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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1186
Introduced by Cavanaugh, J., 9.
Read first time January 21, 2026
Committee: Revenue
A BILL FOR AN ACT relating to electricity; to amend section 77-6202,1
Revised Statutes Cumulative Supplement, 2024, and section 77-6204,2
Revised Statutes Supplement, 2025; to adopt the Affordable American3
Energy and Jobs Act; to redefine a term and change distribution4
provisions relating to the nameplate capacity tax; and to repeal the5
original sections. 6
Be it enacted by the people of the State of Nebraska,7
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Section 1. Sections 1 to 7 of this act shall be known and may be1
cited as the Affordable American Energy and Jobs Act.2
Sec. 2. The Legislature finds and declares the following:3
(1) Electric rates are rising rapidly across the United States due4
to unprecedented demand for electricity; 5
(2) There is a need for energy generation resources which can be6
quickly developed and can create jobs and economic benefits in local7
communities; 8
(3) Affordable American energy can be quickly developed and can9
provide jobs, tax revenues, and economic benefits across the state;10
(4) Affordable American energy can provide the lowest cost energy11
generation resources to the people of the state; 12
(5) Affordable American energy enhances our national security by13
reducing reliance on foreign fossil fuels; 14
(6) Affordable American energy does not emit carbon dioxide or other15
harmful substances that can contaminate our lifegiving and sustaining16
natural resources; and 17
(7) Use of best practices which provide guidance to local governing18
bodies on issues related to protecting wildlife habitat, bird migration19
corridors, native prairies, cultural heritage sites, and prime20
agricultural areas as well as dealing with economic and social impacts21
can address challenges related to the development of affordable American22
energy. 23
Sec. 3. For purposes of the Affordable American Energy and Jobs24
Act: 25
(1) Affordable American energy means electric energy generated using26
wind, solar, biomass, geothermal, hydropower, or battery energy storage27
systems or other storage devices for later transmission, distribution, or28
use; 29
(2) Battery energy storage system means a resource capable of30
receiving electric energy from the electrical grid or from a generation31
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resource with which the system is associated and storing such electric1
energy for injection into the electrical grid; 2
(3) Department means the Department of Water, Energy, and3
Environment; and 4
(4) Private electric supplier has the same meaning as in section5
70-1001.01. 6
Sec. 4. Before any affordable American energy project and facility7
is constructed by any private electric supplier, such supplier shall8
enter into a power purchase agreement or similar contractual agreement9
with a Nebraska public power district, public power and irrigation10
district, municipality, registered group of municipalities, electric11
cooperative, electric membership association, any other governmental12
entity, or any combination thereof, for purchase of all electric energy13
and electric capacity of such project or facility and shall maintain a14
contractual relationship for purchase of such energy and capacity15
throughout the operational life of the project or facility. Privately16
developed affordable American energy projects or facilities shall not be17
subject to eminent domain by any Nebraska public power district or18
similar entity that supplies electricity to the public in the state of19
Nebraska. 20
Sec. 5. (1) The department shall develop a list of affordable21
American energy best practices based on factual information and data for22
siting affordable American energy projects, including, but not limited23
to, standards or matrices that can be used by county boards and planning24
and zoning officials. 25
(2) In developing the affordable American energy best practices, the26
department shall seek assistance from the Game and Parks Commission, the27
Department of Economic Development, representatives of Nebraska public28
power districts, counties, health departments, energy developers,29
agricultural producers, representatives of conservation organizations,30
and others who have expertise in this area. 31
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(3) The department shall also consider siting criteria developed in1
other states to the extent such criteria provide examples of best2
practices. 3
(4) Affordable American energy best practices shall include, but not4
be limited to, the following: 5
(a) Appropriate setbacks for different types of affordable American6
energy facilities which support the development of such facilities;7
(b) Appropriate notices to neighboring residents and property8
owners; 9
(c) Criteria for protecting wildlife habitat areas, bird migration10
corridors, native prairies, or other environmentally sensitive areas;11
(d) Criteria for protecting culturally sensitive areas;12
(e) Criteria for protecting prime agricultural lands;13
(f) Guidelines for community benefit agreements or other guidelines14
which maximize job creation, with an emphasis on job creation for15
Nebraska residents and union members, and economic benefit to local16
communities and the state; 17
(g) Consideration of benefits to public power districts and their18
customers; 19
(h) Other criteria which enable local officials to respond to valid20
issues and concerns; and 21
(i) Expedited review processes for facilities which fail to meet22
affordable American energy best practices. 23
(5) On or before October 15, 2026, the department shall publish a24
preliminary list of affordable American energy best practices on the25
department's website which shall be open to public comment for thirty26
days. The department may hold one or more public hearings on such27
preliminary list. 28
(6) On or before December 15, 2026, the department shall publish a29
final list of affordable American energy best practices on the30
department's website. 31
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(7) The list of affordable American energy best practices shall not1
be binding on any county board or local zoning authority.2
(8) Any county which adopts the list of affordable American energy3
best practices in its planning and zoning process shall be eligible to4
