E-15 requirement for retailers approved

Lawmakers passed a bill May 30 intended to increase consumer access to E-15 in Nebraska.

Sen. Myron Dorn
Sen. Myron Dorn

LB562, introduced by Adams Sen. Myron Dorn, 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.

Small retail motor fuel sites are exempt from the requirement if they file a statement with the state Department of Agriculture.

If the 2027 statewide ethanol blend rate — the average percentage of ethanol contained in each gallon of motor fuel sold — is below 14 percent, the bill requires retail dealers to advertise and sell E-15 from at least one qualifying dispenser at each site, unless the site qualifies for certain exemptions, beginning in 2028.

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.

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.

Senators voted 46-0 to pass the bill.

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