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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

94 provisions identified: 32 benefits, 17 costs, 45 mixed.

Rebates for clean fuel equipment

You can get a rebate for qualifying clean‑burning motor fuel equipment. The rebate is the lesser of 50% of cost or $4,500 per vehicle for certain vehicle property. For other qualified property, it is the lesser of 50% of cost or $2,500. You cannot claim a rebate for the same vehicle under another state program. No more than 35% of yearly fund money goes to flex‑fuel dispenser rebates, and up to 10% may be used for administration.

Utility energy loans and protections

Utilities can offer loans for energy-saving projects. Repayment terms must be 3 to 20 years. Loans are capped at $15,000 unless federal rules say otherwise. Loans over $10,000 must involve a bank. A payment is in default after 60 days, but utilities cannot cut service just for unpaid loan amounts to homes, farms, or businesses.

Funding to replace lead water lines

The state creates a Lead Service Line Cash Fund. Up to 20% can fund Nebraska‑based training programs to build the workforce. The rest funds metro utilities to remove and replace lead service lines, repay loans, map lines, inform residents, and buy equipment and supplies.

State review of drinking water projects

Before an NRD starts a water‑supply project, the Chief Water Officer must approve the plans. If the project involves a public water system, the Director must also approve plans that meet the Safe Drinking Water Act. The Department of Water, Energy, and Environment now runs that Act.

Stronger dam safety orders and fines

If the Chief Water Officer believes you violate the dam law, you get a certified notice and 30 days to respond or ask for a hearing. The Officer can issue temporary cease‑and‑desist orders. Courts can enforce civil penalties up to $500 per day for each day a violation continues.

Unused water rights face cancellation

If you do not use permitted water for five straight years, the Chief Water Officer can start canceling it. You have 30 days after notice to contest. If you do not, the permit can be canceled in whole or part. The Officer can also cancel unperfected permits when permit conditions are broken, and posts and mails notices. Owners must keep contact details current. After partial cancellations, diversion rates can be adjusted for good husbandry.

Radioactive sites must post cleanup funds

Licensed sites that handle radioactive materials must provide financial assurance for closure, cleanup, and long‑term care. If a surety is forfeited, the money goes to the state’s Health and Human Services Cash Fund to pay for cleanup and monitoring. Interest can fund long‑term care. If the United States takes title after license termination, the collected funds and interest transfer to the U.S.

Irrigation district wind‑down: property, payouts

When an irrigation district dissolves and files its final report, district easements and rights‑of‑way end and return to the landowner. Anyone with a claim against the district has one year from that filing to sue, or the claim is barred. After debts are paid, any money left is paid to recorded assessment payers, pro rata by irrigable acres at the last assessment.

Help for victims of fuel leaks

The department can pay third‑party claims from the Petroleum Release Remedial Action Fund when the responsible party cannot or will not pay and the claim meets the law. If the department or its agent damages your property while investigating another site, the fund can repay you; if that is not enough, you can file a separate claim. The state can sue to recover fund costs, and recovered money goes back into the fund.

Irrigation districts get repair grants

The state creates the Surface Water Irrigation Infrastructure Fund at the Department of Water, Energy, and Environment. It transfers $50 million one time from the Cash Reserve Fund. The Chief Water Officer awards grants to irrigation districts to repair or build irrigation structures. Each grant is capped at $5 million per applicant. Applicants must provide a 10% local match.

Emergency control of unsafe dams

If a dam emergency threatens life or property, the owner must notify the Chief Water Officer. The Officer can take charge, lower the water level, or fully drain the reservoir. The Officer can perform any needed protective work until conditions are safe.

Some uses override instream flows

The Chief Water Officer must change instream appropriations so they do not block certain new filings. These include induced recharge for public water wells, storage for flood and sediment control projects that are dry or use no more than 200 acre‑feet net per year on average, certain transfer permits, and de minimis uses, including some industrial de minimis uses.

State erosion and sediment control

The Director, working with state and federal partners, runs a statewide erosion and sediment control program. The program sets soil‑loss tolerance levels, state goals and strategy, priorities, and types of help for local governments and farmers. Any major revision requires at least four public hearings.

Flood and stormwater planning grants

The state funds local stormwater plans. At least 80% of grants go to urbanized areas by population and up to 20% go to other places over 10,000 people. Local governments must provide a 20% match. The state must study 2019 flooding, build a statewide flood plan with two public hearings (30‑day notice), and help local governments with flood‑plain information. Grants also support critical‑infrastructure protection, emergency irrigation‑canal repairs, large‑county wastewater work, and statewide nitrate sensors ($1 million intended in FY2024‑25).

