ENERGY & AGRICULTURE

1. ENERGY & AGRICULTURE Ag. Expo., Fallon, NV. December 1, 2006 Peter Konesky, Staff Engineer Nevada State Office of Energy

2. NEVADA POLICY • With the threat of rising energy costs, increases in population, and numerous environmental concerns, the state is developing and encouraging the use of alternative energy from geothermal, wind, bio-mass and solar resources and is also encouraging “green” buildings in both the public & private sectors.

3. ENERGY SITUATION IN NV • Over 95% of the energy used is imported • This includes gasoline, diesel, jet fuel, natural gas, bio-diesel, ethanol, propane, coal, heating oil & electricity • 48 million barrels of oil consumed in 2004 • Less than 0.5 million barrels produced in NV • 25 million gallons of ethanol used as an oxygenate • 2 million gallons of bio-diesel used in 2005

4. ENERGY COSTS IN NV • Transportation fuel costs estimated at $4 billion per year • Electricity costs are rising • Natural gas costs are coming down a bit • The majority of energy costs go out of state

5. INFRASTRUCTURE DEVELOPMENT • In the last 7 years, 350 miles of 345 kV, 40 miles of 500 kV and 100 miles of 230 kV. • By 2007, 60 miles of 500 kV • By 2008, 30 miles of 345 kV • 4 Stations selling E85 in Las Vegas • Some bio-diesel out lets in North and South • Bio-diesel production in Las Vegas

6. IMPACT ON AGRICULTURE • Not many alternatives available • Small wind can work in some areas • Military problems with large wind • Alternatives are costly • Efficiency may be the most viable solution, but does not address the whole problem • Alternative crops that address energy

7. ALTERNATIVE CROPS? • Miscanthus • Industrial Hemp • 70,000 acres salt cedar • 19,000 acres tall white top • Brush species from fuel treatment • Animal waste • 32,000 acres alfalfa • 4,000 acres barley • 5,000 acres corn

8. MISCANTHUS

9. SO WHAT? • If the acres of alfalfa, barley and corn were converted to switch grass (1/4). 100-200 MW of electricity could be generated • If industrial hemp was used, it uses less water than cotton and 3 x more effective than corn in producing fuel • The problem: If we conserve water, how does agriculture retain the water rights

10. ADDING AGRICULTURAL VALUE • The state (and agriculture) needs fuel and electricity. • Can agriculture become involved in the state needs? • If agriculture can produce fuel and electricity the $ that go out of state would go to the rural counties. • This would help all

11. ENVIRONMENTAL IMPACTS • Habitat • Water conservation • Protect water and air sheds • Fire hazards

12. P/J HILL SIDE 1973

13. SAME HILL 2003