NebraskaLB317109th Legislature 1st and 2nd SessionslegislatureWALLET

Merge the Department of Natural Resources with the Department of Environment and Energy and change the name to the Department of Water, Energy, and Environment, create the position of Chief Water Officer, and provide, change, and eliminate powers and duties relating to water, conservation, state game refuges, and low-level radioactive waste disposal

Sponsored By: Tom Brandt

Signed by Governor

Natural Resources Committee

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Bill Overview

Analyzed Economic Effects

81 provisions identified: 33 benefits, 9 costs, 39 mixed.

Rebates for clean-fuel vehicle equipment

You can get a rebate for qualifying clean‑burning motor‑fuel equipment on a vehicle. The rebate equals the lesser of 50% of the cost or $4,500 per vehicle. The equipment must meet the law’s definition of qualified clean‑burning motor‑fuel property.

Up to $5M for irrigation fixes

Irrigation districts can get grants to repair or build headgates, flumes, diversion structures, check valves, and other structures. Grants are capped at $5,000,000 per applicant. Each award needs a 10% local match. The department sets the application and award rules.

Fees and filings for cleanups

To enter voluntary remedial monitoring, you pay a $2,000 nonrefundable fee and post a $3,000 deposit, and you must repay the department’s costs; more deposits can be required. If your application lacks information, you have 60 days to fix it or it is denied; within 90 days after approval, you must submit a complete remedial action plan. Environmental covenants and changes must be recorded in each county, and copies sent to the department if it did not sign.

Groundwater limits and transfers for farms

In areas with groundwater allocations, water is split equally per irrigated acre. Districts may let you average use over time or move your allocation among your irrigated acres. Cuts are shared across landowners, with adjustments allowed for crop water needs. You can only transfer groundwater off the overlying land if it is used in Nebraska, does not significantly harm other users, follows state rules, and is in the public interest. The NRD can investigate objections and the Chief Water Officer can order a stop if a transfer fails these tests.

Tank owners: rules, fees, and fines

You must register farm or residential heating‑oil tanks and pay a one‑time $5 fee. The State Fire Marshal and the department investigate reported or suspected leaks and can order cleanup; the department must act on complete cleanup plans within 120 days or they are approved. Violations can bring civil fines up to $5,000 per offense per day. If you finish an approved cleanup and follow required controls, you may receive a certificate and a covenant not to sue.

Utility loans: rules and no shutoffs

The Director can set rules to run utility energy loan programs. If you default on a covered utility loan, the utility can demand the full unpaid amount after trying to collect, but it cannot shut off service to homes, farms, or businesses because of the default. Default means a payment is over 60 days late.

City water supplies protected to 2026

If no older plan covers the area, municipal groundwater use cannot be limited until January 1, 2026. A city’s minimum yearly amount can include government, commercial, and industrial uses plus a per‑person allowance (at least 200 gallons/day in the east and 250 in the west). After January 1, 2026, the base becomes the greater of the permit amount or the city’s greatest year before 2026 plus the per‑person allowance. New or expanded single industrial projects over 25 million gallons a year after July 14, 2006, can be controlled earlier.

Grants to replace lead pipes

The state created a Lead Service Line Cash Fund. Up to 20% can fund training groups. The rest goes to metropolitan utilities to remove and replace lead service lines and cover related work like mapping, management, and public information. The Department runs the program and can set rules.

Pay for cutting farm nitrogen use

Starting July 1, 2025, farmers get at least $10 per acre when they document lower commercial nitrogen use by the lesser of 40 lbs/acre or 15% from historic use using a qualifying product. Total yearly payments are capped at $5 million or the amount the Legislature provides. The department sets product standards and runs a cash fund for the program.

Funds for permits and clean‑air projects

The state creates two cash funds to pay department costs for licenses, permits, inspections, and engineering plan reviews. Specified balances moved into these funds on July 1, 2021. It also creates a Volkswagen Settlement Cash Fund to receive all settlement money and spend it under the department’s plan on eligible projects.

Faster action on petroleum leaks

The department can spend from the Petroleum Release Remedial Action Fund to clean sites reported after July 17, 1983 through June 30, 2028 when no responsible party acts or urgent action is needed. It may also pay third‑party claims in those cases. The department or State Fire Marshal can quickly get court orders to stop violations without posting a bond.

