The bill allows cities of the first and second classes, as well as villages in Nebraska, to enter into contracts with industrial users of natural gas. Specifically, it enables these municipalities to engage in tax-exempt natural gas supply transactions that comply with federal regulations, aiming to promote private investment and economic development. The legislation stipulates that any city or village that owns and operates a natural gas system may contract with industrial consumers located within 100 miles of their jurisdiction, provided these consumers require a minimum of three billion British thermal units of natural gas per day.

Additionally, the bill outlines specific conditions for these contracts, including a minimum term of two years, the requirement that the industrial consumer is not currently served by a competitive natural gas provider, and the necessity for a resolution from the city council or village board confirming that the contract does not pose an unreasonable financial risk. Furthermore, it mandates that the industrial consumer must not have received gas service from any investor-owned or governmentally owned gas system within the five years preceding the contract's execution.