Energy policies in the Golden State may have given Nevada the upper hand, thus costing California both jobs and future tax revenues, a Nevada newspaper reports.
The Las Vegas Sun noted that an executive order signed by Governor Schwarzenegger last week would require one-third of all energy sold to Californians to originate from renewable energy sources within the next decade. The order was issued after the governor said he would veto SB 14 (Simitian) and AB 64 (Krekorian), both of which would have mandated increased production of renewable energy in California. The governor said the legislation could have increased energy rates by restricting California's energy suppliers from utilizing out-of-state energy generators.
The Sun said this is good news for Nevada, where business taxes are nominal, there is a less stringent regulatory structure, and desert areas eliminate problems with residents complaining about locating power generators in their neighborhoods.
"Given the difficulty of building projects in California, if that state is going to meet its needs it's going to need to get power on a regional basis," Geothermal Energy Association Executive Director Karl Gawell said.
According to Mr. Gawell, since renewable energy developments are easier to get off the ground in Nevada, it is the better place to do business. Two of the factors that have made Nevada more renewable-development friendly are that public lands are less populated and land use lawsuits don't delay projects.
Senator Harry Reid told the Sun: "California clearly has plenty of an electricity demand, so with the right economic development strategy and strong public-private partnerships, we really have a great opportunity to sell affordable and clean power into that market. That means lots of new Nevada jobs." (Source: Las Vegas Sun, September 23.)
Cal-Taxletter, September 25, 2009
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