Alternative Fuels -- State Regulations for Nebraska

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Nebraska.

Fuel Use

State agency vehicles

All state employees operating flexible fuel or diesel vehicles as part of the state fleet must use E85 or biodiesel blends whenever reasonably available. Additionally, the Nebraska Transportation Services Bureau and Nebraska Department of Roads must take steps to increase access to E85 and blends of 2% biodiesel (B2) for state vehicle operators. (Reference Executive Order 05-03, 2005)

General

Funding (vehicle conversion, fueling infrastructure)

The Nebraska Energy Office administers the Dollar and Energy Saving Loan Program (Program). The Program makes low-cost loans available for a variety of alternative fuel projects, including the replacement of conventional vehicles with AFVs; the purchase of new AFVs; the conversion of conventional vehicles to operate on alternative fuels; and the construction or purchase of a fueling station or equipment. The maximum loan amount is $750,000 per borrower, and the interest rate is 5% or less.

Promotion (natural gas-powered vehicles)

Effective October 1, 2012, an eight member Natural Gas Fuel Board (Board) will be created to advise the Nebraska Energy Office regarding the promotion of natural gas as a motor vehicle fuel. The Board will provide recommendations relating to the distribution, infrastructure, and workforce development necessary for widespread use of natural gas as a motor vehicle fuel; loans, grants, and tax incentives that will encourage the use of natural gas as a motor vehicle fuel by individuals and public and private fleets; and other matters as the Board deems appropriate. (Reference Legislative Bill 1087, 2012)

Tax (natural gas powered vehicles)

An excise tax of $0.075 per gallon or gasoline gallon equivalent (GGE) is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas or propane sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.028 per gallon or GGE on all CNG, LNG, and propane fuel sold for use in registered motor vehicles. Additional taxes as specified annually under these statutes may apply. (Reference Nebraska Statutes 66-6,102; 66-6,107; and 66-6,109)

Tax Exemption (alternative fuels)

Motor fuels sold to an ethanol or biodiesel production facility and motor fuels manufactured at and sold from an ethanol or biodiesel facility are exempt from certain motor fuel tax laws the Motor Fuels Division of the Nebraska Department of Revenue enforces. (Reference Nebraska Statutes 66-489 and 66-496)

Weight Limit Exemption (idle reduction)

The maximum gross weight limit and axle weight limit for any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross weight limit by up to 400 pounds per vehicle to compensate for the additional weight of the idle reduction technology. (Reference Nebraska Statutes 60-6,294)