17 core policies analyzed in the report, the state established a framework that looked at each recommendation using four metrics: a policy’s potential for decreasing emissions, climate justice considerations, economic implications and the legal feasibility of implementing a policy.
For the first time, it points policymakers beyond electricity, calling on them to phase out natural gas in buildings. The climate strategy says that “while Nevada’s electricity sector transitions from fossil fuels to zero-emissions renewables, the state must also transition from fossil-fuel combustion in homes and commercial buildings in the form of burning gas for cooking, hot water, and space heating.”“If you lock in new gas infrastructure now, we’ll be dealing with the ramifications for the next 30-plus years,” she said, noting that investments are typically paid off in rates.
By Daniel Rothberg December 7th, 2020 – Nevada climate strategy outlines framework to phase out natural gas, electrify transportation
The goal is clear: To reduce statewide greenhouse gas emissions to net-zero by 2050.
The challenge is how to get there.
A plan released this week by state agencies and delivered to Gov. Steve Sisolak on Tuesday outlined Nevada’s first “climate strategy” for zeroing out carbon emissions within the next three decades, what scientists say is an imperative for governments across the country to prevent the worst effects of a warming world — skyrocketing heat, extreme wildfires, limited water supplies.
The strategy, a lengthy and comprehensive document, represents a significant turning point for a state government that has, for years, touted its record on encouraging renewable energy but has shied away from tackling climate change in a coordinated way.
“It is about process,” said Kristen Averyt, who led the report’s drafting and is a former president of the Desert Research Institute. “It is about stitching climate action into the state.”
At its core, the report lays out a pathway for Nevada to achieve a cost-effective transition from natural gas and electrify the transportation sector, which is the leading source of greenhouse gas emissions in the state. Although the strategy does not dictate policy to the Legislature, local governments and state regulators, it analyzes and recommends several policies to pursue.
The strategy, Averyt stressed, is a “living document,” meant to set a foundation for future reports and analysis. And it was also meant to set expectations. Averyt acknowledged that the report is different from efforts that other states have taken. It intentionally leans into the challenges and the nuances, many specific to Nevada, that come with reducing emissions to net-zero by 2050.
“We have to get to zero emissions,” Averyt said. “Nothing is off the table.”
“We just have to be smart about how we do it,” she added.
For the 17 core policies analyzed in the report, the state established a framework that looked at each recommendation using four metrics: a policy’s potential for decreasing emissions, climate justice considerations, economic implications and the legal feasibility of implementing a policy.
Climate activists said the report is a significant step in the state’s efforts on climate action. It is important that there is a strategy, they said. But although the strategy considers climate justice — that marginalized communities are often disproportionately affected by climate impacts and the cost of climate action — activists said more work is needed to adequately center those issues.
“Everything [the state does] around climate change — or even when we talk about affordable housing and transportation in general — should be looked at from an environmental justice lens,” said Cinthia Moore, a Las Vegas-based organizer with EcoMadres, which represents Latino parents and advocates for clean air. “And that should be the driver of these policies.”
The report marks a nearly two-year effort to redirect the state’s focus toward addressing climate change, an effort that began in the 2019 Legislature. During the legislative session, lawmakers passed a bill that set the state’s first economy-wide emission reduction goals to reach net-zero emissions by 2050.
State officials estimate that, on its current path, Nevada would fall 4 percent short of the goal to decrease total greenhouse gas emissions by 28 percent by 2025, 19 percent short of cutting emissions 45 percent by 2030 and significantly short of achieving net-zero emissions by 2050.
The 2050 goal is in line with pledges made by other governments and corporations. Although the effort to reduce emissions will require investment, the strategy notes that meeting the emission goals could prevent between $172 and $786 million in economic damages associated with carbon pollution by 2030. Meeting the 2050 goal, the report finds, could prevent billions in damages.
In a statement prepared with the report’s release, Sisolak said climate action must play a role in building back a more “climate-friendly and equitable” economy after the COVID-19 pandemic.
