Ethanol board, fuel tax updated

Senators updated the structure and funding of Nebraska’s ethanol oversight system April 10.

LB815, introduced by Plymouth Sen. Tom Brandt, expands the Nebraska Ethanol Board from seven to nine members to include more ethanol producers and requires that an existing business seat be held by a producer beginning Sept. 1. The bill also updates the board’s mission and statutory language in the Ethanol Development Act.

The measure eliminates outdated authorities, including provisions allowing the board to acquire commodities, accept grain from federal agencies and join trade organizations. It also repeals obsolete provisions tied to expired incentive programs and defines an ethanol producer as an individual who spends at least 50% of their professional time on operational or business management activities at an ethanol production facility.

LB815 also adjusts fuel-related taxes tied to ethanol programs. Beginning Oct. 1, a quarter-cent per gallon excise tax will be imposed on dyed diesel used for off-road purposes. The first $140,000 collected each year will be directed to the Motor Fuel Tax Enforcement and Collection Cash Fund, with the remainder directed to the Agricultural Alcohol Fuel Tax Fund.

The bill also updates allowable uses of that fund and shifts existing fees by removing one on dyed diesel and increasing the fee on clear diesel to 0.6 cents per gallon.

Senators passed the bill on a 35-14 vote.