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Bill seeks millions in biodiesel incentives

LINCOLN - The state's commitment to being a leader in the production of alternative fuels is being tested again, and cost is the multimillion dollar question.

State Sen. Cap Dierks of Ewing wants to encourage more biodiesel production in Nebraska with incentives that could cost millions of dollars annually. At the same time, the state may owe a total of more than $150 million the next several years to ethanol plants that have qualified for incentives under a different program.

Dierks has introduced a bill (LB626) that calls for paying biodiesel producers 30 cents for every gallon of biodiesel they sell. State fiscal analysts have estimated the program could cost roughly $20 million annually.

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