Sen. Tom Carlson, chairman of the Water Funding Task Force, says the group focused on long-term planning in their latest report.
Carlson says the state has overused its water supply and needs to find ways to preserve it.
The state task force is recommending $50 million a year for water-conservation efforts, saying Nebraska will need to spend money to unsure a sustainable water supply for drinking, crop irrigation, interstate water compacts and wildlife.
The task force's report is due to the Legislature on Friday and includes no commitment to specific projects.
Funding options could include a tax on soft drinks, an excise tax on ethanol, or taxes on fertilizer and bottled water.