Nebraska Water Infrastructure Funding and Financing Programs Jesse Bradley – Assistant Director

Nebraska Department of Natural Resources (NeDNR) Director appointed by the Governor Administers a variety of funds Agency Funds NRC Funds Provides administrative staff support to the Natural Resources Commission (NRC) NRC budget is part of the NeDNR budget

Natural Resources Commission (NRC) 27 Members 13 elected by NRD board members residing in a particular river basin to represent that basin 14 appointed by the Governor to represent various interest groups set out in statute https://nrc.nebraska.gov

Funds Administered by NeDNR: NeDNR Director Water Resources Cash Fund Critical Infrastructure Facilities Cash Fund Funds obligated by NRC: Small Watershed Flood Control Resources Development Water Sustainability Natural Resources Water Quality Nebraska Soil and Water Conservation

Water Resources Cash Fund Administering Agency: NeDNR Fund Purpose: Reduce consumptive use, enhance streamflow, increase groundwater recharge Funding Type: Cost-share grant (60% state/40% NRD) Revenue Source: General fund and Nebraska Environmental Trust (NET) lottery proceeds ($3.3M general fund/$3.3M NET) Example(s): Canal rehabilitation, groundwater recharge diversions, water right buyouts

Critical Infrastructure Facilities Cash Fund Fund Oversight: NeDNR Fund Purpose: Offset NRD costs related to soil and water improvements that protect and enhance critical infrastructure including military installations, transportation routes and water treatment facilities Funding Type: Grant (no cost share) Revenue Source: State general fund. One-time funding of $13.7 M Project Example(s): Levee construction and rehabilitation

Small Watersheds Flood Control Fund Fund Oversight: NRC Fund Purpose: To purchase land rights related to the construction of PL-566 watershed structures Funding Type: Revolving Fund (proceeds of any land sales return to this fund) Revenue Source: State General Fund. All funding was removed in 2018. Prior to that it maintained a minimum balance of $1 million. Project Example(s): Over 1,000 small watershed flood reduction structures have been built.

Resources Development Fund Fund Oversight: NRC Fund Purpose: Flood reduction, aquifer recharge, wildlife and water-related infrastructure improvements Funding Type: Grant or loan (Cost share required, % varies by project) Revenue Source: State general fund. No longer funded. Received $3.14 M annually. Project Example(s): Environmental restoration, flood reduction, public access to water, aquifer recharge, and soil and erosion reduction

Water Sustainability Fund Fund Oversight: NRC Fund Purpose: Variety of purposes set out in statute relating to water Funding Type: Grants or loans (Cost share required, 60% state/40% sponsor) Revenue Source: State general fund. Receives $11 M annually. Project Example: Groundwater aquifer mapping, recharge, management, modeling, supply and quality enhancements, surface water delivery efficiency improvements, irrigation water use efficiency improvements and buyouts, municipal uses, water quality improvement projects

Natural Resources Water Quality Fund Fund Oversight: NRC Fund Purpose: Provide state funds to NRDs for water quality programs Funding Type: Distributions twice a year to NRDs Revenue Source: Cash fund comprised of receipts of portions of certain fees levied by the Nebraska Department of Agriculture for pesticide registration and applicator licenses. Currently $1 M. Project Example(s): Education and information programs, administration of groundwater management areas

Nebraska Soil and Water Conservation Fund Fund Oversight: NRC Fund Purpose: Provide financial assistance to private landowners for installation of soil and water conservation practices Funding Type: Reimbursement to private landowners of up to 75% cost share Revenue Source: State General Fund, currently $1.7 M Project Example(s): Terraces, windbreaks, irrigation water management

Natural Resources Districts Locally elected boards Authorities include: erosion prevention & control flood prevention & control soil conservation water supply for any beneficial uses development, management, utilization, & conservation of groundwater & surface water pollution control solid waste disposal & drainage drainage improvement & channel rectification development & management of fish & wildlife habitat development & management of recreational & park facilities forestry and range management

NRD Funding: Property tax levies General levy Groundwater levy Bonding (specific to PMRNRD for flood control) Occupation Tax

NRD Boards Administering Agency: NRD Board Fund Purpose: Support for implementing various authorities/ Groundwater management Funding Type: Property tax levies (up to 4.5 cents per $100 of valuation and 1 cent per $100 of valuation). Average for FY 18-19 (2.23 cents and 0.61 cents) for a total of $~75M system wide. * Total NRD disbursements were ~$234 M Revenue Source: Property taxes within the district Example(s): Support water management, soil conservation, forestry and range management, flood protection, and rural water operations

NRD Boards Administering Agency: NRD Board Fund Purpose: Acquisition of surface water or ground water rights, acquisition of canals and other works, including reservoirs, vegetation management, including, and augmentation of river flows. Bonding authority for flood protection and water quality enhancement (PMRNRD) Funding Type: Occupation tax (up to $10 per irrigated acre) and bonding authority (currently @ 67 cents per $100 valuation) Revenue Source: Taxes on irrigation users ($12.2 M) and on residents of the PMRNRD ($4.5 M) Example(s): N-CORPE and Rock Creek augmentation projects and flood control structures in the PMRNRD

Nebraska Environmental Trust Administering Agency: Nebraska Environmental Trust Board (Governor Appointed) Fund Purpose: Conserve, enhance, and restore natural environments in Nebraska Funding Type: Competitive grants (no cost-share required but bonus provided) Revenue Source: Lottery proceeds (~$20 M annually) Example(s): Habitat creation (wetland restoration), hydrologic studies and research, recycling, environmental easements, EPA 319 program projects. NeDNR ($3.3 M annually)

NDEQ - Responsibilities for Water Quality Land Quality Air Quality Budget – Source of Funds: 44.2% Federal Grants 50.3% Fees/Cash 5.5% State Tax Dollars Spent on: 48.3% Aid 51.7% Operations

INFRASTRUCTURE Finance CW State Revolving Fund DW State Revolving Fund

Repaid SRF Loan money becomes “state” money Wastewater and Drinking Water Construction Loans Subsidies: Loan Forgiveness Small Town Grant Planning Grant

Watershed Improvement – Federal Clean Water Act Section 319 (nonpoint source) grants used with State funds detailed earlier as match – 60% federal, 40% non-federal Nebraska Soil and Water Conservation Funds Nebraska Environmental Trust Nebraska Sustainability Funds Local Natural Resources Districts (NRDs) funds

301 Centennial Mall South, 4th Floor PO Box 94676 Lincoln, NE 68509-4676 402-471-2363