LB 815 — Provide for a tax on diesel fuels, change provisions relating to refunds for motor fuel taxes, the petroleum release remedial action fee, and the Motor Fuel Tax Enforcement and Collection Cash Fund, change and eliminate provisions of the Ethanol Development Act, and eliminate the Ethanol Production Incentive Cash Fund

ER168 ER168 LB815 LB815 DLM2026 -LEGISLATIVE 03/27/2026BILL DLM815 -Approved 03/27/2026by Ethe ANDGovernor RApril AMENDMENTS14, TO2026 LB 815   Introduced by Guereca,Brandt, 7,32; Chairman Enrollment and Review 1.

StrikeDorn, the30; original sections and all amendments thereto and insert the following new sections:

SectionIbach, 1.44;

Jacobson, 42;

Murman, 38.

  A BILL FOR AN ACT relating to fuels;

to amend sections 66-726, 66-1331, 66-1332, 66-1333, 66-1337, 66-1338, and 66-1340, Reissue Revised Statutes of Nebraska, and sections 66-489, 66-739, 66-1334, 66-1335, and 66-1521, Revised Statutes Cumulative Supplement, 2024;

to provide for a tax on certain diesel fuels;

to change provisions relating to refunds for motor fuel taxes;

to change provisions relating to the Motor Fuel Tax Enforcement and Collection Cash Fund;

to change and eliminate provisions of the Ethanol Development Act;

to provide, change, and eliminate definitions;

to change provisions relating to the petroleum release remedial action fee;

to eliminate the Ethanol Production Incentive Cash Fund;

to harmonize provisions;

to provide operative dates;

to repeal the original sections;

and to outright repeal sections 66-1342, 66-1344.01, 66-1345, 66-1345.05, and 66-1348, Reissue Revised Statutes of Nebraska, and section 66-1344, Revised Statutes Supplement, 2025.

Be it enacted by the people of the State of Nebraska, Section 1.

66-48966-489 (1)(a) (1)(a) At the time of filing the return required by section 66-488, such producer, supplier, distributor, wholesaler, or importer shall, in addition to the tax imposed pursuant to sections 66-489.02, 66-4,140, 66-4,145, and 66-4,146 and in addition to the other taxes provided for by law, pay a tax in an amount set in subdivision (b) of this subsection upon all motor fuels as shown by such return, except that there shall be no tax on the motor fuels reported if (i) the required taxes on the motor fuels have been paid, (ii) the motor fuels have been sold to a licensed exporter exclusively for resale or use in another state, (iii) the motor fuels have been sold from a Nebraska barge line terminal, pipeline terminal, refinery, or ethanol or biodiesel facility, including motor fuels stored offsite in bulk, by a licensed producer or supplier to a licensed distributor, (iv) the motor fuels have been sold by a licensed distributor or licensed importer to a licensed distributor or to a licensed wholesaler and the seller acquired ownership of the motor fuels directly from a licensed producer or supplier at or from a refinery, barge, barge line, pipeline terminal, or ethanol or biodiesel facility, including motor fuels stored offsite in bulk, in this state or was the first importer of such fuel into this state, or (v) as otherwise provided in this section.

-1- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 (ii) Eight cents per gallon beginning on January 1, 2016, through December 31, 2016;

(b) The owner or agent of any bus equipped to carry more than seven persons for hire and engaged entirely in the transportation of passengers for hire within municipalities, or within a radius of six miles thereof, in lieu of the excise tax provided for in this section, shall pay an -2- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 equalization fee of a sum equal to twice the amount of the registration fee applicable to such vehicle under the laws of this state.

Such equalization fee shall be paid in the same manner as the registration fee and be disbursed and allocated as -1- LB815 LB815 2026 registration fees.

4082 or (ii) (b) the diesel fuel contains a concentration of sulphur in excess of -3- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 five-hundredths percent by weight or fails to meet a cetane index minimum of forty and has been indelibly dyed in accordance with regulations promulgated by the Administrator of the United States Environmental Protection Agency pursuant to 42 U.S.C.

