The newest bill to hit the Nebraska Unicameral floor for debate, LB 562, a proposal to adopt the E-15 Access Standard Act.
The E-15 Access Standard Act, if passed and signed into law, would require fuel retailers in Nebraska to offer E15 from at least 50% of their dispensers beginning on Jan. 1, 2024. The mandate 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.
E15 is a mix of regular gasoline and a smaller amount of ethanol, a plant-based fuel typically made from corn in the US. The “15” in the name means that it includes 15% ethanol.
What may seem like an innocuous and uncontroversial bill, has actually drawn some considerable debate between lawmakers.
The bill was introduced by Senator Myron Dorn of Adams. Dorn and other supporters of the bill argued this will help Nebraskan agricultural producers and by virtue the state economy. As well as provide consumers a cheaper and cleaner fuel option for their vehicles.
“We have every indication that gas prices will continue to rise, placing a greater financial burden on Nebraskans. This bill creates an opportunity for Nebraskans to not only save money at the pump and have cleaner air, but also to support an entire value chain,” said Dorn. He continued, “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 rank 45th in consumption with a 9.7% blend rate.”
There was considerable opposition to the bill from Senators. Opponents argued that this bill creates an unnecessary governmental mandate on businesses, and encourages a monopoly for the ethanol industry. Some also disputed that ethanol blended fuel is better for the environment than standard gasoline.
Senator Megan Hunt of Omaha said on the floor, “Handing the ethanol industry a state enforced monopoly is not, quote unquote, ensuring competition. As Senator [Teresa] Ibach said, ensuring competition is not government putting a mandate on private businesses… Government should just not be telling businesses what to sell.”
The bill saw its first round of debate today, and is expected to be taken back up when the Legislature reconvenes next Tuesday, April 25th.