Nebraska Clean Diesel Rebate Program

Exposure to diesel exhaust, even at low levels, is a serious health hazard that can cause respiratory problems such as asthma, bronchitis, lung damage, and increased risk of lung cancer. The Nebraska Department of Environment and Energy (NDEE) established the Nebraska Clean Diesel Program in 2008 to distribute funding received from the U.S. Environmental Protection Agency (EPA) for the purpose of reducing diesel emissions.

This funding was authorized by Congress in the Diesel Emissions Reduction Act (DERA), which was created as part of the Energy Policy Act of 2005. The DERA program provides funding annually to states for the establishment of grant, rebate, and loan programs that reduce diesel emissions. NDEE is supplementing the federal DERA grant with matching funds from the Volkswagen Diesel Emissions Environmental Mitigation Trust for State Beneficiaries.

Beginning in 2024, irrigation engine replacement projects are funded through NDEE’s ONE RED (Opportunity Nebraska: Reducing Emissions and Decarbonization) Program.

 

Program Accomplishments

Since its inception, NDEE’s Clean Diesel Program has:

• awarded $6,886,916 to 268 recipients
• funded early replacement of 40 school buses by new cleaner-burning buses
• funded early replacement of 29 diesel trucks by new cleaner-burning trucks
• funded replacement of 174 diesel irrigation engines with all-electric equipment
• retrofit pollution control devices on 334 diesel engines
• installed idle-reducing auxiliary power units on 39 long-haul trucks
• reduced nitrogen oxide emissions by 1,210 tons
• reduced diesel particulate emissions by 59 tons
• reduced hydrocarbon emissions by 82 tons
• reduced carbon monoxide emissions by 249 tons

2024 ONE RED Irrigation Engine Rebate Program 

The Nebraska Department of Environment and Energy’s 2024 Irrigation Engine Rebate Program offers funding to assist farmers in the replacement of an irrigation pump diesel engine with an electric motor or by connecting a submersible pump directly to the electric grid. This program is funded by an EPA grant to NDEE’s ONE RED (Opportunity Nebraska: Reducing Emissions and Decarbonization) Program. 

To be eligible to receive a rebate, you (or your organization) must be in compliance with all Nebraska environmental laws and with the Department’s regulations and permits at all Nebraska locations.

Applications for this program are open through January 16, 2025.  NDEE anticipates funding 50 irrigation engine rebates this year.

• The current diesel engine must be in operating condition and have operated at least 250 hours each year over the past two years. Documentation of operating hours is required.
• The applicant must submit documentation that they have owned the engine to be replaced for at least two years prior to submission of the application.
• The diesel engine must have a remaining service life of at least three years based on age, condition, and usage.
• The diesel engine must be replaced with an electric motor or, if the engine powers a generator that runs a submersible pump, by directly connecting the submersible pump to the electric grid.
• The replaced diesel engine must be disabled (scrapped).
• NDEE will reimburse 60% of the cost of the electric motor, installation, and/or required electrical infrastructure (including electric line extension) up to a maximum rebate of $23,000.
• Projects must be completed by June 30, 2026.
• NDEE cannot reimburse any expenses paid before the rebate recipient has signed a project agreement with the Department.

More information and application materials can be found here: 2024 ONE RED Irrigation Engine Rebate Applications and Instructions. 
 

If your organization is selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 2024 ONE RED Irrigation Engine Rebate Selectee Information. 

EPA Competitive DERA Grant

NDEE has received an  EPA Competitive DERA Grant on behalf of 11 Nebraska school districts and one refuse hauler. This grant will replace 11 diesel school buses and one diesel refuse truck with new, cleaner vehicles. 

School Bus Replacements

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: School Bus Rebate Selectee Information

Diesel Refuse Truck Replacements

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: Diesel Truck Rebate Selectee Information

2023 Nebraska Clean Diesel Rebate Program
 

Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 2023 Clean Diesel Irrigation Engine Rebate Selectee Information.

2021 Nebraska Clean Diesel Rebate Program

Diesel Refuse Truck Replacements by Diesel or Low-NOx Compressed Natural Gas-Powered Trucks
If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 21-025 2021 Clean Diesel Truck Rebate Selectee Information.

 

Who to Contact with Questions

Contact the Nebraska Clean Diesel Rebate Coordinator at (402) 471-4272 or by email: NDEE.AirQuality@nebraska.gov.

List of Current Year Rebate Recipients

Below is a table that provides a list of the Nebraska Clean Diesel rebates awarded during the current grant year by the Nebraska Department of Environment and Energy.