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We have completed two weeks of full day public hearings here at the Legislature. Next week, we return to a schedule of morning debate and afternoon hearings until all bills have been presented before a committee.
One of my major initiatives, LB 562, the E-15 Access Standard Act was heard by the Agriculture Committee on Tuesday. The goal of the bill is to increase consumer access for fueling up with E-15 ethanol starting in January of next year.
Most vehicle owners already know the benefits of the E-10 ethanol blend. The advantages of E-15 include a lower average price of 15 cents less per gallon; which translates to a savings of $50 million in Nebraska alone, money that goes back into our pockets. Retailers would net 3% more revenue if all fuel sales were ethanol blends.
Nebraska is the second largest producer of ethanol in the United States. With the use of E-15, production could increase by 40 million gallons, and utilize the equivalent of an additional 14 million bushels of corn.
It is easy to see how the benefits of increased ethanol production and use would spread out in a state like ours, where one in every four jobs is directly related to agriculture.
As it is written right now, LB 562 would require fuel retailers who install, replace or convert fuel storage tanks and fuel dispensers to be able to offer E-15 in at least half of their dispensers/pumps. This would need to be complete by 2027. The bill also offers several waivers to small filling stations and the Department of Agriculture can issue waivers to those with incompatible infrastructure.There are also waivers if the cost of installing such equipment exceeds a certain amount. The waivers extend past the 2027 date and can be waived indefinitely. The bill also includes funding grants to qualified retailers to help with the needed upgrades in equipment.
E-15 and other ethanol blends are high performance fuels, and more than 96% of cars on the road today are approved for ethanol use. Mileage is statistically the same, but the cost of ethanol is less, so there is definitely more value per mile. Having more pumps dispensing E-15 gives us, as consumers, a lot more choice.
New stations are utilizing higher levels of ethanol blends, as they see the trends and demand. So once E-15 is widely available at existing locations as well, the use of ethanol will go up. That will be good for the environment and Nebraska’s economy.
Farming has ups and downs, and it is only a matter of time before the price of corn per bushel drops again. If we wait until commodity prices are low before we begin to work on these additional markets, we won’t be able to make it up. Ethanol is one way we help cushion the peaks and valleys, and help stabilize the farm economy for the long term – which in turn, sustains the whole state’s economy. At the national level, there is legislation to make E-15 available year round across the country. That will open up even more markets for ethanol produced in Nebraska.
It was a second week of high profile bills going through the public hearing process. One issue that always generates a lot of conversation is the adoption of year round daylight saving time. A bill I am particularly interested in was presented to the Transportation and Telecommunications Committee, dealing with the Nebraska Broadband Office.
Creating this office would be very good for our state. I have spoken with Sen. Bostelman, who introduced LB 683, about how it will help Nebraska. There were some federal funds that required we have a broadband director in order to qualify, so we have missed out on those. This would help funnel some of that federal money, our own tax dollars, back into the state.
The broadband office would develop a strategic plan and oversee infrastructure expansion. Covid revealed our weaknesses in internet connectivity, and the remedy has not been accomplished at the rate we want to see. When I first became a senator four years ago, we talked about broadband speeds of 10/20 up and down – now we talk about speeds of 100/100. That is just how fast broadband is changing and improving. Speed is critical. Economic activity and education rely on it. So we know having a top notch level of broadband can only be a benefit.
The Governor has proposed a number of measures dealing with taxes. One of those, LB 589, can be construed as a “soft cap” on school district spending and would limit the growth in property tax collection to about 3% per year. Factors such as fast growing districts and the associated extra costs, English language proficient speakers, the number of students in poverty, and so on, can be considered. A super majority of school board members would need to vote to exceed the cap. So there is some leeway in the bill, but also some safeguards. It will be interesting to see how the Governor’s total tax package will fare and how it will come out of the various committees hearing the individual bills.
Contact me at any time by calling 402-471-2620, email me at mdorn@leg.ne.gov. I always appreciate your communication on the issues facing the Legislature. www.nebraskalegislature.gov
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