Municipal natural gas sales authorized

Certain Nebraska cities and villages may make tax-exempt natural gas sales to industrial-scale users under a measure approved by lawmakers Feb. 27.

LB548, introduced last session by Central City Sen. Loren Lippincott, allows first or second class cities or villages that own natural gas systems to enter into a contract to sell natural gas to certain large industrial consumers whose facilities are located in Nebraska and within 100 miles of the city or village.

The industrial consumer may not be a consumer of any competitive natural gas provider and may not have received gas service from any investor-owned or governmentally owned gas system within five years prior to the contract’s execution.

Before entering into a contract with an industrial consumer, the governing body of a city or village must adopt a resolution stating that the contract does not pose an unreasonable financial risk to the city or village or its taxpayers.

The bill allows parties to enter into a contract on or before Jan. 1, 2027.

LB548 passed on a vote of 47-1.