Faster water access for fires

Fire and emergency crews can take water from streams, reservoirs, or canals without a permit to fight fires or handle emergencies. If a dry well is installed for this, they must report the installation, location, and responsible party to the Chief Water Officer within 30 days.

Grants for city stormwater plans

The state funds a storm water grant program to help cities and counties meet Clean Water Act rules. At least 80% of money goes to urbanized areas by population, and up to 20% goes to non‑urbanized places over 10,000 people by population. A recipient must have an approved plan and provide a 20% local match. The department may deduct administrative costs.

More funding and planning for water

The state provides a one‑time $50 million transfer for grants to surface‑water irrigation projects. It creates a Water Resources Trust Fund to pay for basin studies, integrated plans, and interstate water compliance. Every five years, the Chief Water Officer and districts must review basin‑wide progress, hold a public meeting, allow at least 30 days for comments before changes, and send a report to the Legislature.

More testing and closing bad wells

The Legislature states its intent to provide $1,000,000 in FY 2024‑25 to install real‑time nitrate sensors in monitoring wells across the state. The department publishes a yearly groundwater quality monitoring report to lawmakers. A new Water Well Decommissioning Fund pays natural resources districts to close illegal wells, with reimbursements based on actual costs and wells closed.

Stronger local groundwater rules and fines

Local natural resources districts can require water‑use reports, meters, and closing of wrongly classified wells. They can pause new wells and increases in irrigated acres for up to 180 days and charge fees to variance applicants. Interstate ditch operators can be ordered to install measuring devices within 30 days and file daily reports; failing to do so is a Class V misdemeanor. Intentional violators can face $1,000 to $5,000 per day, and other violations up to $500 per day. Districts must consult the Attorney General before ordering a public water supplier to stop, and state officials enforce priority water rights.

Cleanup plan rules and closure options

You may end a voluntary cleanup early if you leave the site no worse for health or the environment and repay outstanding department costs. The department can end a plan if you violate terms, fail to start in six months, or fail to finish in 24 months without an extension. After you finish, you must file a final report within 60 days. If you meet monitoring rules and pay fees, the department can issue a no‑further‑action letter, but it may require oversight cost payments and more work if contamination returns.

Permits, maps, and timelines for reservoirs

After approval, you must file a conforming map within six months or risk losing the right, with special protections for pre‑1958 rights. You must start construction within 12 months and finish at least one‑tenth of the work in a year, or the permit can be canceled; extensions are possible. Approved reservoir or underground storage projects may be built and may condemn land for works, while small on‑channel ponds under 15 acre‑feet used only for range livestock are exempt from the general application. After completion, anyone wanting to use stored water must apply, and the owner has the first six months to apply. Irrigation and similar districts can transfer water rights to mapped tracts that received water at least once in the past 10 years if consents and limits are met.

Stays and controls in scarce water areas

When the Chief Water Officer preliminarily finds a basin fully appropriated, new water rights stop at once. Ten days after the first public notice, added stays can block new well permits and added irrigated acres, with narrow exceptions (for example, test holes, range‑livestock wells, emergency public‑health wells, some ≤50 gpm wells, and qualified replacements). Integrated plans can add surface‑water controls, like more monitoring, limits on new rights, and required conservation. Affected surface‑water users get up to 180 days to choose conservation steps and a schedule. Each January 1, the Chief Water Officer reports on long‑term water availability; most basins with plans or already overappropriated are excluded unless being reevaluated. Districts can create groundwater management areas after a public hearing; adopted controls and boundaries must match the notice. The law also treats certain mapped intermittent streams (as of July 18, 2008) as ephemeral unless the department decides otherwise.

New method to set fuel tax base

The average wholesale price per gallon used for the 5% wholesale‑price‑based gasoline tax now comes from department data and uses the last six months’ average. This can change pump prices when the tax base shifts.

