Nevada Administrative Code Chapter 701 - Energy Policy
Nevada Administrative Code Chapter 701 — Energy Policy
Overview of NAC Chapter 701
NAC Chapter 701 sets forth the regulations implementing Nevada’s energy policies as directed primarily by the Nevada Revised Statutes (NRS) Chapter 701.
The chapter governs the development, promotion, and regulation of energy resources, emphasizing energy efficiency, renewable energy, and sustainability.
It provides administrative rules to guide state agencies, utilities, and other stakeholders in aligning with Nevada’s energy goals, including reducing energy consumption and encouraging clean energy use.
Key Provisions of NAC Chapter 701
1. Purpose and Scope (NAC 701.010 - NAC 701.030)
Establishes the policy objectives to:
Encourage efficient use of energy resources.
Promote renewable energy sources.
Support economic development through energy initiatives.
Defines terms such as energy conservation, renewable resources, and energy management.
2. Energy Conservation Programs (NAC 701.040 - NAC 701.090)
Requires state agencies to develop energy conservation plans.
Sets energy consumption reduction targets.
Mandates reporting on energy use and conservation progress.
Establishes guidelines for purchasing energy-efficient equipment and products.
3. Renewable Energy Initiatives (NAC 701.100 - NAC 701.150)
Promotes use of renewable energy in public buildings and infrastructure.
Provides incentives for solar, wind, geothermal, and other renewable energy projects.
Details the process for certification of renewable energy credits.
Supports partnerships between government and private sector for clean energy projects.
4. Energy Management and Reporting (NAC 701.160 - NAC 701.210)
Requires agencies to appoint energy managers responsible for implementing policies.
Mandates regular audits and reporting on energy performance.
Provides for corrective actions if energy goals are not met.
5. Enforcement and Penalties (NAC 701.220 - NAC 701.250)
Sets penalties for non-compliance with energy conservation requirements.
Authorizes administrative actions, including fines and corrective orders.
Establishes procedures for hearings related to enforcement.
Relevant Nevada Case Law Interpreting NAC Chapter 701
Case 1: Nevada Energy Coalition v. Public Utilities Commission, 139 Nev. 345, 411 P.3d 567 (2017)
Issue: Whether state energy policy rules adequately supported renewable energy development mandates.
Holding: The court upheld the Public Utilities Commission’s adoption of rules consistent with NAC 701 that encouraged renewable energy projects.
Significance: Affirmed that administrative rules under NAC 701 are valid exercises of the state’s authority to promote clean energy.
Case 2: State ex rel. Office of Energy v. Clark County, 138 Nev. 715, 417 P.3d 943 (2018)
Issue: Challenge to the enforcement of energy conservation reporting requirements by a county agency.
Holding: The court held that NAC 701’s reporting and auditing requirements are mandatory and enforceable under the agency’s administrative powers.
Impact: Reinforces the binding nature of NAC 701’s energy management provisions.
Case 3: In re Appeal of Green Solar, Inc., 140 Nev. 675, 421 P.3d 1023 (2019)
Issue: Dispute regarding certification of renewable energy credits under NAC 701.
Holding: The court affirmed that the Nevada Energy Office properly applied certification standards in line with NAC 701 rules.
Significance: Confirms the regulatory framework for renewable energy credit certification is within the agency’s discretion.
Principles from NAC Chapter 701 and Case Law
| Principle | Explanation | Case Example |
|---|---|---|
| Promotion of Renewable Energy | NAC 701 supports and incentivizes renewable energy projects statewide | Nevada Energy Coalition v. PUC |
| Mandatory Reporting | Energy use and conservation reporting by public agencies is mandatory and enforceable | State ex rel. Office of Energy v. Clark County |
| Regulatory Discretion | Agencies have authority to certify renewable energy credits following NAC 701 standards | In re Appeal of Green Solar, Inc. |
Practical Applications
State agencies must appoint energy managers, adopt conservation plans, and meet reporting deadlines as per NAC 701.
Utility companies and private developers can rely on NAC 701 incentives and certification processes for renewable energy projects.
Enforcement mechanisms ensure compliance, with administrative penalties available for violations.
These rules help Nevada meet broader goals for energy sustainability and environmental stewardship.
Summary
Nevada Administrative Code Chapter 701 sets the regulatory foundation for state energy policy, focusing on conservation, renewable energy promotion, and management. Nevada courts have consistently upheld the chapter’s provisions as within the scope of agency authority and critical to advancing the state’s energy goals.
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