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Tuesday, November 24, 2009

Geothermal money takes a hit



The federal government has robbed the states again.

When President Barack Obama toured Nevada during his presidential campaign, he touted the development of alternative energy and what it could do for the Silver State. In an exclusive interview with the Lahontan Valley News on Aug. 17, 2008, Obama said he would like to put $15 billion into developing new sources of energy — wind, solar and geothermal.

“There's a lot of sun in Nevada that can generate a lot of energy,” Obama added, not to mention the potential for developing more geothermal plants.

Consequently, several geothermal plants have popped up in Churchill County and throughout the state this year. Nevada and its counties have benefited from those geothermal endeavors, and so have other Western states.

It appears our federal government also sees the benefit of geothermal energy … at the expense of the counties that have spent thousands of dollars and man hours to attract these alternative energy projects to their areas.

An obscure amendment to a House bill now has all money derived from sales, bonuses, rentals and royalties under the Energy Policy Act of 2005 going back to the feds as originally provided in the Geothermal Act of 1970.

Counties, including Churchill, will lose thousands, if not millions of dollars from geothermal rents and royalties unless Congress votes to override the amendment. For the first quarter of the fed's fiscal year that began in October, Churchill could lose as much as $100,000. If we include Nevada's nine active geothermal counties plus counties in five other states, the loss could easily break into seven figures unless something is done quickly.

Churchill County officials along with their Nevada representatives in Congress have moved quickly to reverse the recent decision, no doubt made by some narrow-minded bureaucrat who saw an easy windfall for Uncle Sam at the expense of the “little guy.”

County Commissioner Norm Frey is working with the National Association of Counties to reverse the federal government's money grab. Nevada Sens. Harry Reid and John Ensign and Congressman Dean Heller co-sponsored bills in the Senate and House of Representatives, respectively, to strike down this amendment.

We remain optimistic Congress will take action on this amendment prior to the Christmas recess in mid-December. If not, we all will suffer in one way or another.

County officials, NACO and the Nevada delegation — in a show of strong bi-partisanship — must continue to work hard to ensure the counties in all states receive their fair share in developing geothermal energy.

Furthermore, the federal government needs to be a partner in the development of alternative energy and not a money grabbing landlord to further its own agenda.

Editorials are written by the LVNEditorial Board and appear on Wednesdays.


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