Measure to merge two Nebraska natural resource agencies passes hurdle

LINCOLN — A Gov. Jim Pillen-pushed proposal to merge two Nebraska state agencies into a unified department in charge of water resources has moved on to its final lawmaking stage.

On Tuesday, Nebraska lawmakers advanced Legislative Bill 317 on a voice vote. It calls for combining the Department of Natural Resources and the Department of Environment and Energy into the new Department of Water, Energy and Environment.

Introduced by State Sen. Tom Brandt of Plymouth, LB 317 would rename the current DEE director as the new DWEE director. The current DNR director would be renamed “Chief Water Officer” under the new department.

Pillen earlier this year named the merger as one of his legislative priorities, saying his changes would help the state be more proactive instead of reactive with water policy. 

Upon clearing the second round of debate, Pillen on Tuesday praised LB 317 as a “commonsense” piece of legislation that “reduces the scope of state government operations.”

A ‘rebranding’

The bill was selected as a priority bill of the Legislature’s Natural Resources Committee, though it has not been smooth sailing. Some people testifying at a February committee hearing argued the merger could divide rather than increase attention on water. 

Tuesday, questions continued.

State Sen. Machaela Cavanaugh of Omaha said she was not inherently opposed but did not have enough information to determine if the idea was good or not. She said the merger was billed as a means to be more efficient but that she did not see efficiencies spelled out.

“So it’s a little difficult to say, ‘Oh yeah, this makes sense,’” Cavanaugh said.

State Sen. Danielle Conrad of Lincoln said it would be more accurate to call the bill a “rebranding.” She said the bill lacked a clear account of cost savings.

Pillen plan to merge two agencies hits rough waters at legislative hearing

Said State Sen. Wendy DeBoer of Omaha: “Why are we doing this if it doesn’t save money?”

State Sen. Jane Raybould of Lincoln, a supporter, said she was optimistic that cost savings would come as administrative roles are clarified.

An updated financial impact statement attached to the bill said that costs — including a new website, letterhead and placards — could be absorbed into the current budget (an earlier estimate projected a $200,000 cost).

Currently for fiscal year 2024-25, state and federal appropriations for the two departments total about $203 million, according to the impact statement. It said that over time, efficiencies of a merger are expected to result in a savings. 

Amendments

The bill advanced with two amendments, LB 1124 by Conrad and FA 116 by State Sen. Tanya Storer of Whitman. Brandt described them as neutral or friendly. 

State Sen. John Cavanaugh of Omaha used the debate to push lawmakers to reconsider the size of the proposed Perkins County Canal in western Nebraska through two amendments, to the cost savings of $61 million on the first and $150 million on the other.

Both amendments were defeated.