Water Bill Soon to Be Water Law

By Leslie Reed, Omaha World-Herald, Neb.

Apr. 27–LINCOLN — A bill to reduce agricultural water use in the Republican River basin should be law by Tuesday.

Nebraska lawmakers voted 43-0 Thursday to give final approval to Legislative Bill 701, which is intended to help resolve Nebraska’s water war with Kansas over Republican River flows.

Gov. Dave Heineman promised to quickly sign it into law, with a ceremony set for Tuesday.

“LB 701 will help our state make substantial progress in our goal of achieving sustainable water use throughout Nebraska,” Heineman said.

He said the bill addresses short-term problems in the Republican basin while creating a framework that can be used to address long-term water challenges.

But the new law will cost tens of millions of dollars in coming years, and State Sen. Mark Christensen of Imperial called it “a hard one to vote for.”

“But the alternative of a total shut-off was worse,” Christensen said.

LB 701 will impose millions in new taxes and fees on property owners and irrigators who live in the southwestern and south-central Nebraska river basin. Those dollars will lease water from farmers who irrigate from the river, so that the water then can be sent to Kansas.

The state will contribute another $5 million a year in sales and income taxes collected from all Nebraskans. That money will be used to find ways to increase water levels in the river and to remove trees and weeds in or near stream channels so that more water can flow through.

And beginning in 2012, continuing until 2019, Nebraska farmers will be required to pay a three-fifths-cent per bushel tax on corn they sell and a half-cent tax on grain sorghum.

All told, the program could cost Nebraskans about $25 million a year when fully implemented.

The bill was passed on an emergency basis, the money being committed even before the Legislature considers the rest of the state budget.

Legislative Speaker Mike Flood of Norfolk advocated for the bill’s passage. “It shows to Kansas that Nebraska is acting in good faith,” he said.

Supporters hope the bill will help Nebraska meet its agreement with Kansas without devastating the regional farming economy. Over the past four years, Nebraska has consumed more water than allowed under the pact.

The measure also could set a precedent for addressing looming water shortages in other Nebraska river basins.

“It is a sacrifice on the part of farmers, but it gives the basin the tools” needed to manage water use, said Jay Rempe, lobbyist for the Nebraska Farmers Union. “The hope is that, in the long run, we can maintain a viable irrigated economy.”

An official with the Lower Republican Natural Resources District said the economic damage could be far worse without LB 701.

Last week, a University of Nebraska-Lincoln report indicated that southwest and south-central Nebraska could lose 503 jobs and sustain an $81.6 million economic hit if the problem were addressed only by restricting the use of irrigation wells.

Under LB 701, the NRDs will lease water rights from people who irrigate directly from streams and rivers, instead of restricting irrigation wells, said Mike Clements, general manager of the Lower Republican NRD. The NRDs also may drill their own wells at nine locations so they can pump water into the river.

A “huge number” of groundwater irrigation wells would have to be cut back to improve the river levels, Clements said.

There are 1.2 million acres in the Republican River basin irrigated with groundwater wells. In contrast, only 40,000 acres irrigated with river water would be affected when the NRDs lease their water rights, he said.

But Steve Smith, director of the pro-irrigation group WaterClaim, said LB 701 hands the NRDs a “blank check” without addressing problems in Nebraska’s agreement with Kansas or in the computer model used to calculate the amount of water Nebraska gets each year.

Smith estimates that about 20 percent of the water shortage results from irrigation — 15 percent from groundwater users and 5 percent from surface water irrigators.

The remainder occurs because farmers have improved their water conservation techniques so that there is less runoff filling the streams and because of increased vegetation around river and stream beds, Smith said.

“This is a temporary solution that will not solve the problem long term,” he said.

Clements said he did not think the NRDs would use the full taxing authority established under the new law. He estimated that about $8.8 million per year will be needed, while LB 701 grants the NRDs the ability to collect an additional $14 million to $16 million annually in property taxes and fees. He said NRDs will be meeting in May and June to set the new taxes, which likely will become payable next year.

Smith predicted the owner of a 1,000-acre irrigated farm would pay an additional $12,000 per year in taxes and fees; the owner of a 1,000-acre dryland farm would pay $500 more taxes, and the owner of a $100,000 home would pay about $100 more.

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Copyright (c) 2007, Omaha World-Herald, Neb.

Distributed by McClatchy-Tribune Business News.

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