This legislative bill proposes significant amendments to Nebraska's fuel taxation and the Ethanol Development Act. A key feature is the introduction of a new tax on certain diesel fuels, specifically a one-quarter of one cent tax per gallon on dyed diesel fuel and diesel fuel that does not meet specific sulfur and cetane index standards, effective October 1, 2026. The bill also modifies provisions related to refunds for motor fuel taxes, eliminates the Ethanol Production Incentive Cash Fund, and repeals several unnecessary sections of current law. Additionally, it aims to streamline the regulatory framework by harmonizing various provisions across the statutes.

The bill redefines terms related to ethanol and its coproducts, emphasizing the promotion of Nebraska's agricultural products and air quality improvement through enhanced ethanol production. It establishes a public policy to safeguard the health and welfare of Nebraska residents and designates the Nebraska Ethanol Board as the state agency responsible for market development, research, and collaboration with the private sector. The bill also expands the Nebraska Ethanol Board from seven to nine members, introduces a new definition for "ethanol producer," and establishes the Agricultural Alcohol Fuel Tax Fund to support the ethanol sector. The new provisions will become operative on October 1, 2026, while other sections will take effect immediately.

Statutes affected:
Introduced: 66-1344, 66-726, 66-1331, 66-1332, 66-1333, 66-1334, 66-1335, 66-1337, 66-1338, 66-1340, 66-1521