Structure & Funding

The Nebraska Ethanol Board is a state agency, created in 1971 by the Nebraska Legislature — the first and only state agency in the United States devoted solely to the development of the ethanol industry.

The Nebraska Ethanol Board focuses on four key issues: ethanol production and industry support, market development, research and technology issues, and public policy development. The board operates under the following statutory directives:

  • Establishment, with cooperation of private industry, of procedures and processes necessary to the manufacture and marketing of fuel containing agricultural ethyl alcohol;
  • Establishment of procedures for entering blended fuel into the marketplace; 
  • Analysis and testing of marketing processes to assure acceptance in the private marketplace of blended fuel and byproducts resulting from the manufacturing process;
  • Cooperation with private industry to establish privately owned agricultural ethyl alcohol manufacturing plants in Nebraska;
  • Sponsoring research and development of industrial and commercial uses for agricultural ethyl alcohol and for byproducts; 
  • Promotion of state and national air quality improvement programs and influencing federal legislation that encourages the use of fuels oxygenated by agricultural ethyl alcohol;
  • Promotion of the use of renewable agricultural ethyl alcohol as a replacement for imported oil and for the energy and economic security of the nation;
  • Participation in development and passage of national legislation dealing with research, development, and promotion of United States production of  fuels oxygenated with ethyl alcohol.   
  • As the board may otherwise direct to fulfill the goals set forth under the Ethanol Development Act.

Funding

Funding for Nebraska Ethanol Board activities is provided  by Nebraska Ethanol Producers via the following tax:

  1. Ethanol Producer Excise Tax – Chapter 66-489, Nebraska Revised Statutes:  Each producer of ethanol in the state shall pay an excise tax of 1.25 cents per gallon on natural gasoline purchased for use as a denaturant by the producer.  All such taxes shall be remitted to the State Treasurer for credit to the Agricultural Alcohol Fuel Tax Fund.

Nebraska Statutes

Sections 66-1330 to 66-1351 shall be known and may be cited as the Ethanol Development Act. Read the statutes on the Nebraska Legislature website.