Skip to Content

Nebraska Senators Revise Bills Dealing with Hemp and Sustainable Aviation Fuel

on Friday, 9 February 2024 in Environmental Pulse: Vanessa A. Silke, Editor

The Second Regular Session of the 108th Nebraska Legislature convened on January 3, 2024.  Through the first ten days of the Session, we identified and analyzed 87 legislative bills of interest.  Those analyses are at this link.  Summaries in our companion newsletter, the Dirt Alert, are at this link.

As of this publication, 35 legislative days remain in the Session.  While none of the above bills of interest have yet advanced to “General File,” nearly all have had a committee hearing.  Below are summaries of two bills with significant amendments.  We will continue to monitor and provide updates on all 87 bills of interest as the Session progresses.

LB 999 (Ibach) would alter the Hemp Farming Act.  Significantly, the bill proposes to define hemp such that both “raw” and “processed” hemp must remain under the 0.3 percent on a dry-weight basis threshold of tetrahydrocannabinol (“THC”) concentration.  This appears geared products containing hemp-derived THC.  The bill also would terminate the Nebraska Hemp Program Fund and the Hemp Promotion Fund.  The Legislature referred this bill to the Agriculture Committee, which re-referred the bill to the Judiciary Committee.  The Judiciary Committee held a hearing on February 1, 2024.

After the hearing, Senator Ibach amended the bill to redefine “cannabidiol,” “cannabinoids,” and “synthetic cannaboids.”  It remains unclear if the Judiciary Committee will refer this bill to General File.

LB 1072 (Dungan) proposes to establish a $1.50-per-gallon sales and use tax credit for purchased “sustainable aviation fuel.”  Qualifying sustainable aviation fuel must (1) meet certain international standards; (2) derive from certain biomass resources, e.g., waste streams, renewable energy sources, or gaseous carbon oxides; (3) not derive from palm derivatives; and (4) have at least a 50 percent lifecycle greenhouse gas emissions reduction as compared to petroleum-based jet fuel.  The Legislature referred this bill to the Revenue Committee, which held a hearing on January 25, 2024.

After the hearing, Senator Dungan amended the bill to add definitions for “applicable material,” “biomass,” “lifecycle greenhouse gas emissions reduction percentage,” and “sustainable aviation fuel.”  The amendment would also authorize the Department of Revenue to promulgate regulations carrying out the bill.  It remains unclear if the Revenue Committee will refer this bill to General File.

1700 Farnam Street | Suite 1500 | Omaha, NE 68102 | 402.344.0500