Lawsuit Seeks to Stop Nebraska Environmental Trust’s $1.8 Million Grant for Ethanol Pumps

Deliver Dispense, Funding/Financing/Investing, grants, Infrastructure, Nebraska, Opinions, Policy

October 9, 2020

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by Martha Stoddard (Omaha World-Herald) Critics of the Nebraska Environmental Trust board’s decision to award $1.8 million to a project installing ethanol blender pumps and storage tanks at gas stations are taking their fight to court.

Two of those critics, W. Don Nelson and Jon Oberg, have filed a lawsuit in Lancaster County District Court asking for an injunction to stop the award. The suit names the trust board as the defendant.

The legal challenge claims that the trust board lacked the votes to approve the award, either at a Feb. 4 meeting when the ethanol project was added to a list of proposed recipients or at a June 11 meeting when the list of awards was approved.

According to the lawsuit, eight votes, or a majority of the 14-member board, are required to take action under Environmental Trust bylaws. At the February meeting, the vote was 7-2, with two members abstaining. At the June meeting, it was 7-2 with three members abstaining.

Mark Brohman, the trust’s executive director, said earlier that the board traditionally requires only a majority of the board members present to take action.

The lawsuit also said state law bars Environmental Trust grants from going to projects “which provide primarily private benefits” or projects whose beneficiaries could “afford the costs of the benefits without experiencing serious financial hardship.”

In this case, the plaintiffs claim, private fueling stations would be the beneficiaries and the grant at issue was made without considering the station owners’ ability to pay for their own pumps and tanks. READ MORE

Suit seeks to stop $ 1.8 million grant for ethanol pumps: Critics say Nebraska Environmental Trust board lacked votes to OK award and question the need of recipients (Omaha World-Herald)

Nebraska agency drops controversial request for environmental grant for ethanol pumps (Omaha World-Herald)

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