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Western Meadowlark by Phil Swanson

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ASO Legislative Update for February 2026

The Nebraska State Capitol Building on a sunny day

To learn more about a bill or submit written comments, go to the Nebraska Legislature's website and search by the bill's document number (i.e., 1072 for LB1072.)

The second session of the 109th Nebraska Legislative began on January 7 and is a 60-day session ending on April 17, 2026. The following are bills and resolutions that have been introduced:

LR1072: Governor’s 2026 budget adjustment bill for biennium 2025-2027 budget. Included is a proposal to transfer about $40 million from the Nebraska Environmental Trust (NET) to the Water Recreation Enhancement Fund and the Water Resources Cash Fund administered by the Department of Water, Energy, and Environment.  A hearing was held on Feb. 2, 2026, and a good rationale to support opposition would be as described in LR298CA.

LR298CA: This is a proposed constitutional amendment to preserve the intent and viability of the Nebraska Environmental Trust by requiring that all grants be awarded through a competitive process and by limiting state agencies’ use of the Nebraska Environmental Trust Fund.  State agencies will be able to access Trust funds only if they provide a grant request that is granted in a competitive process, with evidence of a match for those funds of 50% from a political subdivision, the federal government, or private donors.  This would prevent future fund transfers without applying for them and going through the competitive grant process.

LB823: Proposes to establish clear definitions that distinguish between “controlled burning” and “prescribed burning” as two distinct land management practices, and by mandating the tracking of approximate acreage during the permit and planning processes.

LB897: Allows municipalities and rural and suburban fire protection districts to charge a fee for the cost of extinguishing a fire to individuals who violate burn permit requirements.   It also changes the penalty for violating burn permit requirements from a Class IV misdemeanor to a Class III misdemeanor.

LB916: This bill gives authority to the Nebraska Oil and Gas Commission to approve applications for the construction of C02 pipelines and prohibits the use of eminent domain for the purposes of acquiring right-of-way, constructing C02 pipelines, and operating C02 pipelines.  The bill also requires CO2 storage operators to obtain the consent of all persons who own reservoir estates within the storage reservoir.

LB1026: This bill would prohibit retirement, shutdown, cessation of operation, and alteration of operation of certain energy generation facilities.

LB1028: Creates standards for entities classified as large, concentrated animal feeding operations who apply large amounts of animal waste for fertilization purposes, in order to protect Nebraska's water resources, both underground and above ground, from contamination entering water resources.

The following are carryover bills from 2025:

LB 674: This bill would transfer $250 million from the Perkins County Canal Project Fund to the Water Sustainability Fund, transfer $250 million to the General Fund, and change the language to develop the Perkins County Canal Project from “shall” to “may”. 

LR158: Conduct an interim study to determine the feasibility of the State of Nebraska assuming the administration of the designated Wild and Scenic River stretch of the Niobrara River from Valentine Neb., to Newport, Neb. Input regarding what should be included in the study can be provided to Mr. Tom Brandt, Chairperson of the Natural Resources Committee of the Nebraska legislature.  A public hearing scheduled for September 2025 was canceled and it was not reintroduced this session.

LB36 (Omnibus Bill): Includes a provision that creates the Safe Battery Collection and Recycling Act, which requires Battery Stewardship Organizations to provide for the collection of all covered batteries on a free, continuous, convenient, visible, and accessible basis. Covered batteries are portable and medium format batteries such as those used in power tools.

Also includes provisions of LB344 to modify groundwater allocations for municipalities in fully or over appropriated areas.  Beginning Jan. 1, 2026, any new or expanded commercial or industrial user served by a municipal water source that uses more than 25 million gallons of water annually is subject to the controls of an integrated management plan, rule or order and is required to provide a mitigation report to the applicable natural resources district.

LB36 also includes amended provisions of LB590 authorizing the state Department of Transportation to establish a mitigation bank or in-lieu-fee program to offset the environmental effects of transportation projects, including impacts to threatened or endangered species. The measure requires any state agency or other entity that owns a mitigation bank to pay a sum in lieu of ad valorem taxes lost by the county. Passed and Signed

LB260: Reappropriates funds including lowering the Nebraska Game and Parks Commission’s General Fund (used for administration and operation) budget by $5 million. Passed and Signed

LB317: Merged the Department of Natural Resources with the Department of Environment and Energy to form the Department of Water, Energy, and Environment. The director of the Department of Environment and Energy would lead the new agency. The Department of Natural Resources director would become the Chief Water Officer, who would head the new Division of Water and report directly to the DWEE director. An amendment to the original proposal will ensure the merger does not affect a 1923 interstate compact. In 2022, the Legislature authorized the Department of Natural Resources to build the Perkins County Canal Project to divert South Platte River water from Colorado to Nebraska under the terms of the 1923 compact. Passed and Signed

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