Nebraska Clean Diesel Rebate Program

Exposure to diesel exhaust, even at low levels, is a serious health hazard that can cause respiratory problems such as asthma, bronchitis, lung damage, and increased risk of lung cancer. The Nebraska Department of Environment and Energy (NDEE) established the Nebraska Clean Diesel Program in 2008 to distribute funding received from the U.S. Environmental Protection Agency (EPA) for the purpose of reducing diesel emissions.

This funding was authorized by Congress in the Diesel Emissions Reduction Act (DERA), which was created as part of the Energy Policy Act of 2005. The DERA program provides funding annually to states for the establishment of grant, rebate, and loan programs that reduce diesel emissions. NDEE is supplementing the federal DERA grant with matching funds from the Volkswagen Diesel Emissions Environmental Mitigation Trust for State Beneficiaries.

Beginning in 2024, irrigation engine replacement projects are funded through NDEE’s ONE RED (Opportunity Nebraska: Reducing Emissions and Decarbonization) Program.

Program Accomplishments

Since its inception, NDEE’s Clean Diesel Program has:

• awarded $6,886,916 to 268 recipients
• funded early replacement of 40 school buses by new cleaner-burning buses
• funded early replacement of 29 diesel trucks by new cleaner-burning trucks
• funded replacement of 174 diesel irrigation engines with all-electric equipment
• retrofit pollution control devices on 334 diesel engines
• installed idle-reducing auxiliary power units on 39 long-haul trucks
• reduced nitrogen oxide emissions by 1,210 tons
• reduced diesel particulate emissions by 59 tons
• reduced hydrocarbon emissions by 82 tons
• reduced carbon monoxide emissions by 249 tons

2024 Nebraska Clean Diesel Rebate Program

The Nebraska Department of Environment and Energy’s 2024 Clean Diesel Rebate Program offers rebates for projects described below. The number of rebates offered in each category may change from the numbers noted below depending on the number of applications received in each category and NDEE’s evaluation of the applications.

Replace Diesel School Bus with Diesel, Gasoline, or Low-NOx Propane Bus

(application deadline: July 25, 2025, 5:00 pm)

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 eleven (11) diesel or gasoline replacement buses and one (1) 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.

More information, requirements, and application materials can be found here:

2024 Clean Diesel School Bus Rebate Application and Instructions

If your organization is selected to receive a rebate, information on requesting reimbursement can be found here:

2024 Clean Diesel School Bus Reimbursement Instructions 

Replace Local Diesel Trucks with Diesel or Low-NOx CNG Trucks

(application deadline: July 25, 2025, 5:00 pm)

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 (5) 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, requirements, and application materials can be found here:

2024 Clean Diesel Truck Rebate Application and Instructions

If your organization is selected to receive a rebate, information on requesting reimbursement can be found here:

2024 Clean Diesel Truck Reimbursement Instructions 

2024 ONE RED Irrigation Engine Rebate Program 

The Nebraska Department of Environment and Energy’s 2024 Irrigation Engine Rebate Program offers funding to assist farmers in the replacement of an irrigation pump diesel engine with an electric motor or by connecting a submersible pump directly to the electric grid. This program is funded by an EPA grant to NDEE’s ONE RED (Opportunity Nebraska: Reducing Emissions and Decarbonization) Program. 

More information and application materials can be found here: 2024 ONE RED Irrigation Engine Rebate Applications and Instructions.

EPA Competitive DERA Grant

NDEE has received an  EPA Competitive DERA Grant on behalf of 11 Nebraska school districts and one refuse hauler. This grant will replace 11 diesel school buses and one diesel refuse truck with new, cleaner vehicles. 

School Bus Replacements

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: School Bus Rebate Selectee Information

Diesel Refuse Truck Replacements

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: Diesel Truck Rebate Selectee Information

2023 Nebraska Clean Diesel Rebate Program

Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment

If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 2023 Clean Diesel Irrigation Engine Rebate Selectee Information.
 

2021 Nebraska Clean Diesel Rebate Program

Diesel Refuse Truck Replacements by Diesel or Low-NOx Compressed Natural Gas-Powered Trucks
If your organization was selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: Clean Diesel Truck Rebate Selectee Information.
 

Who to Contact with Questions

Contact the Nebraska Clean Diesel Rebate Coordinator at (402) 471-4272 or by email: NDEE.AirGrants@nebraska.gov.

List of Current Year Rebate Recipients

Below is a table that provides a list of the Nebraska Clean Diesel rebates awarded during the current grant year by the Nebraska Department of Environment and Energy.