Governor Signs LB562

Bill Addresses E15, Beginning Farmer Tax Credit, Food Trucks By Gordon HopkinsOn Thursday, June 1, 2023, Governor Jim Pillen signed LB (Legislative Bill) 562 into law, which changes regulations governing E15, the Beginning Farmer Tax Credit and Food Trucks .The legislation 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.The bill also increases a state income tax credit for retail dealers from five cents to eight cents for each gallon of E-15 sold during 2024. The per gallon credit will be nine cents in 2025, eight cents in 2026, seven cents in 2027 and five cents per gallon in 2028. The bill increases the annual limit on credits from $4 million to $5 million for those years.The bill passed with a 46 to zero vote.E15 is a blend of 15 percent ethanol and 85 percent gasoline. It contains five percent more ethanol than E10, which is currently the most common fuel used in the U.S. E15 is higher in octane, usually 88 octane, while E10 has an octane rating of 87.Increase consumption of E15 could significantly impact corn farmers, since corn grain is used to make ethanol. Nebraska has the second largest ethanol nameplate capacity and the second largest ethanol operating production in the country, based on the federal figures.Jefferson County Commissioner Mark Schoenrock recently spoke with Governor Pillen. According to Schoenrock, “He said Nebraska is 48th in the consumption of E15 fuel, if you prorate that out, but we're the second leading producer. He said we need to get that more even, get us consuming more.”“There are no oil refineries in Nebraska, but there are 24 ethanol plants. It is time we support our homegrown fuel,” said the Governor . “E15 is on average 10 to 15 cents less than E10 fuel. That is real savings that will benefit a large number of Nebraska drivers.”“With the passage and signing of LB562 into law, E15 fuel will eventually be an option at gas stations across the state,” said Senator Myron Dorn, who introduced the bill. “This law is a tremendous win for our state's corn industry, the ethanol industry and especially a cost-savings win for Nebraska consumers. This law will offer more choices to drivers with a less expensive product and a cleaner burning fuel.”Another element of the bill will allow more people to qualify for the Beginning Farmer Tax Credit, by increasing the personal net worth of those applying. Operated by the Department of Agriculture’s NextGen Program, it is intended to help beginning farmers get their foot in the door by offering landowners a property tax credit for those willing to take a chance on a new farmer and rent land to them.“This legislation will provide critical resources, mentorship programs, and financial assistance to our aspiring young farmers and ranchers, ensuring they have the tools and knowledge to succeed,” said Senator Tom Brandt. “By investing in their success, we are safeguarding the future of our rural communities and sustaining the backbone that defines this great state.”Another part of LB562 is intended to clear the confusion and red tape for food truck operators. It requires the Nebraska Department of Agriculture to compile ordinances that guide food trucks and make them available to the public.“Right now, local municipalities and our state government have placed a patchwork of regulations on food trucks, making it difficult and costly for these entrepreneurs to navigate and become profitable,” said Senator Tony Vargas.During signing event, Governor Pillen hosted a food truck from Norfolk at the Governor’s Residence. Leon Food Truck, operated by Enrique Leon, runs on E15.“This is a great day for agriculture in Nebraska,” said Governor Pillen. “It gives drivers more choices as to what fuel they buy, improves a program to help new farmers and provides clarification for a growing industry that is catching fire across communities large and small – food trucks.”

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