December '09 Nevada Government—U.S. Senator Harry Reid Column

Nevada Delegation Introduces Hoover Power Allocation Act

Bill ensures continued availability of Hoover Power to Nevada

December 16, 2009 – Washington, D.C. – The Members of Nevada’s Congressional Delegation today introduced The Hoover Power Allocation Act, to ensure that clean, renewable hydropower from Hoover Dam will continue to be delivered to Nevada. The legislation was introduced by Nevada Senator Harry Reid, along with Senator John Ensign. Congresswomen Shelley Berkley, along with Representatives Dean Heller and Dina Titus cosponsored companion legislation in the House of Representatives.

Hoover Dam power allocations for Nevada utilities and municipalities were last authorized in 1984. Contracts under the 1984 Hoover Power Plant Act expire in 2017, and this bill allows Nevadans to continue receiving power generated at Hoover Dam through the year 2067. Reauthorizing Hoover power allocations early is important for electric and water utilities because it helps them meet future planning requirements, ensure effective regional transmission planning, and ensure reliable water deliveries.

“This is critical legislation for Nevada,” Reid said. “Nevada will continue to receive reliable, low-cost clean power through 2067 because of this bill.” “I was pleased to receive letters of support from the Southern Nevada Water Authority, NV Energy, the Colorado River Commission, and other major electricity providers and users in Nevada.”

“Nevadans have relied on power through Hoover dam and the Hoover Power Allocation Act for decades now and they will continue to be able to rely on it for decades to come,” Ensign said. “This bill will protect Nevadans energy needs now and into the future and I’m proud to be a part of that fight.”

“Nevada families and businesses already greatly benefit from the energy provided by Hoover Dam and this extension will ensure that our State continues to have the ability to tap this reliable power source for generations to come. This agreement also expands eligibility to Native American Tribes who have been unable to purchase power from Hoover Dam under existing rules,” said Berkley. “Proper management of our water resources along the Colorado is critical both for power generation and to protect threatened and endangered species, and this update will help address both these needs.”

“Hoover Dam is not only a historic land mark, but also an important source of energy for Nevada. Hoover Dam has provided Nevadans with clean, renewable power for generations. This legislation ensures Nevadans will receive this energy for generations to come. I am pleased to join this bipartisan effort,” said Heller.

“Nevada relies heavily on the clean hydroelectric power created at the Hoover Dam, and even though power contracts don’t expire until 2017, it is important to move early on this issue so we can plan for the future,” Congresswoman Titus said. “This legislation will ensure that Nevada continues to receive the power we need for decades to come.”

Overview

Hoover power is a vital power resource for consumers in Arizona, California, and Nevada. Over 29 million people rely on this power, which is a clean renewable source of energy. Since its construction, Hoover Dam power has been allocated by Act of Congress. Hoover power was first allocated by Congress in the Boulder Canyon Project Act of 1928. In 1984, Congress again allocated Hoover power through contracts with state, municipal and utility contractors.

These contracts will expire in 2017. Passage of the proposed Hoover Power Allocation Act of 2009 is critical to ensuring the continued availability and reliability of Hoover power to the citizens of Arizona, California and Nevada.

Hoover power contractors pay for operation, maintenance, replacement, and equipment upgrades for Hoover Dam’s power facilities, and they will continue to do so under the Hoover Power Allocation Act of 2009. To date, contractors from Nevada, Arizona and California have invested over $1.3 billion on Hoover Dam’s power facilities. Additionally, contractors are committed to supporting the Lower Colorado River Multi-Species Conservation Program, which was enacted earlier this year, for the protection of 26 endangered, threatened and sensitive species on the lower Colorado River.

The 1984 Hoover Power Plant Act distributed Hoover power to the following contractors under three schedules:

Schedule A includes the original purchasers of Hoover power as authorized in the Boulder Canyon Project Act of 1928: Metropolitan Water District of Southern California; Cities of Los Angeles, Glendale, Pasadena and Burbank; Southern California Edison Company; Arizona Power Authority; Colorado River Commission of Nevada; and City of Boulder City, Nevada.

