An effort to increase use of higher blends of corn-based ethanol ran into an unusual group of opponents Thursday.
State Sens. Megan Hunt of Omaha and Jane Raybould of Lincoln — two of the more liberal senators in the Nebraska Legislature — joined with the conservative Americans for Prosperity in arguing that mandating what kind of gas pumps businesses should provide was government overreach.
“Government should not tell businesses what to sell,” said Hunt. “The ethanol industry can stand on its own without a government mandate.”
Raybould, whose family owns a chain of supermarkets that include gas pumps, said forcing retailers to have higher blend E-15 pumps was wrong-headed.
‘Why subsidize ethanol?’
“Why are we making the taxpayers subsidize the ethanol industry?” Raybould asked. “Why doesn’t the (Nebraska) corn board or ethanol board have skin in this game?”
The comments came as the Unicameral opened debate on Legislative Bill 562, the priority bill of Adams Sen. Myron Dorn, a farmer.
It touched on one of the state’s largest industries, but one facing some headwinds given the growing switch to electric vehicles. In response, Nebraska’s federal delegation has also been pushing legislation to increase use of ethanol.
Nebraska is the second largest producer of ethanol in the country, and farmers who live in the vicinity of the state’s 24 ethanol plants get an estimated 21 cents a bushel more for their corn.
Supports local economy
That boosts profits for farmers in what is a $10 billion industry and provides a valuable byproduct, cattle feed, for livestock producers. Advocates said ethanol plants also provide good-paying jobs in rural areas across the state.
Glenvil Sen. Dave Murman noted that Nebraska is an agricultural state. An estimated 40% of the state’s corn crop goes to ethanol plants.
“We need to support our own economy. And this is a bill that will do that,” Murman said.
Dorn said the goal of LB 562 was to increase use of ethanol. Currently, he said, just under 10% of the fuel sold in Nebraska is ethanol, and the bill aims to increase that to 14% by 2027.
50% of pumps must provide E-15 Beginning Jan. 1, any new gasoline outlet, or any outlet replacing more than 80% of its pumps, would be required to have 50% of its pumps provide E-15, a blend that contains 15% ethanol.
Tax credits, capped at $5 million a year statewide, would be provided to retailers who provide E-15 pumps. The credit would start at 8 cents per gallon sold, a boost over a 5 cents a gallon credit approved last year.
Under a proposed amendment to LB 562, smaller gas retailers, or those facing expensive replacement of pumps and storage tanks, could be exempted from the mandate.
But if the state’s ethanol use doesn’t grow to at least 14% of all fuel by 2027, then every retailer in the state would be required to have at least one E-15 pump.
Source: nebraskaexaminer.com
Photo Credit: gettyimages-yasonya
Categories: Nebraska, Government & Policy