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LB 129

Prohibit restrictions on the provision of certain energy services

109th Legislature (2025-2026) Introduced by Barry DeKay and 1 co-sponsor

LB129 prevents counties and cities from banning or restricting energy sources sold by utilities or retailers, preserving consumer choice and access to diverse fuels.

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Bill Summary · LB 129

Summary of Nebraska LB129 (2025)

Overview

LB129, introduced January 10, 2025, and scheduled for a hearing on January 29, 2025, seeks to protect consumer choice in energy sources at the point of sale by barring certain local restrictions. The bill amends Nebraska statute 13-407 and repeals the original section, redefining “energy source” and limiting the ability of counties, cities, villages, or other political subdivisions to restrict how energy is provided to customers by specific energy providers.

Purpose and Intent

  • The principal aim is to preserve consumer market choice for the energy source used to power an engine, by preventing extreme local restrictions on energy options offered by retail marketers.
  • The bill emphasizes that its protections do not extend to the placement of production facilities.
  • The accompanying Statement of Intent highlights safeguarding consumer access to preferred fuels or power sources purchased from retail marketers.

Key Provisions

  • Definition of “Energy Source” (Sec. 1): Broadly defines energy source to include fuels and power sources such as aviation fuel, biofuels, renewable diesel, electricity (including EV charging), gasoline (including ethanol blends), various gas distillates, hydrogen, LPG, propane, natural gas, and other blended fuels.
  • Prohibition on Local Restrictions (Sec. 1): Prohibits counties, cities, villages, or other political subdivisions from enacting or enforcing ordinances, codes, resolutions, rules, regulations, or policies that restrict or prohibit any energy source that may be used, delivered, converted, or supplied by:
    • a natural gas utility,
    • a natural gas transmission company,
    • a retail marketer or dispenser of propane, or
    • a retail marketer of any other energy source.
  • Exceptions (Sec. 1): The prohibition does not apply to:
    • ordinances governing a natural gas utility owned or operated by a city or village, or
    • regulations of a retail marketer or dispenser of propane.
  • Original Section Repeal (Sec. 2): Repeals the prior version of 13-407 and replaces it with the amended text.

Affected Parties and Impacts

  • Affected Entities: Local governments (counties, municipalities, and villages) and other political subdivisions.
  • Non-Affected/Exemptions: Municipal-owned natural gas utilities and propane marketers may retain regulatory authority under the specified exceptions.
  • Impacts: Could limit local bans or restrictions on specific energy sources within service areas of the listed providers, thereby strengthening consumer access to a wider array of fuels and power sources. May influence local energy transition or fuel-choice policies by constraining restrictions on energy offerings.

Procedural Timeline

  • Introduced: January 10, 2025
  • Committee: Natural Resources
  • Hearing: January 29, 2025
  • Notices/Actions: Notice of hearing published January 22, 2025; additional sponsor action includes DeKay as cosponsor.

Sponsors

  • Primary: Senator Dan McKeon
  • Cosponsor: Senator DeKay

This bill presents a clear policy choice: to prioritize consumer access to diverse energy sources available through retail marketers, while limiting local government authority to restrict those options.

Compiled from official sources — confirm details with the bill’s official record.

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