Thursday, Governor Jim Pillen signed LB562 into law. Other wise known as the E-15 Access Standard Act, requires motor fuel retail dealers in Nebraska to advertise and sell E-15 from at least 50 percent of their qualifying dispensers if they build a new retail motor fuel site or replace more than 80 percent of the motor fuel storage and dispensing infrastructure at an existing site, beginning in 2024.
The mandate would be waived for locations where storage and dispensing infrastructure are incompatible with E15, and they must file a statement with the state Department of Agriculture.
LB562 also increases a state income tax credit for retail dealers from 5 cents to 8 cents for each gallon of E-15 sold during 2024. The credit will be 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. The bill increases the annual limit on credits from $4 million to $5 million for those years.
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.
As amended on select file, LB562 also includes provisions intended to help more farmers and ranchers qualify for benefits under the Beginning Farmer Tax Credit Act and simplify the permitting process for food trucks.
The bill was introduced by Senator Myron Dorn of Adams, who argued the E-15 Access Standard Act 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.
The measure which appears positive and harmless still drew criticism from certain lawmakers before the bill passed the legislature. Some senators characterized this bill as a “gift” to the ethanol lobby. Additionally arguing this imposing a sale mandate on businesses flew in the face of free market principles, and if gas station business owners wanted to advertise and sell E15 they could of their own decision.
Senators voted 46-0 to pass the bill.