2005 law still provide a meaningful incentive for transforming building practices in Nevada.

SENATE BILL 422
Greenhouse Gas Emission Allowances and Cap for Utilities
Sponsored by Senator Titus (D-Clark County), Senate Bill 422 was approved by the Senate in amended form on May 24 on a vote of 21-0, and adopted with an amendment by the Assembly on May 31 on a vote of 41-0; the Senate concurred with the Assembly amendment on June 3. Governor Jim Gibbons signed the bill into law on June 14.

Senate Bill 422 as introduced would have required the State Environmental Commission to establish, by regulation, a statewide program for the control of six greenhouse gases emitted by any facility in Nevada for the generation of electricity that has a capacity of at least 25 megawatts. The program would have created allowances for carbon dioxide equivalent emissions from affected units and the manner in which the allowances must be banked and traded. The program would also have imposed a limitation on the annual amount of greenhouse gases that an affected unit may emit.

SB 422 was amended to strip it of the requirement to limit greenhouse gas emissions. The amended version instead establishes a statewide registry of greenhouse gases emitted in Nevada. It defines a “greenhouse gas” to mean carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulphur hexafluoride. And it requires the State Department of Conservation and Natural Resources to issue, by the end of 2008 and at least every 4 years thereafter, a statewide inventory of greenhouse gas emissions.

SENATE BILL 437
Assessing Energy Efficiency for Sale of Homes; Gas Decoupling
Sponsored by the Committee on Commerce and Labor, Senate Bill 437 was approved by the Senate in amended form on May 30 on a vote of 21-0, and adopted with an amendment by the Assembly on June 4 on a vote of 42-0; the Senate concurred with the Assembly amendment on June 5. Governor Jim Gibbons signed the bill into law on June 14.

Senate Bill 437 is a compilation of energy initiatives. SWEEP supported four of the initiatives initially introduced, two of which survived into the final Bill. The original provisions that SWEEP supported would have:

Required the Office of Energy to establish a program for evaluating and rating energy consumption of residential property in the state, and required that such an evaluation and rating be conducted upon the sale of any such property.
Required the Nevada Tax Commission to establish by regulation rules for the granting of an abatement of up to 50% of property tax for up to 10 years for single-family residences that meet the equivalent of LEED silver or higher.
Specified that bid evaluations for construction, repair, or reconstruction of public buildings be based on the sum of the construction cost plus an estimate of the cost to operate and maintain the building for its expected useful life.
Required the Public Utility Commission to adopt regulations for natural gas utilities to remove financial disincentives (lost revenues from reduced sales) to energy conservation.

SB 437 as it was passed includes two significant energy efficiency provisions:

The requirement for the Office of Energy to establish a program for evaluating and rating energy consumption of residential property in the state was changed to require evaluation only; the rating requirement has been dropped. The requirement that the evaluation be conducted upon the sale of any such property remains, although the provision is self-regulating and realtors no longer are required to play a role or have any responsibility.
The Public Utility Commission is required to adopt regulations removing the financial disincentives to energy conservation that currently inhibit natural gas utilities from helping customers use gas more efficiently. The primary disincentive that must be addressed is the lost revenue from reduced sales that accompanies successful DSM programs.

For additional information regarding these bills, visit the website of the Nevada State Legislature, at www.leg.state.nv.us.

© 2002-2008 Southwest Energy Efficiency Project
2260 Baseline Rd. Suite 212, Boulder, CO 80302
(303) 447-0078 fax: (303) 786-8054 info@swenergy.org

Last Updated: 01/28/2008

2007 Nevada Legislative Activities Updated: January 28, 2008

2007 Nevada Legislative Activities
Updated: January 28, 2008