Bill
LB 503
Nebraska counties can seek “American energy friendly” status, boosting local revenue by 1.5x the nameplate tax on privately developed renewables, with updated zoning/permitting.
LB503 — Summary
Overview
- Purpose: Create a pathway for Nebraska counties to become “American energy friendly counties” and adjust tax and regulatory treatment for privately developed renewable energy generation facilities within those counties. The bill aims to broaden the local tax base, support rural economic development, and reduce residents’ property taxes by expanding local revenue from privately developed renewables.
- Status: Notice of hearing set for February 19, 2025.
- Introduced: January 21, 2025. Principal Introducer: Senator Carolyn Bosn. Committees: Revenue.
Key Provisions
- Designation option: Every county may become an American energy friendly county by either:
- Passing a county board resolution to apply for designation, or
- Submitting the question to a vote of registered county voters (via special election or in conjunction with statewide elections).
- Application process: If designated, the Nebraska Department of Revenue (the Department) designates the county within 30 days of receiving the application. The Department maintains a public list of applying counties, designated counties, and the total nameplate capacity tax generated under the designation.
- Tax impact: For privately developed renewable energy generation facilities operating in an American energy friendly county, the nameplate capacity tax is set at 1.5 times the rate charged to other privately developed renewable energy facilities.
- Qualification and compliance: To qualify, county regulations (including zoning) must permit privately developed renewable energy facilities by right in all zones that allow discretionary approvals. The designation imposes specific standards related to permitting, insurance, engineering plans, and consistency with the statute.
- Zoning and siting standards:
- Sound: Counties cannot require noise levels from such facilities to be quieter than 50 decibels (A-weighted) during a 24-hour period; waivers may be allowed if a landowner signs a written waiver.
- Setbacks: Setback rules may allow up to three times a wind turbine’s total height or up to 300 feet for solar facilities from nonparticipating dwelling units, and up to 1.1 times a wind turbine height or 100 feet from land lines/rights-of-way; waivers are permitted with landowner consent. Setbacks are measured from the base of the equipment.
- Buildings and permits: Facilities may require building or zoning permits as discretionary uses, with plans and engineer-stamped documentation, insurance, and other regulatory requirements as allowed by the county.
- Noncompliance: If designated and later found noncompliant, a county may lose its designation if it does not cure the issue within 30 days after notice.
Who is Affected
- Counties: Ability to pursue designation and, if designated, receive increased local tax revenue from privately developed renewable energy facilities.
- Owners of privately developed renewable energy generation facilities: Subject to the 1.5x nameplate capacity tax within American energy friendly counties.
- Local landowners and residents: Impacted by amended zoning, permitting processes, sound/ setback standards, and potential property tax implications.
Procedural/Timeline Notes
- The bill specifies the process for designation, the timing of designation by the Department, and the effective mechanics for ballot questions and implementation.
- The hearing date is February 19, 2025, before the Revenue Committee.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
