US legislators restore geothermal royalties to counties
Salt Wells site, Nevada (source: Vulcan Power)
Alexander Richter
24 Dec 2010
The U.S. Senate and the House of Representatives restore geothermal rent money and royalties to 31 counties in six states.
Just before the holidays, “both the U.S. Senate and House of Representatives steamed their way this week to approving the restoration of geothermal rent money and royalties to 31 counties in six states.
The money affects those counties that have geothermal plants operating primarily on federal lands. Churchill County, for example, has seven operating facilities with three more expected to come online in 2011.
The first resolution to restore geothermal money first passed the House earlier this month. The Senate took action when it passed a short-term continuing resolution to fund the government through March 4, 2011.
As part of the legislation, Sen. Harry Reid, D-NV, said it included a provision that will restore much needed geothermal revenue to rural counties throughout Nevada.
“I’m pleased that geothermal revenue will be restored to rural counties in Nevada as part of a bipartisan agreement to avoid a dangerous government shut down that would be devastating for Nevadans,” Reid said in a statement released Wednesday. “Nevada’s rural counties rely on this PILT funding for essential services such as public safety, transportation and education. By restoring these full payments, we’re putting this money back into the community where it belongs to create jobs and strengthen our local economies.”
Spokesman Stewart Bybee of Congressman Dean Heller’s office said Thursday the fix should be permanent because Congress repealed provisions of the 2010 appropriations act. Although the current appropriations bill funds the federal government to March 4, Bybee said the provision, once passed again, will be in effect.
Heller, R-NV, who has supported the counties’ rights to retain geothermal money, lauded the House bill that passed Tuesday night.
“During these difficult economic times, obtaining the local share of these royalties has become increasingly critical for communities across our state,” Heller said. “I fought to retain these royalties and am pleased they have been restored. Preventing this federal money grab and ensuring these funds stay in local hands is a great victory for Nevada.”
Earlier this month, Heller said it is his goal to have fellow lawmakers restore geothermal royalties on a long-range basis rather than revisiting the problem every year. This year the Office of Management and Budget determined that under funding legislation, “local counties can no longer receive their share of geothermal royalties established under the Energy Policy Act of 2005.”
Churchill County Manager Brad Goetsch said Wednesday that after he heard about the House’s approval, he sent e-mails to all departments. He said the restored money to Churchill County is worth several million dollars.
Counties encountered a similar problem beginning during the fall of 2009 when the federal government decided to take away their share of geothermal money and redirect it to the U.S. Treasury. After eight months of wrangling between the House and Senate, the money was restored in August.
Besides the $3 million that Churchill County received from fiscal year 2010, County Comptroller Alan Kalt said the Churchill County School District also received $303,998.”
Source: Lahontan Valley News