Industrial groundwater protections and legal rights

In areas without older plans, nonmunicipal commercial and industrial users keep, until January 1, 2026, the larger of their permit amount or the amount needed for their use. Single projects started after July 14, 2006 that use over 25 million gallons a year may face controls sooner. An affected person can appeal a final order to the Court of Appeals, and land or water owners (who did not sign certain waivers) can sue a permit holder for harm. The Chief Water Officer sets rules for the Industrial Ground Water Regulatory Act and must define the required hydrologic evaluation.

Tougher discipline for well contractors

The Director can deny, refuse to renew, suspend, or revoke water‑well and pump‑installer licenses for listed violations. This raises enforcement risk for contractors and strengthens protection for customers who rely on safe well work.

Stricter rules for pollution tax refunds

To claim a Nebraska sales and use tax refund for a pollution‑control facility, you must file plans, equipment lists, operating procedures, acquisition cost, and the department’s final findings. The Tax Commissioner can modify or revoke a refund after notice and a hearing for fraud, misrepresentation, or changed findings; fraud cases owe tax with maximum interest and penalties and no time limit. When the department approves a facility, it notifies you and the Tax Commissioner, including any commercial value from recovered materials.

Checks on exporting Nebraska water

If someone seeks to take or store Nebraska surface water for use in another state, the director must weigh the public interest. The decision checks if unappropriated water exists, whether the use helps or harms public welfare, and if benefits to Nebraska outweigh harms. The director must explain the reasons in writing.

New department takes over programs

On July 1, 2025, the Department of Environment and Energy becomes the Department of Water, Energy, and Environment. Powers from the former Department of Natural Resources move to the Chief Water Officer and the new department, existing rules continue until changed, and the Chief Water Officer can make and administer rules. Statutes and definitions now refer to the new department and director, and staff can access water facilities to do their work. Budget and salary limits for Agency 29 shift to Agency 84 on July 1, 2025, and unpaid certified bills as of June 30, 2025 are paid by the new department. The act also repeals listed outdated statutes.

New rules for groundwater permits

Groundwater permits now face clearer steps. Applicants must publish notice for three weeks and anyone can request a hearing within two weeks after the last notice. The Chief Water Officer may grant less water, set operating conditions, and only approve permits that are in the public interest with written findings. Amendments that raise daily peak or annual volume by more than 25% are not allowed, with narrow exceptions. A permit can be revoked after three straight years of nonuse. Injured groundwater users can seek a hearing to limit or end a transfer and recover costs and reasonable attorney fees. Applicants may file negotiated waivers from affected users for consideration.

When these changes take effect

Most provisions become operative July 1, 2025. Because the law has an emergency clause, it also takes effect when passed and approved, so some rules start right away.

New rules for Water Sustainability Fund

The Water Sustainability Fund holds transfers, donations, and other money. Before October 1, 2024, it kept its investment earnings; starting October 1, 2024, earnings go to the General Fund. Beginning July 1, 2025, 10% of the fund’s yearly appropriation goes to combined sewer overflow projects when recommended by the Chief Water Officer and approved by the commission, split by population if several cities qualify. Also starting July 1, 2025, the commission can give grants or loans and must prioritize drinking water projects for any federally recognized tribe under a U.S. EPA no‑drink order.

Public-private deals for water projects

The department can use public‑private partnerships to deliver water and natural resources projects. It keeps oversight of any work given to private partners. The Director must set criteria for when PPPs should be used.

Stricter rules for water fund grants

Starting July 1, 2025, a natural resources district can get Water Sustainability Fund money only if it has adopted or is developing an integrated management plan. The Chief Water Officer must review all applications, decide eligibility, and recommend awards before the commission approves money. The commission collaborates with key state agencies and the university.

Carbon dioxide storage closure and oversight

After public notice and a hearing, the commission can issue a completion certificate for a CO2 storage site when strict conditions are met. Then title to the facility and stored CO2 transfers to the state, operators are released from future regulatory duties and financial assurances, and the state takes over monitoring and management. Stored CO2 under a valid permit is not treated as a pollutant or a nuisance. The commission must act to prevent pollution and leaks and protect storage integrity.

Energy planning and pipeline oversight changes

Before sending any state CO2 plan to EPA, the department must finish an impact report at least 30 days ahead and send it to the Legislature. The Public Service Commission consults the department on major oil pipeline routes and can request reports. The department keeps jurisdiction over CO2 storage alongside the Oil and Gas Conservation Commission. The department can also name technologies as energy conservation measures for state programs.

