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What to watch in the Legislature as lawmakers weigh changes to natural gas regulation, mining oversight and water law

Daniel Rothberg
Daniel Rothberg
Environment
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Good morning, and welcome to the Indy Environment newsletter.

As I sat down to write this week’s newsletter, I checked my outline only to realize that many of the stories I’m following right now have something to do with the Legislature — in one form or another. Almost halfway through the legislative session, I decided it was time for an update. 

This week’s newsletter is going to take on a different format today. I’m going to start it with a few takeaways from the session so far. This is in no way fully comprehensive of the legislation out there, and I plan to write more on these issues over the coming weeks. If you have any thoughts on any proposed legislation or see any interesting bills, email me at [email protected]

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1) Legislation to regulate natural gas: The fight over how to transition away from natural gas is coming to the Legislature. The contours of the debate were drawn last year after Gov. Steve Sisolak’s administration released a state climate strategy calling for a phased transition away from using the fossil fuel in homes and businesses. Now there is proposed bill language. 

On Tuesday, Assemblywoman Lesley Cohen (D-Las Vegas) introduced AB380, legislation that requires utilities to undergo more rigorous regulatory planning and decrease building emissions by 95 percent by 2050. As former Las Vegas Sun scribe Miranda Wilson writes for E&E News, Southwest Gas and business groups plan to oppose the legislation. A similar coalition sent a letter to Sisolak last month with concerns about the climate strategy’s plans around natural gas. 

On Tuesday, several environmental groups, including the Natural Resources Defense Council, the Nevada Conservation League and the Sierra Club, put out a press release in support of the bill. 

Since October, Southwest Gas has said they planned to pursue legislation that would allow the utility to replace pipelines and infrastructure. Earlier this week, Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) introduced SB296, which would allow gas utilities to apply to utility regulators for gas infrastructure modernization plans and recover costs through a monthly rate.

2) Changing mining oversight: A few weeks before the Legislature convened on Feb. 1, the seven commissioners who oversee the Nevada Division of Minerals held a public meeting to discuss legislation that the mining industry was closely monitoring: three resolutions to raise  taxes. The commission wrote a letter saying the mining tax resolutions were not in the state’s interest, and the commissioners recommended the formation of a task force to study the issue.

The division, a non-cabinet agency, has a dual mandate. It is charged with regulating oil, gas, geothermal and lithium brine exploration. At the same time, it educates the public about mining, provides information about the industry, and advocates on policy. The division’s oversight board, comprising commissioners with backgrounds in extractive industries, advise the governor and the state on policy related to the industry. AB240 aims to separate those two functions.

The proposed legislation, which had its first hearing this week, would dissolve the Division of Minerals and fold its regulatory function into the Nevada Division of Environmental Protection, which oversees hardrock mine permitting. The Governor’s Office of Economic Development, which serves as a clearinghouse for industry, would assume the division's other roles. 

Assemblyman Howard Watts (D-Las Vegas) introduced the bill. At a hearing on Monday, the Center for Biological Diversity and the Nevada Conservation League supported the measure, arguing that it would reduce the influence of the industry in crafting regulations and state policy. 

But environmental groups were split. Great Basin Resource Watch, a mining watchdog group, and the Progressive Leadership Alliance of Nevada argued against the bill because it would dissolve an oversight board that last met in 2015 and currently has no members. A Sisolak spokesperson said the governor has received applications and plans to make appointments.

The division, the Nevada Mining Association, the Nevada Mineral Exploration Coalition and the Women’s Mining Coalition argued against the bill, questioning why a change was necessary.

Another bill, AB148, introduced by Assemblywoman Sarah Peters (D-Reno), prohibits so-called “bad actors” — corporations or executives who have defaulted on mine-cleanup obligations in the past — from obtaining a permit to engage in mining and exploration activities in Nevada. 

3) Fixing the “classic car” loophole: We’ve all seen them out on the road. The “classic car” that resembles no such thing but allows its driver to pay a lower price for registration and avoid smog testing. AB349, a bill introduced by Watts on Monday, aims to close that loophole. The bill would limit the “classic car” designation for antique cars not used for everyday transportation. 

As my colleagues wrote earlier this week, AB349 would do a number of other things related to vehicle emissions: “It would also make some changes to the regulations for people who test exhaust emissions and authorize the DMV to establish a remote sensing system for exhaust emissions in Clark and Washoe counties. It also raises the fees assessed on businesses that conduct smog tests. The bill also exempts new motor vehicles from having to undergo a smog test until their fourth year of life. Current law requires it after the second year of life.”

4) A water authority bill? The Colorado River picture is bleak. Most of the watershed, the main source of Las Vegas’ water supply, is facing extreme or exceptional drought. Consumptive use, the amount of water Las Vegas uses from the Colorado River each year, ticked up in 2020, according to a slideshow the Southern Nevada Water Authority presented to its board of local government officials last week. And the water authority has a serious message: Conservation.

