Governor Jim Pillen appeared before the Natural Resources Committee on behalf of LB317, a proposal to merge the Nebraska Department of Natural Resources (DNR) with the Department of Environment and Energy (NDEE) to create a Department of Water, Energy and Environment (DWE). The governor described the merger as a way to “double down” on water protection, improve outreach and reduce duplicative administrative costs while strengthening long‑term water planning.

The bill, introduced in committee by Senator Tom Brandt, attracted lengthy testimony both for and against. Proponents said consolidating water quantity and quality functions under one leadership would simplify permitting, improve coordination with Natural Resources Districts (NRDs) and create a single point of contact for water infrastructure and educational programs. Governor Pillen said the change would help Nebraska respond to industrial water demand and persistent nitrate concerns, calling water “our lifeblood.” Jesse Bradley, interim director of both departments, told the committee the measure is intended to “improve coordination among state and local water managers” and to require a Chief Water Officer to maintain DNR’s water authorities (Bradley said an amendment will reinstate a professional engineering requirement for that post).

Why it matters: Nebraska’s water policy touches irrigation, municipal supplies, industry and environmental protection. Testimony noted an estimated $2.3 billion in clean‑water and drinking‑water requests across the state and long‑standing nitrate and aquifer concerns. Proponents argued unified leadership will accelerate projects and make state funding and technical assistance easier to access. Opponents countered that merging agencies risks diverting DNR technical capacity away from signature projects and interstate obligations and could produce few near‑term savings.

Supporters’ case

Governor Pillen urged the committee to approve LB317, saying the merger will create “better career opportunities for scientists, engineers, and natural resource professionals” and reduce regulatory red tape. He announced a water quality and quantity task force to develop proactive solutions for issues such as nitrate management and to prepare the state for increasing industrial water demand from hydrogen, biofuels and data centers. Jesse Bradley described specific statutory cleanups in the bill — including repeal of obsolete acts and aligning Water Sustainability Fund award terms to ten years — and said the bill is intended primarily to consolidate names, titles and some outdated provisions while preserving existing authorities.

Budget staff provided a fiscal update: Jacob Leaver of the Governor’s budget office said the one‑time cost for the merger is $100,000 (the agencies had initially submitted duplicated fiscal estimates). Senator Brandt and Bradley also told the committee that current staff totals are roughly 112 employees at DNR and 252 at NDEE and that the combined agency would become the state’s eighth‑largest department.

Opposition and concerns

Representatives of NRDs, irrigation interests, Farm Bureau and conservation groups voiced reservations. Jasper Fanning of the Upper Republican NRD, speaking for the Nebraska Association of Resources Districts, said DNR staff are currently focused on “the most important water issue and project ever” for Nebraska — the Perkins County Canal and South Platte Compact matters — and warned that shifting DNR attention to broader regulatory duties could hinder work on interstate litigation and compacts. He asked that stakeholders be included in designing any reorganization rather than proceeding with a full merger immediately.

Leroy Sievers, representing the Nebraska State Irrigation Association, and others with long state service argued that past mergers produced few savings, created bureaucratic barriers and risked losing technical staff. Multiple witnesses, including Devin Brundage (Central Nebraska Public Power & Irrigation District) and representatives of irrigation and power districts, urged restoring a statutory requirement that the principal water official be a licensed professional engineer; Central Nebraska emphasized the importance of engineering expertise for dam safety and other technical functions.

Environmental and civic groups raised operational concerns. Kurt Boatner (former Environmental Quality Council vice chair) objected to language that would change the EQC’s role in vetting agency directors; he said eliminating the council’s long‑standing role in submitting director candidates would remove expert oversight. The Sierra Club and Nebraska Farmers Union said the merger could create short‑term dysfunction and urged a slower, stakeholder‑driven process. The Nature Conservancy registered neutral concerns and recommended a broader stakeholder process to define leadership qualifications and the office’s scope.

Clarifications and amendments

Committee members pressed for details on projected savings, staffing and the leadership model. Bradley and budget staff said they could not yet provide precise long‑term savings figures but expected some operational efficiencies in later biennia; the immediate fiscal impact is limited to one‑time merger costs. Senator Brandt said an amendment will be offered to reinstate the professional engineering requirement for the Chief Water Officer or similar post; Bradley said he understands that amendment is forthcoming. Bradley also said the bill mainly renames many statutory references and removes outdated or duplicative sections (for example, the Nebraska Conservation Corporation Act and obsolete low‑level radioactive waste statutes).

What did not happen

The hearing was informational; the committee did not vote on LB317 at this session. No formal committee action or final outcome was recorded in the hearing transcript.

Next steps

Committee members asked for follow‑up details on fiscal projections, vacancy counts, and how the merger would affect ongoing interstate and NRD partnerships. Several witnesses urged additional stakeholder negotiation before moving to final passage. Senator Brandt indicated amendments would be circulated to address engineering‑credential requirements and a few statutory cleanups; the committee will consider the bill and any amendments at a later date.

Ending

The LB317 hearing produced robust support for the bill’s water‑management goals and significant skepticism about the timing and details of a wholesale agency merger. Supporters emphasized potential operational and planning benefits, while NRDs, irrigation interests and several conservation groups pressed for preserved technical capacity, statutory clarity and a stakeholder process before structural consolidation could proceed.