Energy (Renewable Energy)

Nebraska's LB 503 creates a program allowing counties to become "American energy friendly counties" to earn additional tax revenue from privately owned renewable energy facilities (like solar and wind installations). To qualify, counties must relax zoning rules - permitting renewable projects by right without discretionary approvals, setting noise limits at 50 decibels, and limiting setbacks (e.g., 300 feet for solar). The Department of Revenue will track designated counties and the annual tax revenue generated from these facilities. This policy directly affects county governments (through new revenue options) and renewable energy developers (by standardizing local permitting requirements).

This bill requires Nebraska electric utilities to provide service to customers who own small on-farm renewable energy systems (≤100 kilowatts) used for agricultural purposes, such as solar or wind installations. It specifically applies to systems that don’t connect to the grid for net metering and must be located on the same property as the farm’s electric account. Utilities must serve these customers but can still require compliance with safety standards, interconnection rules, and standard rates. The bill ensures grid access for qualifying farm systems without altering utility rate structures or creating new financial incentives.

LB 35 amends a regulation governing exemptions for privately developed renewable energy projects in Nebraska. It changes the reference from "7.4" to "791.4" as it existed on January 1, 2025, for facilities like rooftop solar or small wind installations seeking certain regulatory exemptions. This bill directly affects private developers of small-scale renewable energy generation who rely on these exemptions to avoid specific permitting or grid connection requirements. The change is procedural, updating which specific rule applies but not altering the exemption criteria or eligibility itself. The bill remains in the Natural Resources Committee with no further action taken as of the provided date.

LB 450 amends Nebraska's Property Assessed Clean Energy Act to expand how municipalities can finance energy efficiency and renewable energy improvements on properties. It allows cities, counties, or villages to create "clean energy assessment districts" where property owners (including agricultural, commercial, industrial, and single-family residential properties) can pay for upgrades like solar panels, insulation, or backup generators through annual property assessments over the project's lifespan. The bill updates definitions for terms like "energy efficiency improvement" and "grid resiliency improvement" to clarify eligible projects, such as energy-saving windows, smart grid tech, or renewable systems. Note: This bill was amended into LB 288 on June 6, 2025, and is no longer active in its original form.

LB 50 changes how revenue from Nebraska's nameplate capacity tax on renewable energy facilities is distributed. Five percent of the tax revenue will go directly to the community college in the area where the renewable energy facility (like wind or solar farms) is located. The remaining revenue will be distributed to local governments (cities, counties) that would have collected property taxes on the facility if it weren't exempt, calculated based on each government's share of typical property tax revenue. This distribution continues until the facility's equipment is sold or removed, and the tax revenue cannot be redirected to the state General Fund.