LINCOLN, Neb. -- Consumers in Nebraska could earn rebates to convert their gasoline- and diesel-powered vehicles to cleaner alternatives through a new bill that is advancing in the state legislature.
The Nebraska Clean-Burning Motor Fuel Development Act (Legislative Bill 581) would offer a rebate of up to $4,500 for each gasoline- or diesel-powered vehicle that is converted to run on a clean-burning fuel. According to the text of the bill, these fuels include hydrogen fuel cells, compressed natural gas (CNG), liquefied natural gas (LNG), propane and ethanol.
The bill would also offer a $2,500 rebate for new natural-gas compression and dispensing equipment for residential, non-commercial use. The rebates would be supported by a $500,000 fund fed by grants, private contributions and other sources, and overseen by the Nebraska State Energy Office.
State Senator Jeremy Nordquist (D), the sponsor of the bill, argued that the bill would help Nebraska reach energy independence and diversify its energy sources, said a report in The Lincoln Journal Star.
A strong proponent of natural gas, Nordquist highlighted it as a domestic, cleaner-burning alternative to gasoline. If passed, the bill would stimulate demand for the alternative fuels, which would then trigger development of fueling stations, he said.
“It’s not much different than what it took to get ethanol off the ground,” Nordquist, told the newspaper. “It takes a little bit of a jumpstart to build that demand.”
The bill advanced in the Senate with a 27 to 13 vote after it was amended to include vehicles that could run on higher ethanol blends.
The bill’s opponents argue that it involves the state in the energy marketplace and does not offer generous enough incentives to make any difference. State Sen. Paul Schumacher (R) calculated that the fund would only support the conversion of around 72 vehicles, and asked if this amounted to a “hill of beans,” said a separate report by The Omaha World-Herald.
Click here to view the full Journal Star report. And click here to view the full World Herald report.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.