“Tesla’s gigafactory will spur economic development in Nevada. It is expected to pump $100 billion into the state’s economy and create up to 22,000 jobs over the next 20 years.”

“This development is good news for Nevada, but it did not happen by accident. It is the direct result of public-private partnerships and smart federal and state policies. It is the result of Nevada being seen as a hub for renewable energy and innovative technologies.”

“Federal, state, and local leaders must clear obstacles that stymie innovation and incentivize technologies. We must make it easier for industry to invest in our communities not just in Nevada but all across America.”

Washington, DC – Nevada Senator Harry Reid spoke on the Senate floor today about the work that went into bringing Tesla’s new gigafactory to Nevada. Below are his remarks as prepared for delivery:

Last Thursday, Tesla announced that Nevada would be the new home to their new gigafactory, which produces lithium batteries for Tesla’s electric cars. Just a few days later the Nevada State Legislature unanimously approved the incentive package to finalize a new economic boost for Nevada.

Tesla’s gigafactory will spur economic development in Nevada. It is expected to pump $100 billion into the state’s economy and create up to 22,000 jobs over the next 20 years.

This development is good news for Nevada, but it did not happen by accident. It is the direct result of public-private partnerships and smart federal and state policies. It is the result of Nevada being seen as a hub for renewable energy and innovative technologies.

This project, as big as it is, will be powered with solar and geothermal energy and nothing else.

I have worked here in the Senate to promote legislation that encourages investment in clean energy and transportation innovation at all levels.

In 2007, we passed the Energy Independence and Security Act, which created the Advanced Technology Vehicles Manufacturing program.

Under this program, the Department of Energy awarded a $465 million loan guarantee to Tesla for the construction of a manufacturing facility in California. Was that loan a successful investment in Tesla?

The facts speak for themselves – Tesla re-paid the loan in full, nine years early. Tesla is the company it is today because of this loan.

The availability of lithium, which ultimately helped attract Tesla to Nevada, also has its roots in federal legislation. In 2009, with the economy in a deep recession and thousands of Nevadans losing their jobs, we passed the American Recovery and Reinvestment Act – better known as the stimulus.

There were many good things for Nevada and the country in that legislation. For example millions for education, millions for renewable energy development, and tax breaks for middle class families. But also in the stimulus, was a program to incentivize advanced battery manufacturing.

Through this program, a $28.4 million grant was awarded to Rockwood Lithium of Nevada, which was to help expand and improve the only operating domestic lithium facility in the country that is near the historic mining town of Goldfield, a place called Silver Peak. This mine is very important for our country and Tesla will have access to this lithium, which is mined in Nevada for the production of their batteries.

In order to truly promote innovation, we must as a congress create opportunities for consumers to invest in advanced technologies, and we haven’t done that yet. We need more tax incentives for that. In 2008, we encouraged America to invest in the growth of the electric car industry with tax credits for qualified electric vehicles.

We expanded that in the American Recovery Investment Act in 2009 to ensure that while Americans recovered from the recession, they did so investing in new technology that provides lasting economic growth.

Tesla’s investment in Nevada shows what is possible when public-private partnerships and smart federal and state policies are encouraged.

In the 21st century, this is how public-private partnerships should work. It is so important to realize that through these grants, loans, and the private-sector working with the states of Nevada, California, and the federal government, we were able to accomplish this. This is a blueprint for success.

Federal, state, and local leaders must clear obstacles that stymie innovation and incentivize technologies. We must make it easier for industry to invest in our communities not just in Nevada but all across America.

Elon Musk said: “What the people of Nevada created is a state where you can; where you are very agile, where you can do things quickly and get things done. It’s a real get-things-done state.”

I want the record to be spread with my public appreciation on behalf of all Nevadans to Governor Sandoval. His patience and diligence made this possible. I congratulate him because the work he did here was just terrific.

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