Senate committee advances proposal to let Rural Projects Act pay for off‑site infrastructure for rail parks

Senator Mike Jacobson told the Banking, Commerce and Insurance Committee that LB719 is a narrow fix to the Nebraska Rural Projects Act to clarify how existing matching funds may be used for off‑site infrastructure that is necessary to develop rail‑served industrial parks.

"Under that interpretation, matching funds are generally limited to improvements made on property owned or directly controlled by the applicant," Jacobson said, and the bill would explicitly allow state matching dollars to be used for items such as rights‑of‑way, easements, highway turn lanes, rail connections and necessary utility improvements when those improvements "directly benefit the business park and are critical to its development."

Supporters described concrete cases where the statute’s current interpretation has blocked progress. Gary Pearson, president and CEO of the North Platte Area Chamber Development Corporation, said North Platte has opened a transloading operation and needs additional infrastructure and substations to serve incoming industry; he called rail parks "game changers for regional economies." Megan Skiles of the Greater Fremont Development Council described a Fremont site that lacks water and gas on the parcel and would require lines run under a four‑lane divided highway to serve a future park.

Senator Jacobson said the bill does not increase funding or change eligibility; rather, it clarifies allowable uses of dollars already allocated to projects. He told the committee the change would relieve staff uncertainty and allow previously allocated project dollars to be spent to complete parks as intended. Jacobson also said he expected an amendment to add natural gas pipelines to the enumerated list of eligible off‑site improvements.

What’s next: The committee closed the hearing on LB719 after proponent testimony and recorded online letters for and against; no committee vote was taken in the public hearing.