Schedule B includes contractors that advance-funded the Hoover power turbine upratings as authorized in the Hoover Power Plant Act of 1984: State of California (Cities of Glendale, Pasadena, Burbank, Anaheim, Azusa, Banning, Colton, Riverside, Vernon), and States of Arizona and Nevada.

Schedule C governs allocations of excess energy, if any, to Arizona, California and Nevada as negotiated between the states and the federal government.

Distribution of Power under the Proposed Legislation

Under the proposed legislation, Congress would distribute Hoover power pursuant to Schedules A, B and C; however, each of the current Hoover contractors would contribute 5% of their Schedules A and B power to a pool that would be distributed under a new Schedule D. Schedule D power would be allocated to federally recognized Indian Tribes and other eligible entities that do not currently purchase Hoover power.

Two-thirds of the Schedule D pool would be allocated through the Western Area Power Administration (“Western”); the remaining one-third of the Schedule D pool would be distributed in equal shares through the Arizona Power Authority (for new contractors in Arizona), through the Colorado River Commission of Nevada (for new contractors in Nevada), and through Western (for new contractors in California).

The Reid Report December 16, 2009

Dear Fellow Nevadan,

I am so happy that today City Center will finally open for business in Las Vegas. About a year ago the project was really struggling - and more than 10,000 construction jobs and 12,000 permanent jobs were at stake – so I picked up the phone and called the heads of major banks across the country, making sure that the project got a fair shake. I am so glad that I was able to help the project stay on track and the workers employed. Today, they should all take pride in what they have accomplished.

Last weekend, I secured nearly $100 million for Nevada to create jobs in schools, hospitals, military bases, road projects and police stations across the state. Every project that is funded and every job that is created helps Nevada take another step forward on the road toward economic recovery. Construction workers, teachers, cops and our soldiers depend on these funds, and I am glad we were able to deliver for them. For a state struggling with high unemployment, this funding creates jobs and puts food on the table for lots of Nevada families.

This week, I continue to work on improving our health insurance system. As I wrote last week, the well-being of Nevada’s seniors is a central focus of my health reform efforts. Yesterday, our health reform bill earned the support of AARP, which has more than 300,000 members in Nevada. I made clear my commitment to fully close the coverage gap in Medicare Part D known as the “doughnut hole,” meeting a long-time goal of AARP. Nevada’s seniors should be able to make critical medical decisions based on the care that they need, not what they can afford. The reform bill saves money, saves lives and saves Medicare.

It is an honor to serve as the Senate Majority Leader, a role that allows me to deliver for Nevada during difficult economic times. Nevada’s seniors have my voice at the table during health care negotiations, just like the workers of City Center did when their jobs were on the line. I am here to help you as well. If you need assistance addressing a problem, whether you’re struggling to keep your home or you have a question about your veteran’s benefits, my staff and I will do all we can to help—just give us a call in Reno, Las Vegas or Washington.

Thank you for reading this update. Please visit my website for more information.

HARRY REID
United States Senator for Nevada

Reid: Responsible Estate Tax Reform Needed To Assure Fairness For Small Businesses

December 16, 2009 – Washington, D.C. – Nevada Senator Harry Reid made the following remarks on the Senate floor this morning regarding the need to reform the estate tax in a responsible way. Below are his remarks as prepared for delivery:

“For several years now, Democrats have been trying to reform the estate tax to avoid the train wreck that is coming next month.

“Because of the legislation passed by the Republicans in 2001, the estate tax is repealed for 2010. But, because of the gimmick they used in passing that legislation, the estate tax returns in 2011. And it does so at the levels that were in the law prior to 2001.

“This chicanery has created a nightmare for families trying to plan their affairs.

“We have proposed a responsible path forward on the estate tax. We proposed to extend the current tax parameters so that in 2010 couples would be able to pass down up to $7 million completely tax free.

“An estate tax at this level exempts all but the wealthiest two-tenths of one percent of estates from paying any estate tax.

