Nebraska governor signs rebate program into law that benefits E15

By Erin Voegele | June 03, 2015

Nebraska Gov. Pete Ricketts has signed legislation into law that will create a rebate program for qualified clean-burning motor vehicle fuel property, including motor vehicle fuel property that is fueled with ethanol blends of at least 15 percent.

The bill, titled “Nebraska Clean-burning Motor Fuel Development Act,” or LB 581, was introduced on Jan. 21. Ricketts signed the measure into law on May 29. The new law will take effect August 30. 

 The legislation create a clean-burning motor fuel development fund that consists of grants, private contributions and other sources. The fund is to be used by the state Energy Office to provide rebates for fuel-dispensers and conversions of motor vehicles to allow the use of certain alternative fuels, including gasoline containing at least 15 percent ethanol by volume.

The bill also provides rebates that benefit other qualified clean-burning vehicle fuels, including hydrogen fuel cells, compressed natural gas, liquefied natural gas, or liquefied petroleum gas. Qualified clean-burning motor vehicle fuel property is defined to mean new equipment that is installed by a certified installer on a registered motor vehicle to convert the vehicle from gasoline or diesel fuel to a qualified clean-burning motor fuel.

The rebate is for the lesser of 50 percent of the cost of the qualified clean-burning motor vehicle property or $4,500 for each vehicle. The newly signed legislation also creates a rebate of the lesser of 50 percent or $2,500 for qualified residential, non-commercial compressed natural gas systems.

Additional information on the legislation is available on the Nebraska Legislature website