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NebraskaLB815109th Legislature 1st and 2nd SessionslegislatureWALLET

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

Sponsored By: Tom Brandt

Signed by Governor

Agriculture Committee

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 3 costs, 1 mixed.

New fuel fees and lower diesel refunds

Beginning October 1, 2026, diesel that is dyed or fails set sulfur or cetane limits pays a new $0.0025 per‑gallon tax. The petroleum cleanup fee is $0.009 per gallon on motor fuel and $0.003 per gallon on diesel. Producers and suppliers owe these charges and can pass them to buyers. If you claim an off‑highway diesel tax refund, the Department of Revenue now subtracts $0.01 per refunded gallon.

Old ethanol programs and laws repealed

The law repeals many ethanol‑related statutes and ends any programs or incentives that relied only on them. Some repeals take effect immediately, and others take effect October 1, 2026. Ethanol producers and related businesses may lose program authority or support tied to these laws.

More producer seats on Ethanol Board

The Nebraska Ethanol Board drops from nine to seven members and adds more ethanol‑producer seats. Starting September 1, 2026, a business seat must be an ethanol producer, and the Governor must fill it within 30 days if open. Two more producer seats are added with initial appointments within 30 days after September 1, 2026. No more than four members can be from the same political party.

More ethanol support from diesel taxes

Starting October 1, 2026, each fiscal year the first $140,000 of diesel‑tax receipts goes to the fuel‑tax enforcement fund, and the rest goes to the Agricultural Alcohol Fuel Tax Fund. The Nebraska Ethanol Board runs this fund. Money can support ethanol manufacturing and marketing practices, market entry help, research, promotion, and work with private industry to set up facilities. The state can invest the fund and it can receive fees, gifts, grants, and legislative transfers.

License now required to handle petroleum

Beginning October 1, 2026, producers, refiners, importers, distributors, wholesalers, and suppliers must have a petroleum release remedial action license to sell, move, or use petroleum in Nebraska. Individual applicants must provide a Social Security number. Not having the license is a Class IV misdemeanor. The Department of Revenue can suspend or cancel a license for nonpayment.

How fuel fee money is used

Beginning October 1, 2026, the Motor Fuel Tax Enforcement and Collection Cash Fund can only pay costs to run fuel and petroleum laws at the Department of Revenue, plus related work by Agriculture and the State Patrol. The state can invest the fund, and only the Legislature can move money from it to the General Fund. The Department of Revenue may also keep up to $150,000 each fiscal year from petroleum fee collections to cover its direct admin costs, prorated for part‑year collections.

Sponsors & Cosponsors

Sponsor

  • Tom Brandt

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 115 • No: 14

legislature vote • 4/24/2026

Vote

Yes: 26 • No: 0 • Other: 23

legislature vote • 4/10/2026

Final Reading

Yes: 35 • No: 14

legislature vote • 3/24/2026

Vote

Yes: 28 • No: 0 • Other: 21

legislature vote • 3/24/2026

Vote

Yes: 26 • No: 0 • Other: 23

Actions Timeline

  1. Presented to Governor on April 10, 2026

    4/17/2026legislature

  2. Approved by Governor on April 14, 2026

    4/17/2026legislature

  3. Dispensing of reading at large approved

    4/10/2026legislature

  4. Passed on Final Reading 35-14*-0

    4/10/2026legislature

  5. President/Speaker signed

    4/10/2026legislature

  6. Placed on Final Reading

    4/7/2026legislature

  7. Enrollment and Review ER168 adopted

    4/1/2026legislature

  8. Kauth FA444 withdrawn

    4/1/2026legislature

  9. Advanced to Enrollment and Review for Engrossment

    4/1/2026legislature

  10. Placed on Select File with ER168

    3/30/2026legislature

  11. Enrollment and Review ER168 filed

    3/30/2026legislature

  12. Agriculture AM2131 adopted

    3/24/2026legislature

  13. Brandt FA1015 withdrawn

    3/24/2026legislature

  14. Advanced to Enrollment and Review Initial

    3/24/2026legislature

  15. Placed on General File with AM2131

    2/25/2026legislature

  16. Agriculture AM2131 filed

    2/25/2026legislature

  17. Brandt FA1015 filed

    2/20/2026legislature

  18. Ibach priority bill

    2/19/2026legislature

  19. Notice of hearing for February 03, 2026

    1/21/2026legislature

  20. Rereferred to Agriculture Committee

    1/20/2026legislature

  21. Referred to Revenue Committee

    1/9/2026legislature

  22. Kauth FA444 filed

    1/8/2026legislature

  23. Date of introduction

    1/7/2026legislature

Bill Text

  • Introduced

    4/17/2026

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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