The purchaser of tax-paid motor fuels used for an exempt -4- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 purpose shall file a claim for refund with the department on forms prescribed by the department and shall provide such documentation and maintain such records as the department reasonably requires to substantiate that the fuels were used for exempt purposes.

Through December 31, 2004, and commencing January 1, 2010, the State Treasurer shall thereupon transfer from the Highway Trust Fund to the Agricultural Alcohol Fuel Tax Fund one and one-quarter cents per gallon approved for refund, and commencing January 1, 2005, through December 31, 2009, the State Treasurer shall thereupon transfer from the -2- LB815 LB815 2026 Highway Trust Fund (a) to the Ethanol Production Incentive Cash Fund one and one-quarter cents per gallon approved for refund and (b) to the Agricultural Alcohol Fuel Tax Fund one -5- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 and one-quarter cents per gallon approved for refund.

Such fund shall consist of appropriations to the fund and money transferred to it pursuant to sections section 39-2215 and -6- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 66-489.

(4) New and enhanced Alternative local outlets for Nebraska -7- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 agricultural products which can be leveraged by Nebraska agricultural producers to facilitate strengthened demand and drive greater economic prosperity in rural communities.

and (7) Sponsorship of research and development of industrial and commercial uses for agricultural ethanol, ethanol coproducts, and products derived from ethanol or ethanol coproducts and for byproducts resulting from the manufacturing of agricultural ethanol in order to enhance economic feasibility -3- LB815 LB815 2026 and marketing potential of such products and processes.

66-1332 It is hereby declared to be the public policy of the State of Nebraska to safeguard the health, prosperity, and general welfare of its residents by developing, protecting, and maintaining a leading -8- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 position in ethanol production and the processing of agricultural products into ethanol, ethanol coproducts, or products derived from ethanol or ethanol coproducts that improve air quality, strengthen energy security, increase demand for agricultural products, provide consumer choice, and displace products produced from petroleum.

(1) Agricultural production facility or ethanol facility means a plant or facility related to the processing, marketing, or distribution -9- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 of ethanol, ethanol coproducts, any products derived from ethanol or ethanol grain components, coproducts, or grain byproducts;

(a) Establishment, in collaboration with cooperation of private -10- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 industry, of procedures and processes necessary to the manufacture and marketing of ethanol, ethanol coproducts, and products derived from ethanol or ethanol coproducts fuel containing agricultural ethyl alcohol;

-4- LB815 LB815 2026 (f) Promotion of state and national air quality improvement programs and influencing federal legislation that requires or encourages the use of fuels oxygenated by the inclusion of ethanol agricultural ethyl alcohol or fuels derived from ethanol its derivatives;

(h) Participation in development and passage of state and national legislation dealing with research, development, and promotion of United States production of fuels oxygenated by the inclusion of ethanol agricultural ethyl alcohol or its derivatives, access to potential markets, tax incentives, imports of foreign-produced fuel, and related -11- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 concerns that may develop in the future;

The Governor shall make the initial appointments of such members within thirty days after September -12- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 1, 2026.

66-1337 The66-1337 The board may rent office space and employ such personnel as may be necessary for the performance of its duties.

The board may employ the services of experts and consultants and expend funds necessary to acquire title to commodities pursuant to section 66-1340, to promote air -13- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 quality improvement programs , or to otherwise carry out the board's duties under the Ethanol Development Act.

66-1340 The66-1340 The board may accept gifts, donations, money, and services , including in-kind resources such as grain owned by the Commodity Credit -5- LB815 LB815 2026 Corporation and the United States Department of Agriculture.

66-152166-1521 (1) (1) A petroleum release remedial action fee is hereby imposed upon the producer, refiner, importer, distributor, wholesaler, or supplier who engages in the sale, distribution, delivery, and use of petroleum within this state, except that the fee shall not be imposed on petroleum that is exported or .

second, up to three million dollars of the fee per year shall be -14- ER168 ER168 LB815 LB815 DLM - 03/27/2026 DLM - 03/27/2026 used for reimbursement of owners and operators under the Petroleum Release Remedial Action Act for investigations of releases ordered pursuant to section 81-15,124;