Nevada
State Scorecard Rank
21
Nevada
18.5Scored out of 50Updated 12/2022
State Government
Score: 1.5 out of 4.5
State Government Summary List All
The state offers several consumer incentives for energy efficiency investments, including a wide-reaching property tax abatement for green buildings. The state government leads by example by requiring energy efficient buildings, benchmarking of energy use in public buildings, and encouraging the use of energy savings performance contracts.
Financial Incentives List All
The state of Nevada offers the following financial incentives to encourage energy efficiency improvements:
- Home Energy Retrofit Opportunities for Seniors (HEROS): The joint-Nevada Governor's Office of Energy (GOE) and Nevada Division of Housing (NHD) program targets seniors 60 years and older and persons with disabilities for residential energy assessments and upgrades. Funding from GOE augments the current weatherization assistance program administered by the NHD and is provided to the homeowner free of charge. GEO administrators the program through a network of non-profit service provider agencies throughout Nevada. An energy assessment is conducted at the participating senior's home in order to develop a scope of work. Each home may receive up to $6,000 in energy saving measures.
- Direct Energy Assistance Loan (DEAL) Program: The Nevada State Legislature approved the Governor’s Office of Energy’s DEAL Program on May 30, 2015. This newly created program provides $1,500,000 in zero-interest loans annually to Nevada state employees to receive energy assessments and upgrades and creates a mechanism for the employee to repay the energy efficient loan through a deduction on their paycheck. Funds generated for these grants originate from the Renewable Energy Fund and distributed to the Governor’s Office of Energy. This fund was created during the 2009 Nevada Legislative session to fund energy projects and programs that offset the cost or use of electricity to retail customers of a public utility in Nevada.
- Property Tax Abatement for Green Buildings
- Performance Contracting Audit Assistance Program (PCAAP)
Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Nevada). In addition to these state-funded incentives, Nevada has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.
Last Reviewed: June 2022
Equity Metrics and Workforce DevelopmentList All
The state's climate strategy mentions equity and the importance of focusing on climate justice to achieve the goals outlined in the report.
We were unable to determine if the state has adopted specific goals, metrics, or protocols to track or evaluate how any energy, sustainability, or climate action initiatives being taken are affecting local marginalized groups.
Workforce Development
The state does not currently include specific measures to prioritize clean energy workforce development.
Last Reviewed: July 2021
Carbon Pricing PoliciesList All
The State of Nevada does not yet have carbon pricing policies in place.
Per SB 254, Nevada does have a non-binding statewide emissions reduction goal in place, specifically to reduce emissions 100% by 2050 (baseline year 2005).
Last Reviewed: September 2022
Building Energy Disclosure List All
There is no disclosure policy in place.
Last Reviewed: July 2019
Public Building Requirements List All
Nevada Revised Statutes 701.215 directed the Director of the Office of Energy to develop a state energy reduction plan requiring state agencies to reduce grid-based energy purchases for state-owned buildings by 20% by 2015. The state achieved a 28% reduction in 2018. NRS 341.145 requires the State of Nevada Public Works Division to apply for any available utility rebates when constructing public buildings. All buildings are subject to the newly adopted 2018 IECC building standards that took effect on July 1, 2018.
Nevada Revised Statute 701.218 requires the Director of the Governor’s Office of Energy (GOE) to track use of energy in buildings owned by the State or occupies by a state agency. GOE currently obtains utility bills for each building for every month and preserves these records indefinitely. GOE also collects data and tracks building performance to allow for the comparison of utility bills for a building from month to month and year to year, as well as between similar buildings or types of buildings. GOE collects data that allows for the projection of costs for energy for state-owned buildings.
Last Reviewed: June 2022
Fleets List All
Nevada does not have a statewide energy-efficient fleet requirement.
Note: For state efficient fleet initiatives, policies listed must make a specific, mandatory requirement for increasing state fleet efficiency. State alternative-fuel vehicle procurement requirements that give a voluntary option to count efficient vehicles are thus not included.
Last Reviewed: June 2022
Energy Savings Performance Contracting List All
Nevada's ESPC programs were enacted initially in 2003 by Nevada Revised Statutes (NRS) 332 and 333A and have been updated and revised over the years to improve their effectiveness. The statutes require state and local government agencies to follow specific guidelines and practices to ensure ESPC program success, including instructions for completing comprehensive audits, contracting, obtaining professional advice and technical assistance, measurement, oversight, and reporting. The State Public Works Division periodically prequalifies ESCOs. Nevada School District Boards are required by NRS 332.362 to establish criteria for evaluating all proposed capital improvement projects for their ESPC potential and to report annually on all ESPC projects successfully completed and potential projects not completed, in accordance with NRS 332.360.