“The other side has rejected this reasonable approach.

“Instead they want to keep the Bush tax law in place for 2010 as originally designed.

“The irony in the Republicans’ position is that it hurts the very families—small businessmen and women and family farmers—who they claim they are trying to help.

“The surprise facing family farms and family-owned small businesses in 2010 is that repeal of the estate tax may actually increase their tax liabilities. These are families that would never pay the estate tax because they don’t have assets totaling more than $7 million for a couple.

“Why do they face a tax increase?

“It has to do with a provision in the tax code ‘stepped-up basis.’

“What does this mean? The assets of family-owned businesses are often in the form of unrealized capital gains—the appreciation of the family business over time.

“Right now until December 31st, these capital gains are forgiven when a person dies—no capital gains at death and for these families with less than $7 million there is no estate tax either under current law—therefore for these families death is not a taxable event.

“The capital gains tax is forgiven because the heirs to the property receive a ‘step-up’ in its basis for measuring tax liability when they ultimately sell the property.

“The law that my Republican colleagues insist go into place next month repeals stepped-up basis.

“The bargain my Republican colleagues are advancing is simple. If you are very wealthy you get a huge windfall from repeal of the estate tax. If you are a modestly successful businessman or woman, but not to the point where you face an estate tax liability, your heirs will nonetheless face a tax increase because of the repeal of the estate tax.

“For the wealthiest families in the country, they say, ‘Don’t worry about the estate tax next year, it’s gone.’

“For many, many more small businesses, the Republicans say, ‘Too bad.’

“All these years, as Republicans were using family farms and small businesses as props in their zeal to repeal the estate tax, their real goal was protecting the wealthiest of the wealthy.

“The unfortunate aspect of that campaign is that repeal of the estate tax—even for just one year—will come at the expense of family owned farms and small businesses.”

Reid: The American People Are Counting On Us
To Pass The Senate Health Reform Bill

December 16, 2009 – Washington, D.C. – Nevada Senator Harry Reid made the following remarks on the Senate floor this morning regarding The Patient Protection and Affordable Care Act. Below are his remarks as prepared for delivery:

“We continue making progress toward making it possible for every American to afford to live a healthy life.

“Senators continue to work together toward that goal because even though we may have differences of opinion on the details, we all share the strong belief in the differences we can make for the American people.

“We all know our current system is beyond broken, and we know the citizens of this country demand that we fix it.

“We know this because they tell us—in letters, in phone calls, in the aisles of the supermarkets back home.

“Those who oppose making health insurance more affordable and making health insurance companies more accountable would like you to believe that’s not the case—and they’re being led by the insurance industry.

“They want you to think that the American people are happy when these greedy insurance companies deny health care to the sick and take away their coverage at the exact moment they need it most.

“They’d like you to believe that the American people don’t mind hearing a multibillion-dollar company tell them: I’m sorry, your diabetes or heart condition might hurt you, but it also hurts my bottom line—so you’re on your own.

“They want you to believe that women gladly pay more than they should for the screenings that can catch breast cancer—that men gladly pay more than they should for the tests that can catch prostate cancer—and that seniors gladly pay much, much more than they should for their prescription drugs.

“Those who are trying to slow the Senate and stop reform want you to believe the American people don’t mind paying hidden taxes to cover the uninsured—don’t mind the waste and fraud rampant in the health care system—and don’t mind losing their health insurance if they lose their job.

“Well, we know that’s not the case. The people we represent tell us so:

“Mike Tracy lives in North Las Vegas, Nevada. His 26-year-old son has been an insulin-dependent diabetic since he was an infant. The insurance Mike’s son gets through work won’t cover his treatments, and the Tracys can’t afford to buy more coverage on their own.

“But this family’s troubles are about more than just money. Since they couldn’t afford to treat their son’s diabetes, it developed into Addison’s disease—which of course they can’t afford to treat either—and which could be fatal.

