Gov. Heineman Signs Landmark
Water Legislation Into Law

(Lincoln, NE) Gov. Dave Heineman signed LB 701 into law today, which provides for the funding of the state’s water-related priorities and includes the creation of a Water Resources Cash Fund (WRCF).

“LB 701 will help our state make substantial progress in our goal of achieving sustainable water use throughout Nebraska,” Gov. Heineman said. “I want to applaud the work of our State Senators, in particular the leadership of Speaker Mike Flood, Senator Mark Christensen and Senator LeRoy Louden. This bill addresses both our short-term issues in the Republican River Basin and creates a framework for addressing our long-term water challenges.

“By ensuring that our state has the funding necessary to devote to programs that will better manage our water supply, all those involved in supporting this legislation have put the best interests of our state first. This is vital legislation that will help us to become better stewards of our state’s most valuable natural resource.”

Originally introduced by Sen. Mark Christensen of Imperial, LB 701 became the main vehicle for addressing water policy issues during the 2007 session. It contains an emergency clause and takes effect immediately.

The Governor proposed the creation of the WRCF in his state-of-the-state address and outlined a funding proposal in the budget recommendations he submitted to the Legislature. Money dispersed from the fund will be used to help the state continue to comply with interstate compacts and agreements, and reduce consumptive water use in areas declared to be fully or over appropriated.

Ann Bleed, director of the Nebraska Department of Natural Resources (DNR), said, “LB 701 provides both the state and Nebraska’s Natural Resources Districts with the valuable tools needed to help meet our interstate responsibilities and provide some assistance to our affected basins as they struggle to reduce the use of water.”

As created by LB 701, the fund will draw on contributions from several sources, including an annual contribution of $2.7 million in state General Funds from FY 2007-08 through FY 2018-19. An additional $3 million in General Funds will be allocated to DNR for distribution to Natural Resources Districts (NRD’s) for regulatory activities in each year of the next biennium, and the Governor has requested an annual contribution from the Nebraska Environment Trust of $300,000. Any federal funds the state receives for water conservation projects will also be directed to the fund.

In addition, the fund will receive deposits beginning in FY 2011-12 from revenue generated by a three-fifths per cent check-off on corn and grain sorghum, through FY 2018-19. The WRCF will be administered by DNR, with NRD’s contributing a 40 percent match to state funds dispersed through the WRCF.

To address short-term water challenges, the bill provides $3 million for DNR to negotiate a one-year lease of surface water rights in the Bostwick Irrigation District to help the state comply with the Republican River Basin Interstate Compact.

Sen. Christensen said, “I’m glad to see LB 701 pass and I’m thankful for the Governor’s support. The Legislature is finally taking steps that will give Nebraska a fighting chance at compliance with the Republican River Compact, and I am confident that we can make positive steps forward with the local control, oversight and reporting found in this bill.”

The bill also provides $2 million to begin a vegetation removal program in fully and over appropriated areas of the state, and gives bonding authority to NRD’s in fully and over appropriated regions in order to provide funding needed to meet consumptive use targets through 2012. Bonds would be paid off through fees or taxes levied by local NRD’s.

Speaker Mike Flood said, “This bill represents a thoughtful, comprehensive approach to water policy in Nebraska. Difficult problems don’t have easy solutions. I am proud to have worked closely with Senators committed to protecting our state’s resources.”