Natural Gas Laws and Incentives in Nebraska
The list below contains summaries of all Nebraska laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Excise Tax
An excise tax of $0.095 per gallon or gasoline gallon equivalent (GGE) is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and propane sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.068 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 Revised Statutes 66-6,102; 66-6,107; and 66-6,109)
Natural Gas Motor Vehicle Fuel Promotion
The Natural Gas Fuel Board (Board) was 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 Nebraska Revised Statutes 66-2001)
State Incentives
Alternative Fuel Tax Refund
The Nebraska Department of Revenue will refund taxes paid on compressed natural gas, liquefied natural gas, and propane when the fuel is used to operate buses capable of carrying seven or more passengers within or near a municipality.
(Reference Nebraska Revised Statutes 66-6,100 and 66-6,109.01)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Nebraska Energy Office administers the Dollar and Energy Saving Loan Program, which 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 fueling stations or equipment. The maximum loan amount is $500,000 per borrower, and the interest rate is 5% or less. For more information, see the Dollar and Energy Saving Loans website.
Diesel Refuse Truck Replacement Program
The Nebraska Department of Environment and Energy (NDEE) will provide funding for the replacement of medium- to heavy-duty diesel refuse, local freight, delivery, and maintenance trucks. Old trucks must be replaced with 2019 or newer model year compressed natural gas or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. The program is funded by Nebraska’s portion of the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act Program. For more information, including application details, visit the NDEE Volkswagen Settlement and Clean Diesel Rebate Program websites.
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.