“This is what Mike wrote me just this past Friday, ‘I don’t know what to pray for first: that I will die before my son will so I don’t have to bear the burden, or that I outlive him so I can provide support to his family when he is gone.’

“This shouldn’t be a choice any American should have to make—and when given the chance to help people like Mike, our choice should be easy.

“Here’s another one: Ellen O’Rourke wrote to me last Tuesday about her friends, the Hidalgos of Incline Village, Nevada, a town on the shores of Lake Tahoe. The Hidalgos’ two-year-old daughter, Lexie Mae, has a cancer of the eye that could cost her vision or even her life. But Lexie Mae’s parents don’t have health insurance, and are counting on friends to help pay for their daughter’s mounting medical bills. They’re also counting on us to lower the cost of health care so they can afford their own.

“Another letter I got last week came from Elizabeth Parsons. She teaches music at an elementary school in Reno and volunteers after school at a dance and drama theater in town. Ms. Parsons is 60 years old and was planning to retire at the end of this school year.

“But, as she wrote me last Thursday, ‘Unfortunately that plan has been postponed indefinitely for one reason only: I can’t afford to retire because of the skyrocketing increases in health insurance.’

“Ms. Parsons has done so much for her community. Now her country’s leaders should do something for her: We should make sure her decision about whether to retire doesn’t hinge on how expensive it is to buy health care on her own.

“A gentleman named Walt Cousineau from Elko, Nevada, wrote me last Monday to tell me about his wife. She had a heart attack three Decembers ago, and health insurance companies are using that as an excuse to charge her almost $2,000 a month for coverage. They call it a pre-existing condition.

“She’s not old enough yet for Medicare, but Walt is. He’s 68—and he had to go back to work to put her on his group insurance plan. Now Walt’s asking us to go to work for him, and asking us to make sure no one’s health history can make staying healthy in the future more expensive.

“Ken Hansen wrote me last Friday from Mesquite, Nevada, on our border with Arizona. He has chronic heart problems and parts of his feet have been amputated. But Ken can’t go to a doctor because he makes too much to qualify for Medicaid and too little to afford private insurance.

“I want to share with the Senate exactly what Ken wrote me: ‘I am very frustrated because it seems that my only hope is that I die very soon, because I cannot afford to stay alive.’

“Those are his words—that his only hope is to die. How can we look away? How can we possibly do nothing? This isn’t about balance sheets or graphs; it’s not about contracts or fine print; it’s not about politics or partisanship. This is about life and death in America.

“Each story is more heartbreaking than the last. Each of these Nevadans has more than enough on his or her mind. And yet each of these citizens took time out of his or her day to beg their leaders to act.

“Mike Tracy, the father of the young man with diabetes and Addison’s disease, ended his letter to me just a few days ago with this plea: ‘Democrats need health care. Republicans need health care. Independents need health care. All Americans need health care. Get it done.’

“We cannot let them down, and we will not let them down.

“Those trying to kill this reform have made it clear they will do anything to stop us. They can recite recycled talking points to their hearts’ content.

“But as long as Mike Tracy’s son might die from a disease we know how to treat, I won’t let anyone stand in our way.

“As long as Lexie Mae’s parents have to borrow from their friends to take their daughter to the doctor, I won’t take no for an answer.

“As long as Elizabeth Parsons can’t afford to retire, Walt Cousineau can’t afford to stay retired and Ken Hansen says he can’t afford to stay alive, I’m not going to stop fighting for them.”

Reid Statement On The Grand Opening Of CityCenter

Reid hails the Gold LEED Certified project as boon for jobs, tourism

December 16, 2009 – Washington, D.C. – Nevada Senator Harry Reid today lauded the grand opening of the new CityCenter complex. The opening of the $8.5 billion ‘city within a city’ marks the successful completion of the largest private development project in the world. MGM MIRAGE development has earned six Gold Certifications from the US Green Building Council for Leadership in Energy and Environmental Design (LEED). The project created 12,000 jobs and has directed $700 million in contract work to minority businesses in the state.

