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Last year, Gov. Steve Sisolak’s administration released a climate strategy that emphasized the need for a long-term transition away from using natural gas and the need to start planning now.
Much of the state’s efforts around climate change have focused on transitioning from fossil fuels to renewables in how electricity is produced (most of the state’s power still comes from natural gas). But the climate strategy was significant because it singled out another area where natural gas is predominant: It’s still the default option for cooking and heating in homes and businesses.
In order to meet the state’s statutory goal of reducing greenhouse gas emissions to net-zero by 2050, the climate strategy said policymakers need to plan out an equitable transition away from indoor natural gas by scrutinizing new utility infrastructure, giving customers a choice to switch to electric appliances and giving utility regulators more oversight over the planning process.
Assemblywoman Lesley Cohen (D-Henderson) is sponsoring a bill, AB380, that aims to do that. At its core, the legislation would require gas utilities to go through a comprehensive planning process meant to consider the effects of decarbonization on their operations and ratepayers.
The legislation also directs state utility regulators to compile one or more reports on the role of gas utilities in reducing greenhouse gas emissions, how to ensure a safe and reliable grid with fewer customers paying for the system and strategies to ensure that the transition is equitable.
On Tuesday afternoon, the legislation got its first public airing in a hearing that stretched on for more than two hours. Supporters of the bill, including the Nevada Conservation League and the Natural Resources Defense Council, argue that planning for a long-term transition from natural gas is a necessary and common sense approach. Without planning today, they argued, ratepayers could be saddled with paying off unnecessary gas infrastructure for years to come.
Consumer Advocate Ernest Figueroa, who represents ratepayers in proceedings before utility regulators, said in testimony that he supported the legislation and agreed with that assessment.
If it’s the state’s policy to transition from natural gas by 2050, Figueroa said “it is imperative for economic reasons that natural gas resource planning be implemented so that natural gas utility customers are not left with billions of dollars in stranded assets when that time comes.”
None of this is happening in a vacuum. Policymakers from cities and states across the country have increasingly looked at indoor gas use with more scrutiny as they address climate change. And the efforts have come up against opposition from utilities and an industry that says it wants to be part of the solution, as it makes the case for continued — and in some cases expanded — natural gas use, arguing that switching to electric will be more costly.
On Tuesday, Southwest Gas, the state’s largest gas utility, testified in opposition.
CEO John Hester noted that the utility, with expansions in Mesquite and Spring Creek, supports economic development and argued that the company is already highly regulated. Hester said the utility is “fully supportive of taking efforts in energy efficiency and reducing greenhouse gas emissions, but we are also very concerned about the needs of our customers here in Nevada.”
NV Energy, which supplies natural gas to buildings in Northern Nevada, also came out against the bill. CEO Doug Cannon said the utility, which stands to gain from electrification, supports the concept of a gas planning process, but he said it should not be tied to specific policy outcomes.
For months, Southwest Gas has deployed a full-court press lobbying strategy, building a coalition with concerns about strategies mentioned in the state climate plan and AB380.
In February, the utility helped organize a coalition letter to the governor’s office with the header “Clean. Affordable. Natural Gas.” Last week, a new group, the Coalition for Cleaner Affordable Energy, began posting videos from business groups campaigning against the legislation. Many of the business groups featured in the videos testified against the bill at Tuesday’s hearing.
Southwest Gas is advocating for its own legislation, SB296, which would allow gas utilities to apply with state regulators to replace existing infrastructure and recover costs through a monthly rate. Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) introduced the proposal in March.
David Bobzien, who directs the Governor’s Office of Energy, and Kristen Averyt, the state’s climate policy coordinator, testified in neutral on the legislation. But both officials noted that the climate plan calls for a transition away from natural gas that will require a planning process.
“The intent of AB380 is consistent with the state climate strategy in that it addresses the need to reduce greenhouse gas emissions from natural gas in order to meet our state’s 2050 net-zero emissions target,” Averyt said.
At the hearing, lawmakers from both parties expressed major questions about the impact of AB380, raising concerns about costs and higher rates for low-income households. For about an hour, lawmakers on the Assembly Committee for Growth and Infrastructure questioned the bill sponsors with concerns that AB380 could disrupt reliability and have a disproportionate impact on low-income households, seniors on fixed incomes and underserved communities.