Water project funding with new oversight

The Chief Water Officer (CWO) now reviews and decides if water projects can seek money from the Water Sustainability Fund. If a city applies and the CWO recommends it and the commission approves it, 10% of the fund’s yearly appropriation is reserved for combined sewer overflow projects, split by population when more than one city qualifies. When an allocation is approved, the department sets up a subaccount and credits the full amount; unfunded allocations cannot total more than $11,000,000. The CWO also serves as the state’s lead for water conservation, flood prevention, and watershed protection, and helps local governments plan and share information.

CO2 power plan impact report required

At least 30 days before sending any state carbon‑dioxide plan to the EPA, the department must issue a report. It must cover plant retirements or fuel switches, stranded investments, needed upgrades, reliability risks, retail price changes, and jobs. The department cannot submit a plan until the report is ready, and it must send the plan and report to the Legislature.

Extra NRD property tax in overused basins

If the Chief Water Officer declares a river basin, subbasin, or reach fully appropriated or overappropriated, Natural Resources Districts there can levy an extra property tax. The extra tax equals how much certain restricted funds for groundwater and integrated management exceed the district’s 2005‑06 level. The increase cannot be more than three cents per $100 of taxable value for fiscal years 2006‑07 through 2017‑18.

Extra approval before pollution permits

Before the state issues an NPDES or a construction and operating permit, applicants must first get any needed approval from the Chief Water Officer under dam‑safety laws. The department can require that approval for dams, holding ponds, or lagoons that could cause a big discharge if they failed. This adds a step that can delay permits and add costs for farms and businesses.

Biofuel credits add state OK and tests

Biodiesel facilities must show written approvals from the state department and federal ATF to claim the investment credit. They must also submit yearly independent lab tests and notify the Department of Revenue before sampling so it can observe. New ethanol plants must show state and federal approvals by set dates to qualify for production credits. These steps add paperwork and testing costs for facilities.

Clearer penalties for radiation misconduct

The law defines deliberate misconduct under the Radiation Control Act. It covers intentional acts or omissions that cause violations of rules, licenses, or procedures by licensees, applicants, or their contractors. This gives the department a clear basis to enforce and penalize bad actors.

Gas tax tied to wholesale price

The state sets a 5% tax on the average wholesale price of gasoline, not including state and federal taxes or environmental fees. The average price is calculated on April 1 and October 1 and then used starting July 1 and January 1. Any tax change between those periods is limited so it does not rise or fall by more than $0.01 per gallon.

Drainage projects: checks and charges

A drainage district can condemn land outside its borders only for projects the department approves; Corps‑supervised districts are exempt. If downstream channels remain unimproved, the department can trigger an acreage‑based election to form a sanitary drainage district. If voters approve, the district builds the improvements and levies special assessments on lands that benefit.

Faster, stricter water-right transfers

The Chief Water Officer can fast‑track some transfer requests with no hearing if strict limits in law are met. In other cases, your application must show beneficial use, no cut to others’ supply, needed approvals, and that it serves the public interest. The Officer may require studies and historic‑use data before a hearing. You must publish notice for three weeks, allow seven days for objections, and meet 60‑ and 90‑day filing deadlines after approval. Your priority date is the day you file, and temporary transfers cannot exceed 30 years.

Tougher dam safety rules and fees

Before you build, enlarge, or change a dam, you must get written approval with engineer‑sealed plans. High‑hazard dams are inspected yearly; significant every two years; low and minimal about every five. Owners of older, unapproved dams must apply within 60 days of notice and make any tests or repairs at their expense. Filing fees are capped at $200 (under 25 ft), $300 (25–50 ft), or $400 (over 50 ft). You must give 10 days’ notice before construction, fix incomplete applications within 90 days, and follow approved plans. No impoundment is allowed until the Officer issues an operating approval; unsafe dams can lose approval after a hearing. In emergencies, repairs or breaching must start right away; the Officer can order stop‑work or removal after 60 days of noncompliance. Permitted dams are not treated as obstructions, and owners must keep dam records; equivalent federal inspections may count.

Local water fees and permits reviewed

The state withholds funds from a Natural Resources District unless it files its master plan and the project matches state plans. Anyone who wants to charge or change underground water‑storage fees must get approval first and file a fee schedule and project details. County assessment tools may count whether a farm has, or is applying for, any legally required department permit.