receive additional revenue under the nameplate capacity tax.5
(9) The department shall use existing staff and other resources of6
the department to develop the list of affordable American energy best7
practices. 8
Sec. 6. There is hereby created the Affordable American Energy Best9
Practices Cash Fund. The fund shall be administered by the department.10
The fund may receive gifts, bequests, grants, or other contributions or11
donations from public or private entities. No General Funds shall be12
transferred to the Affordable American Energy Best Practices Cash Fund.13
The fund shall be used for educational purposes related to the Affordable14
American Energy and Jobs Act and not as incentive payments related to any15
application or project. Any money in the fund available for investment16
shall be invested by the state investment officer pursuant to the17
Nebraska Capital Expansion Act and the Nebraska State Funds Investment18
Act. 19
Sec. 7. The department may adopt and promulgate rules and20
regulations to carry out the Affordable American Energy and Jobs Act.21
Sec. 8. Section 77-6202, Revised Statutes Cumulative Supplement,22
2024, is amended to read: 23
77-6202 For purposes of sections 77-6201 to 77-6204:24
(1) Commissioned means the renewable energy generation facility has25
been in commercial operation for at least twenty-four hours. A renewable26
energy generation facility is not in commercial operation unless the27
renewable energy generation facility is connected to the electrical grid28
or to the end user if the renewable energy generation facility is a29
customer-generator as defined in section 70-2002; 30
(2) Nameplate capacity means the capacity of a renewable energy31
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generation facility to generate electricity as measured in megawatts,1
including fractions of a megawatt. Nameplate capacity shall be determined2
based on the facility's alternating current capacity; and3
(3) Renewable energy generation facility means (a) a facility that4
generates electricity using wind as the fuel source , or (b) a facility5
that generates electricity using solar, biomass, or landfill gas as the6
fuel source if such facility was installed on or after January 1, 2016,7
and has a nameplate capacity of one hundred kilowatts or more , or (c) a8
battery energy storage system as defined in section 3 of this act.9
Sec. 9. Section 77-6204, Revised Statutes Supplement, 2025, is10
amended to read: 11
77-6204 (1) The county treasurer shall distribute all revenue12
received from the Department of Revenue pursuant to section 77-6203 as13
follows: 14
(a) Five percent of such revenue shall be distributed to the15
community college area in which the renewable energy generation facility16
is located; and 17
(b) The remainder of such revenue shall be distributed to local18
taxing entities which, but for such personal property tax exemption,19
would have received distribution of personal property tax revenue from20
depreciable personal property used directly in the generation of21
electricity using wind, solar, biomass, or landfill gas as the fuel22
source. 23
(2) A local taxing entity's status as eligible for distribution24
under subdivision (1)(b) of this section shall not be affected when and25
if the net book value of personal property used directly in the26
generation of electricity using wind, solar, biomass, or landfill gas as27
the fuel source becomes zero. A local taxing entity's status as eligible28
for distribution under such subdivision shall be affected by the disposal29
of all of the exempt depreciable personal property used directly in the30
generation of electricity using wind, solar, biomass, or landfill gas as31
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the fuel source. 1
(3)(a) (3) The distribution to each eligible local taxing entity2
under subdivision (1)(b) of this section shall be calculated by3
determining the amount of taxes that the eligible local taxing entity4
levied during the taxable year and dividing this amount by the total tax5
levied by all of the eligible local taxing entities during the year.6
(b)(i) After the resulting fraction has been determined for each7
eligible local taxing entity, the revenue shall first be distributed to8
all counties that are eligible local taxing entities and that have9
adopted the list of affordable American energy best practices published10
pursuant to subsection (6) of section 5 of this act by multiplying the11
resulting fraction of each such county by one hundred fifty percent and12
then multiplying the resulting amount by the amount of revenue available13
for distribution pursuant to subdivision (1)(b) of this section to14
determine the portion of such revenue due each such county.15
(ii) The revenue distributed to a county under subdivision (3)(b)(i)16
of this section may be used as follows: 17
(A) Fifty percent of the revenue shall be retained by the county and18
used for property tax relief for taxpayers of the county; and19
(B) Fifty percent of the revenue shall be distributed by the county20
to all electric utilities that provide electric service in the county to21
be used to reduce the electric bills of the customers of such utilities22
through energy efficiency, demand side programs or projects, or other23
similar programs as determined by each utility. The distribution under24
this subdivision shall be allocated among the utilities on a pro rata25
basis based on the number of residential customers served in the county26
by each utility. 27
(c) After such distribution, the resulting fraction of each eligible28
local taxing entity that is not a county that has adopted the list of29
affordable American energy best practices Each eligible entity's30
resulting fraction shall then be multiplied by the remaining amount of31
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revenue available for distribution pursuant to subdivision (1)(b) of this1
section to determine the portion of such revenue due each such local2
taxing entity. 3
(4) The Department of Revenue shall not retain any revenue collected4
pursuant to sections 77-6201 to 77-6204 for distribution, use, transfer,5
pledge, or allocation to or from the General Fund. 6
Sec. 10. Original section 77-6202, Revised Statutes Cumulative7
Supplement, 2024, and section 77-6204, Revised Statutes Supplement, 2025,8
are repealed. 9
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