ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025
COMMITTEE STATEMENT
LB548
Hearing Date: Wednesday February 19, 2025
Committee On: Natural Resources
Introducer: Lippincott
One Liner: Provide for political subdivisions that own or operate natural gas systems to contract with industrial
consumers of natural gas
Roll Call Vote - Final Committee Action:
Advanced to General File with amendment(s)
Vote Results:
Aye: 6 Senators Brandt, Clouse, DeKay, Hughes, Juarez, Raybould
Nay: 2 Senators Moser, Conrad
Absent:
Present Not Voting:
Testimony:
Proponents: Representing:
Senator Loren Lippincott Opening Presenter
Chris Anderson City Administer. Central City, NE
Lash Chaffin League of Nebraska Municipalities
Hannes Zetzsche Central City
Opponents: Representing:
Jill Becker Black Hills Energy
Neutral: Representing:
* ADA Accommodation Written Testimony
Summary of purpose and/or changes:
LB 548 allows any political subdivision that owns and operates a natural gas distribution system to enter into a
contract for a term of at least two years to provide natural gas price discounts to large industrial consumers not
currently served by another public or investor-owned utility if the industrial consumer uses at least three billion British
thermal units of natural gas per day on an average day. LB 548 provides that the location of the industrial customer's
facility shall be considered a part of the political subdivision's natural gas distribution system's service area for
purposes of the contract.
Explanation of amendments:
The Committee adopted AM 664 to LB 548 which is a white copy amendment that strikes and replaces the original
section. AM664 retains the original provisions of LB 548, but clarifies the purpose of the bill is to allow the qualified
political subdivision to engage in tax-exempt natural gas supply transactions described in section 148(b)(4) of the
Committee Statement: LB548
Natural Resources Committee
Page 1 638858aea358b22cc89f04d1eaca17bb Internal Revenue code and 26 C.F.R. 1.148-1(e)(2)(iii) that benefit the political subdivision and its taxpayers as well
as the other party; that the industrial facility must be within two hundred miles of the political subdivision; that the
facility shall also be considered within the service area of such political subdivision's natural gas distribution system
only during the term of the contract; and that the contract shall not pose an unreasonable financial risk to the political
subdivision or it's taxpayers, as determined by the political subdivision's governing board.
Tom Brandt, Chairperson
Committee Statement: LB548
Natural Resources Committee
Page 2 638858aea358b22cc89f04d1eaca17bb