Nevada counties urge Congress to repeal geothermal provision

FALLON -- Nine Nevada counties are pressing Congress to repeal a provision in a federal appropriations bill that could cost counties in at least six Western states millions of dollars in lost revenues from geothermal activity.

Tim Josi, president of the National Association of Counties Western Interstate Region, said the Energy Policy Act of 2005 gave counties a 25 percent share of geothermal revenues to deal with impacts of geothermal activity.

He said the recent passage of the 2010 Interior Department appropriations bill effectively redirects the county's share of geothermal revenues back to the federal government.

Josi estimates the change will hurt at least 31 counties in Nevada, California, Idaho, New Mexico, Oregon and Utah.

In Nevada, geothermal production takes place in Churchill, Elko, Esmeralda, Humboldt, Lander, Mineral, Nye, Pershing and Washoe counties.

"This will have a significant impact to all geothermal counties," Churchill County Manager Brad Goetsch told the Lahontan Valley News and Fallon Eagle Standard newspaper.

Churchill Comptroller Alan Kalt said his rural county stands to lose as much as $100,000 for the quarter ending Dec. 31. The county has seven geothermal plants.

Sen. Harry Reid, D-Nev., and Rep. Dean Heller, R-Nev., have introduced bills to repeal the provision relating to geothermal energy receipts.

Reid and the rest of Nevada's congressional delegation also have introduced legislation to extend the counties' geothermal revenue share permanently.