The legislation’s sponsors noted the costs of inaction and said that the proposed bill language asks state utility regulators to investigate “strategies to limit the impact of a transition from the use of gas in buildings on low income households and historically underserved communities, including, without limitation, such persons who rent or lease their residence.”
We’ll be writing more about natural gas and lobbying efforts over the next few weeks.
Here’s what else I’m watching this week:
Water authority looks for a turf removal law: Toward the end of a long committee hearing on two controversial state-backed water bills Monday, the Southern Nevada Water Authority made some big news. The authority testified in neutral on AB356, one of the bills being pushed by the Nevada Division of Water Resources, and then went on to propose an alternative:
- The proposed bill, AB356, seeks to establish a conservation credit program that state water officials argue would create an incentive to use less water. But the bill faces broad opposition from agricultural interests and conservationists who are concerned that such a program is out of step with how water is managed on-the-ground and could potentially lead to speculative behavior. Enter the Southern Nevada Water Authority.
- After lawmakers heard opposition to AB356, a water authority lobbyist, Andy Belanger, asked the committee to consider an amendment to the bill or separate legislation for its own conservation initiative. The water authority, for weeks, has indicated that it was seeking a legislative vehicle to remove unused turf by the end of 2026.
- Across the Las Vegas Valley, there are about 5,000 acres of non-functional turf — grass that is decorative and used for landscaping in medians, along sidewalks or in entryways to communities. “It is purely for show,” Belanger said. “And it is a luxury our community can no longer afford.” Non-functional turf is a leading driver of water use across the Las Vegas Valley, and while the water authority has long offered incentives to remove grass at residences, it has run into some opposition with HOA boards and other hold-outs.
- Backing from groups: The water authority’s push yesterday came with buy-in from key groups. The Vegas Chamber, the Southern Nevada Homebuilders Association, the city of Henderson and the city of North Las Vegas all backed the water authority’s proposal at the hearing. And shortly after the hearing ended, the Center for Biological Diversity put out a statement in favor of the water authority’s proposal.
Farmers, conservationists criticize water banking bill: The AP’s Sam Metz has an update on another bill (AB354), which the Assembly Committee on Natural Resources heard Monday. Rural water users, agricultural interests and conservationists expressed concerns that a bill to create “water banks” had not been fully vetted and could lead to unintended consequences.
Closing the classic car loophole: My colleague Jannelle Calderon offers an update on efforts to fix a loophole in the state’s Emissions Inspection System that allows drivers to register a car as “classic,” evading smog emission standards, even when it is not in fact a “classic” car.
A good roundup from KNPR’s Heidi Kyser on what to watch in the Legislature.
Couldn’t drag me away: My colleague Riley Snyder found that of all the proposed legislation in Carson City, a resolution on wild horses has generated the most opinions (by quite a bit).
WATER AND LAND
Colorado River cutbacks: Excellent reporting by The Arizona Republic’s Ian James on how hydrology in the Colorado River, driven by climate change, is setting the stage for mandatory cuts. The story explains what the cutbacks will mean, and it is a must-read for understanding the road ahead on the Colorado River. From the article: “Lake Mead, the biggest reservoir on the river, has declined dramatically over the past two decades and now stands at just 40% of its full capacity. This summer, it’s projected to fall to the lowest levels since it was filled in the 1930s following the construction of Hoover Dam. The reservoir near Las Vegas is approaching a threshold that is expected to trigger a first-ever shortage declaration by the federal government for next year, leading to substantial cuts in water deliveries to Arizona, Nevada and Mexico.”
Great piece from Aspen Public Radio on the role that soil moisture plays in water supply.
‘Mediocre’ water year wraps up for Tahoe, Truckee basins (via the RGJ’s Amy Alonzo)
Nevada facilities to get Interior funding: “One of several investment projects in Nevada will be $5 million to modernize infrastructure at the Lake Mead National Recreation Area and improve access to drinking water for visitors, concessioners and employees,” Jeniffer Solis writes for the Nevada Current. Because of declining reservoir levels on Lake Mead, the project will relocate the Callville Bay water intake barge and also improve service roads to the new site.
Greater sage-grouse declines: A comprehensive USGS report shows significant declines in Greater sage-grouse populations over the past six decades and a nearly 40 percent population decrease since 2002. Last week, a federal judge struck down a project to allow more grazing in an area identified as high-quality sage-grouse habitat, the AP’s Scott Sonner reported.