“Today is a great day for Nevada and the Las Vegas Strip, and I congratulate the entire MGM MIRAGE team for making it possible. This is an important project for the state of Nevada. It has created thousands of jobs, will help strengthen the state’s economy and has set the standard for responsible, environmentally conscious development,” Reid said. “At a time of financial difficulty, I was asked to help keep the project moving forward and I did so on behalf of the thousands of Nevadans who worked to build CityCenter and those who are now tasked with its successful operation. I congratulate everyone involved in making this vision a reality and I look forward to visiting the project again very soon.”

Reid: Senate Health Bill Will Lower
Seniors’ Prescription Drug Costs

December 15, 2009 – Washington, D.C. – Nevada Senator Harry Reid released the following statement this evening regarding the proposed Dorgan amendment to The Patient Protection and Affordable Care Act:

“There was a time when this legislation was a critical step toward helping more Americans access affordable, safe prescription drugs.

“That time was when Republicans ran our government with the philosophy that even as more Americans lost their health care—even as fewer Americans could afford the skyrocketing cost of medicine—even as more seniors skipped and split the pills they need to stay healthy—Republicans said, Nothing to see here. They pretended everything was just fine the way it is.

“And against their strong opposition to doing anything—anything—to help the millions of Americans who had, and continue to have, no security or stability in their health care, we proposed legislation similar to the amendment before us, and I supported those efforts.

“But then a great thing happened last November. The American people demanded that their leaders take this country in a new and better direction, one that recognizes the real pain they feel and works to relieve it.

“That is why one of our first and most important priorities has been this comprehensive health care reform. And included among the timely and urgent improvements in our bill are changes that will make prescription drugs more affordable.

“In our upside-down health delivery system, those who are hit hardest with the most expensive prescription drugs, hospital stays and doctor visits are those whose lives most depend on it. They are those without any health insurance. That’s why our bill gets to the root of the problem by making sure the uninsured can afford and access good coverage.

“First, the health reform bill now on the floor will ensure nearly every American—including 31 million who today have nowhere to turn—will be able to afford quality health insurance. Among other things, that means they will pay less out of their own pockets for the prescriptions they need.

“Second, when we strengthen Medicare—as this bill does—we will close the coverage gap, known as the ‘doughnut hole,’ that today prevents so many seniors from affording their medications.

“Both of these existing improvements to our terribly broken health care system will make prescription drugs more affordable for millions of Americans who rely on them every day. And that will make the re-importation of drugs from other countries far less necessary.

“Because of this good bill, this amendment before us today is simply unnecessary. It is not the best way to ensure Americans can both get the prescription drugs they need, and get them at an affordable price. Our underlying bill, as it currently reads, is the best way.”

Reid: Health Reform Is Economic Reform

December 14, 2009 – Washington, DC – Nevada Senator Harry Reid delivered the following remarks this afternoon on the Senate floor. Below are his remarks as prepared for delivery:

“Every day we don’t act, it gets more expensive to stay healthy in America.

“If you’re fortunate enough to have health insurance, this isn’t news to you. You’ve no doubt noticed your premiums have more than doubled in the last decade, even though the quality of your health care hasn’t.

“If you’re fortunate enough to have coverage, you might not have noticed that you are paying at least an extra $1,000 a year to cover all the other families who don’t.

“Those with insurance know that when premiums eat up a larger slice of their paychecks, they have less money to take home to their families. Those without insurance know the pain of skipping medicine, or treatments, or doctor’s visits because it simply costs too much to go to the doctor.

“And economists tell us that if we do nothing, those costs will continue to climb and climb.

“The President’s Council of Economic Advisers has crunched the numbers, and this respected group tells us the bill before the Senate will indeed keep health care costs down.

“Lower costs are good for every American. It means more people who don’t have insurance today will be able to afford it, and those who do have insurance will have more stability and security against losing it.

“The White House’s economists highlighted a number of other impressive effects of our bill:

The amount our government spends on Medicare for our seniors and Medicaid for the underprivileged will be much less than it will if we don’t act.

Our nation’s deficit will be much lower than it will if we don’t act.

