The Nebraska Department of Environment and Energy’s 2021 Clean Diesel Rebate Program is now accepting applications for three types of rebates — diesel refuse truck replacements, school bus replacements and agricultural irrigation pump diesel engine replacements. Applications must be submitted to NDEE by Jan. 13, 2022, to be considered.

NDEE established the Nebraska Clean Diesel Program in 2008 to distribute funding received from the U.S. Environmental Protection Agency for the purpose of reducing diesel emissions and improving air quality in the state.

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

Diesel Refuse Truck Replacements – Funding will assist with the early replacement of diesel refuse trucks with newer, cleaner trucks. The replaced truck and engine must be scrapped. A replacement truck may be powered by a diesel engine or by a Compressed Natural Gas (CNG) engine that complies with stricter nitrogen oxide emission standards. A replacement truck may be new or used, but the engine model year must be 2019 or newer. Trucks eligible for replacement are heavy-duty diesel refuse trucks with engine model year 2009 or older (or 2017 and older for CNG replacement) that have been owned and operated by the applicant for at least the previous two years and that have driven at least 7,000 miles each of the last two years.

NDEE will reimburse 35% of the cost of each eligible CNG-fueled truck up to a maximum of $120,000, or 25% of the cost of each eligible diesel truck up to a maximum of $70,000. NDEE anticipates funding replacement of five trucks. Individual applicants may apply for a rebate for up to two trucks.

Diesel School Bus Replacements – Funding will assist with the early replacement of diesel school buses with new, cleaner buses. Any Nebraska public school district, private school that offers primary or secondary education or bus contract operator that has a current agreement with a Nebraska school district is eligible to apply. The replaced bus and engine must be scrapped. The replacement bus may be powered by a diesel or gasoline engine or by an engine fueled by propane that complies with stricter nitrogen oxide emission standards. The replacement bus may be new or used, but the engine model year must be 2019 or newer. Buses eligible for replacement are operational Type A, B, C or D diesel buses with engine model year 2009 or older for diesel or gasoline replacement or engine model year 2017 and older for propane replacement. The replaced bus must have been owned and operated by the applicant for the previous two years and have been driven at least 7,000 miles in calendar year 2019.

NDEE will reimburse 35% of the cost of an eligible propane-fueled bus up to a maximum rebate of $33,000, or 25% of the cost of a diesel or gasoline bus up to a maximum rebate of $21,000. NDEE anticipates awarding rebates for eight diesel or gasoline replacement buses and two propane replacement buses. An individual applicant may apply for one rebate for one bus. Previous recipients of school bus rebates from NDEE are eligible to apply, but preference will be given to schools that are not previous recipients.

Agricultural Irrigation Pump Diesel Engine Replacement - Funding will assist farmers with the replacement of irrigation pump diesel engines with all-electric equipment. Eligible engines must have been owned by the applicant for at least two years, must be in operating condition and have operated at least 250 hours in each of the last two years. Diesel engines may be replaced with an electric motor to power a surface pump or by connecting an existing submersible pump directly to the electric grid.

NDEE will reimburse 60% of the cost of the electrical equipment, installation and required electric line extension up to a maximum rebate of $20,000. NDEE anticipates funding 17 irrigation engine rebates.

More information about the Nebraska Clean Diesel Rebate Program, including rebate applications, can be found at NDEE’s Clean Diesel Program webpage: https://dee.nebraska.gov/aid/air-loans-grants-rebates/nebraska-clean-diesel-rebate-program.

The Nebraska Clean Diesel Rebate Program is separate and distinct from the Nebraska Diesel Emission Mitigation Program funded by the Volkswagen Diesel Emissions Environmental Mitigation Trust for State Beneficiaries. NDEE has been designated to administer funds through this separate VW program, which is based on a federal court settlement. NDEE has developed a mitigation plan to guide the use of these funds. For more information about Nebraska’s program under the VW settlement, go to:
https://dee.nebraska.gov/aid/air-loans-grants-rebates/volkswagen-environmental-mitigation-trust-fund.