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Recently signed bill promotes use of biodiesel in Nebraska

Nebraska Governor Jim Pillen recently signed into law legislation that promotes the sale and use of biodiesel in the state.  The bill, LB 727, adds value to Nebraska’s soybean farmers and promotes the continued growth of the renewable fuel industry by incentivizing the sale of biodiesel at fuel retailers throughout the state. 

The Nebraska Biodiesel Tax Credit Act is part of an omnibus revenue bill and provides a 14-cent-per-gallon credit for the sale of biodiesel.  The total funding for the program is $5 million.

Donnell Rehagen, Clean Fuels Alliance America CEO says the legislation will help strengthen the momentum of the growing biodiesel market, and the forward-thinking legislation not only contributes to decarbonization, but promotes the production and use of biodiesel, a homegrown fuel.  

The proposal was introduced by Sen. Tom Brandt of Plymouth and amended to LB 727 which was shepherded through Nebraska’s unicameral legislature by Sen. Lou Ann Linehan of Elkhorn. The biodiesel proposal received overwhelming support from Nebraska’s agriculture industry, biodiesel producers, and fuel marketers. The legislation was ultimately passed unanimously by the Nebraska Senate.

Nebraska is one of the top six soybean-producing states and in 2022 the state’s biodiesel industry supported an estimated $322 million worth of overall value to Nebraska soybeans.  It also supports $833 million in economic activity and nearly 5,900 jobs, many of which are located in rural areas.  The efforts of Illinois, Iowa, Missouri, and now Nebraska will help grow the biodiesel market in the Midwest by over 300 million gallons. 

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