NRD should work with new ethanol plant

The Cambridge ethanol plant is nearly ready to begin churning out fuel, but the water it needs is in doubt.

Lower Republican Natural Resources District officials sent out letters in November to all proposed ethanol plants in the district explaining that new rules require big water users to make sure they don't increase overall consumption of water in the basin.

The problem is, the 44-million-gallon Standard Ethanol plant was built under the old rules which allowed new water consumption by nonmunicipal and industrial operations to be offset by all water users in the district.

Under LB1226, however, passed by the Nebraska Legislature in 2006, new state law requires industries such as ethanol plants that use more than 25 million gallons of water to purchase water rights or buy land and retire irrigation to offset that use.

A lot is riding on the new plant. The City of Cambridge issued bonds to help build the plant, and revenue from the plant will be needed to repay those bonds. The plant is providing a much-needed boost to the local economy, as well as a market for locally produced corn and supply of distillers' grain for feedyards.

The board of the LRNRD plans a special meeting Thursday which includes offset procedures that apply to users exceeding 25 million gallons per year, as well as a closed strategy session on possible litigation regarding the Republican River Compact.

Leaving the Cambridge plant high and dry is not the answer, especially since it is unlikely to have the ultimate effect of deflecting Kansas litigation over Nebraska's noncompliance with the compact.

The Lower Republican NRD directors should work with Cambridge officials to make sure the first ethanol pours out of the plant on schedule.