Sisolak, who ordered the report as part of his Nevada Climate Initiative, said it “serves as the critical framework necessary to elevate climate action and foster a healthy, vibrant, climate-resilient future for all Nevadans – especially our most disadvantaged community members who live in the areas experiencing the greatest climate-related health and economic impacts.”
Decarbonization of the electric sector
In reducing economy-wide emissions, decarbonizing the electric sector is the first step.
Emissions from generating electricity — burning coal and natural gas for power — accounted for roughly 32 percent of total economy-wide emissions in 2016, according to an analysis released by the Nevada Division of Environmental Protection earlier this year.
That 32 percent share means the electric generation is now the second largest greenhouse gas contributor in Nevada — behind the transportation sector with a 35 percent share of emissions.
But even though power plants contribute a smaller share of emissions than the transportation sector, transitioning from fossil fuels to renewable energy remains a prerequisite. As with most carbon reduction plans across the globe, Nevada’s strategy rests on electrification. The strategy aims to electrify transportation and make buildings more reliant on electric appliances, rather than gas ones.
That framework puts NV Energy front-and-center. It will require the utility to potentially hasten its transition from a majority fossil-fuel supply to a majority-renewable supply. At the same time, the utility has predicted that its demand will likely increase as other sectors require more electricity.
In recent years, the state has made progress toward reducing power plant emissions, requiring the closure of coal plants in Southern Nevada and adding massive utility-scale solar projects to the grid. And in November, voters passed a ballot measure, amending the Nevada Constitution, to require utilities to have a supply portfolio of 50 percent renewables by 2030. The constitutional amendment adds more weight to a similar requirement that was unanimously passed by the Legislature last year.
Still, the strategy recognizes that the electric sector needs to move faster. But how that reduction in emissions is achieved is left open-ended. David Bobzien, who directs the Governor’s Office of Energy and helped write the utility-related section of the report, said that was on purpose.
“Even with our aggressive [renewable portfolio standard], there is water yet uncharted beyond that 50 percent standard,” Bobzien said. “How do we get to 100 percent? It’s great that we have the goal there, but we do know that the last 50 percent is going to be complicated.”
On Thursday, NV Energy spokesperson Jennifer Schuricht said in an email that the strategy “provides a framework to examine all sources of carbon emissions and to create solutions that bring meaningful long-term environmental and economic benefits to all Nevadans at affordable prices. We look forward to working with our policymakers as we pursue these opportunities.”
A recent report, commissioned by the Sierra Club and the Natural Resources Defense Council (NRDC), suggested that the state might need a renewable requirement closer to 80 percent by 2030 to remain on track with its emission goals. But the state’s report did not describe a specific policy, instead leaving open the possibility that policies other than a renewable standard could be used.
NV Energy, which serves about 90 percent of Nevada’s electricity needs, recently filed a report with the Public Utilities Commission of Nevada (PUCN) outlining its net-zero carbon goals. That report stresses the need to diversify its portfolio, build more transmission and manage demand.
The utility’s report suggests that the state might need to move away from a renewable standard in the future and toward other policies aimed more specifically at the grid’s carbon emissions.
In the PUCN filing, the utility said that “in the future, the state’s decarbonizing efforts may benefit from a transition away from [renewable portfolio standard] targets in favor of decarbonizing policies to avoid conflict and increase impact across more sectors of the economy.”
NV Energy also warned against policies that entirely eliminate fossil fuel production or policies that limit carbon intensity from existing plants until there were renewable alternatives available.
A transition away from natural gas as the default
Despite transitioning away from coal-fired power plants and adding solar over the past decade, natural gas comprises the majority of NV Energy’s power supply. Simultaneously, natural gas is used in most homes and in commercial buildings for heating and cooking, adding to the state’s carbon footprint.
A common theme in the report was the need for not only a substantive change but also a shift in thinking around natural gas — a transition away from the default policy of planning to use the fossil fuel well into the future.
The climate strategy specifically calls out a policy that allows utility regulators and NV Energy to use natural gas plants — rather than renewables — as placeholders in planning the utility’s long-term supply.
