Senate advances ethanol‑board modernization, shifts small diesel excise allocation to stabilize funding

Senator Brandt introduced LB 8‑15 to modernize the Nebraska Ethanol Board, expand membership to include ethanol producers and update funding streams by shifting a quarter‑cent per‑100‑gallon excise allocation to the Agriculture Alcohol Fuel Tax Fund. Sponsors said the change will cost a typical corn farmer only a few dollars per year while providing predictable funding for marketing, research and renewable fuel work.

The committee amendment (AM 21‑31) revises allocations so the first $140,000 of revenue would go to motor fuel tax enforcement and collection and the remainder to the ethanol board cash fund; it also refines eligibility for ethanol producer seats. Supporters emphasized ethanol’s $7 billion economic impact to the state and the need to sustain the board’s work on markets such as sustainable aviation fuel.

Opponents including fuel marketers, convenience store associations and some rail stakeholders expressed concern about shifting costs and the potential pass‑through to consumers. Senators asked for clarity on impacts to retailers and rail buyers; sponsors said outreach was ongoing and that some previously listed opponents had since gone neutral.

The committee amendment was adopted and LB 8‑15 was advanced to E & R initial (recorded votes in the transcript show committee amendment adoption and advancement). Supporters said the bill supports long‑term industry competitiveness; critics warned of unintended cost shifts and urged further stakeholder analysis.

The Legislature adopted the committee amendment and advanced the bill for further processing.