Nebraska Legislature to Study Ethanol Industry Impacts

(KFOR NEWS July 31, 2020) The Nebraska Legislature will spend time prior to the next legislative session conducting a comprehensive review of policies impacting Nebraska’s biofuels industry and to determine what changes are needed to further enhance and promote the biofuels industry in Nebraska.

Nebraska’s ethanol industry ranks 2nd in the nation, with over 2.6 billion gallons of annual production capacity and over $5 billion in annual economic impact. Four in 10 bushels of Nebraska corn begins its value-added processing at an ethanol plant.

“The last several years have been a challenge for our industry with many policy decisions, both state and federal, impacting demand for Nebraska ethanol,” said Troy Bredenkamp, executive director of Renewable Fuels Nebraska, the trade association for Nebraska’s ethanol industry. “Add in the negative impact the COVID-19 pandemic has had on decreasing ethanol demand across the country, and it is easy to see the need for a study on one of Nebraska’s most important industries.”

LR 373, introduced by Senator Joni Albrecht of Thurston, will examine numerous aspects of public policy toward ethanol including the state-level policy that promotes ethanol production and use, what other states do to promote their ethanol industry and use, as well as state and federal regulations that may hinder Nebraska’s ethanol industry. The study will also explore the current level of research in Nebraska on ethanol that may lead to diversified and increased demand for ethanol produced in this state.

“While dealing with the current challenges, it is important to explore where this important industry is headed 5, 10, 15 years from now,” said Bredenkamp. “The Nebraska ethanol industry is critical to the long-term health of Nebraska’s rural economy and we appreciate Sen. Albrecht and the Nebraska Legislature for committing to a study on ethanol’s future.”

The Nebraska Natural Resources Committee will work closely with the Nebraska Ethanol Board to complete the study and report the findings along with recommendations to the Nebraska Legislative Council prior to the 2021 legislative session.