Extra direct‑flow water for farms

If your direct‑flow water right is below the legal limit in your basin, you can get supplemental direct‑flow water needed to grow crops, within statutory limits. Approved supplemental water receives priority within the basin.

Pay for losses from city preferences

If a public water supplier’s preference injures a junior appropriator whose right was perfected before September 9, 1993, the supplier must pay just compensation. A claim starts when the junior is regulated. No compensation is due if the request was only to provide domestic water.

State workers keep rights in transfer

On July 1, 2025, employees whose jobs move to the new department keep their state personnel rights and continuous service time. They also keep rights under any collective bargaining agreement.

Appeal pollution‑control refund decisions

If you disagree with a pollution‑control tax refund decision, you can appeal the Tax Commissioner’s order under the Administrative Procedure Act. The department still decides whether a facility qualifies as pollution control.

How DWEE director is chosen

The Environmental Quality Council sends a list of names to the Governor, who appoints the Department’s Director from that list. The Director must have air, water, and land pollution‑control experience. Initial appointments need legislative confirmation. The Director runs the Department, enforces rules under Chapter 81, article 15, and makes grants that match council priorities.

New Chief Water Officer leads water work

The law creates a Chief Water Officer, appointed by the Governor and confirmed by the Legislature. The officer must be a professional engineer or geologist with at least five years of irrigation experience. The Department can hire legal and technical staff to support this work and serves as the state’s lead for water resources, conservation, and flood control. The office must help local governments, share information, and assist with flood‑plain planning. Division supervisors manage day‑to‑day water distribution in assigned divisions.

Stronger public notice and appeal rights

Groundwater hearings must be held in or near the affected area, with notices run once a week for three weeks and the last notice at least seven days before the hearing. The full text of plans or rules must be available by the first notice; adopted orders must be published weekly for three weeks, and full text must be available at least 30 days before the effective date. The Chief Water Officer adopts rules under the Administrative Procedure Act. If you are harmed by an order under the Act, you can appeal under the Administrative Procedure Act. When the Department sends a state plan to the U.S. EPA, it must also send an electronic copy to the Legislature.

Stronger state review of water plans

Rural water projects must file plans and get approvals before construction; if it is a public water system, only drinking‑water compliance is reviewed by the department. The Chief Water Officer reviews NRD groundwater plans and replies within 90 days, consulting the department on water‑quality plans. Starting July 1, 2025, the department sets pesticide limits for surface water, groundwater, and drinking water. The law keeps the department’s full powers over drinking water safety and contamination. The Director holds public hearings before changing the statewide erosion and sediment control program.

30‑day public comment on cleanups

The department publishes approved voluntary remedial action plans and makes them public. The public has 30 days to send written comments. Anyone may ask for a hearing, and the director must hold one if comments raise general legal or policy questions and there is strong public interest.

Faster action on water contamination

State and local agencies must quickly report suspected contamination to the Department. If the Director sees signs of groundwater contamination and local controls are lacking, the Department studies the problem and issues a report within one year. If a single site is the source, the Department uses Environmental Protection Act tools to stop and reduce the pollution. If many small sources are to blame, the Director moves to require a district action plan or sets a hearing within 30 days and holds it within 120 days. The state and districts also regulate chemigation to protect groundwater.

Solid waste permits and rebates updated

The Department of Water, Energy, and Environment now handles solid waste permitting. Cities and counties can keep getting a partial disposal‑fee rebate if they prefer recycled‑content purchases and file annual reports. The department processes applications and runs the review and appeal steps.

Clearer review for landfill closure grants

When you apply for a landfill closure grant, the department investigates the project, checks eligibility, and sets funding priority under council rules. It may return incomplete applications and ask for corrections.

Fund for clean-fuel rebates

A Clean‑burning Motor Fuel Development Fund now pays rebates under state law. The fund comes from grants, private contributions, and other sources. Each year, no more than 35% can go to flex‑fuel dispenser rebates, and up to 10% can cover administration.

