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 $6,224,035 to 223 recipients
- funded early replacement of 40 school buses by new cleaner-burning buses
- funded early replacement of 31 diesel trucks by new cleaner-burning trucks
- funded replacement of 130 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 1,100 tons
- reduced diesel particulate emissions by 53 tons
- reduced hydrocarbon emissions by 73 tons
- reduced carbon monoxide emissions by 227 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 closed 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.
If your organization was 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 closed 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).
If your organization was 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 closed 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:
- an electric motor, or
- 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).
If your organization was 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
Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment
2019 Nebraska Clean Diesel Rebate Program
Diesel Truck Replacements by Diesel or Low-NOx Compressed Natural Gas-Powered Trucks
Who to Contact with Questions
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.
2021 Diesel Refuse Truck Replacement Rebate Recipients
Name | Location | Replacement Technology | Rebate Amount |
Abe’s Trash Service | Sarpy County | 2 Diesel Refuse Trucks | $138,600 |
Gretna Sanitation | Gretna | 1 CNG Refuse Truck | $120,000 |
Papillion Sanitation | Sarpy County | 2 Diesel Refuse trucks | $140,000 |
2021 Diesel School Bus Replacement Rebate Recipients
Name | Location | Replacement Technology | Rebate Amount |
Arlington Public School | Arlington | Diesel School Bus | $21,000 |
Bloomfield Community Schools | Bloomfield | Diesel School Bus | $21,000 |
Broken Bow Public Schools | Broken Bow | Diesel School Bus | $21,000 |
Doc Holiday Express | Grand Island | Propane School Bus | $33,000 |
Elmwood-Murdock Public Schools | Murdock | Diesel School Bus | $21,000 |
Falls City Public Schools District 56 | Falls City | Diesel School Bus | $21,000 |
Maywood Public Schools | Maywood | Propane School Bus | $33,000 |
Palmyra Schools District OR-1 | Palmyra | Diesel School Bus | $21,000 |
Pleasanton Public Schools | Pleasanton | Propane School Bus | $33,000 |
South Central USD #5 | Fairfield | Gasoline School Bus | $16,569 |
Wakefield Community Schools | Wakefield | Diesel School Bus | $21,000 |
Wausa Public Schools | Wausa | Propane School Bus | $33,000 |
Waverly Public Schools #145 | Waverly | Diesel School Bus | $21,000 |
2021 Diesel Irrigation Engine Replacement Rebate Recipients
Name | County | Replacement Technology | Rebate Amount |
CKS Farms Inc. | Hall | Electric Motor | $12,908 |
Clark, Rod | Wheeler | Electric Motor | $20,000 |
CLM Enterprises - Paul Troyer | Holt | Electric Motor | $20,000 |
Fanning, Craig | Chase | Electric Motor | $20,000 |
Goertz Family Farms LLC | Keith | Electric Motor | $20,000 |
Goertzen, Danny | Perkins | Electric Motor | $20,000 |
Goertzen, Wendel | Perkins | Electric Motor | $20,000 |
Kallhoff, Alice Rev. Trust | Antelope | Electric Motor | $20,000 |
Kerkman Sandhills Farms | Holt | Electric Motor | $20,000 |
Krieger, Lowell | Holt | Electric Motor | $19,997 |
Laird, Barbara E. | Wheeler | Electric Motor | $20,000 |
Larson, Tamara | Wheeler | Electric Motor | $20,000 |
LDP Inc. | Perkins | Electric Motor | $20,000 |
MTC Properties | Lincoln | Electric Motor | $20,000 |
Nelson Agri Corp | Keith | Electric Motor | $20,000 |
O & W Dairy Farm | Antelope | Electric Motor | $20,000 |
OBrien, Dale | Hayes | Electric Motor | $20,000 |
Oeltjen, Charles | Greeley | Electric Motor | $19,238 |
Olson, L.R. and Sons Inc | Jefferson | Electric Motor | $20,000 |
Olson, Ron | Jefferson | Electric Motor | $19,995 |
Peaster, Bruce L | Perkins | Electric Motor | $20,000 |
Plejdrup, Harold | Hall | Electric Motor | $20,000 |
Reiman, James B. Farms Inc. | Boyd | Electric Motor | $20,000 |
Riley, James | Buffalo | Electric Motor | $20,000 |
Schrader, David | Antelope | Electric Motor | $16,317 |
Sehi Farms Inc. | Antelope | Electric Motor | $18,969 |
Williby, Neil | Antelope | Electric Motor | $14,840 |
Z Brothers LLC | Antelope | Electric Motor | $9,248 |
Zuhlke, Derek | Antelope | Electric Motor | $13,943 |
Zuhlke, Dillan | Antelope | Electric Motor | $13,754 |
List of Past Clean Diesel Awards
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