The Nevada Governor's Office of Energy (GOE) website provides education, tools, and outreach assistance to all government entities and private building owners on the subject of performance contracting, including a step-by-step guide, resources, and success stories. Grants are offered through the GOE's Performance Contracting Audit Assistance Program (PCAAP) to offset the cost of industrial grade energy audits for performance contract projects. Through this program, Nevada government entities that choose to enter into a performance contract for operational cost savings measures are eligible to have their Financial-Grade Operational Audit (FOGA) funded by the GOE. Eligible Nevada Government Entities include counties, cities, school districts, state colleges and universities, and state agencies. GOE is also active in both national and local chapters of the Energy Services Coalition (ESC).
Nye County was issued a PCAAP award in 2019 to evaluate the heating, ventilation and air conditioning systems, building automation and controls, building lighting and envelope; water fixtures, and solar power potential, and is scheduled to submit their final audit report at the end of May 2020. Washoe County School District (WCSD) is set to finish their multi-year, multi-phase performance contracting project this summer. The latest phase (Phase Three) was awarded a PCAAP award in January 2019, and the implementation is well underway, with no delays due to the pandemic.
Last Reviewed: July 2020
Research & Development List All
The Center for Energy Research at University of Nevada-Las Vegas engages in both energy efficiency and renewable energy research. Conventional power generation systems, energy conservation devices and systems, and environmental control issues for energy systems are of interest.
Last Reviewed: July 2019
Buildings
Score: 4.5 out of 12
Buildings Summary List All
Nevada Revised Statute 701.220 requires the Director of the Governor’s Office of Energy to adopt the most recent version of the IECC. As of July 28, 2021 the 2021 IECC is effective for commercial and residential buildings statewide, however, municipalities then must adopt the code individually. ASHRAE Standard 90.1-2016 is also an acceptable compliance path for commercial buildings in Nevada.
Residential Codes List All
In July 2021, the 2021 IECC with Electric Vehicle ready appendices was adopted for residential buildings in Nevada. While the code is not being enforced statewide, local governments are not allowed to adopt less-efficient energy codes.
Last Reviewed: May 2022
Commercial Code List All
In July 2021, the 2021 IECC with Electric Vehicle ready appendices was adopted for commercial buildings in Nevada with ASHRAE Standard 90.1-2016 as an acceptable compliance path. While the code is not being enforced statewide, local governments are not allowed to adopt less-efficient energy codes.
Last Reviewed: May 2022
Compliance List All
- Baseline & Updated Compliance Studies: A survey on energy code compliance rates was conducted in 2010 and revised. The Governor’s Office of Energy (GOE) is a supporting partner of a grant awarded by DOE to NASEO and SWEEP which establishes baseline energy code compliance rates in residential buildings. These efforts will include public education and outreach. The study follows DOEs proven methodology. The study will allow the GOE to provide specialized training for industry and building officials in partnership with NASEO and SWEEP.
- Utility Involvement: No regulatory guidelines have been established with regard to involving utilities in supporting building energy code compliance.
- Stakeholder Advisory Group: GOE partnered with BCAP to develop the Nevada Code Collaborative, which first met in April 2012, and has also named seven Code Ambassadors. GOE continues to work with non-profits, local building departments and consultants to provide training on the 2018 IECC to building code officials and the building industry. The Southwest Energy Efficiency Project (SWEEP) continues to facilitate the collaborative.
- Training/Outreach: The GOE will provide funding for trainings on the 2021 IECC with Electric Vehicle ready appendices in both Northern Nevada and Southern Nevada. The trainings will educate contractors, vendors and building code officials.
GOE is also partners on the University of Illinois Smart Energy Design Assistance Center (SEDAC) Community College Energy Code Training program which will provide energy code curriculum to Community College Instructors.
Last Reviewed: May 2022
CHP
CHP Summary List All
CHP is considered an eligible resource within the state's energy efficiency resource standard, but the state has not otherwise adopted policies to encourage CHP deployment. No new CHP systems were installed in 2018.
Interconnection StandardsList All
Policy: Nevada Interconnections Standard
Description: In December 2003, the Nevada Public Utilities Commission (PUC) adopted interconnection standards for customers of Nevada Power and Sierra Pacific Power with on-site generation up to 20 megawatts (MW) in capacity. These standards are largely consistent with IEEE 1547 standards, California's interconnection rule (California Rule 21) and the model interconnection agreement developed by the National Association of Regulatory Utility Commissioners (NARUC). Nevada Power and Sierra Pacific Power have incorporated the standards into their tariffs as Rule 15. These standards apply only to CHP fueled by biogas, biomass, LFG, municipal solid waste, or tire-derived fuel.