It’s not a new message (see the Ryan Reaves ad), but the water authority is doubling-down on efforts to remove non-functional turf (ornamental grass in medians, next to sidewalks, etc…) in a world where incentives alone might not be enough. In testimony this month, a water authority lobbyist said the agency was potentially looking for a legislative vehicle that would require local governments and agencies to write regulations for removing non-functional turf. 

Why that was necessary became more clear at the water authority board meeting last Thursday. Turf removal programs — even when incentivized or subsidized — can run into opposition from HOAs and other entities, despite the fact that most HOA residents support “smarter landscapes” (yes, the water authority conducted a survey on it). Fixing the issue might require legislation.

5) Changes to water law: For more than two years now, the Department of Conservation and Natural Resources has contemplated legislation that would change the statutory qualifications for serving as the state engineer, Nevada’s top water official and administrator of the Division of Water Resources. Under the law, the position requires the person holding the position to be a licensed Professional Engineer, or a P.E. But according to the state agency, that requirement can limit the applicant pool for a job that is not exclusively focused on engineering. 

SB155, which came out of the interim Legislative Committee on Public Lands, would change the qualifications for the position. The legislation would require the state’s top water regulator to be “experienced and competent in water resource management and conservation” and to “have a demonstrated ability to administer a major public agency.” But it would exempt the official from the professional engineer requirement if a deputy in the division was a licensed engineer. 

Brad Crowell, who leads the natural resources agency, said that the proposed measure would “expand the pool of qualified applicants” to those with technical expertise in other areas of water management. At a hearing Thursday, the legislation was met with opposition from a wide range of water users and groups. A hydrologist for Kinross Gold and the Nevada Mining Association testified against the bill, as did the Great Basin Water Network. Groups raised concerns that the legislation could open up the hiring process to appointments driven by politics.

In a closing statement, Crowell said there were “more red herrings and conspiracy theories” than constructive feedback in the testimony. A spokesperson for the agency declined to provide information on what the “conspiracy theories” were and what outreach the state had done to fill recent vacancies but pointed The Nevada Independent to Crowell’s testimony.

On Monday, the Legislature introduced two additional bills on behalf of the state agency that seek to make changes to water law. AB354, described in the bill text as the Nevada Water Banking Act, allows for the creation of water banking programs. Another bill, AB356, would create a program for water conservation. Both are bills worth watching during the session.

Another bill, introduced by Peters, aims to regulate water quality pollution from indirect sources, such as chemical runoff, motor oil and fertilizers. Indirect pollution, known as nonpoint or diffuse pollution, is a leading cause of water quality issues in Nevada and the U.S. AB146 had its first hearing last week. Most of the people who testified agreed that nonpoint source pollution is a problem, but agricultural interests and municipal water users raised concerns about the bill. 

6) The Innovation Zone proposal: We’re continuing to follow the legislative effort to establish “Innovation Zones,” which would let developers with large land-holdings break off from existing counties and form new local governments. As we reported Monday, the building trades signaled their support for the plan. And Elko County, in a meeting last week, flagged several concerns


Here are a few other stories I’m watching this week:

What climate change means: One of the most informative parts of the state’s climate strategy, released last year, was a chapter that focused on what science tells us about the many ways climate change is affecting — and will continue to affect — Nevada. As someone who often researches this topic, it is valuable to have the science in one place. This week, the Nevada Climate Initiative released a fact-sheet summarizing those findings. 

Utility regulators approve NV Energy transmission line: “NV Energy's proposed Greenlink transmission line and renewable energy initiative has received approval from Nevada's utility regulators,” Matthew Seeman reports for KSNV in Las Vegas. “The Public Utilities Commission of Nevada approved moving forward with the plan, which aims to accelerate the development of clean energy on public lands, a spokesperson for NV Energy said Monday.”

Nye County gets a grant for environmental workforce development. (Pahrump Valley Times)

Nevada Gold Mines eyes growth: “An intensive strategic review by executive teams from Barrick Gold Corp. and Nevada Gold Mines has confirmed the enormous geological potential of the NGM properties and outlined key development projects,” the Elko Daily Free Press reports.

Seepage from the Truckee Canal: The city of Fernley is suing federal water managers over plans to line the Truckee Canal. As Scott Sonner reports for the Associated Press, “lawyers for the town a half-hour east of Reno have filed a new lawsuit accusing the U.S. Bureau of Reclamation of illegally failing to consider the expected harm to its municipal water supply and hundreds of private well users who tap into the groundwater based on what they say are binding water allotments, some dating to World War II.”

Apple completes solar project in Reno: “McCarthy Building Companies recently completed construction of the Turquoise Solar Project in Washoe County, Nevada,” writes Kelly Pickerel in Solar Power World. “The 61-MWDC solar farm is located on approximately 180 acres in the Reno Technology Park — a 2,200-acre industrial park shared between Apple and Turquoise Solar, who own approximately 1,600 and 600 acres, respectively.” 

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