Agency merger proposal amended, advanced

A proposal to combine two state agencies tasked with managing Nebraska’s water resources advanced to the final round of debate April 22 after lawmakers amended it to retain provisions governing the disposal of low-level radioactive waste.

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 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.

On select file, Brandt introduced an amendment, adopted 36-0, that he said would more clearly outline the responsibilities of the DWEE director. The amendment also would allow professional geologists, rather than only professional engineers, to serve as Chief Water Officer.

As introduced, LB317 would repeal a 1986 law regulating the commercial disposal of low-level radioactive waste in Nebraska. Brandt said eliminating the “obsolete” law could help prevent future attempts to site waste disposal facilities in the state.

Sen. Danielle Conrad of Lincoln introduced an amendment, adopted 34-8, to retain the law. She said the change would give stakeholders time to determine whether preserving the “carefully negotiated statutory framework” might better serve the state’s interests.

LB317 also would limit the term of agreements that allocate funds from the Water Sustainability Fund to no more than 10 years.

Whitman Sen. Tanya Storer introduced an amendment, adopted 46-0, to strike the proposed limit, saying it could unintentionally “hobble” certain projects.

Sen. John Cavanaugh of Omaha introduced an amendment to modify state law authorizing the state Department of Natural Resources to build the Perkins County Canal Project, which is intended to divert South Platte River water from Colorado to Nebraska under the terms of a 1923 compact.

Cavanaugh said the amendment would authorize the department to build a 500 cubic feet per second canal, as opposed to the currently planned 1,000 cubic feet per second canal.

The amendment also would require the state treasurer to transfer $150 million from the project’s fund to the state General Fund. A subsequent floor amendment offered by Cavanaugh instead would transfer $61 million, the amount he said would be saved by building the smaller canal.

Cavanaugh said the smaller project would better align with the letter of the compact, putting Nebraska in a stronger position in any future litigation with Colorado.

Reducing the project’s cost also would allow lawmakers to fill the current budget gap without relying on other proposals introduced this session that would scale back tax incentives, impose taxes on certain goods and services or reduce state contributions to the school employees retirement system, he said.

Cavanaugh’s underlying amendment failed on a vote of 13-33. The floor amendment failed on a 12-29 vote.

Senators then advanced LB317 to final reading by voice vote.