Focus On Air
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.

Program Accomplishments

Since its inception, NDEE’s Clean Diesel Program has:
  • awarded $4,966,057 to 177 recipients
  • funded early replacement of 27 school buses by new cleaner-burning buses
  • funded early replacement of 26 diesel trucks by new cleaner-burning trucks
  • funded replacement of 100 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 970 tons
  • reduced diesel particulate emissions by 47 tons
  • reduced hydrocarbon emissions by 64 tons
  • reduced carbon monoxide emissions by 200 tons

2021 Nebraska Clean Diesel Rebate Program


The Nebraska Department of Environment and Energy’s 2021 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.

To be eligible to receive a rebate, you (or your organization) must be in compliance with all Nebraska environmental laws and with the Department’s regulations and permits at all Nebraska locations.




Diesel School Bus Replacements by Diesel, Gasoline, or Low-NOx Propane-Powered Buses (The application period for this program closes at 5:00 pm on January 13, 2022.)


Funding is available through the Nebraska Clean Diesel Program to replace older diesel school buses with new cleaner diesel, gasoline, or Low-NOx propane-fueled buses. NDEE anticipates funding rebates for eight (8) replacement diesel or gasoline buses and two (2) Low-NOx propane replacement buses. If eligible applications exceed the available funds, winning applicants will be selected by lottery, with preference to first-time awards.

Eligible Existing Buses
  • School buses (Type A, B, C, or D) are eligible for replacement if they have a diesel engine with model year 2009 or older (for a diesel or gasoline replacement) or engine model year 2017 and older for a Low-NOx propane replacement.
  • The bus must be in current use to transport students to and from school or school-related activities.
  • The applicant must certify and provide documentation that they have owned the existing bus during two full years prior to the submission of the application.
  • The applicant must provide documentation that the bus was driven at least 7,000 miles during calendar year 2019.
  • The existing bus must have at least 3 years of remaining life as determined by age, condition, and usage.
  • The replaced bus must be scrapped.

Eligible Replacement Buses
  • The replacement bus must have a 2019 model year engine fueled by propane and certified to meet California Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx; or a 2019 diesel or gasoline engine certified to meet EPA emission standards.
  • The replacement bus must resemble the replaced bus in form and function and must not be in a higher gross vehicle weight class than the bus to be replaced.

NDEE will reimburse:
  • 35% of the base purchase cost of a new or used school bus powered by a propane engine certified to meet 2019 or later California Air Resources Board (CARB) Optional Low-NOx Standards. The maximum rebate amount is $33,000.
  • 25% of the base purchase cost of a new or used school bus powered by a diesel or gasoline engine certified to meet 2019 or later EPA or CARB emissions standards. The maximum rebate amount is $21,000.

More information and application materials can be found here: 21-027 2021 Clean Diesel School Bus Rebate Application and Instructions.

If your organization is selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 21-028 2021 Clean Diesel School Bus Rebate Selectee Information.


Diesel Refuse Truck Replacements by Diesel or Low-NOx Compressed Natural Gas-Powered Trucks (The application period for this program closes at 5:00 pm on January 13, 2022.)


Funding is available through the Nebraska Clean Diesel Program to replace older diesel refuse trucks (Class 7 or 8) that are operational and in current use. NDEE anticipates funding replacement of five (5) trucks.


Eligible Existing Trucks
  • Refuse trucks with diesel engine model years 2009 or older are eligible for replacement (or 2017 and older if being replaced by a Low-NOx CNG truck).
  • Applicants must provide documentation that they have owned the existing trucks for at least two years.
  • Each truck to be replaced must have driven at least 7,000 miles each year for the two years prior to the applications. Documentation of annual miles is required with the application.
  • Each truck to be replaced must have at least three years of remaining life as estimated by the owner based on age, condition, and usage.
  • Each replaced truck must be disabled (scrapped).

Eligible Replacement Trucks
  • The new replacement truck must be powered by a 2019 or newer model year engine:
    • powered by Compressed Natural Gas (CNG) and certified to meet the California Air Resources Board Optional Low-NOx Standards of 0.1 g/bhp-hr or lower, or
    • powered by a diesel engine certified to meet EPA emission standards
  • The new replacement truck must be similar in form and function to the truck to be replaced and must not be in a larger gross vehicle weight class than the truck to be replaced.
  • For a CNG replacement, NDEE will reimburse 35% of the cost of the new, cleaner truck up to a maximum of $120,000.
  • For a diesel replacement, NDEE will reimburse 25% of the cost of the new, cleaner truck up to a maximum of $70,000.
  • Each organization may apply for a rebate for a maximum of two trucks.
  • Preference will be given to CNG projects.
  • Applications will be evaluated on the basis of the public health benefit and the amount and cost-effectiveness of the emissions reduction (determined by NDEE from the annual hours of operation, fuel use, and estimated remaining years of service of the replaced vehicle).

More information and application materials can be found here: 17-018 2021 Clean Diesel Truck Rebate Application and Instructions.