Grants for critical infrastructure projects

A new fund gives grants to protect or repair key facilities. It can help natural resources districts protect critical infrastructure, reimburse irrigation districts for temporary canal and tunnel repairs after a failure, and help certain counties fund wastewater system costs. Any leftover money and interest go to the General Fund. The Department of Economic Development may consult the Department of Water, Energy, and Environment on municipal infrastructure aid projects.

Grants to close old landfills

The Solid Waste Landfill Closure Assistance Fund pays for assessment, closure, monitoring, and cleanup of landfills that existed or were closed on July 15, 1992. The fund may also pay the Department’s related costs. Applicants must use awards only for eligible work, provide site documents like title or easements when needed, submit a project plan with cost estimates, and show expected environmental benefits.

Jobs and Economic Development fund

The state created the Jobs and Economic Development Initiative Fund. The Treasurer credits legislative transfers and donations to the fund. The Department can use it for water and recreational projects as money is provided.

Protecting city well field priorities

Public water supplier wells in place on September 9, 1993 get fixed priority dates based on when facilities were built (for example, June 27, 1963 or January 1 of 1970, 1980, 1990, or 1993). The department may allow moving priority dates among wells within the same well field if withdrawals do not increase, other users are not harmed, and it serves the public interest. A supplier can, within 25 years of the original priority, show that projected induced‑recharge needs became actual use so that use keeps the original priority; requests are limited to once every five years per approval.

Statewide flood plan and reviews

The Department of Water, Energy, and Environment must create a statewide flood mitigation plan. It follows FEMA rules and is added to the state hazard plan. The Department forms a stakeholder group with local, state, and federal experts. It must study 2019 flood issues, list high‑risk sites, and find funding like FEMA and HUD programs. Cities with flood or stormwater work outside city limits must send plans to county boards and the Department for review. Two public hearings are required, each with at least 30 days’ notice.

Stronger dam safety oversight statewide

The Chief Water Officer and the department now run dam safety. Owners must get written approval before building, altering, or removing a dam. High‑ or significant‑hazard dams may need emergency action plans. Owners must file engineer‑signed completion certificates when work is done.

Grants to clear blight in towns

The Department runs the Revitalize Rural Nebraska Grant Program. It gives competitive grants to tear down dilapidated commercial buildings. Grants began in FY 2023‑24, with priority for cities of the second class and villages and a preference for new applicants.

Natural gas vehicle fuel advisory board

The state creates a Natural Gas Fuel Board with eight Governor‑appointed members. The board advises on fuel distribution, station infrastructure, workforce training, and incentives to support natural‑gas vehicle use in Nebraska.

Stricter rules for diversions and lakes

If ordered, owners of ditches, canals, or reservoirs must build and keep a lockable headgate and a measuring device; ignoring a 10‑day order can lead the department to stop water delivery. Willfully tampering with a headgate or storing or releasing water against orders is a Class II misdemeanor; each day is a separate offense. You must get approval before draining, lowering, diverting, or reducing water in a natural or perennial lake over 20 acres if it could harm the public welfare.

Possible extra NRD property tax

If the Chief Water Officer labels your basin fully appropriated or overappropriated, your natural resources district may add an extra property tax levy for groundwater management. The levy is in cents per $100 of taxable value. Statutory caps and yearly limits still apply.

Extra steps for permits and tanks

Before issuing certain water‑pollution or livestock‑waste permits, the department requires proof of any needed dam safety approvals. Anyone who deposits regulated substances into a tank must reasonably notify the tank owner or operator about registration duties; the department provides a printed notice.

Fuel stations report ethanol blends

Starting in 2025, retail fuel dealers must file quarterly reports on gallons sold and ethanol percent for each fuel. The Department of Revenue and the Department of Water, Energy, and Environment will publish a yearly statewide ethanol blend rate.

NRDs can tighten water pumping

Local natural resources districts may set stricter limits on public water suppliers than state permits allow. This can reduce how much groundwater suppliers may withdraw and deliver.

New dam application fees fund safety

You must pay a filing fee when you apply for dam approval. The fee depends on dam height and cannot exceed $200, $300, or $400. Only one fee applies to some enlargements. The fees go to the Dam Safety Cash Fund, which does not lapse each fiscal year.

