2024 Diesel Truck Rebate Application and Instructions

Application form and full requirements and instructions can be downloaded from the file list at the bottom of this page.

NDEE’s Clean Diesel Rebate Program is offering rebates to replace medium- and heavy-duty diesel trucks with cleaner trucks powered by a diesel or Low-NOx CNG (compressed natural gas) engine with engine model year 2021 or newer. To ensure emissions reductions are achieved through this program, each truck being replaced must be permanently disabled and scrapped. Funding for this year’s program is made possible by the U.S. Environmental Protection Agency’s State Clean Diesel Grant program. A public or private entity may apply to replace up to two trucks.

NDEE will reimburse: 

• 35% of the base purchase cost of a new or used diesel truck powered by a CNG engine certified to meet 2021 or later California Air Resources Board (CARB) Optional Low-NOx Standards (see below). The maximum rebate amount is $160,000.
• 25% of the base purchase cost of a new or used truck powered by a diesel engine certified to meet 2021 or later EPA or CARB emissions standards. The maximum rebate amount is $100,000.

The truck owner is responsible for the remainder of the purchase price (mandatory cost-share). No other federal grant funds may be used to cover any portion of the mandatory cost-share. 

NDEE anticipates awarding rebates for five (5) diesel trucks.  Preference will be given to projects proposing to purchase trucks powered by compressed natural gas. NDEE will determine the number and type of diesel truck rebates to award after evaluating applications for all Nebraska Clean Diesel programs.

WHO IS ELIGIBLE?

• Public or private entities operating diesel refuse trucks or diesel trucks used in local delivery, construction, or maintenance operations in Nebraska communities.
• The applicant (or your organization) must be in compliance with all Nebraska environmental laws and with the Department’s regulations and permits at all locations.

TRUCKS ELIGIBLE TO BE REPLACED

• Operational Class 7 or Class 8 diesel-powered refuse trucks (gross vehicle weight rating of 26,001 lbs or greater).
• Operational medium or heavy-duty diesel trucks (gross vehicle weight rating of 19,500 lbs or greater; Class 5 and higher) that are used in local delivery, construction, or maintenance operations in Nebraska.
• Trucks must have been driven at least 7,000 miles each year during the past two years under the current ownership. Documentation of mileage is required with the application.
• Trucks with model year 2009 or older may be replaced with diesel-fueled or Low-NOx CNG-fueled trucks. Trucks with engine model years 2010 or newer may only be replaced by Low-NOx CNG trucks.

ELIGIBLE REPLACEMENT TRUCKS

• Replacement trucks cannot be purchased until a signed agreement is on file at NDEE.
• Trucks with 2021 or newer engine model year CNG engines 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.
• Trucks with 2021 or newer model year diesel engines certified to meet EPA or CARB emissions standards.
• The replacement truck must perform the same function as the replaced truck and must be in the same or lower Gross Vehicle Weight Rating (GVWR) class. 

PROJECT AND REIMBURSEMENT TIMELINE

By August 31, 2026, a selectee should:

1. Accept delivery of the replacement truck(s)
2. Scrap the old truck(s) in accordance with the program requirements
3. Submit the Reimbursement Request with all supporting documentation.
4. Project extensions may be available if the replacement truck(s) cannot be delivered by August 31, 2026.

APPLICATION PROCESS AND TIMELINE

To apply for a diesel rebate:

• Download the application form and instructions from the file list at the bottom of this web page.
• Be sure to consult the Application Materials Checklist on Page 2 of the instructions.
• Submit the completed application form and all required documentation by 5:00 pm Friday, July 25, 2025.

Mail or email the application 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

SELECTION OF RECIPIENTS

Applications will be evaluated on the basis of the public health benefit of the vehicle replacement and the cost-effectiveness of the emissions reduction (determined from the annual hours of operation, fuel use, and estimated remaining years of service of the replaced vehicles).

Preference will be given to projects proposing to purchase trucks powered by compressed natural gas. The ranking of applications with identical scores will be determined by random drawing.