This legislative bill amends various sections of the Nebraska Revised Statutes to introduce a new tax on certain diesel fuels, modify motor fuel tax refund provisions, and repeal aspects of the Ethanol Development Act. A new tax of one-quarter of one cent per gallon will be imposed on diesel fuel that is indelibly dyed or does not meet specific quality standards, effective October 1, 2026. The bill allocates the first $140,000 collected from this tax to the Motor Fuel Tax Enforcement and Collection Cash Fund, with any excess directed to the Agricultural Alcohol Fuel Tax Fund. Additionally, it repeals sections related to the Ethanol Production Incentive Cash Fund and modifies definitions and provisions concerning the petroleum release remedial action fee.

The bill establishes the Nebraska Ethanol Board as the state agency responsible for promoting the ethanol industry, emphasizing a comprehensive approach to attract agricultural processing opportunities. It introduces new operational provisions for the board, including a definition of "ethanol producer" and expands the definition of agricultural production facilities to encompass those related to ethanol and its coproducts. The bill also creates the Agricultural Alcohol Fuel Tax Fund, which will be managed by the Nebraska Ethanol Board and will support marketing, research, and air quality improvement initiatives. Furthermore, the board's membership is increased from seven to nine, ensuring greater representation from the ethanol production sector to enhance its effectiveness in fulfilling its mission.

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
Final Reading: 66-1344, 66-726, 66-739, 66-1331, 66-1332, 66-1333, 66-1334, 66-1335, 66-1337, 66-1338, 66-1340, 66-1521