Chemical sites must follow security rules

Starting July 19, 2024, chemical facilities that were required on or before July 27, 2023, to have a federal chemical security program must use that program. State agencies post the requirement and a link to the program. If Congress reauthorizes federal standards, the state rule is preempted.

Conditional ban on some diapers

Retailers cannot sell nonbiodegradable or nonphotodegradable disposable diapers if the Director finds biodegradable options are readily available at a similar price and quality. The ban applies only after that finding.

No city annexing Lake District land

Cities and other authorities cannot annex land inside the Lake Development District named under state law. If you own land there, you are not brought into a city by annexation, so municipal taxes and services do not change because of annexation.

Well and septic sale requirements

If you buy property outside city limits and the deed shows someone else’s surface‑water right or wells (not domestic wells built before 1993), you must file a free water‑resources update notice with the department within 60 days. If you request a private water or sewage inspection for a loan or federal rule, you pay a fee of $60 to $100 per inspection.

Hydropower water leases and district rights

If you use appropriated water for power, you must sign a state lease within six months and pay $15 each year per 100 horsepower. Leases can last up to 50 years and may be renewed once for up to 50 more years. Irrigation districts have the exclusive right to apply to use irrigation water and return flows for hydroelectric plants under state law.

Permits for geothermal water wells

You must get a permit before building wells to withdraw groundwater for geothermal development. Fluids must be reinjected into the same formation in about the same volume and quality unless your permit allows other uses. The department will set permitting rules.

Backup inflation index for hydropower pay

If the Consumer Price Index stops being published, the Chief Water Officer picks a similar index. That index is used to adjust annual just compensation for certain subordinated hydropower appropriations.

Boards updated for water and environment

The Water Well Standards and Contractors’ Licensing Board includes named agency leaders or their designees. The Environmental Trust Board adds the Chief Water Officer, requires two citizen appointees with private‑financing experience, and needs majority legislative approval for citizen members. The Riparian Vegetation Task Force and the Climate Assessment Response Committee are updated to reflect the new department and roles.

Economic development powers for DWEE projects

The Department can buy, sell, or lease land and sign contracts to carry out Jobs and Economic Development Initiative projects. It may work with private parties and may prefer a Nebraska nonprofit that meets board‑composition and conflict‑of‑interest rules, including at least four gubernatorial appointees approved by the Legislature and two nonvoting representatives. These tools support project development and management.

Grants, fees, and fund transfers for water work

The state offers grants for interrelated water management projects, but each project must show a local cash match of at least 20% of total cost. The Department may charge fees for special water data work and uses Ground Water Management and Natural Resources Cash Funds to run programs. The Treasurer transfers $1,000,000 from the Water Resources Cash Fund to the Nitrogen Reduction Incentive Cash Fund after July 19, 2024 and before June 30, 2025. The law also lists earlier transfers from the Water Sustainability Fund to the Department Cash Fund and General Fund in 2021–2023.

Joint water plans and dispute board

When a basin is overappropriated or finally found fully appropriated, the state and local natural resources districts must adopt an integrated water plan within three years, with one joint extension of up to two years. Plans must set goals, show the area on a map, include surface and groundwater controls, and use the best scientific data. The state and districts must consult irrigation groups and towns, hold hearings within 45 days after agreement, and decide within 60 days after the final hearing; adopted controls cannot be substantially different from the hearing notice. If the parties cannot agree or fail to carry out the plan, the Interrelated Water Review Board holds local hearings, adopts the plan, and can reassign enforcement right away. Prior temporary drilling suspensions remain in effect for 30 days after the first annual report unless replaced.

Limits on piping water into closed areas

When new wells are stayed or an area is closed to new permits, you generally cannot bring groundwater from outside into that area. Exceptions apply if the transport started before the stay, the water is only for domestic use, or the natural resources district approves it. For cities, the district must approve transport when the city has the required state permit.

