Nevada bill would let Clark County extend fuel-revenue indexing through 2036

Assembly Bill 530 would let the Clark County Board of Commissioners extend the county's fuel revenue indexing (FRI) program for an additional 10 years, from Jan. 1, 2027, through Dec. 31, 2036, if the board adopts an ordinance approved by a two-thirds supermajority, RTC presenters told the Nevada Senate Committee on Growth and Infrastructure.

"Assembly Bill 530 is enabling legislation that authorizes the Clark County Board Of Commissioners to extend fuel revenue indexing, FRI, for up to 10 years upon approval by a 2 thirds super majority vote of the board," said Kelsey Hardy, legal counsel for the Regional Transportation Commission of Southern Nevada, during the committee hearing.

The bill, introduced at the committee hearing by RTC officials, also would add a sunset requirement: indexing could continue past Dec. 31, 2036 only if a question is placed on the general-election ballot in November 2036 and approved by a majority of Clark County voters.

Why it matters: Southern Nevada leaders and business groups told the committee the FRI program has been a steady local funding source for roadway projects since 2014. The RTC said most local roadway revenue in recent years came from motor-fuel taxes; of a 75-cent total fuel tax the RTC currently receives 24.6 cents, of which 15.6 cents is generated by the FRI mechanism. David Swallow, deputy CEO at the RTC, said the indexing program has supported hundreds of projects and helped leverage federal grants.

"Since FRI was initiated in 2014, 702 projects have been started with 501 of those completed to date," Swallow said. "There are another 105 projects in construction and 96 that are in design." He added that the program has helped the region win federal grants for major projects such as I-11 and the Laughlin Bridge.

RTC presenters and dozens of business and labor witnesses said ending indexing would sharply reduce available roadway funding. The RTC's presentation said Clark County and its cities currently spend about $300 million per year on roadway infrastructure and maintenance; without continued indexing, jurisdictions could see roughly $100 million per year to share going forward. The RTC also provided an inventory of about 179 currently unfunded projects totaling roughly $2.7 billion.

Supporters represented a cross-section of construction, union, city and business groups. "Fuel revenue indexing has been critical to keeping Southern Nevada construction industry moving," Anne Barnett, CEO of the Nevada Contractors Association, told the committee. "Allowing this funding to expire would be devastating." Several cities (Henderson, North Las Vegas, Mesquite and Las Vegas) and regional employers also testified in support.

Opponents at the hearing focused on democratic process and cost to households. "AB 5 30 proposes to remove the voter-approved sunset clause and let the Clark County Commission extend and continue annual fuel tax increases without asking the public," said Kimberly Fergus of Nevada Policy. Marine Corps veteran Michael Ryan and multiple callers from taxpayer and conservative groups urged senators to preserve the existing voter-approval requirement. "Please do not take the rights away from the voters," Ryan said.

Committee discussion included questions about how electric vehicles would pay their share as fuel-tax revenue declines. Senator Buck asked about plans for EV contributions; MJ Maynard Carey, CEO of the RTC, said state working groups and NDOT consultants have continued to examine EV fee options but no statutory change was in the bill.

The bill's provisions (as explained by RTC counsel) amend NRS 373.0663, which governs fuel revenue indexing in counties with populations of 700,000 or more (currently Clark County). Under the draft language presented, subsection 5(a) extends the period during which automatic annual increases may occur, subsection 5(b) authorizes a 10-year extension by two-thirds county-commission ordinance, and subsection 5(c) requires a majority vote of county voters in the November 2036 general election for any continuation beyond Dec. 31, 2036.

No committee vote on AB 530 was recorded in the hearing. The committee closed the public portion of the hearing after testimony from supporters, opponents and neutral organizations.

Ending note: RTC presenters emphasized the program's role in leveraging local dollars for federal grants and in sustaining local construction jobs, while opponents emphasized voter control and cost pressures on households. The bill will proceed through the legislative process for further committee consideration and potential amendments.