The Department of Environmental Quality was established in 1971 to protect and improve the quality of the state's water, air, and land resources. The Agricultural Pollution Control Division of the Department regulates disposal of feedlot wastes and other sources of water pollution by agriculture. The Water and Waste Management Division is responsible for administering the Federal Clean Water Act, the Federal Resources Conservation and Recovery Act, portions of the Federal Safe Drinking Water Act, and the Nebraska Environmental Protection Act as it relates to water, solid waste, and hazardous materials. In 2003, Nebraska had 255 hazardous waste sites listed in the Environmental Protection Agency's database, 11 of which were on the National Priorities List.
A program to protect groundwater from such pollutants as nitrates, synthetic organic compounds, hydrocarbons, pesticides, and other sources, was outlined in 1985. In 1996, the state spent $3.2 million on its Soil and Water Conservation Program. In 1994, the state imposed a tax on commercial fertilizers to create the Natural Resources Enhancement Fund, which distributes funds to local natural resource districts for water quality improvement programs. The Engineering Division regulates wastewater treatment standards and assists municipalities in securing federal construction grants for wastewater facilities. The Air Quality Division is responsible for monitoring and securing compliance with national ambient air quality standards.
The state has three wetlands of international importance as migrational and breeding grounds for waterfowl and nongame birds. While these areas are protected, the state has lost about 1 million acres (405,000 hectares) of wetlands since pre-European settlement times. In 2001, Nebraska received $35,617,000 in federal grants from the Environmental Protection Agency; EPA expenditures for procurement contracts in Nebraska that year amounted to $55,000.