Natural resources, environmental agency merger advanced

A proposal to combine two state agencies tasked with managing Nebraska’s water resources advanced from general file April 2.

LB317, introduced by Plymouth Sen. Tom Brandt at the request of Gov. Jim Pillen, would merge the state Department of Natural Resources with the state Department of Environment and Energy, which would be renamed the Department of Water, Energy and Environment. The merger would take effect July 1.

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.

The Chief Water Officer would be appointed by the governor and subject to confirmation by the Legislature.

Brandt said the merger would lead to greater collaboration and faster progress on “critical” water infrastructure projects.

“By integrating these efforts under one agency,” he said, “Nebraska will continue to lead in resource management innovation while ensuring we efficiently utilize state and federal funds.”

Although the merger would not cut costs immediately, Brandt said, the new agency could save money in the future by eliminating redundant positions. He said the departments originally expected to incur $100,000 in rebranding expenses but have since determined that those costs could be covered within their current budgets.

A Natural Resources Committee amendment, adopted 30-4, clarifies that the Chief Water Officer would exercise the powers and perform the duties assigned to the Department of Natural Resources prior to July 1, except for those assigned to the new agency’s director.

Brandt said the amendment is intended to ensure that 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 compact.

As introduced, LB317 would have eliminated a requirement that the Department of Natural Resources director — the Chief Water Officer after the merger — be a professional engineer. The amendment would retain that requirement.

Sen. Mike Moser of Columbus supported the bill. Although proponents “didn’t have answers to every question” at the measure’s public hearing, he said, he was encouraged that the plan is to retain key personnel rather than create “turmoil” by downsizing in an effort to reduce costs.

“I think the opportunities for savings are there,” Moser said, “but I think we need to give it time.”

Lincoln Sen. Danielle Conrad opposed LB317. She said the proposed merger is a “performative rebrand of two agencies” that would result in no cost savings and drew opposition from agriculture groups and others that work closely with the current departments.

“There isn’t any sort of analysis or assessment or clarity on what functions will be merged, why and how,” Conrad said.

LB317 advanced to select file on a vote of 31-2.