Last Updated: September 2018
Encouraging CHP as a ResourceList All
There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP.
Last Updated: September 2018
Deployment IncentivesList All
There are currently no state policies that provide incentives for CHP deployment.
Last Updated: September 2018
Additional Supportive PoliciesList All
Some additional supportive policies exist to encourage CHP in Nevada. Nevada's renewable portfolio standard (RPS) was initiated in 1997 and was expanded to include energy savings from efficiency measures in 2005. It requires the state's two investor-owned utilities, Nevada Power and Sierra Pacific Power, to achieve 25% renewable energy by 2025 and allows energy efficiency to meet a quarter of the standard in any given year. All types of CHP systems are eligible under the RPS as a "qualified energy recovery process."
Last Updated: September 2018
Utilities
Score: 4.5 out of 15
Utilities Summary List All
Nevada's two investor-owned electric utilities, Nevada Power Company and Sierra Pacific Power, administer customer energy efficiency programs that are funded by rate adjustments noted on customer bills. Both utilities are subsidiaries of NV Energy; since 2008, they have done business under the NV Energy brand. Nevada's renewable energy portfolio standard allows energy efficiency to be used in partial fulfillment of its portfolio requirements. Nevada utilities can recover lost revenues that result from successfully conducting energy efficiency programs.
The levels of funding and program services have grown rapidly since Nevada reestablished requirements for energy efficiency programs provided by the state's investor-owned electric utilities, as well as integrated resource planning. These utilities aggressively pursued energy efficiency and grew their portfolio until they achieved saving of 1.5% of sales in 2009. Since then their savings have dropped to half that amount. Nevada’s publicly-owned utilities also provide some energy efficiency programs to their customers.
In June 2017, SB 150 was signed into law directing the PUCN to establish annual energy savings goals for NV Energy and to establish performance-based incentives that an electric utility can recover if it exceeds those goals.
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.
Customer Energy Efficiency Programs List All
Nevada returned to a traditional regulated utility structure after it restructured its industry in the late 1990s. Nevada’s vertically integrated, investor-owned utilities are required to perform integrated resource planning and related demand-side management programs. The utility companies collect an energy efficiency system benefits charge through customers' electric rates. The companies file general rate cases every three years, and DSM Program Costs and the associated lost revenues are recovered on an annual basis in the Deferred Energy Docket filed every March.
The utility companies administer the energy efficiency programs with oversight by the Public Utilities Commission of Nevada (PUCN). The companies propose a three-year budget and program plan to the PUCN as part of 20-year integrated resource planning requirements. The utility companies must have their program plans and budgets approved by the PUCN prior to implementation. Sierra Pacific Power and Southwest Gas offer natural gas efficiency programs. Investor-owned utilities aggressively pursued energy efficiency and grew program portfolios, achieving a high of 1.5% savings in 2009. Since then, savings have dropped to half that amount.
Nevada’s publicly-owned utilities (cooperatives and municipal utilities) also provide some energy efficiency programs to their customers.
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.
Last Updated: July 2018
Energy Efficiency as a Resource List All
Nevada Administrative Code §704.934 directs each regulated utility to submit a plan for conservation and load management as part of its resource plan. The plan must include, among other things:
- an assessment of potential savings attributable to technically feasible programs for conservation and load management
- a list of proposed programs for reducing energy and demand
- a determination of the reduction in the use of energy and the demand for energy that would result from the proposed programs
- an assessment of the costs of the proposed programs and the reductions in the utility’s costs produced by the proposed programs, and
- an assessment of the impact on the utility’s load shapes of proposed and existing programs for conservation and load management.
Last Updated: July 2018
Energy Efficiency Resource Standards List All
Summary: 25% renewable energy by 2025—energy efficiency may currently meet 20% of the standard in any given year, but phases out of the RPS over time.
In 1997, Nevada established a renewable portfolio standard (RPS) as part of its restructuring legislation. Assembly Bill (AB) 3 in 2005 revised the RPS, increasing the portfolio requirement to 20% by 2015 and allowing utilities to use energy efficiency to help meet the requirements. Amendments in Senate Bill 358 in 2009 raised the portfolio requirement to 25% by 2025. Energy efficiency measures qualify if they are subsidized by the electric utility, reduce demand (as opposed to shifting peak demand to off-peak hours), and are implemented or sited at a retail customer’s location after January 1, 2005. AB1 of 2007 expanded the definition of efficiency resources to include district heating systems powered by geothermal hot water. For years 2015 to 2019 not more than 20 percent of the RPS can be met utilizing energy efficiency. This amount drops to 10 percent for calendar years 2020 to 2024 before reducing to zero for 2025.
