BEATRICE – A Nebraska legislative bill seeks to increase the use of E-15 ethanol fuel in the state.  Adams Senator Myron Dorn has proposed the E-15 Access Standard Act, and the bill was before the Agriculture Committee on Tuesday.


"Ethanol plants would produce an additional 40-million gallons of ethanol, and consume the equivalent of an additional 14-million bushels of corn. The bill requires that beginning January 1st, of 2024...fuel retailers who install, replace or convert motor fuel storage tanks, shall offer E-15 from at least 50% of their dispensers. LB 562 requires that on January 1st, 2027...retail motor fuel dealers shall advertise and sell E-15 from at least 50% of all qualifying fuel dispensaries."


The bill proposes a grant program to assist with upgrades to pumps, hoses and tanks. The grant program would provide more than $10 million over each of the next two fiscal years…with the intent to provide another $10 million in a third year.  The grants would end after 2026, and each award would be up to $150,000. Some committee members were skeptical of what they saw as mandating the sale of the fuel. But the bill had support from the ethanol industry and farm groups.

Dorn maintains ethanol has had to fight off resistance from the oil industry.  "I contend that for too long, the petroleum industry in Nebraska has resisted higher ethanol blends, virtually eliminating customers options to select and purchase renewable E-15. This is a de-facto petroleum mandate and Nebraska's consumers are footing the bill."


President of the Nebraska Farmers Union, John Hanson said Nebraska is the number two state in the nation in ethanol production but lags behind in access to different blends of the fuel. He said the bill would be good for consumers and producers.


"Our history relative to utilization, per capita, is not as good as our neighbors. In 2008, we made a major push to try to take those dollars that rolled in from Washington for infrastructure and some of those things...to invest in blender pumps in Nebraska. Well, if you drive across South Dakota, you don't have to get out your gadget and spend a lot of time to try to figure out some sort of a path where you can land at an E-30 or E-50 filling station...because pretty much every place that you pull in, there's going to be a blender pump somewhere in the array, that you get to pick from."


Chief Risk Officer for E-Energy Adams, a Gage County ethanol plant…Andrew Johansen said the bill could benefit multiple sectors of the state’s economy.
"We support LB 562 as a way to give Nebraska consumers greater access to a healthier, environmentally friendly fuel. E-15 will save them money that will be reinvested elsewhere. Additionally, the higher ethanol demand will encourage ethanol production in our state...more ethanol production means a better corn basis...and more livestock looking for a home in Nebraska."


The E-Energy Adams plant also produces distiller’s grain to feed to livestock and distiller’s corn oil used in renewable diesel fuel production.
Other supporters of LB 562 include the Nebraska Farm Bureau, Nebraska Corn Growers Association and Nebraska Ethanol Board, among others.