Every three years, NV Energy is required to submit an exhaustive planning documented known as an Integrated Resource Plan. In that plan, natural gas plants that are often used as placeholders in forecasting long-term supply scenarios. The climate strategy suggests that eliminating the policy would improve the ability to plan for an electric grid that more closely reflects the state’s net-zero by 2050 goal.
“[The policy] basically says there are no goals or requirements to phase out fossil fuel reliance,” said Cameron Dyer, a clean energy staff attorney for Western Resource Advocates.
“We need to get these natural gas placeholders out of being the vogue,” he added.
The climate strategy also looks at other ways to improve planning and reduce natural gas use, including changing the incentives that guide the utility when it comes to crafting its rates.
But one of the most significant aspects of the state’s climate strategy is that, for the first time, it points policymakers beyond electricity, calling on them to phase out natural gas in buildings. The climate strategy says that “while Nevada’s electricity sector transitions from fossil fuels to zero-emissions renewables, the state must also transition from fossil-fuel combustion in homes and commercial buildings in the form of burning gas for cooking, hot water, and space heating.”
Bobzien said he did not expect this to happen overnight.
“It’s important to remember the time-scale contemplated by this framework,” he said. “It’s a long-term transition to these technologies or newer homes, and it has to be sensitive to costs.”
Environmental advocates — and the climate strategy itself — said a preliminary goal would be to ensure that consumers could choose between electric and natural gas.
The report said “a potential first step in a phased transition from gas would be to allow consumers the choice between gas and electric on existing buildings but require all-electric in new construction.
Echoing the climate strategy, Elspeth DiMarzio, an organizer with the Sierra Club, stressed that policymakers must look for ways to prevent the buildout of more natural gas pipelines that would need to be retired before the investments could be paid off.
“If you lock in new gas infrastructure now, we’ll be dealing with the ramifications for the next 30-plus years,” she said, noting that investments are typically paid off in rates.
Questions about cost and land use
Southwest Gas, the state’s largest natural gas utility, said in a statement that the company was committed to working with the state on climate goals but was concerned about costs.
“We believe any conversation about the sustainable energy future must consider the cost burden to Nevadans,” Scott Leedom, the utility’s director of public affairs, said in an email.
“Policy-driven electrification shifts the cost to consumers away from one of the lowest monthly utility bills they face, natural gas, to one of the highest, electricity. The voices of those who rely on natural gas to make financial ends meet in homes and businesses must be heard,” he said.
Bobzien, however, noted that electric appliances are steadily evolving to become more efficient and less costly. He pointed to the fact that costs can accelerate quickly with increased demand.
“History has shown that these cost-curves can accelerate quickly — solar being the perfect example,” Bobzien said (the price of solar has dramatically decreased over the last decade).
Additionally, the climate strategy recommends several other policies to reduce the energy consumption of buildings: appliance efficiency standards, energy codes for net-zero buildings and the expansion of energy efficient and energy-savings contract programs.
Nat Hodgson, CEO of the Southern Nevada Home Builders Association, said he supports the goals to reduce carbon emissions, and he was an early backer of energy efficient codes. But he cautioned an approach that could raise costs in a way that were passed down to homebuyers.
“I’m also the guy you call about housing affordability,” he said.
Hodgson said new homes are already far more energy-efficient than they were a decade ago. Most homes in Southern Nevada, he said, exceed standards for energy efficiency.
But Hodgson said housing prices could increase if there were requirements for things like charging stations or specialized outlets to allow for electric appliances in the future. He said the more cost-effective strategy would be to focus funding on retrofitting existing homes.
“Everything we can do, “he said. “But it comes at a cost. The number one issue is affordability.”
Environmental groups said climate change demands an upfront investment that, with the right mix of incentives and rulemaking, will ultimately benefit the consumer and keep costs down. If new homes are retrofitted for a future that demands electrified buildings, it will pay dividends when there is increased demand for electric appliances.
“It’s not in our head that we’re going to flip a switch and do this all in a year and everyone is going to have a fully electric efficient building,” said Dylan Sullivan, a senior policy analyst with NRDC. “It’s not going to happen like that. It doesn’t make sense for it to happen like that.”