Health care costs in the private sector will be much lower than they will if we don’t act.

And with this bill, American families’ incomes will increase more than they would if we don’t act. The same is true for job creation, small business growth and our overall economy.

“After all, health reform is economic reform. When you aren’t spending so much of your paycheck on premiums, you have more left over to feed your family and fuel our economy.

“We also know that a healthier workforce is a more productive workforce, and a more productive workforce means a healthier economy.

“Those are pretty good reasons to act, and a pretty strong rebuttal against the strategy of doing nothing.

“This data prove once again what we have said from the start: this bill will save lives, save money and save Medicare.

“That’s the reality. And that’s why we are working to make it possible for every American to afford a shot at a healthy life. It’s a goal that will make our economy stronger and make our citizens healthier. It’s a goal with an eye to the future, to our children, one that appreciates the long-term effects of what we do here.

“The other side has a goal of its own—one that not only ignores the reality of the present, but dismisses both the long-term benefits of acting and the long-term costs of doing nothing.

“Whereas we are working to slow growing health costs, they are working to slow down the Senate. In fact, they’d like to bring this body to a screeching halt.

“But we won’t let talking points meant to scare seniors and frighten families obscure the hard data that show just how unhealthy our health care system is.

“We won’t be derailed by those who spend more time hoping for America’s leaders to fail than they do helping the American people succeed.

“And we won’t be sidetracked by those who try to stop history in its tracks.”

Reid Announces More Than $1.9 Million Headed To Nevada For Renewable Energy Projects

Funds will create jobs and help lower costs of energy bills

December 10, 2009 – Washington, D.C. – Nevada Senator Harry Reid announced more than $1.9 million of economic recovery funding is headed to North Las Vegas, the Las Vegas Tribe of Paiute Indians of the Las Vegas Indian Colony, and the Shoshone-Paiute Tribes of the Duck Valley Reservation, for job creating renewable energy projects and to help lower the cost of energy bills.

“I’m pleased that two Nevada Indian Tribes and North Las Vegas are receiving this money to create green jobs and improve energy efficiency,” Reid said, “Everyone benefits when we can lower the cost of energy and put people to work at the same time.”

The Reid Report December 10, 2009

Dear Fellow Nevadan:

I am working around the clock to help Nevada’s families and businesses through these difficult times. This week I remained focused on three goals that are central to improving our economy: job creation, foreclosure and mortgage fraud prevention, and lowering the cost of health insurance.

It’s no secret that unemployment is hurting many families in Nevada, and that’s why I have fought to extend unemployment insurance benefits to our state and cut taxes for middle-class families and small businesses. Yesterday morning, I met with President Obama to discuss how important job creation is to Nevada’s economy. The initiatives we discussed will help businesses grow and hire new staff, invest in transportation and infrastructure, and give financial incentives to homeowners who make their homes more energy efficient. I am hopeful these new plans will create jobs and restore stability to communities across our state.

It’s also important to underscore how important health insurance reform is to our economic recovery. The reform bill will help provide coverage for more than 518,000 Nevadans who currently don’t have insurance, it reduces premium rates for people who already have coverage, and gives 24,000 small businesses in Nevada will receive tax credits for providing medical insurance to their employees. Simply put, when employers save money they hire more workers and when workers are spending less on insurance they have more money to spend on something else.

The health insurance reform bill will help Nevada’s seniors as well. They will see lower Medicare premiums, lower prescription drug costs and free preventative services. Reform saves lives, saves money and saves Medicare.

I have also been working to stabilize Nevada’s housing market and protect homeowners from scam artists. I have heard too many stories from Nevada families who are losing their homes, their equity and their fair share of the American Dream. The last thing Nevadans need is to worry about scam artists waiting to take advantage of them. I also urged major banks to work more closely with Nevada homeowners to modify mortgages and keep families in their homes. You can take a look at the letter I recently sent to Bank of America here.

Thank you for reading this update. Please visit my website for more information.

HARRY REID
United States Senator for Nevada