LINCOLN, Neb. — The Nebraska Department of Environment and Energy’s 2024 Clean Diesel Rebate Program is accepting applications for two types of rebates: diesel school bus replacements and medium- to heavy-duty diesel truck replacements. Applications must be submitted to NDEE by 5 p.m. on Friday, July 25, 2025, to be considered.

The number of rebates offered in each category may be subject to change, depending on the number of applications received in each category. Rebates will be offered for:

Diesel School Bus Replacements

Public school districts, private schools, and contractors serving schools may apply to replace an operational diesel school bus that has driven at least 7,000 miles in each of the past two years. A bus with engine model year 2009 or older may be replaced by a diesel, gasoline, or Low-NOx propane bus; a bus with engine model year 2010 or newer may only be replaced by a Low-NOx propane bus. The replacement bus can be new or used, but it must have an engine model year 2021 or newer and be in the same or lower gross vehicle weight class as the replaced bus. The replaced bus must be permanently disabled and scrapped.

NDEE will reimburse 25% of the base purchase price of a new diesel bus (up to a maximum reimbursement of $31,000) and 35% of the price of a new Low-NOx propane bus (up to a maximum rebate of $49,000). The applicant is responsible for the remainder of the purchase price. 

NDEE anticipates awarding rebates for 11 diesel or gasoline replacement buses and one Low-NOx propane replacement bus. NDEE will determine the number and type of school bus rebates to award after evaluating applications for both Nebraska Clean Diesel programs.

Local Diesel Truck Replacements

Public and private entities may apply to replace up to two operational, medium- to heavy-duty diesel trucks, including refuse trucks or diesel trucks used in local delivery, construction, or maintenance operations. To be eligible, a truck must have been driven at least 7,000 miles in each of the past two years.  A truck with engine model year 2009 or older may be replaced by a diesel or Low-NOx CNG (Compressed Natural Gas) truck; a truck with engine model year 2010 or newer may only be replaced by a Low-NOx CNG truck. The replacement truck can be new or used, but it must have an engine model year 2021 or newer and be in the same or lower gross vehicle weight class as the replaced truck. The replaced truck must be permanently disabled and scrapped.

NDEE will reimburse 25% of the base purchase price of a new diesel truck (up to a maximum reimbursement of $100,000) and 35% of the price of a new Low-NOx CNG truck (up to a maximum rebate of $160,000). The applicant is responsible for the remainder of the purchase price.

NDEE anticipates awarding rebates for replacing five diesel trucks. Preference will be given to projects proposing to purchase CNG-fueled trucks. NDEE will determine the number of diesel truck rebates after evaluating applications for both Nebraska Clean Diesel programs.

More information about these programs, including rebate applications and instructions, can be found at NDEE’s Clean Diesel Program web page: https://dee.nebraska.gov/aid/air-loans-grants-rebates/nebraska-clean-diesel-rebate-program.