He said electric alternatives to gas appliances, including heat pump water heaters, are competitively priced. Sullivan said it just requires a change in thinking about building. He also pushed back on the idea that preparing homes for electric appliances is more costly. “It’s only a sunk cost if you go in and install the gas appliance,” he said.
And many businesses support climate action. Two days after the strategy was released, the Reno and Sparks Chamber of Commerce held a series panels on the climate strategy that brought in a range of perspectives, from the Nevada Mining Association to the Sierra Club. The chamber’s CEO, Ann Silver, said in an interview that she was supportive of the strategy, noting that there were a lot of things that individuals could do to help reduce emissions.
“I don’t think we should view this as something costly,” Silver said. “To me, it’s comparable to wearing a mask. Maybe you are spending $3.99 on a mask, but that’s saving a death.”
Silver said businesses want to show that they are acting on climate change, and it’s often demanded by customers. She noted that change does not happen overnight. But when there is a choice to be made — like replacing old light bulbs or replacing a fleet of vehicles — businesses and consumers should consider the climate implications of their actions.
“I don’t think we’ve done enough to normalize the activities that should occur,” she said.
Beyond economic costs, a massive deployment of renewables to offset natural gas could have significant environmental costs on the landscape and protected habitat for imperiled species, from the Mojave desert tortoise to the Greater sage grouse.
Environmentalists and wilderness advocates said that the climate crisis is a top priority, but they have urged the state to adopt a careful planning approach that avoids causing further environmental damage in pursuing more renewable energy infrastructure.
Jaina Moan, external affairs director for The Nature Conservancy in Nevada, has advocated for siting solar, as much as possible, on previously developed land, like abandoned mines.
The state’s strategy acknowledges issues around siting renewables, advocating a “smart-from-the-start” approach. Moan hopes to see a continued commitment from the state.
“A commitment and incentives for developing on lower-impact lands are needed,” she said.
Reducing emissions in transportation
As the state phases out natural gas, the strategy emphasizes the need to transition away from fossil fuels in the transportation sector, the leading source of the state’s emissions.
To do so, the climate strategy included five policy proposals: the adoption of low- and zero-emissions vehicle standards, a clean truck program, low-carbon fuel standards, a “cash for clunkers” program and ending a loophole that allows car owners to evade emission checks.
Electrifying the transportation sector was identified as one of the most complex issues facing the state’s decarbonization goal, one that requires buy-in from consumers and an array of state and local governmental agencies responsible for roads and infrastructure.
In addition to adopting electrification policies, the report said the state should also look for ways to manage transportation demand, decreasing the number of miles traveled in personal vehicles and increasing incentives for public transit and telecommuting.
Tackling how cars are used is crucial, the report said, with the number of miles traveled in cars — calculated as Vehicle Miles Traveled — increasing faster than the population.
“If this trend does not change,” the report says, “[emission] targets will be difficult to meet, even with aggressive changes to vehicle efficiency and fuel type, due to turnover rate of vehicles and other transportation-related [greenhouse gas] emissions, such as roadway building and maintenance.”
Despite the headwinds, the report also casts electrifying transportation as an opportunity.
“Nevada is uniquely poised to capitalize on its unique assets by leveraging growth in the EV sector to become a hub for transportation electrification,” the report said.
The strategy notes that Nevada could play a role in the electric-vehicle supply chain, given the need for more lithium. The country’s only active lithium operation is based outside of Tonopah, and over the past five years, there has been an increase in lithium exploration.
Earlier this year, Nevada started a rulemaking process to adopt low and zero-emission vehicle standards through an initiative known as Clean Cars Nevada. Such standards, adopted in 14 states and modeled after California’s rules, would require car manufacturers to sell low-emission vehicles in Nevada and set credit targets for zero-emission vehicles.
Andrew MacKay, executive director of the Nevada Franchised Auto Dealers Association and a former chairman of the Nevada Transportation Authority, said he was not surprised by the proposals and said there were some common-sense ideas. He cited closing the “classic car” loophole, which allows newer cars to avoid emission inspections, as one.