The Public Utilities Commission of Nevada (PUCN) established a program to allow energy providers to buy and sell portfolio energy credits (PECs) in order to meet energy portfolio requirements. The number of kWh saved by energy efficiency measures is multiplied by 1.05 to determine the number of PECs. For electricity saved during peak periods as a result of efficiency measures, the credit multiplier is increased to 2.0. PECs are valid for a period of four years. The PUCN currently has an open rulemaking regarding the annual savings goals in Docket Nos. 17-07011 and 17-08023.
In 2013, the legislature voted to phase out this energy efficiency allowance in order to effectively increase the requirement for new renewable energy.
In June 2017, SB 150 was signed into law directing the PUCN to establish annual energy savings goals for NV Energy and to establish performance-based incentives that an electric utility can recover if it exceeds those goals.
Nevada has no natural gas EERS.
Last Updated: July 2018
Utility Business Model List All
In May 2011, the Public Utilities Commission of Nevada (PUCN) issued an order approving the first recovery of lost revenues from demand-side management (DSM) programs for NV Energy, parent company of Nevada Power and Sierra Pacific Power Companies. This was the first filing under new regulations that provide for the recovery of DSM expenses and lost revenues in an annual balancing account. The investigation into an alternative to the lost revenue mechanism was completed in 2015, and in Docket No. 14-10018, a new multiplier method was proposed by the electric utilities. Regulations approving the multiplier methodology have been drafted but have not yet been approved by the Commission.
In 2008, the Commission adopted temporary rules pursuant to a 2007 law allowing gas utilities to propose decoupling their profits from their sales in a general rate case filed within one year of the approval of their energy efficiency programs. The rules specify a revenue-per-customer system for determining utility revenues to recover fixed costs. The PUCN adjusts this revenue on a per-class basis (i.e., “residential”) (PUCN Docket No. 07-06046 and Nevada Admin. Code 704.953). Gas utilities in Nevada can choose to either implement decoupling or use a performance.
In 2009 the Nevada Legislature passed SB 358, which directed the Commission to remove the financial disincentives faced by the utilities, and in 2010, the PUCN approved a Lost Revenue Adjustment Mechanism for electric utilities. The partial decoupling mechanism allowed utilities to recover "lost revenues" based on estimated savings through a third party M&V contractor during annual DSM filings. In 2015, the PUCN completed an investigation into an alternative lost revenue mechanism, and in Docket No. 14-10018, a new multiplier method was proposed by the electric utilities. Regulations approving the multiplier method were adopted in 2016.
Last Updated: July 2018
Evaluation, Measurement, & Verification List All
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Primary cost-effectiveness test(s) used: total resource cost test
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Secondary cost-effectiveness test(s) used: utility cost test, participant cost test, societal cost test, and ratepayer impact measure
The evaluation of ratepayer-funded energy efficiency programs in Nevada relies on statute (NRS 704.785(1)) and regulatory orders (NAC 704). The statute states that the Nevada Public Utilities Commission (PUCN) shall adopt regulations authorizing an electric utility to recover an amount based on the measurable and verifiable effects of the implementation by the electric utility of energy efficiency and conservation programs approved by the Commission. The Commission has taken this language to mean that M&V is mandated for energy efficiency programs. Evaluations are mainly administered by the utilities and are conducted for each program.
Nevada considers all of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), the Utility Cost Test (UCT), the Rate Impact Measure (RIM), Participant Cost Test (PCT) and the Societal Cost Test (SCT). According to the Database of State Efficiency Screening Practices (DSESP), Nevada no longer uses a primary cost-effectiveness test, requiring utilities to choose a standard test that accounts for non-energy benefits. Utilities must submit a demand side plan that is cost effective as a whole. However, the TRC is the most commonly cost-effectiveness test used by utilities according to the DSESP,. . The TRC is called the NTRC when non-energy benefits are accounted for.
Nevada accounts for avoided environmental compliance costs, alternative fuel benefits, and water savings. Nevada accounts for economic development and jobs created by program. Nevada also includes other non-energy benefits such as increased customer asset value, productivity, economic well-being, comfort, health and safety, satisfaction, and low-income programs as non-energy benefit riders. These riders are included in the NTRC test and calculated with a proxy. Non- low-income programs, low-income programs, and combined programs use 10%, 25%, and 15% multipliers respectively.
Further information on cost-effectiveness screening practices for Nevada is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP). Further information on health and environmental benefits is available in ACEEE’s Overview of State Approaches to Account for Health and Environmental Benefits of Energy Efficiency.