New rules for instream flow permits

Natural resources districts and the Game and Parks Commission must study and name stream segments that need instream flows and how much water is needed. To get a permit, applicants publish notice once a week for three weeks at their expense; objections are due within two weeks of the last notice. The department approves only if five tests are met, including that unappropriated water is available at least 20% of the time and the rate is the minimum needed. Instream permits are reviewed every 15 years, and parties must try mediation before a contested hearing. Instream rights apply only to the named segment and then end; senior storage reservoirs are not forced to release water. If natural flow is short and the applicant agrees, the department may study stored‑water options, and applicants may seek construction help from the Nebraska Resources Development Fund. Certain application types (like induced recharge to public wells and some de minimis uses) get priority over instream filings.

New rules for water rights and permits

You must get a permit before building works or taking public waters; permits can cover underground storage and induced recharge for public water suppliers. Applications use free department forms but may require technical data. For induced‑recharge applications, the applicant must publish notice weekly for three weeks in local and statewide papers and allow two weeks after the last notice for objections; a hearing near the wells may be held. Temporary permits can be issued and must end within one year; for public‑use construction under 10 acre‑feet, proof of unappropriated water may be waived. The Department approves if unappropriated water exists and the public interest allows, and can deny for lack of water, prior rights, missing agreements, or public interest; priority dates from filing. Older public‑supplier wells (before Sept. 9, 1993) get a presumption in favor of recharge, while newer wells must also show unappropriated water and designs that limit streamflow impacts. In irrigation delivery court cases involving the Department, courts must name the Chief Water Officer and division supervisor and give at least 72 hours’ mailed notice before hearings.

New water-energy department and roles

Beginning July 1, 2025, the state merges Natural Resources into Environment and Energy and renames it the Department of Water, Energy, and Environment. The Director of Natural Resources becomes the Chief Water Officer and keeps prior authorities. The new department takes over contracts, records, property, and ongoing cases. Senior leaders are exempt from the State Personnel System. State agencies must send procurement reports to the department, and contracts made to finance Dollar and Energy Saving Loans are exempt from two state contract databases.

Rules for changing water rights

To move or change a water right, you must apply, show beneficial use, stay within basin limits, and avoid harming other users. Transfers usually cannot exceed the historic consumptive use, and temporary changes can last 1 to 30 years. The department may add conditions to protect return flows. Once certain legal actions start, orders identifying stored water or approving fees cannot be attacked in separate lawsuits.

Stronger state check on local water projects

A drainage district may use eminent domain outside its borders only if the Department approves. To form or approve rural water projects, petitions must go to the Chief Water Officer at least four weeks before the hearing, the clerk must send a copy and notice to the Chief, and the county board may not find a project necessary unless the Chief approves it. For state critical‑habitat moves, the commission must notify the Department, allow at least 60 days for public comment, hold hearings in affected districts, peer‑review the science, and outline landowner impacts.

Tighter water-rights oversight with court review

The Department has jurisdiction over water rights and can require information, hold hearings, and refuse water use until rights are on record. Anyone unhappy with a Chief Water Officer decision can appeal to the Court of Appeals within 30 days, and these appeals are advanced on the court’s docket. The Chief Water Officer’s sealed, certified records count as valid evidence in court. The Department may also survey streams to spot sites for power or irrigation projects.

Water transfers and storage: new filings

If your temporary transfer is approved, you must file it with the county within 60 days and file proof with the department within 90 days or the approval can be canceled. The Chief Water Officer sets rules for water transfers and storage under the listed sections. Holders of approved, unperfected appropriations can apply to add intentional underground storage. Anyone charging storage‑related fees must get the department to approve a fee schedule and technical details; the department reviews approved schedules every five years (or after financing is repaid). You can appeal certain listed department orders under state appeal procedures.

Perkins County Canal project powers

The Department can plan, build, manage, and operate the Perkins County Canal Project under the South Platte River Compact and the Canal Project Act. It can contract, hold permits, acquire land and water rights, use eminent domain under section 76‑725, and manage project funds. A Canal Project Fund supports route selection, land purchase, development, and operations. An independent study on costs, timeline, alternatives, and impacts on Lincoln and Omaha drinking water is required and must be presented to the Legislature by December 31, 2022.

Stronger cleanup programs and training fees

The Department now leads the Petroleum Products and Hazardous Substances Storage and Handling Act, with prevention work by the State Fire Marshal under an agreement. The Department gives a risk‑based corrective action briefing and may charge a fee to attend; fees go to the Petroleum Release Remedial Action Cash Fund. A Remedial Action Plan Monitoring Fund pays for reviewing applications, technical oversight, emergencies, and enforcement. A Superfund Cost Share Cash Fund pays the state’s nonfederal share of Superfund cleanups; the Legislature may transfer money to the General Fund.

