The Nevada governor proposed to state regulators in July that the state collect a temporary surcharge on electricity bills to fund a trust that would secure commitments by the two Nevada utilities —Nevada Power Co. and Sierra Pacific Power Co. — to buy renewable electricity under longterm contracts with independent power projects. Lenders to such projects worry that a judge might one day set aside the power contracts if the utilities file for bankruptcy. The trust would be dismantled when the utilities regain their financial stability . . . . North Carolina enacted a 15% income tax credit in early August for companies that construct plants for producing biodiesel fuel or ethanol in the state. The credit will apply during the period 2005 through 2007. The credit must be claimed ratably over three years (rather than all at once in the year the plant is put  into service). There is also a separate “production tax credit” for 25% of the cost of the output from such plants during the same period. This credit must be spread over seven years . ...Kansas is looking at taking
away a controversial property tax exemption for wind farms. A commission appointed by the governor has recommended three options. One is to limit the exemption to 10 years. Another is to deny wind farms the exemption, but preserve it for other renewable energy projects. The last is to require wind developers
to pay an excise or other tax in lieu of property taxes. The governor is expected to make a recommendation to the legislature next year.