EPA Competitive DERA Grant School Bus Rebate Selectee Information

All project requirements must be completed and all

rebate documentation must be submitted by June 30, 2026.

Use the information provided here and the downloadable forms listed above to plan and complete your School Bus Rebate project.

REIMBURSEMENT TIMELINE: By June 30, 2026, the selectee must:

1. Accept delivery of the new bus
2. Scrap the old bus in accordance with the program requirements described below
3. Submit the Request for Reimbursement Form, Certification of Engine/Chassis Scrappage form, MBE-WBE form (to be provided later), and all required supporting documentation.

ELIGIBLE REPLACEMENT BUSES

• 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.
• School bus with 2021 or newer model year diesel engine certified to meet EPA or CARB emissions standards.
• The replacement bus must resemble the replaced bus in form and function. 
• The replacement Bus must be in the same or lower Gross Vehicle Weight Rating (GVWR) class as the existing bus.  GVWR Class 4 = 14,001 to 16,000 lbs, Class 5 = 16,001 to 19,500 lbs, Class 6 = 19,501 to 26,000 lbs, Class 7 = 26,001 to 33,000 lbs, Class 8  >= 33,001 lbs.

OTHER REQUIREMENTS

• A replacement bus cannot be used to expand the applicant’s current fleet but must replace a bus that is currently operational and in use.  The replaced bus must be disabled (scrapped) within 90 days of replacement.
• The rebate recipient must maintain ownership of the new bus for at least five years from the date of purchase and continue to operate it/them in Nebraska. If a replacement bus is sold before the end of the five-year period, moved out of state, or used for purposes other than what is allowed under this program, the rebate recipient must notify NDEE and may be required to return up to the full amount of the rebate to NDEE. The amount required to be returned is at the discretion of NDEE, and will be determined on a case-by-case basis.
• Recipients may be required to file annual reports of mileage and fuel use for the duration of the agreement.

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 wall of the engine block.
2. Cutting completely through the chassis frame rails on either side of the bus 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 must be reported to NDEE as program income. 

SCRAPPAGE DOCUMENTATION

The following documentation of scrappage is required and must be submitted prior to or with the reimbursement request. 

Clean Diesel Rebate Program Certificate of Engine/Chassis Scrappage signed by the party responsible for dismantling the vehicle and by the school representative, including:

• The name and address of the dismantler
• Identification of the old vehicle and engine including model year, VIN, and engine serial number
• The date the vehicle was scrapped by the dismantler.

Photographs (with labels or explanatory captions) of:

• Side profile of the old Bus clearly showing that it has been disabled
• Vehicle Identification Number (VIN)
• The engine label that includes:
  • Engine serial number
  • EPA Engine Family identifier
• Chassis frame rails cut in half between the front and rear axles
• Engine block prior to hole being cut
• Engine block showing the 3” by 3” hole
• Other photos as needed.

DOCUMENTATION REQUIRED FOR REIMBURSEMENT
After you have received the new bus and have scrapped the old bus, you must submit the following documentation to receive reimbursement:

• Request for Reimbursement Form (download from link above)
• 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 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 MBE-WBE form
• Scrappage documentation (see above)

SUBMITTING YOUR REIMBURSEMENT REQUEST

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

For electronic submission, please e-mail to:

NDEE.AirGrants@nebraska.gov

For hard-copy submission, please mail to:

Nebraska Clean Diesel Rebate Program

Nebraska Department of Environment and Energy

P.O. Box 98922

Lincoln NE 68509-8922

Questions?  Email us at NDEE.AirGrants@nebraska.gov