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Energy in Nevada
Energy use involves fuel choices and consumption habits that affect air, water, and land resources in many ways. The state relies on a mix of all major types of energy resources, except nuclear power. Most of the energy consumed comes from the combustion of coal, natural gas, and oil (Figure 1-2). About 7 percent comes from non-fossil fuel sources, primarily hydropower and geothermal resources. In 2000, Nevada geothermal plants generated about 1.3 million mega-watt hours of electricity. Oil is the only fossil fuel extracted from Nevada's geologic resources. Recent yearly oil production ranged from 1.86 million in 1992 to 0.62 million barrels in 2000 (Nevada Bureau of Mines and Geology, 2001).
Total state energy consumption in 1997 was 572.6 trillion British thermal units (Btu), increasing 41% between 1991 and 1997, closely following the rate of population growth. Per capita energy consumption basically remained unchanged, fluctuating between 328 and 346 million Btu during the period. The use of energy per Nevada resident is close to the national average of 352 million Btu per person. By comparison, in the late 1970's per capita consumption ranged from 377 to 391 million Btu (U.S. Energy Information Agency, 1999b). Statewide, overall energy efficiency improved only slightly since the 1970's. Little, if any, gains in efficiency were made during the 1990s.
Electric Power
Generation of electricity in Nevada requires enormous inputs of fossil fuels, all imported. In 1997, 7.261 million short tons of coal, 52 billion cubic feet of natural gas, and 69 thousand barrels of oil were burned at power plants in Nevada. The primary generating fuel is coal. The state's geologic
formations yield small quantities of crude oil, a smaller amount of natural gas coincident with oil production, and no coal. However, Nevada has enormous reservoirs of renewable energy (e.g., solar, wind, and geothermal), of which only a small fraction has been tapped. Fossil fuel fired plants make up 90 percent of the electric generating capacity in Nevada.
The total electric generating capacity of power plants in Nevada is about 6,400 megawatts (MW). Figure 1-3 shows the amount of fuel types used to generate electricity at Nevada power plants during the 1990's. Petroleum makes up a small fraction of fuel used to produce power. Though the coal-fired capacity (2,806 MW) makes up 40 percent of the total generating capacity, 67 percent of the fuel burned was coal in 1997 (U.S. Energy Information Agency, 2000). Natural gas is gradually  becoming a larger part of the fuel mix (22 percent), replacing oil combustion at dual fueled plants. Lower air pollutant emissions are one reason for higher natural gas use, especially at generating stations within and nearby urban areas with impaired air quality. Natural gas fired technologies consume less water than other fossil-fuel options. Many power projects have been proposed in Nevada to meet growing electricity demand in Nevada and other western states. The Public Utilities Commission of Nevada (PUCN) has received applications to construct 19 new generating facilities, all but two in the southern region. Most of the proposed plants are natural gas fired (Table 1-2). The additional units may place cumulative, long-term stress on water resources, aquatic ecosystems, air quality, and wildlife habitat.
Only 3.5 percent of the additional capacity would use renewable resources that could avoid or minimize water consumption and other resource issues. If in the coming years Nevada is to host a number of new fossil-fueled power plants, there is a need to study the potential cumulative,
long term effects on the affected environment and resources, so appropriate conservation strategies can be evaluated and implemented should the need arise.
The State's Utility Environmental Protection Act (NRS 704.825) requires environmental review by the Nevada Division Environmental Protection (NDEP) of individual power proposals. The Nevada Division of Water Resources (NDWR) reviews applications for appropriation of water and for changes in the point of diversion, place of use, or manner of use. The NDWR has authority to approve, conditionally approve, or deny applications using criteria that may include related environmental concerns. In 2001, the Governor's Nevada Electric Energy Policy Committee acknowledging concern about competition for the state's scarce water resources, advised that preference should be given to air-cooled plants, sites with access to reclaimed water, or sites where water is more abundant, perhaps in other geographic areas (Public Utility Commission of Nevada, 2001).
Transportation Fuels
Transportation related energy use makes up about 31 percent of the state total. Population and economic growth corresponds to more vehicles and more miles driven. The Nevada Department of Transportation estimates that vehicle miles traveled grew 65 percent from 1990 to 1997. During this period, the national corporate average fuel economy (CAFÉ - measured in average miles per gallon) for autos and light trucks decreased slightly.
Overall vehicle fuel efficiency also dropped, in part because of increasing use of sport utility vehicles. The combination of a rapid increase in the number of people driving more miles in less-efficient vehicles drives pollutant emissions upward. Rapid growth and sprawling development patterns can result in a backlog of road construction projects, exacerbating congestion and urban air quality concerns. The Clark County Department of Comprehensive Planning estimates that vehicle emissions are the principal cause for episodes of unhealthful carbon monoxide levels in Las Vegas Valley (Nevada State Energy Office, 2000).
The use of alternative transportation fuels increased slightly from 1990 to 1997. However, in Clark County, natural gas used to operate vehicles rose 55 percent, from 1.068 to 1.650 million gallons equivalent between 1996 and 2001 (Nevada Division of Environmental Protection, 2002). The inventory of alternative fueled vehicles operated in Nevada grew substantially to 3,719 in 1999 (U.S. Energy Information Agency, 1999a). In Clark County, the number of natural gas vehicles increased from 362 in 1993 to 2,200 in 2001. Alternative fueled vehicles include those fueled with liquefied petroleum gas (544), natural gas (3,702), ethanol (78), and electric power (25) (U.S. Energy Information Administration, 2000b). The larger number of alternative fueled vehicles does not correspond well with data on the use of alternative vehicle fuels, suggesting conventional gasoline fuel is used in dual-fueled vehicles.
Renewable Energy
The State Energy Office and the National Renewable Energy Lab ranks Nevada as one of the best areas in the country for solar electric and solar thermal power as well as substantial wind and geothermal energy potential. Geothermal and hydropower plants provide all of the renewable energy generated in Nevada today. Fourteen geothermal power plants have been built since the mid-1980's, with a combined capacity of 236 MW's (3.7 percent share of total in-state capacity). The primary hydroelectric resource is the Nevada share of power produced from the Colorado River at Hoover,  Parker and Davis dams (about 417 megawatts). Six hydropower units run on seasonal Truckee River diversions west of Reno and near Lahontan Reservoir. Hydropower provides 6.8 percent of the state's total capacity.
The projected shortfall in the western region's electric generating capacity produced very modest interest in developing renewable resources in Nevada. Of the additional 10,200 MW of generating capacity that electric power companies proposed in 2000 and 2001 to the State Public Utility Commission, only 3.5 percent would expand use of renewable resources (350 MW wind, 12 MW geothermal). Small-scale solar photovoltaic use for residential, small commercial and public facilities has increased in recent years.
The legislature has enacted two statutes encouraging renewable energy use and development. The "net metering" program enables utility rate payers to earn credits that lower their power bill proportionate to the electricity generated by small, grid connected solar or wind generators. The "renewable portfolio standard" requires Nevada's electric utilities to generate or acquire a minimum of 5 percent of electricity sold to retail customers from renewable energy systems in 2003 and 2004, and increases the standard by 2 percent biennially to 15 percent by 2013.
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