Criteria added to water projects funding proposal

Reports detailing the efficacy of water projects would be required under an amendment adopted April 13 to a bill providing transfers to the Water Resources Cash Fund.

The Water Resources Cash Fund is used by the state Department of Natural Resources primarily to aid water management actions taken by natural resource districts in overappropriated and fully appropriated basins bound by an interstate compact, decree or agreement.

As amended during general file, LB229, introduced by Valentine Sen. Deb Fischer, would require the state Department of Natural Resources to submit an application to the Nebraska Environmental Trust Fund for a three-year $9.9 million grant to aid management actions taken to reduce consumptive uses of water, to enhance stream flows, to recharge groundwater or to support wildlife habitats in any fully appropriated or overappropriated river basin.

The application would be awarded 50 points in the project ranking process if the Legislature provides matching $3.3 million annual appropriations for three years. Funds would be transferred to the Water Resources Cash Fund.

In order to provide $3.3 million to match the trust grant, the bill would provide two appropriations of $600,000 from the general fund to the Water Resources Cash Fund to complement existing appropriations of $2.7 million per year. It also would direct the department to apply to the trust for another three-year grant if certain criteria are met.

Such criteria were the subject of an amendment offered on select file by Schuyler Sen. Chris Langemeier. In order for the department to apply for an additional three-year grant, the amendment would require that:

• projects and activities funded by the first grant contribute to the conservation, enhancement, and restoration of Nebraska’s ground water and surface water resources;
• the Legislature’s Natural Resources Committee submit by Dec. 1, 2012, a report detailing water needs, funding sources and recommendations for legislation; and
• the department provide a report verifying that natural resources districts provided matching funds for projects, 10 percent or less of the matching funds were provided by in-kind contributions and all other projects received matches of at least 40 percent from other funding sources.

Langemeier said the amendment would establish benchmarks and make the department’s application process identical to other applicants’.

Lincoln Sen. Danielle Conrad questioned whether the bill is unconstitutional on the grounds that it would violate the integrity of the trust, which is set forth in the state constitution.

Senators voted 37-1 to adopt Langemeier’s amendment and 34-4 to advance LB229 from select file.