Chief Water Officer runs water permits

The Chief Water Officer now handles most water-right permits and changes. The Officer sets filing priorities, posts notices, holds hearings, and decides transfers and diversion changes. The Officer can require headgates, meters, and maps of irrigated acres and can hold back water deliveries to enforce rules. The Officer measures stream flows, surveys streams, inspects ditches and canals, and administers court‑validated riparian rights. If you disagree with a decision, you can appeal to the Court of Appeals within 30 days.

Faster action on groundwater pollution

When the department finds likely groundwater contamination and the local district has not acted, it must study the problem and issue a report within one year. If the source is a point source, the Director uses Environmental Protection Act tools to stop and reduce it. If the source is nonpoint, the Director may require an action plan or must hold a hearing within fixed timelines to set or adjust a management area. Districts then face strict deadlines to draft, hear, adopt, submit, and publish plans, and to monitor water and give tailored fertilizer and chemical guidance to growers. If a district fails to act or a plan is denied, the Director adopts enforceable controls by rule within 90 days after public hearings.

New data rules and water controls

The Chief and natural resources districts must use the best scientific data when writing integrated water plans. The Chief sets data rules, and agencies must share data on request. Basin plans may add surface‑water controls like more monitoring, limits on new permits, and required conservation. The Chief enforces surface‑water rules; NRDs enforce groundwater rules. Agencies and local governments must quickly report signs of contamination to the department.

One new water and environment department

Beginning July 1, 2025, Nebraska runs water, energy, and environmental programs under the Department of Water, Energy, and Environment. All duties, filings, and powers from the prior agencies now go to this department or the Chief Water Officer. All DNR property, staff, records, and funds transfer on that date. References in state law now mean this department (or the Chief Water Officer). Appropriations for Agency 29 move to Agency 84, and the new department pays valid unpaid obligations as of June 30, 2025 from unspent balances.

Tighter rules for water permits

The Chief Water Officer now runs many water and groundwater permit reviews, hearings, and enforcement. The Officer may grant, deny, or condition permits and may refer violations for prosecution. Orders on underground storage and approved fees cannot be attacked in side cases. If a transfer cannot be fast‑tracked, the Officer posts it, mails notices to listed lenders and facility owners, and you must pay to publish in local papers. The Officer can refuse drainage or diversion works that harm people or the public and do not benefit the state.

Stronger pesticide safety and enforcement

The Department of Agriculture can fine up to $5,000 per violation of pesticide laws. It can inspect properties, sample and test pesticides, stop sales, seize products with probable cause, and order unsafe activities to cease. The department may require notice to nearby landowners before certain pesticide uses, classify restricted or limited-use pesticides, and deny, cancel, or change registrations and licenses. It can sue to stop violations, seek help from prosecutors, settle cases, collect fees and records, report to federal agencies, accept grants, and adopt plans to meet federal rules.

Groundwater hearings, controls, and appeals

Public groundwater hearings must include department testimony and district water‑quality study results. Groundwater control orders take effect on the date set by the adopting authority. The state clarifies who decides well registration and permit questions, and all actions must align with section 46‑613. People can appeal district, Chief Water Officer, or Director orders under the Administrative Procedure Act. Fees go into a new Ground Water Management Fund; civil penalties go to the State Treasurer; and a new AG fund repays enforcement costs. Basin‑wide plans are made with the Chief Water Officer, include a 30‑day public comment before hearings, and get technical reviews every five years.

New rules for water project funding

Water Sustainability Fund money can be grants or loans. Loans must start repayment within one year of construction end and can run up to 50 years; the state may place a lien on the project. Most local recipients must put up a 20% match for key water grants. Projects score higher if they improve watershed health, and tribal drinking water under EPA no‑drink orders gets priority. Only NRDs with an integrated management plan are eligible, and the Chief Water Officer now runs several funds and adjusts certain project cost limits each July 1.

Perkins Canal authority and funding

The state can design, build, and operate the Perkins County Canal to protect water under the South Platte River Compact. The department may buy land, own water rights, and use eminent domain for needed property or access. A project fund pays for planning, land, and development. An independent study must cover costs, timelines, alternatives, and effects on Lincoln and Omaha drinking water, with findings reported to the Legislature.

Public lake development and access

The state can buy, sell, and lease land and use public‑private partnerships to develop a public lake. The lake must be at least 3,600 acres, be in or near certain counties, lie in the Platte River flood plain or floodway, and provide full public access. Up to $20 million is available for site selection, feasibility, water‑supply studies, and flood mitigation. Cities cannot annex land inside a designated Lake Development District. Directors and employees cannot hold a financial interest in these deals.

Stronger dam safety rules and enforcement

The Chief Water Officer is now the main state authority for dam safety. You must get state approval to build, change, or remove a dam, and owners of high‑hazard dams must make and test an emergency plan. The officer can inspect with notice, order quick fixes for dangerous dams, and require studies; violations are misdemeanors and each day counts. Cities cannot pass rules that conflict with state dam authority, and the officer’s safety decisions are final. The state is generally immune from lawsuits over dam failures, except for negligent acts when it takes control in an emergency.

Water project funding and local match

The Water Sustainability Fund supports state water projects inside the department. Natural resources districts must cover at least 40% local match to use Water Resources Cash Fund dollars. The department sets rules and announces each year’s available money by August 1. One grant is paid in three $3.3 million installments on a set schedule.

Court review and species listing notices

People can challenge commission orders in district court within 30 days. Courts can give declaratory or forward‑looking injunctions, and rule validity can be reviewed under section 84-911. When the commission proposes species or critical habitat changes, it must notify the Department of Water, Energy, and Environment and allow comment, along with other required public steps.

Energy settlement fund with oversight

Nebraska creates the Nebraska Energy Settlement Fund and has the new department run it under the Governor. Before money is spent, the Governor must send a plan to the Legislature and wait 45 days. Lawmakers can hold a public hearing within 30 days and send recommendations 15 days after. The department must also hold public hearings when federal rules require them. Any political subdivision can apply for grants or loans, and contracts must include reporting and be subject to legislative appropriations.

Environmental Trust grants get bonus points

State law gives the department 50 extra priority points on certain three‑year Nebraska Environmental Trust grant applications if it met specific reporting and matching rules. Those cycles included fiscal years 2014–15, 2017–18, and 2020–21. Matching funds and in‑kind limits must meet the law’s requirements.

Faster court process for irrigation

Courts cannot issue emergency orders that affect irrigation delivery when the Chief Water Officer is a party without proper notice. Registered or certified notice must be mailed 72 hours before the hearing to the Chief, the division supervisor, and affected water users. People who may be harmed can speak at the hearing and intervene. Appeals in these irrigation cases must be filed within 30 days and are expedited.

Help to secure instream water flows

Natural resources districts and Game and Parks can ask state experts or the Chief Water Officer for help studying stream segments with critical instream flow needs. After notice and a hearing, they can apply for permits to protect instream flows. Applications must name where flows begin and end, when flows are most critical, and how much water is needed.

Integrated water plans and protections

When a basin is fully or overappropriated, the Chief Water Officer and local districts must adopt an integrated plan within three years, with one possible extension up to two more years. Plans must set goals, show a map, include groundwater and surface water controls, and lay out data and methods. Controls must follow state and federal law, meet compacts, and protect wells that rely on river recharge and surface users. If the Chief requires conservation steps, affected surface water users get up to 180 days to propose measures and comment. The Chief can redo a basin evaluation when new science or a solid petition shows the last result may be wrong, and the Chief makes the final fully/overappropriated determinations.

Joint water plans and tracking rules

Districts that are not overappropriated or fully appropriated can voluntarily develop integrated water plans with the Chief Water Officer. Plans must include clear methods to track streamflow losses and gains, identify offsets, and explain how new uses avoid harm to current users. If an overappropriated area crosses districts, a basin‑wide plan is required and adopted after hearings. Plans use step‑by‑step goals, first addressing losses from uses started after July 1, 1997, and keeping Nebraska in interstate compliance. Officials review progress yearly and must do a technical analysis at least every ten years to set the next step.

More coordination on water and climate

The Chief Water Officer identifies which river basins are fully appropriated or overappropriated for the Riparian Vegetation Task Force. The Director of Water, Energy, and Environment now serves on the Climate Assessment Response Committee. Economic Development may consult DWEE, Transportation, and municipal groups when running the Municipality Infrastructure Aid Act.

New Water, Energy, and Environment Department

Beginning July 1, 2025, the state merges Natural Resources into Environment and Energy to form the Department of Water, Energy, and Environment. The Director continues as head of the new department, and the former DNR director becomes the Chief Water Officer. Contracts, funds, lawsuits, and existing rules carry over until changed. The Chief Water Officer can make rules (where allowed), use an official seal, and decisions can be appealed in court. The department can hire staff, use a dedicated cash fund, and run dam‑safety work through the Dam Safety Cash Fund. The Chief Water Officer must be a licensed engineer or geologist with at least five years of irrigation experience, and the Division of Water supports the office.

State review of groundwater plans

Natural resources districts must send groundwater management plans to the Chief Water Officer. The Officer reviews within 90 days, uses the best data, and explains any approval or denial. Districts must investigate, report, and work with the department on groundwater contamination. Districts must keep approved controls in place as long as needed to stop or slow contamination.

Stronger groundwater protection and faster reviews

The department can regulate pollution sources to stop groundwater from getting worse. Before any underground injection permit is issued, the commission must consult the department and the UIC authority. Each year, the Chief Water Officer forecasts how much streamflow may be available to meet interstate water duties. Cities must send flood or stormwater plans with work outside city limits to counties and the department for review. State agencies have 30 days to comment on certain district plans; no reply counts as approval. Petitions to create a natural resources district must be on file with the Chief Water Officer at least four weeks before the hearing, and the Chief must report to the county board.

Water well cleanup fund and grants

The state creates a Water Well Decommissioning Fund to speed up closing illegal wells. Money comes from fees, donations, and any appropriations, and the fund does not lapse. The Department contracts with natural resources districts and reimburses actual costs, based on how many illegal wells they closed last year (or a three‑year average). Allocations can be adjusted on or after March 1 if a district cannot use its full share. Investments are managed by the state investment officer, and rules are set by the Natural Resources Commission.

Yearly report on water supplies

By January 1 each year, the Chief Water Officer reports expected long‑term supplies of connected surface and groundwater. The report maps the connected area and shows how current use affects supplies. Areas with active plans or marked overappropriated are usually not reevaluated each year.

Fire-safety checks at mobile home parks

If the Department of Water, Energy, and Environment asks, the State Fire Marshal inspects mobile home park sites for fire safety. This supports safer housing for people who rent in those parks.

Stronger chemical plant security rules

Starting July 19, 2024, chemical facilities that already had federal security duties by July 27, 2023 must use the federal CISA chemical security program. State agencies must post the requirements and a link to the federal program on their websites.

Warehouse grain dust safety inspections

Beginning July 1, 2025, the department and commission check warehouses for grain‑dust and related hazards during regular inspections. They must report dangerous conditions to the State Fire Marshal. This reduces explosion risk for workers and nearby communities.

Landfill fee rebates to cities/counties

The department rebates $0.10 per qualifying disposal‑fee unit back to the city or county where the waste came from. To qualify, the area must have a department‑approved purchasing policy and file a report by April 1 each year. Rebates are paid at least yearly and up to quarterly, and can be suspended for noncompliance with an appeal right.

Rules for water project partnerships

The department uses competitive negotiation for public‑private partnerships on water and natural resources projects. The Director set rules by July 1, 2024 for when partnerships are allowed. Requests for proposals must spell out partner duties, oversight, financing plans, evaluation factors and weights, qualifications, and small‑business involvement. The department reports each year to the Legislature’s Natural Resources Committee on partnerships considered or approved.

State energy plan and data

The department must keep a comprehensive state energy plan. It must collect and analyze energy data, use existing reports when possible, and protect confidential business information. Each year by February 15, the Director reports energy trends and statewide needs. The department also decides which devices count as energy‑saving measures, like solar, wind, insulation, and efficient lighting.

New options for environmental tax breaks

The Tax Commissioner can now consider tax credits or exemptions for building or staffing licensed low‑level radioactive waste sites. The Department of Water, Energy, and Environment keeps the power to decide if a project qualifies as pollution control for tax refund purposes, and appeals still follow the Administrative Procedure Act.

Tighter help from petroleum cleanup fund

The cleanup fund pays only for releases first reported after July 17, 1983 and on or before June 30, 2028. It pays only if no responsible person is found, the person cannot or will not comply, or the Director orders immediate action to protect health or the environment. Fewer cleanups qualify for fund payment.

Fuel stations report ethanol blends

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

Meters and reports for interstate ditches

If ordered, interstate ditch managers must install a measuring device near the state line within 30 days of notice. They must send daily gauge‑height reports for the full irrigation season as directed. Not complying is a Class V misdemeanor.

Permits for geothermal groundwater wells

You must get a permit before building wells to withdraw groundwater for geothermal development. The department will set permit rules that fit with environmental laws. Geothermal fluids must be reinjected into the same formation in about the same volume and quality unless the permit allows other uses.

Caps on new irrigated acres

When a basin’s status changes from fully appropriated, each affected district has 120 days to set rules that cap new groundwater‑irrigated acres for at least four years. The rules must keep the basin from becoming fully appropriated again and need Chief Water Officer approval within 60 days. If the Chief does not approve in time, a fallback limit applies each year for four years: the lesser of 2,500 acres or 20% of the historically irrigated acres in that district’s connected area.

Energy loan contracts off public database

Beginning July 1, 2025, Dollar and Energy Saving Loan financing contracts do not have to be listed in the state’s public contracts database. This changes what the public can see online but does not change who gets loans or how they work.

Rural water petitions sent to state

When a petition to form a rural water district is filed, the county clerk must send a copy and the hearing notice to the Chief Water Officer. The clerk must send them at least seven days before the hearing.

Use rural revitalization grants or repay

If a city or village does not begin the demolition named in its Revitalize Rural Nebraska grant within 24 months, it must return the money. The department returns repaid funds to the Revitalize Rural Nebraska Fund.

Water fund earnings move to General Fund

Before October 1, 2024, investment earnings from the Water Sustainability Fund stay in that fund. Beginning October 1, 2024, those earnings go to the state’s General Fund.

Backup inflation index if CPI ends

If the Consumer Price Index ever stops being published, the Chief Water Officer picks a similar index. This keeps compensation amounts that use CPI adjusting over time.

Clearer state game refuge boundaries

The commission sets and posts state game‑refuge boundaries and updates them when stream banks shift. Staff may enter private property at reasonable times to mark or survey after publishing notice once a week for three weeks.

Water well fees and license breaks

Registration fees are $25–$40 for wells that pump 50 gpm or less and $40–$80 for larger wells. First‑time license fees are waived for low‑income people, military families, and young workers. The law narrows the meaning of “water well” by excluding permitted surface‑water structures. Water Well Board members must report conflicts to the Director and follow recusal steps.

Well registration, fees, and discipline

You must register new wells within 60 days and pay a $40 fee (plus any added fee set in law). The department keeps records and gives copies to you, your contractor, and your local natural resources district. You must file a change before using a well for a new purpose, and meet spacing rules. A well is “abandoned” only after proper decommissioning and a filed notice. Contractors can face license discipline for fraud, poor care, missing education, or not filing required forms.

Stronger state energy code for buildings

Nebraska adopts the 2018 International Energy Conservation Code as the state energy code. The Director can approve alternative standards only if they do not use more energy than the code. Within two years after first occupancy, the Director or local code authority can order the owner or prime contractor to fix code violations. Owners can seek costs from designers or contractors in civil court.

Natural Resources staff move, rights kept

Beginning July 1, 2025, positions tied to transferred duties move from the Department of Natural Resources to the Department of Water, Energy, and Environment. Affected employees keep state personnel and bargaining rights, and their service stays continuous for benefits and seniority. The Chief Water Officer and certain top deputies are exempt from the State Personnel System.

Farm projects: permits and engineer exemptions

If a livestock waste control facility includes a dam, holding pond, or lagoon, you must get Chief Water Officer approval before building; a decision is due in 60 days. Farmers and local governments do not need an engineer for earthmoving tied to soil and water conservation when no department permit is required. Some private wells and private septic systems (up to 1,000 gallons per day) are also exempt from engineer design unless the owner requires it, a permit is needed, or it is part of a public water supply.

Farm water transfers and replacement wells

Irrigation and similar districts can transfer water use to other tracts with owner and ditch or canal consent, if use stays within beneficial needs and within the district’s total right. A replacement well must have any required permit, serve the same purpose, and follow timing rules, including decommissioning the old well within 180 days (one year for some municipal wells). Holders of perfected rights can file for free to recognize incidental underground storage. Recognition cannot raise your diversion beyond your original right; your priority date stays the same, you must prove storage, and stored water must be used. Using stored water on new lands needs a public‑interest finding and must not materially harm senior users.

Stronger checks on chemigation practices

The state and natural resources districts now monitor and enforce rules for applying ag chemicals through irrigation systems. They can require records and take enforcement actions to protect water quality. This can mean added compliance steps for chemigation users.

Environmental Trust board and grant changes

The Director of the new department and the Chief Water Officer now serve on the Nebraska Environmental Trust Board. Department applications under the cited water‑management law receive 50 extra priority points when the Legislature has approved $3.3 million transfers for those years and the projects meet listed water‑conservation goals.

More state checks on rural water projects

County boards must verify proper notice to petition signers, the Chief Water Officer, and affected landowners. A county cannot find a project necessary unless the Chief Water Officer approves it. Rural water project plans must be filed with the Chief and the Department, and work cannot start until approval. If the project is a public water system, only the Department reviews it for Safe Drinking Water rules. For consolidation, the county clerk must mail notice at least 7 days before the hearing, send the petition to the Chief, and set a hearing within 30 days.

New Water, Energy, and Environment Department

Nebraska renames and consolidates programs into the Department of Water, Energy, and Environment. Powers that belonged to Natural Resources now move to the Chief Water Officer. The Governor appoints the department Director without a council‑submitted list. Statutes and board memberships are updated to use the new name, including the State Forester’s partners and the GIS Council. Many of these updates take effect July 1, 2025.

New Water, Energy, Environment Department

Beginning July 1, 2025, Nebraska merges Natural Resources and Environment and Energy into the Department of Water, Energy, and Environment. The law creates a Chief Water Officer and division supervisors to run water distribution by priority in two water divisions. The Chief Water Officer replaces the former director in certain court and notice roles. The Public Water and Natural Resources Project Contracting Act now refers to this department. Parts with an emergency clause take effect upon passage.

Pauses and caps in strained basins

If key groundwater controls are adopted, a district can ask the Chief Water Officer to pause new surface water rights. When a basin is found fully appropriated, the Chief must pause new surface and many new well permits, send certified notices, and publish public notices for three weeks. Ten days after the first publication, added limits start, with exceptions like test holes, small or monitoring wells, remediation wells, emergency human‑consumption wells, and replacement wells. When a basin is overappropriated, any existing moratorium stays in place and the same notice and stay process applies. For four years after a status change, new natural‑flow irrigation cannot raise irrigated acres by more than 834 acres per natural resources district per year.

Pipeline siting reports by department

If the Public Service Commission asks, the Department files a technical report on a proposed oil pipeline route. The report can recommend approval, denial, or changes. Agencies may request reimbursement for reasonable costs to prepare the report.

Radioactive waste definitions updated

The law clarifies that high‑level radioactive waste includes irradiated reactor fuel, certain liquid reprocessing wastes, solids made from those wastes, and other highly radioactive material defined by federal rules. The statute also removes the definition of “licensed facility operator” from the Radiation Control Act.

Repeals older water and environment laws

The law removes a listed set of Nebraska statutes tied to these subjects. Those sections are no longer in effect.

State review of irrigation district moves

To merge irrigation districts, boards must file a certified petition with the Chief Water Officer; the Officer must approve or deny it within 20 days. New districts must send their general operation plan within 90 days of making it, and the Officer files a review report. Big power plant projects by irrigation districts must be submitted; the Officer checks costs and feasibility before any election.

State-led process for reclamation districts

Petitions to form a district go to the Chief Water Officer and need signatures from owners of at least 30% of the acreage. Land in the proposed district must have at least $5,720,000 in taxable value. A $2,000 bond is required. The Officer sets a hearing 90–120 days after filing; protests by at least 30% of the acreage are due 30 days before the hearing. The Officer decides organization, appoints the first board within 30 days, can approve plans or order liquidation, and keeps annexation orders on file.

Statewide water data and reporting

Natural resources districts must send all groundwater quality data to the Department. The Department publishes a yearly report showing monitoring coverage and trends to the Legislature. The Department can run water‑data projects for other agencies and charge fees to cover collection, analysis, and publication. The resulting data are public.

Targeted water funds and fee reviews

The Water Resources Cash Fund now only pays for projects in areas with an integrated management plan, and it cannot pay local administrative costs or salaries. A natural resources district that fails to enforce required controls cannot get money from this fund until it complies. The Chief Water Officer reviews approved fee schedules every five years to decide if they go up, down, or end. If a fee schedule is pledged to repay project financing, the review waits until the debt is fully repaid.

Water fund money moved between programs

The state moves $1,000,000 from the Water Resources Cash Fund to the Nitrogen Reduction Incentive Cash Fund between July 19, 2024 and June 30, 2025. Earlier moves shifted $175,000, $425,000, and $500,000 from the Water Sustainability Fund by June 30, 2021, and $475,000 in both 2022 and 2023 to the department cash fund or General Fund. These transfers shift money among state water and environmental accounts.

Water rights decisions and enforcement changes

The Chief Water Officer decides water‑rights claims and can hold hearings, require evidence, and issue orders. The officer may stop water use by claimants until rights are set, and parties can be charged a share of transcript costs. If you help catch and convict someone who breaks the named water rule, the Chief can pay you up to $25 per case. If you hold an approved but unperfected appropriation, you can apply at no cost to add intentional underground water storage to your permit.

Stronger water limits for pesticides

The Department of Water, Energy, and Environment sets pesticide standards for surface water, ground water, and drinking water. These become action levels in state pesticide plans and may be at or below federal Safe Drinking Water Act limits as of January 1, 2021. The Department of Agriculture must work with other state agencies on these plans and is not allowed to hire a hydrologist for that purpose.

