Former President Bill Clinton has issued a challenge to Las Vegas' business community: Lead the way for a national shift toward conservation and renewable energy.
"If I were the economic development czar for America today or if I were in charge of economic planning for Las Vegas and Nevada today, I would start by making a complete and total commitment to a clean energy future because I think you can create more jobs there than anywhere else," Clinton said.
He delivered the message Saturday at the Nevada Development Authority's annual meeting at the Bellagio.
Improving technology for wind, solar and other renewable methods would lower costs to businesses and consumers while reducing the need for fossil fuel plants that can dirty the environment, Clinton said.
Engineering and manufacturing that technology would also become an economic driver for the economy, he said.
Nevada has the chance to capitalize on an industry that currently has few major foreign competitors, leaving a wealth of business opportunities untapped, Clinton said. And because Nevada has proved its ability to change quickly, the state is an ideal proving ground.
After digesting the message for a few days, many local leaders were responding positively to the former president's remarks.
"It was a shot across our bow," said Don Snyder, retired president of Boyd Gaming Corp. and chairman of the Smith Center for the Performing Arts Foundation. Having a notable national leader make such a challenge brings heightened attention to the issue, he added.
"It's sometimes good to have people come in from the outside and take a look," Snyder said.
Lt. Gov. Lorraine Hunt, who serves as Nevada Commission on Economic Development chairwoman, agreed that Nevada is poised to take a leadership role.
"We have a great opportunity to become a major exporter of these resources across the Western region and beyond," she said, pointing to abundant sunshine, wind and geothermal resources. "The time is right."
Contributing to that timing is soaring costs for natural gas and electricity, most of which is generated from natural gas-fired power plants.
Southwest Gas Corp.'s 500,000 residential customers in Southern Nevada paid a monthly average of $29.11 in 2000. That average bill is now at $52.43, up about 80 percent.
In 2000 the average Nevada Power Co. residential customer -- everyone in the valley with electricity -- was paying $84.29 a month. They are now paying $127.88, an increase of almost 52 percent.
Clinton pointed out that fossil fuel-based energy prices are destined to rise.
"The more you use it, all these things increase demand and reduce supply and the price goes up," he said.
However, renewable energy costs will be similar to the costs of consumer products such as the transistor radio, flat-screen televisions and the iPod. "The more you produce them, the unit cost goes down, and the cheaper it gets," he said.
The potential savings will attract business interest, said Glenn Christenson, Station Casinos Inc.'s chief financial officer.
"I think ultimately you're going to have to demonstrate to businesses that they can get a return on investment," he said, adding that "dozens" of energy conservation programs the company began initiating in 2001 have produced cost savings companywide of as much as $1 million annually.
"It's very meaningful."
Focus Property Group Chief Executive John Ritter said that embracing renewable technologies and green building measures must also be weighed against the struggle to produce affordable housing in a valley plagued by rising land costs.
"The challenge is to build more efficiently without increasing the cost," the developer said. "That's the juggling act right there. You have to be able to accomplish both things."
Snyder agreed that the balancing act is difficult.
"The greater good needs a little bit of rational economics with it," he said. "They are starting to come together a lot more realistically than people ever thought even a year ago."
UNLV President Carol Harter agreed with Clinton's assessment that Las Vegas should be in a position to act quickly and effectively in taking up the challenge.
"With all of the entrepreneurial and brilliant people in this community ... one would hope that Southern Nevada could take up the challenge," she said. "I think the message was certainly heard."
She said the interest in partnerships with the university on research into renewable energy and new building techniques are on the rise as companies look for opportunities.
"I think we're starting to see that develop," Harter said. "I'm not sure it's at the highest level yet."
Rebecca Wagner, Gov. Kenny Guinn's energy adviser, also said the momentum appears to be growing.
"I think there is a genuine interest in green building and green energy within the business community in Southern Nevada," she said. "The rising energy prices could start playing a bigger role in making those decisions. ... The feel-good stuff is great, but it's got to be a good economic decision."
Somer Hollingsworth of the Nevada Development Authority said it continues to work to attract businesses interested in developing renewable energy technologies.
"When people started proposing the beltway, other people thought we had lost our minds," he said. "Where would we be today without it? ... We've got to look 10, 15, 20 years from now."
He said since working with the Commission on Economic Development to secure $15 million in incentives for North Carolina-based Solargenix Energy LLC to build a solar energy power plant in Boulder City, several new opportunities have emerged.
"I think it's growing," Hollingsworth said of Nevada's role in the renewable energy industry. "I think it has to grow."
How much it can grow in Southern Nevada is debatable, said Walter Higgins, chief executive for Sierra Pacific Resources, parent company of Nevada Power.
"It's not going to be the next Silicon Valley, but we might end up with a couple of major manufacturers here and that would be great," he said.
What could prove to be an economic engine is the possible export of renewable energy generated in Nevada. Higgins said the state's available land, sun, wind and geothermal resources could be leveraged as other states struggle with similar fossil fuel volatility.
"Let's take advantage of that," he said. "Why wouldn't we see if that can't be used to Nevada's advantage."
Roberto Denis, Sierra Pacific's senior vice president for generation and energy supply, agreed.
"The resource is there," he said. "Now we have to do the work."
Kevin Rademacher can be reached at 259-4069 or at [email protected].
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