Last Updated: May 2019
Guidelines for Low-Income Energy Efficiency Programs List All
Requirements for State and Utility Support of Low-Income Energy Efficiency Programs
In July 2001, Nevada passed AB 661, which created the Nevada Fund for Energy Assistance and Conservation (FEAC) through a universal energy charge (UEC) assessed on retail customers of the state’s regulated electric and gas utilities. Nevada’s Energy Assistance Code specifies the UEC is 3.30 mills per therm of natural gas and 0.39 mills per kWh of electricity purchased by these customers.
NRS 702.270 requires that 25% of the money in the FEAC must be distributed to the Nevada Housing Division for programs of energy conservation, weatherization, and energy efficiency for eligible households. The Housing Division may use not more than 6% of the money distributed to it, pursuant to this section, for its administrative expenses.
In June 2017, SB 150 was signed into law, which, in addition to directing the PUCN to establish annual energy savings goals for NV Energy, also requires utilities to set aside devote a minimum 5% of efficiency program expenditures to low-income customers..
Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs
Nevada Housing Division for programs of energy conservation, weatherization, and energy efficiency for eligible households do not require a cost–benefit analysis. 2017 legislation established that low-income programs do not have to pass cost effectiveness screening as long as the portfolio of all DSM programs passes.
Also a non-energy benefits adder of 25% is applied to low-income programs. Regular programs receive a 10% adder. Depending on the percentage of low-income participation in a program, the non-energy benefits adder is adjusted using a weighted average formula. (See pg 143 of 2020 Combined Annual DSM Report in Docket No. 20-07004)
Coordination of Ratepayer-Funded Low-Income Programs with WAP Services
Level of coordination is unclear from publicly available data.
Last updated: July 2018
Self Direct and Opt-Out Programs List All
There are no self-direct or opt-out provisions in Nevada.
Last updated: July 2018
Data AccessList All
Guidelines for Third Party Access
Customer energy use data is available to third parties contracted by the utilities solely for program implementation and measurement and verification.
Requirements for Provision of Energy Use Data
In Nevada there are no requirements for the provision of energy use data.
Energy Use Data Availability
The state does not have a standardized system through which access to individual or aggregated energy use data may be requested.
Last Updated: July 2018
Transportation
Score: 4.5 out of 13
Transportation Summary List All
Nevada has not focused its efforts on policies to encourage efficient transportation systems, leaving significant room for growth.
Tailpipe Emission Standards List All
In June 2020, Governor Sisolak announced Nevada would begin a low-emission (LEV) and zero-emission vehicle (ZEV) rulemaking process.
Last Reviewed: November 2022
Transportation System Efficiency List All
Transportation and Land use Integration: No policy in place or proposed.
VMT Targets: Assembly Bill 483 (AB 483), passed in the 2019 Nevada Legislature, directs the DMV to gather an odometer reading at the time of any original vehicle registration, registration renewal or vehicle sale.
Data from odometer readings will become part of vehicle history and will be used to compile reports of total miles driven for the Nevada Legislature. There are no fees, taxes or fines associated with this program. The pilot project runs through December 31, 2026.
FAST Freight Plans and Goals: Nevada has a state freight plan that identifies a multimodal freight network, but it does not include freight energy or greenhouse gas reduction goals.
Last Reviewed: November 2022
Incentives for High-Efficiency Vehicles List All
No policy in place or proposed.
Last Reviewed: November 2022
Equitable Access to TransportationList All
Public transit access
Nevada does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, but it does consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners.
AB 413, signed in 2021, will establish a transportation working group to look at issues including greenhouse gas emissions associated with transportation. The group will consider the needs of all types of transportation users, including car drivers, transit users, bicyclists and pedestrians, alongwith social equity issues.
Equity in vehicle electrification
SB 448, signed in 2021, will clear the way for the completion of a major intrastate transmission line upgrade project and also require NV Energy to invest $100 million in electric vehicle charging stations. The bill also makes a host of other policy changes that will boost carbon reduction efforts throughout the state.
Last Reviewed: November 2022
Appliance Standards
Score: 2 out of 3
Appliance Standards Summary List All
Policy: NRS § 701.260
Description: Assembly Bill 178, adopted June 2007 and codified as NRS § 701.260, established efficacy standards (efficiency of light) for general purpose incandescent lamps, effective January 1, 2012. The Nevada standard is exempt from federal preemption because it predates and is stronger than the federal standard. However, the state has not yet begun enforcing the standard and it is uncertain when enforcement will commence.
Nevada enacted AB54, adopting federal light bulb standards into state law.
Last Updated: June 2019
Important Links List All