2024 School Bus Reimbursement Instructions

Reimbursement forms and full instructions can be downloaded from the file list at the bottom of this page.

All project requirements should be completed and rebate documentation submitted by August 31, 2026. Project extensions may be available if the new bus cannot be delivered by that date.

REIMBURSEMENT TIMELINE: By August 31, 2026, the selectee should:

1. After submitting the signed project agreement, order and accept delivery of the replacement bus.
2. Scrap the old bus in accordance with the program requirements described below.
3. Submit the Request for Reimbursement Form, Certificate of Engine/Chassis Scrappage, invoices and proof of payment, and all other required supporting documentation.

ELIGIBLE REPLACEMENT BUSES

• New or used school bus with 2021 or newer model year propane-fueled engine certified to meet CARB’s Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx (35% reimbursement, maximum $49,000).
• New or used school bus with 2021 or newer model year diesel or gasoline engine certified to meet EPA or CARB emissions standards (25% rebate, maximum $31,000).
• The replacement bus must resemble the replaced bus in form and function and be in the same or lower Gross Vehicle Weight Rating Class.

SCRAPPAGE REQUIREMENTS

The old bus being replaced must be scrapped (permanently disabled) prior to submission of the reimbursement request to NDEE and within 90 days after delivery of the new bus unless NDEE approves a longer period. Scrappage consists of:

1. Cutting, drilling, or punching a 3” by 3” hole completely through the cylinder wall of the engine block or shearing the engine block.
2. Cutting completely through the chassis frame rails on either side between the front and rear axles.

Scrappage may be completed by the rebate recipient, by a salvage yard, or by a similar service, provided all scrappage requirements have been met and all necessary documentation is provided. Alternative scrappage methods require approval from NDEE. Equipment and vehicle components that are not part of the engine or chassis may be salvaged from the bus being replaced (e.g., seats, tires, etc.). The engine and chassis may be sold for scrap metal, provided that the bus is disposed of in accordance with federal and state requirements for vehicle disposal.  Salvage proceeds may be retained by the rebate recipient, but they must be reported to NDEE as program income.

DOCUMENTATION REQUIRED FOR REIMBURSEMENT

Complete and submit the following documentation to receive reimbursement:

• Request for Reimbursement Form (download below)
• Copy of the Nebraska vehicle registration for the replacement bus
• Side profile photo of the replacement bus
• Photo of the new vehicle engine label showing the EPA Engine Family
• Copy of purchase order and paid invoice
• Copy of proof of payment (e.g., cancelled check front and back, credit card payment receipt, or bank statement showing that the check was cashed)
• Completed Certificate of Engine/Chassis Scrappage form (download below)
• Scrappage documentation (see Reimbursement Instructions)
• Completed MBE/WBE Utilization Form (to be provided by NDEE later)

SUBMITTING THE REIMBURSEMENT REQUEST

Reimbursement requests may be submitted electronically by e-mail or in hard-copy by U.S. mail. Reimbursement forms and documentation may be assembled into a PDF file for easy e-mail submission.

Mail or email the reimbursement request package to:
Nebraska Clean Diesel Rebate Program
Nebraska Department of Environment and Energy
245 Fallbrook Blvd., Suite 100
Lincoln NE 68509-8922
NDEE.AirGrants@nebraska.gov