Nebraska Bill Aims to Boost Availability of E15

March 21, 2023

Print This Article Share it With Friends

by Erin Voegele (Ethanol Producer Magazine) Legislation recently introduced in the Nebraska Legislature aims to boost the availability of E15 fuel by introducing new requirements for fuel retailers and creating a grant program to support necessary upgrades at fuel retail locations.

The bill, titled the Adopt the E15 Access Standard Act, or LB 562, was introduced on Jan. 17 and addressed during a Feb. 7 legislative hearing.

If passed and signed into law, the bill would require fuel retailers in Nebraska to offer E15 from at least 50 percent of their dispensers beginning on Jan. 1, 2024. The requirement would be waived for locations where storage and dispensing infrastructure are incompatible with E15.

The legislation also aims to create a grant program to help fund required upgrades to pumps, hoses, tanks and other equipment required to supply E15 at retail locations.

Additional information is available on the Nebraska Legislature website. READ MORE

Legislature debates requiring E-15 pumps (Nebraska Public Media)

NEBRASKA LAWMAKERS DISAGREE OVER MANDATE IN E15 BILL (Brownfield Ag News)

Senators open debate on bill seeking greater use of corn-based ethanol: Backers say it would help farmers and local jobs; detractors say the fuel doesn’t need state mandate or tax credit (Nebraska Examiner)

Nebraska lawmakers advance bill requiring gas stations sell fuel with 15% ethanol (Omaha World-Herald)

NEBRASKA LEGISLATURE ADVANCES E15 BILL WITH ADDITIONAL AMENDMENTS (Brownfield Ag News)

Nebraska lawmakers pass bill requiring gas stations sell fuel with 15% ethanol (Omaha World-Herald; includes VIDEO)

RFA Welcomes New Law Supporting E15 Sales in Nebraska (Renewable Fuels Association)

Pillen signs the Adopt the E15 Access Standard Act (Ethanol Producer Magazine)

Nebraska Governor Signs New Law to Boost E15 Sales (Energy.AgWired.com)

Nebraska governor signs bill to standardize E15 sales (RFD TV; includes VIDEO)

Pillen signs the Adopt the E15 Access Standard Act (Ethanol Producer Magazine)

Excerpt from Nebraska Public Media: A proposal aimed at increasing the use of ethanol in Nebraska raised questions in the Legislature Thursday about the state mandating what retailers should sell.

Sen. Myron Dorn is the sponsor of LB562, a bill aimed at increasing the use of E-15, or gasoline containing 15 percent ethanol, in Nebraska. As debate began Thursday, Dorn explained what he’s trying to accomplish.

“The basic intent of the bill is to increase access to E-15 ethanol blended gas. Nebraska is the second largest ethanol gas producer, yet we ranked 45th in consumption with a 9.7% blend rate,” Dorn said.

...

Dorn’s bill, with an amendment from the Agriculture Committee, would require gasoline retailers to ensure that 50 percent of any new or replacement pumps they install offer E-15. There would be exceptions for small retailers.

Sen. Megan Hunt objected to the state enacting such a requirement.

“To me, this feels like boosting an industry artificially through a government mandate that the market should really be able to work out for itself. Government should just not be telling businesses what to sell. The consumer gets to dictate what retailers offer and sell consumers shop with their wallets. And I think the Legislature should stay out of this type of relationship with consumers,” Hunt said.

The proposal would also offer retailers a tax credit of five to nine cents for every gallon of E-15 sold for the next five years, up to $5 million a year. That raised a question for Sen. Jane Raybould.

“Why are we making the taxpayers subsidize the ethanol

industry?” Raybould asked.

Sen. Teresa Ibach said that the industry benefits agriculture and the entire state.

“As you may know, there are zero petroleum refineries in our state. But there are 24 ethanol plants. These plants are a key part of our state's economy and our farming communities. Our ethanol producers purchase more than 1.9 billion bushels of corn, which creates more than $5 billion of fuel, ethanol and animal feed,” Ibach said. She added that the industry his supports more than 21,000 farms and 47,000 full time jobs in the state.