But he also said his group would ultimately not support the adoption of emission standards, instead preferring a national standard and letting markets guide electric-vehicle adoption.
“My opinion is this: Let the market work,” MacKay said.
Despite disagreements with some of the policy recommendations, MacKay said he wanted to see the state address climate change and was impressed by the breadth of the strategy.
“This is going to result in the drafting of big pieces of legislation, regulatory efforts and the whole nine yards,” MacKay said, noting momentum in state government to take action.
What happens at the state level is only one aspect of climate action. The report comes as large corporations set net-zero goals, demanding a more fuel-efficient and eventually zero-carbon supply chain, and as car manufacturers seek to create new electric products to meet those goals. There is also another big player in the transportation sector: California.
Paul Enos, who heads the Nevada Trucking Association, said that what California does can have a big effect in Nevada. He said many of his members already have trucks that meet California standards, so regulatory changes in Nevada could have a more minimal effect.
He said the climate strategy’s analysis of a new Clean Trucks Program provided a “honest assessment,” considering the economics and the impact on greenhouse gas emissions.
“The reality is that so many of the trucks that are based here in Nevada, operating here in Nevada, they’re already meeting the California standard,” Enos said in an interview.
Many of the big players in the trucking industry are already moving toward reducing their emissions as large corporate end-users look to meet their sustainability goals, Enos said. But any new rules could have a disparate impact on smaller trucking companies. And unlike in California, he said Nevada might not have the ability to offer incentives to smaller players in the industry. He said state regulators should weigh that with any rules they create.
“California can afford to get a lot of things wrong that we can’t afford to do in Nevada,” Enos said. “I worry about the small guys. I worry about the owner-operators.”
Starting a conversation on climate justice
For all of the policies analyzed, the state’s strategy considers climate justice issues as one of the four most primary metrics to guide the state’s action on reducing carbon emissions.
Averyt, who led the report’s drafting as the head of the Nevada Climate Initiative, said this was a critical part of the report. In the coming months and years, Averyt expects that more information will be added to the strategy and the state will produce additional reports.
She said climate justice will continue to be used as a metric to analyze policy.
Across the nation and in Nevada, the effects of climate change often fall disproportionately on marginalized communities, amplifying inequality. More heat in urban areas, for instance, can lead to increased energy demand for cooling among residents who already spend a larger percentage of their income on electricity bills. In other cases, power plants and freeways with high emissions have historically been sited near low-income neighborhoods.
At the same time, the action needed to address climate change can also disproportionately affect marginalized communities, often least responsible for creating the problem.
Climate justice activists in Nevada are concerned with both issues. They said the report was a starting point, but they hope to see more direct climate justice policies in the future.
“My initial reaction was that it was a good start, but it was leaving out a lot of policies that I wanted to see discussed,” said Ainslee Archibald, a coordinator for the Nevada Environmental Justice Coalition. “I felt it was kind of half of what we needed and half of what we didn’t.”
Early on, the strategy argues that climate action could be a way to correct environmental injustices that occurred in the past and create a more equitable economy moving forward.
“Through climate action, there is the opportunity to reconcile the social justice challenges Nevadans face,” the report said a few paragraphs into the Executive Summary section.
For Archibald, who is also an organizer for the Sunrise Movement in Las Vegas, that would mean a transition from market-based systems to policies with fewer barriers to access. She said she would like to see more consideration placed on public transit and energy choice, the ability to produce rooftop solar and community solar in a way that is cost-effective.
Moore, an organizer for EcoMadres and a member of the coalition, echoed these calls.
“It’s great that we are talking about electrification of vehicles and electric infrastructure but we need to think about ways to make these things accessible to everyone,” Moore said.
She said part of what the state should do, moving forward, is ensure more direct outreach to communities rather than conduct public outreach primarily on social media. Doing so, she said, would allow officials to more adequately address climate justice in policy making.
“There is so much work that still needs to be done,” Moore said.The Nevada Independent is a 501(c)3 nonprofit news organization. We are committed to transparency and disclose all our donors. The following people or entities mentioned in this article are financial supporters of our work: