Natural Resources Committee
February 13, 2025
Committee Chair: Sen. Tom Brandt | Bills Heard: 2 | Full Transcript (PDF)
LB317: Merge Department of Natural Resources with Department of Environment and Energy to create Department of Water, Energy, and Environment
Introduced by: Sen. Tom Brandt | Testimony: 4 proponents, 5 opponents, 3 neutral | Read bill text (PDF)
Governor Pillen backs merger of Nebraska's water agencies to tackle nitrate crisis and prepare for industrial boom. LB317 would combine the Department of Natural Resources with the Department of Environment and Energy into a new Department of Water, Energy, and Environment, effective July 1, 2025.
Why it matters: Nebraska faces elevated nitrate levels that have persisted for 60 years and anticipates massive new water demand from hydrogen plants, biofuels, and data centers. The governor argues consolidation will streamline permitting, improve water planning, and reduce administrative costs. But the fiscal note shows only $100,000 in one-time expenses—no long-term savings—raising questions about the real benefits.
What they're saying:
Proponents: - "Water is our lifeblood," Gov. Pillen said, emphasizing the merger creates a foundation for unified water quality and quantity management under one leader. - Director Jesse Bradley noted the merger eliminates duplicative processes and creates better career opportunities for engineers and scientists.
Opponents: - The Nebraska Association of Resources Districts warned the merger distracts DNR from critical interstate water negotiations, particularly the Perkins County Canal. - The Nebraska Farmers Union and irrigation association argued prior mergers failed to deliver promised savings and that separating water and environmental functions provides important checks and balances. - Environmental groups and municipalities raised concerns about rushed implementation without adequate stakeholder input.
By the numbers: DNR has 112 employees; NDEE has 252. The merged agency would become the state's eighth-largest department. The fiscal note was corrected from $200,000 to $100,000 after agencies clarified duplicative submissions.
What's next: No vote was taken. Sen. Brandt indicated amendments are forthcoming to reinstate the professional engineering requirement for the chief water officer and address technical issues with the litter reduction act. The committee will likely revisit the bill after amendments are drafted.
Committee sentiment: Supportive: Sen. Jana Hughes, Sen. Mike Moser Skeptical: Sen. Stan Clouse, Sen. Jane Raybould Unclear: Sen. Danielle Conrad
Sentiment estimated from questions and comments — not stated positions.
LB344: Clarify groundwater allocations for municipalities and large commercial/industrial users in fully and overappropriated areas
Introduced by: Sen. Tom Brandt | Testimony: 2 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Nebraska clarifies water rules for municipalities and big industrial users as 20-year exemption expires. LB344 removes the authority to impose new water allocations on municipalities in fully and overappropriated areas after January 1, 2026, while requiring large industrial users connected to municipal water systems to provide mitigation plans.
Why it matters: A 2005 law gave municipalities a 20-year exemption from water allocations in water-stressed areas. That exemption expires in eight months. Without LB344, municipalities could face new allocation restrictions. The bill also closes a loophole: large industrial users with their own wells must mitigate their water use, but those tapping municipal systems do not—creating an unfair advantage and shifting costs to NRDs and taxpayers.
What they're saying:
Proponents: - Director Bradley: The bill "provides water supply certainty for municipalities" while ensuring "large industries cannot saddle the state and NRDs with the cost of their mitigation requirements." - NRD hydrologist Dr. Brandi Flyr: The bill "provides a level playing field for all commercial or industrial large-scale users regardless of whether they have their own well system or utilize a municipal water system."
By the numbers: Large users are defined as those consuming more than 25 million gallons annually. The bill applies only to fully and overappropriated areas—primarily the Republican River Basin, Upper Niobrara River Basin, and Platte River Basin upstream of Columbus.
What's next: No vote was taken. The committee heard two proponents and one neutral testifier. Sen. Brandt indicated no pending amendments and said the bill is ready to move forward as written.
Committee sentiment: Supportive: Sen. Stan Clouse, Sen. Mike Moser Unclear: Sen. Jane Raybould
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee heard two bills on February 13, 2025. LB317, the major agency merger proposal, generated substantial testimony with 4 proponents, 5 opponents, and 3 neutral testifiers. LB344 received minimal opposition with 2 proponents, 0 opponents, and 1 neutral testifier. No votes were taken on either bill. The committee took a 5-10 minute break between bills. Written testimony was submitted by the League of Women Voters of Nebraska (Claudia Stevenson, Ogallala, Nebraska) in opposition to LB317.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.