Lawmakers adjourned before reaching a first-round vote on the bill.

...

The Legislature has now begun a four day weekend, and is scheduled to reconvene Tuesday, when debate on the ethanol bill is expected to continue. READ MORE

Excerpt from Omaha-Herald: Legislative Bill 562 cleared the first of three rounds in a 32-1 vote, after a total of eight hours of debate. Supporters said the bill would help Nebraska farmers; opponents described it as government overreach. READ MORE

Excerpt from Brownfield Ag News: The bill was amended after first round-approval saying 50 percent requirement only applies if a retailer builds a new fuel site or replaces more than 80 percent of storage and dispensing infrastructure.

Dawn Caldwell, Executive Director with Renewable Fuels Nebraska tells Brownfield the science is clear. “It is safe for people to both pump and utilize in their vehicle E 15 year-round. The EPA has never updated their language to allow that for the fuel retailers.”

Another amendment would increase the state income tax credit for retainers over a period of five years.

The bill has an additional round of debate, and Governor Jim Pillen is expected to sign it. READ MORE

Excerpt from Omaha World-Herald: Nebraska gas stations will soon be required to offer fuel blended with up to 15% ethanol.

State lawmakers passed Legislative Bill 562 in a 46-0 vote Tuesday, sending it to Gov. Jim Pillen’s desk for his signature. If signed, the law will take effect in late August, 90 days after the session ends on Thursday.

While the bill spurred some opposition in previous rounds — with the main criticism being that it represented government overreach — the final round of debate was quick, with no lawmakers speaking for or against the measure....

Many gas stations in Nebraska already offer gasoline blended with up to 10% ethanol. Several opponents said the requirements in LB 562 amount to a government mandate on businesses.

Dorn pushed back against this critique, noting the bill exempts businesses that would need to spend more than $15,000 to make the changes and for those who sell low amounts of fuel per year, among other provisions.

Sen. Steve Halloran of Hastings said he did agree that the bill is a mandate — but still supported it as a conservative because it will help Nebraska’s biggest industry and will give drivers more choices at the pump.

Other supporters said that more ethanol production in Nebraska would create jobs and reduce the price of gas. They also said it is a cleaner form of energy that will reduce the state’s dependence on oil. READ MORE

Excerpt from Ethanol Producer Magazine: According to the Nebraska Ethanol Board, the new law will require fuel retailers in Nebraska to sell E15 from at least 50 percent of their dispensers starting in 2024 if they build a new motor fuel site for replace more than 80 percent of the motor fuel storage and dispensing infrastructure at an existing site. If the statewide ethanol blend rate is below 14 percent in 2027, the legislation requires fuel retailers to offer E15 from at least one dispenser at each retail location. The income tax credit the bill providers for fuel retailers is set at 8 cents per gallon of E15 sold in 2024, 9 cents per gallon in 2025, 8 cents per gallon in 2026, 7 cents per gallon in 2027 and 5 cents per gallon in 2028.

“Nine out of 10 fuel retailers in Nebraska will be able to offer E15 without expensive upgrades to their fuel infrastructure and dispensing system,” said Reid Wagner, NEB executive director. “The framework created through LB562 offers a pathway to increase access to higher blends while minimizing costs to fuel retailers and maximizing savings for consumers.”

“This is a great day for Nebraska’s drivers,” said Jan tenBensel, chairman of the NEB. “Having the option to choose lower‑cost, lower-carbon E15 at fuel stations all around the state is a big win for consumers, farmers, and value-added agriculture.”

...

“We hope other states follow Nebraska’s example and use this legislation as a template to encourage more retailers to offer cleaner, more affordable, higher ethanol blends,” Lamberty (Ron Lamberty, chief marketing officer of American Coalition for Ethanol) continued. “We also encourage Congress to take note of growing support for E15, and pass the Consumer and Fuel Retailer Choice Act to ensure permanent, nationwide access to E15. ACE thanks Senator Myron Dorn, Governor Jim Pillen and other biofuel and legislative leaders for helping expand consumer access to E15 across Nebraska. I’m appreciative of being part of this day.” READ MORE