Water resource grants with local match

The Water Resources Cash Fund pays for projects in areas with integrated management plans to cut water use, boost streamflow or recharge, and support related programs. The fund cannot pay salaries or administrative costs for local governments. Natural resources districts can get grants, but they must cover at least 40% of the project cost. The Department sets annual funding, application rules, and notifies districts by August 1. Districts that fail to enforce required controls lose eligibility until they comply.

Sponsors & Cosponsors

Sponsor

  • Tom Brandt

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 409 • No: 220

legislature vote 4/24/2026

Vote

Yes: 12 • No: 29 • Other: 8

legislature vote 4/24/2026

Vote

Yes: 30 • No: 4 • Other: 15

legislature vote 4/24/2026

Vote

Yes: 1 • No: 29 • Other: 19

legislature vote 4/24/2026

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote 4/24/2026

Vote

Yes: 34 • No: 8 • Other: 7

legislature vote 4/24/2026

Vote

Yes: 46 • No: 0 • Other: 3

legislature vote 4/24/2026

Vote

Yes: 13 • No: 33 • Other: 3

legislature vote 5/1/2025

Final Reading

Yes: 34 • No: 12

legislature vote 4/22/2025

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote 4/22/2025

Vote

Yes: 13 • No: 33 • Other: 3

legislature vote 4/22/2025

Vote

Yes: 12 • No: 29 • Other: 8

legislature vote 4/22/2025

Vote

Yes: 46 • No: 0 • Other: 3

legislature vote 4/22/2025

Vote

Yes: 34 • No: 8 • Other: 7

legislature vote 4/22/2025

Vote

Yes: 1 • No: 29 • Other: 19

legislature vote 4/2/2025

Vote

Yes: 30 • No: 4 • Other: 15

legislature vote 4/2/2025

Vote

Yes: 31 • No: 2 • Other: 16

Actions Timeline

  1. Approved by Governor on May 6, 2025

    5/6/2025legislature
  2. Dispensing of reading at large approved

    5/1/2025legislature
  3. Passed on Final Reading with Emergency Clause 34-12*-3

    5/1/2025legislature
  4. President/Speaker signed

    5/1/2025legislature
  5. Presented to Governor on May 1, 2025

    5/1/2025legislature
  6. Placed on Final Reading with ST29

    4/29/2025legislature
  7. Enrollment and Review ST29 filed

    4/29/2025legislature
  8. Enrollment and Review ST29 recorded

    4/29/2025legislature
  9. Enrollment and Review ER36 adopted

    4/22/2025legislature
  10. Cavanaugh, M. MO183 pending

    4/22/2025legislature
  11. Cavanaugh, M. MO183 failed

    4/22/2025legislature
  12. Brandt AM1035 withdrawn

    4/22/2025legislature
  13. Brandt AM1084 adopted

    4/22/2025legislature
  14. Conrad AM1124 filed

    4/22/2025legislature
  15. Conrad AM1124 adopted

    4/22/2025legislature
  16. Storer FA116 filed

    4/22/2025legislature
  17. Storer FA116 adopted

    4/22/2025legislature
  18. Cavanaugh, J. AM1133 filed

    4/22/2025legislature
  19. Cavanaugh, J. FA117 to AM1133 filed

    4/22/2025legislature
  20. Cavanaugh, J. FA117 lost

    4/22/2025legislature
  21. Cavanaugh, J. AM1133 lost

    4/22/2025legislature
  22. Advanced to Enrollment and Review for Engrossment

    4/22/2025legislature
  23. Brandt AM1084 to ER36 filed

    4/17/2025legislature
  24. Cavanaugh, M. MO183 Bracket until May 5, 2025 filed

    4/17/2025legislature
  25. Brandt AM1035 to ER36 filed

    4/14/2025legislature

Bill Text

  • Introduced

    5/6/2025

  • Enrolled / Slip Law

  • Final / Enacted

Related Bills

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