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LEGISLATIVE BILL 1261
Approved by the Governor April 14, 2026
Introduced by DeKay, 40; at the request of the Governor; Holdcroft, 36; Meyer,
F., 41.
A BILL FOR AN ACT relating to electrical energy; to amend section 70-670,
Reissue Revised Statutes of Nebraska; to prohibit the use of eminent
domain to acquire certain privately owned electric generation facilities;
and to repeal the original section.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 70-670, Reissue Revised Statutes of Nebraska, is
amended to read:
70-670 (1) In addition to any other rights and powers conferred upon any
district organized under or subject to Chapter 70, article 6, each such
district shall have and exercise the power of eminent domain to acquire from
any person, firm, association, or private corporation any and all property
owned, used, or operated, or useful for operation, in the generation,
transmission, or distribution of electrical energy, including an existing
electric utility system or any part thereof. The procedure to condemn property
shall be exercised in the manner set forth in Chapter 76, article 7.
(2) In the case of the acquisition through the exercise of the power of
eminent domain of an existing electric utility system or part thereof, the
Attorney General shall, upon request of any district, represent such district
in the institution and prosecution of condemnation proceedings. After
acquisition of an existing electric utility system through the exercise of the
power of eminent domain, the district shall reimburse the state for all costs
and expenses incurred in the condemnation proceedings by the Attorney General.
(3) A district may agree to limit its exercise of the power of eminent
domain to acquire a project which is a renewable energy generation facility
producing electricity with wind and any related facilities.
(4) No property owned, used, or operated as part of a privately developed
renewable energy generation facility meeting the requirements of section
70-1014.02 shall be subject to eminent domain by any consumer-owned electric
supplier operating in the State of Nebraska.
(5)(a) Notwithstanding any other provision of law to the contrary, no
consumer-owned utility providing wholesale or retail electric service in
Nebraska shall exercise the power of eminent domain to acquire a privately
owned electric generation facility that is constructed to provide electric
service to an industrial customer at a single site with new electric load
greater than one thousand megawatts, provided that:
(i) The privately owned electric generation facility is co-located on or
adjacent to the industrial customer, has an electrically equivalent point of
grid interconnection to the industrial customer, and has received approval of
the Nebraska Power Review Board;
(ii) The privately owned electric supplier and consumer-owned utility
providing retail electric service within the service area where the industrial
customer is located, and where applicable, the consumer-owned wholesale power
supplier responsible for a regional transmission organization's resource
adequacy requirements for the consumer-owned retail utility, and the applicable
transmission owner for the relevant service area, have executed a long-term
power purchase agreement, lease, joint venture, or other commercial contractual
structure that (A) preserves the exclusive right of the consumer-owned utility
to serve retail customers in the relevant service area and, where applicable,
the contractual right of the consumer-owned wholesale power supplier to supply
the consumer-owned retail utility, (B) provides commercial benefits acceptable
to the consumer-owned utility or utilities, (C) prohibits resale of electricity
by the industrial customer, and (D) includes a contractual waiver of the
authority to exercise eminent domain to acquire the subject generation assets
for the duration of the contract with the consumer-owned utility or utilities.
Any contract entered into under this subdivision must be approved by the
governing body of the consumer-owned utility or utilities;
(iii) The industrial customer shall pay all costs, fees, congestion fees,
and electric system upgrade costs of any kind incurred by any consumer-owned
utility providing wholesale or retail electric service in Nebraska as a result
of the industrial customer's project; and
(iv) The privately owned electric generation facility shall only be used
to serve the industrial customer, unless waived by the consumer-owned utility
or utilities with which the privately owned electric generation facility has
contracted under the provisions of this subsection. Any such waiver must be
approved by the governing body of such consumer-owned utility or utilities.
(b) For purposes of this subsection, consumer-owned utility means a public
power district, a public power and irrigation district, a municipality, a
registered group of municipalities, an electric cooperative, an electric
membership association, any other governmental entity, or any combination
thereof.
(c) This subsection shall apply to contracts to serve new industrial loads
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entered into with consumer-owned utilities on or before December 31, 2031.
Sec. 2. Original section 70-670, Reissue Revised Statutes of Nebraska, is
repealed.
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