Carson City — The Assembly Ways and Means Committee voted to amend and move AB481 after a late-session “gut and replace” that would allow the Governor’s Office of Economic Development to offer abatements to businesses that produce biofuels, including feedstocks usable for sustainable aviation fuel, and give the Board of Economic Development discretion to deny abatement applications even when applicants meet statutory checklist requirements.

The change was presented by Russell Rowe of the Roe Law Group on behalf of Allegiant Airlines, who described the bill as setting the statutory foundation to attract biomass and biofuel producers to Nevada so that airlines could source sustainable aviation fuel domestically rather than import it at prohibitively high cost. Rowe said the language covers feedstocks produced from waste oils, food‑product residuals, agricultural waste and processes including anaerobic digestion. “It’s critically important to develop the industry here,” Rowe said, adding that GOED confirmed the language would not create a fiscal note as drafted.

Why it matters

Supporters told the committee the amendment aims to spur in‑state production of low‑carbon fuels that aviation companies expect will become a required component of airline compliance and decarbonization efforts. Proponents argued that locating production in Nevada reduces transportation costs that otherwise can make SAF uneconomic and creates capital investment and jobs in the state.

What the bill does

As presented, the amendment would: 1) amend statutory chapter 701A to add biofuel production as an eligible activity for GOED abatements; 2) define biofuels broadly to include diesel alternatives and sustainable aviation fuel feedstocks; and 3) add a statutory provision allowing the Board of Economic Development to deny abatement applications on grounds such as adverse water‑use impacts, misalignment with state economic development goals or environmental concerns that are not reflected in the existing checklist.

Questions from members focused on definition and environmental safeguards. Assemblymember Hafen asked whether biodiesel and other alternative diesel fuels would qualify; Rowe said the biofuel definition in the amendment was broad enough to include those products. Assemblymember Anderson pressed on the new water‑use review language, asking whether GOED could require independent audits or additional reporting from applicants; Rowe said the amended language would give GOED latitude to consider projected water consumption and to require reporting by applicants, though he avoided speaking for GOED on operational specifics.

Public testimony and outcome

Only one organization identified at the table, the Vegas Chamber, provided on‑the‑record support for the amendment. No callers registered in opposition or neutral. Committee business moved quickly: Assemblymember Bacchus moved to amend and do pass the bill as amended, Assemblymember Watts seconded, and the committee recorded the motion as carrying, with members saying “aye.”

What this does not yet do

The amendment establishes eligibility and board discretion; it does not create a guaranteed subsidy or specify program rules such as audit procedures, water‑use thresholds or post‑award compliance steps. Those operational details would be implemented by GOED rulemaking and contract practice, or could be addressed in future legislation.

Looking ahead

With committee approval, AB481 moves toward the full Assembly floor under the amended language. GOED will be the implementing agency; the committee record notes stakeholders emphasized water‑use and environmental alignment as priorities for the board’s new discretion.