Municipal groundwater transfers with state permit

A natural resources district must approve moving groundwater into an affected area for city water service when the public water supplier has a permit from the Chief Water Officer. This gives cities a clear path to secure water, while local supplies may face changes.

Permits to drain large lakes

You must get a permit before draining, lowering, or diverting a natural or perennial lake over 20 acres. A permit is also needed if the lake’s depth or character makes it more valuable for aquaculture, hunting, or other uses than farming the lakebed. The Chief Water Officer reviews applications and returns incomplete ones. The Officer must approve work that causes no injury, does not harm the public, and benefits the state’s economy.

Grants to clear run‑down buildings

The state offers Revitalize Rural Nebraska grants to cities and villages to demolish dilapidated commercial buildings. The site must be city‑owned or controlled, vacant or abandoned at least six months, and not on the National Register of Historic Places. Local matches are required: 10% for villages, 15% for second‑class cities, and 20% for first‑class cities. Priority goes to second‑class cities and villages when money is available.

Nitrogen incentives move to new department

Beginning July 1, 2025, the Department of Water, Energy, and Environment runs the Nitrogen Reduction Incentive Program and its cash fund. The department can set rules to qualify labeled fertilizer products, apply for grants, and credit them to the fund.

Sponsors & Cosponsors

Sponsor

  • Tom Brandt

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 409 • No: 220

legislature vote • 5/1/2025

Final Reading

Yes: 34 • No: 12

legislature vote • 4/22/2025

Vote

Yes: 12 • No: 29 • Other: 8

legislature vote • 4/22/2025

Vote

Yes: 1 • No: 29 • Other: 19

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: 46 • No: 0 • Other: 3

legislature vote • 4/22/2025

Vote

Yes: 34 • No: 8 • Other: 7

legislature vote • 4/2/2025

Vote

Yes: 30 • No: 4 • Other: 15

legislature vote • 4/2/2025

Vote

Yes: 31 • No: 2 • Other: 16

legislature vote • Unknown

Vote

Yes: 12 • No: 29 • Other: 8

legislature vote • Unknown

Vote

Yes: 34 • No: 8 • Other: 7

legislature vote • Unknown

Vote

Yes: 13 • No: 33 • Other: 3

legislature vote • Unknown

Vote

Yes: 30 • No: 4 • Other: 15

legislature vote • Unknown

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote • Unknown

Vote

Yes: 1 • No: 29 • Other: 19

legislature vote • Unknown

Vote

Yes: 46 • No: 0 • Other: 3

Actions Timeline

  1. Approved by Governor on May 6, 2025

    5/6/2025legislature

  2. Presented to Governor on May 1, 2025

    5/1/2025legislature

  3. President/Speaker signed

    5/1/2025legislature

  4. Passed on Final Reading with Emergency Clause 34-12*-3

    5/1/2025legislature

  5. Dispensing of reading at large approved

    5/1/2025legislature

  6. Enrollment and Review ST29 recorded

    4/29/2025legislature

  7. Enrollment and Review ST29 filed

    4/29/2025legislature

  8. Placed on Final Reading with ST29

    4/29/2025legislature

  9. Advanced to Enrollment and Review for Engrossment

    4/22/2025legislature

  10. Cavanaugh, J. AM1133 lost

    4/22/2025legislature

  11. Cavanaugh, J. FA117 lost

    4/22/2025legislature

  12. Cavanaugh, J. FA117 to AM1133 filed

    4/22/2025legislature

  13. Cavanaugh, J. AM1133 filed

    4/22/2025legislature

  14. Storer FA116 adopted

    4/22/2025legislature

  15. Storer FA116 filed

    4/22/2025legislature

  16. Conrad AM1124 adopted

    4/22/2025legislature

  17. Conrad AM1124 filed

    4/22/2025legislature

  18. Brandt AM1084 adopted

    4/22/2025legislature

  19. Brandt AM1035 withdrawn

    4/22/2025legislature

  20. Cavanaugh, M. MO183 failed

    4/22/2025legislature

  21. Cavanaugh, M. MO183 pending

    4/22/2025legislature

  22. Enrollment and Review ER36 adopted

    4/22/2025legislature

  23. Cavanaugh, M. MO183 Bracket until May 5, 2025 filed

    4/17/2025legislature

  24. Brandt AM1084 to ER36 filed

    4/17/2025legislature

  25. Brandt AM1035 to ER36 filed

    4/14/2025legislature

Bill Text

  • Introduced

    1/16/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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