If your organization is selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 21-025 2021 Clean Diesel Truck Rebate Selectee Information.


Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment (The application period for this program closes at 5:00 pm on January 13, 2022.)


Funding is available through the Nebraska Clean Diesel Program to assist farmers with the replacement of an irrigation pump diesel engine with:
  1. an electric motor or
  2. connecting a submersible pump directly to the electric grid.

NDEE anticipates funding seventeen (17) irrigation engine rebates.
  • The current diesel engine must be in operating condition and have operated at least 250 hours each year over the past two years. Documentation of operating hours is required.
  • The applicant must submit documentation that they have owned the engine to be replaced for at least two years prior to submission of the application.
  • The diesel engine must have a remaining service life of at least three years based on age, condition, and usage.
  • The diesel engine must be replaced with an electric motor or, if the engine powers a generator that runs a submersible pump, by directly connecting the submersible pump to the electric grid.
  • The replaced diesel engine must be disabled (scrapped).
  • NDEE will reimburse 60% of the cost of the electric motor, installation, and/or required electrical infrastructure (including electric line extension) up to a maximum rebate of $20,000.
  • Each operator may apply for a maximum of one rebate for one engine.
  • Applications will be evaluated on the basis of the public health benefit and the amount and cost-effectiveness of the emissions reduction (determined by NDEE from the annual hours of operation, fuel use, and estimated remaining years of service of the replaced engine).

More information and application materials can be found here: 17-016 2021 Clean Diesel Irrigation Engine Rebate Application and Instructions.

If your organization is selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 21-026 2021 Clean Diesel Irrigation Engine Rebate Selectee Information.


2020 Nebraska Clean Diesel Rebate Program


Diesel 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: 2020 Clean Diesel Truck Rebate Selectee Information.

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: 2020 Clean Diesel Irrigation Engine Rebate Selectee Information.




2019 Nebraska Clean Diesel Rebate Program

Diesel 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: 2019 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.AirQuality@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.





2020 Diesel Truck Replacement Rebate Recipients

Name
Location
Replacement Technology
Rebate Amount
City of Lincoln – Fleet Services
Lincoln
2 Diesel Maintenance/Plow Trucks
$133,049
Gretna Sanitation
Gretna
1 CNG Refuse Truck
$120,000
Metropolitan Utilities District
Omaha
2 Diesel utility trucks
$144,395
Soil Dynamics Composting Farm
Springfield
1 Diesel Concrete Truck
$69,120
Uribe Refuse Services
Lincoln
2 CNG Refuse Trucks
$207,578





2020 Diesel Irrigation Engine Replacement Rebate Recipients

Name
County
Replacement Technology
Rebate Amount
Brozek & Sons, Inc.
Antelope
Electric Motor
$20,000
Carpenter, Jerry
Antelope
Electric Motor
$11,253
Filkins, JoAnn
Antelope
Electric Motor
$20,000
Filkins, Mark
Antelope
Electric Motor
$16,447
Godeken, Steve
Keith
Electric Motor
$19,959
Holm, Eugene
Lincoln
Submersible Pump
$20,000
Jorgenson, Neil
Custer
Electric Motor
$18,288
Klabenes Land and Cattle
Antelope
Electric Motor
$13,869
Klabenes Trucking
Antelope
Electric Motor
$14,453
Klabenes, Marvin
Antelope
Electric Motor
$11,290
Klabenes, Matt
Antelope
Electric Motor
$11,162
Klabenes, Stacy
Antelope
Electric Motor
$11,253
Larson, John
Boone
Electric Motor
$12,801
McDonald, Dennis
Antelope
Electric Motor
$17,411
MTC Properties LLC
Lincoln
Electric Motor
$20,000
Mulliken Farms
Dodge
Electric Motor
$13,872
Nelson, Leon
Howard
Electric Motor
$20,000
Nelson, Ross
Madison
Electric Motor
$17,263
Nikkel, Cole
Perkins
Electric Motor
$20,000
Ox Hoof LLC
Holt
Electric Motor
$20,000
Panowicz, John
Hall
Electric Motor
$16,664
Panowicz, Mike
Hall
Electric Motor
$20,000
Pellatz, Tim
Antelope
Electric Motor
$17,978
Peterson David M. Farms
Holt
Electric Motor
$20,000
Peterson, Miles
Greely
Electric Motor
$14,237
Rohde, Keith
Madison
Electric Motor
$17,824
Ro-Jon Inc.
Keith
Electric Motor
$20,000
Siffring Living Trust
Keith
Electric Motor
$13,929
Stanley, John R
Deuel
Electric Motor
$20,000
Sunderman, Randy
Madison
Electric Motor
$15,289
TJK Farms
Antelope
Electric Motor
$20,000
Trambly, Nelson
Franklin
Electric Motor
$19,959
Werkmeister, Neil
Antelope
Electric Motor
$14,237

List of Past Clean Diesel Awards