Legislative Update Two Thirds Through the 2025 Nebraska Legislative Session

The First Regular Session of the 109th Nebraska Legislature convened on January 8, 2025.  As of the publishing of this article, one-third of the Session remains. 

In January, we identified and analyzed 74 legislative bills of interest.  Links to those articles are here (Days 1-5 of this Session) and here (Days 6-10 of this Session).  We provide a chart at the end of this article updating the status of each bill.

Below, we describe bills of particular interest that have passed or are moving toward passage.  First, LB 7 clarifies the Foreign Owned Real Estate National Security Act.  In 2024, the Legislature prohibited any “foreign corporation” or “nonresident alien” from owning Nebraska real estate or leasing it for more than five years.  Neb. Rev. Stat. § 76‑3703(1)(a).  As we explained here, that broad language initially jeopardized American landowners that formed an entity outside of Nebraska.

This session, Baird Holm lobbyists worked with LB 7’s sponsor, Senator Barry DeKay, to protect American entities that own or lease Nebraska real estate.  We prepared language defining “foreign corporation” to exclude American entities and limiting “nonresident alien” to exclude entities altogether.  We also testified in support of those changes at an Agriculture Committee hearing on January 28, 2025.

The Legislature approved LB 7 on final reading on April 3, 2025.  Governor Jim Pillen then signed the bill on April 8, 2025.  LB 7 will take effect three months after the Legislature adjourns.

LB 90 would empower a city of the first class to construct and improve public spaces.  The bill would add sidewalks, public ways and “other public spaces” to streets and alleys as spaces cities can improve upon.  It would also add mechanisms to fund these improvements within the city.

The Urban Affairs Committee held a hearing on the bill on January 14, 2025.  The Committee placed the bill on General File on February 20, 2025.

LB 105 modifies election procedures for public power districts by allowing operating area boundary lines to be coincident with whole or divided voting precincts.  The bill allows greater flexibility in establishing subdivisions and boards of directors when the operating area contains multiple counties.  Further, the bill avoids Secretary of State approval for boundary line changes.

The Natural Resources Committee held a hearing on February 12, 2025.  It placed the bill on General File on February 18, 2025.  The Legislature then approved LB 105 on final reading with an emergency clause on April 3, 2025.  Governor Pillen signed the bill on April 7, 2025.  Because the bill has an emergency clause, it took effect immediately.

LB 164 would adopt the new “Urban Development Incentive Act.”  The bill would create a new grant program to provide funding for affordable commercial spaces in economically distressed areas.  Developers under the Act could use the funds for down payments, job creation, construction, private financing, technical assistance, consultation, sustainability features and training related to the project.  The Banking, Commerce and Insurance Committee held a hearing on the bill on February 25, 2025.  The bill remains in committee.

LB 266 prohibits local governments from adopting ordinances that impose rent controls on private property.  The bill does not, however, apply to an ordinance that increases the supply of affordable housing.  The bill also does not apply to a private property owner who voluntarily and contractually agrees to participate in a program that restricts rent increases.

The Government, Military Affairs and Veterans Affairs Committee held a hearing on January 29, 2025.  It placed the bill on General File on February 18, 2025.  The Legislature then approved LB 266 on final reading on April 3, 2025.  Governor Pillen signed the bill on April 7, 2025.  LB 266 will take effect three months after the Legislature adjourns.

LB 349 would formally recognize and regulate energy storage resources (“ESRs”) in Nebraska law.  The Natural Resources Committee held a hearing on the bill on March 6, 2025.  That same day, Senator Prokop filed AM 412.  That amendment adds more clarifying language regarding ESRs to several statutes. 

Under the amendment, “standalone” ESRs would need to apply for approval from the Nebraska Power Review Board.  ESRs “associated” with a wind or solar farm could operate under the wind or solar farm’s approval.  This would codify a portion of Guidance Document No. 14 from the Nebraska Power Review Board.  The bill would also protect ESRs from eminent domain.

LB 458 would require any entity charged with reviewing permit applications to issue its decision within 60 days of application.  It would also provide appeal standards and automatic permit approval provisions if the reviewing entity failed to issue a final decision within 60 days.  The bill would ultimately create a more efficient permitting application process for various types of developers.  The Revenue Committee held a hearing on the bill on January 30, 2025.  The bill remains in committee.

LB 468 would increase the nameplate capacity tax rate under section 77-6203 of the Nebraska Revised Statutes.  The rate would increase from $3,518 per megawatt of capacity to $6,560 per megawatt of a project’s capacity.  This increase would confer no corresponding benefit to renewable energy developers.

The Revenue Committee held a hearing on the bill on February 5, 2025.  On March 12, 2025, Senator Clements listed the bill as a priority.  The bill remains in committee.

LB 484 would redefine agricultural land and horticultural land under section 77-1359 for purposes of property tax assessment.  As we explained here, Nebraska statutes are in conflict on how to assess an agricultural parcel that contains a wind or solar farm.  This bill would clarify the parcel remains agricultural, as section 77‑6203(4) directs.  The Revenue Committee held a hearing on the bill on March 20, 2025.  The bill remains in committee.

LB 489 would prohibit private developers and other private electric suppliers from constructing or acquiring “any transmission line or related facility” in the state.  That broad language may allow public power districts to bar generation-tie lines that private developers use to serve their renewable energy generation facilities.  The Natural Resources Committee held a hearing on the bill on February 5, 2025.  The bill remains in committee.

LB 501 would provide new standards for assessing damaged real property for tax purposes.  The bill would add new definitions and clarify existing provisions to alter the tax assessment process for damaged property.

The Revenue Committee held a hearing on February 5, 2025.  It placed the bill on General File on February 11, 2025.  The Legislature then approved LB 501 with an emergency clause on final reading on April 3, 2025.  Governor Pillen signed the bill on April 7, 2025.  Because the bill contains an emergency clause, it took effect immediately.

LB 503 would incentivize Nebraska counties to become “American energy friendly counties.”  Such counties would need to adopt favorable zoning regulations in exchange for additional nameplate capacity revenue.  Renewable energy projects in those American energy friendly counties would pay a nameplate capacity tax of $5,277 (rather than $3,518 under current law) per megawatt of capacity.  The Revenue Committee held a hearing on the bill on February 19, 2025.  The bill remains in committee.

LB 663 would increase the efficiency of conditional and special use permitting at the county level.  Counties would need to rely on zoning regulations and not federal, state or local permitting.  The bill would also require counties to determine if applications are complete within 30 days and decide on permits within 90 days.  The Government, Military and Veterans Affairs Committee held a hearing on the bill on February 28, 2025.  The bill remains in committee.

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