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 $6,427,505 to 237 recipients
- funded early replacement of 39 school buses by new cleaner-burning buses
- funded early replacement of 31 diesel trucks by new cleaner-burning trucks
- funded replacement of 142 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 1,150 tons
- reduced diesel particulate emissions by 56 tons
- reduced hydrocarbon emissions by 77 tons
- reduced carbon monoxide emissions by 228 tons
Request for Projects for EPA Competitive DERA Grant
NDEE is requesting proposals from public school districts, private schools that operate school buses, and private contractors for the replacement of diesel school buses with new diesel, gasoline, or propane buses.
More information, eligibility criteria, and forms for proposing projects can be found here:
http://dee.ne.gov/publica.nsf/pages/22-056.
2023 Nebraska Clean Diesel Rebate Program

The Nebraska Department of Environment and Energy’s 2023 Clean Diesel Rebate Program offers rebates for projects described below.
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.
Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment
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 35 to 40 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.
- NDEE cannot reimburse any expenses paid before the rebate recipient has signed a project agreement with the Department.
More information and application materials can be found here: 2023 Clean Diesel Irrigation Engine Rebate Applications 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: 2023 Clean Diesel Irrigation Engine Rebate Selectee Information.
2021 Nebraska Clean Diesel Rebate Program

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Diesel School Bus Replacements by Diesel, Gasoline, or Low-NOx Propane-Powered Buses
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
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.
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.
2022 Diesel Irrigation Engine Replacement Rebate Recipients
Name | County | Replacement Technology | Rebate Amount |
Bartels Corporation | Franklin | Electric Motor | $20,000 |
Brandes, Evan | Merrick | Electric Motor | $20,000 |
Cockerill’s Pork Chop Valley Inc. | Keith | Electric Motor | $16,476 |
Creutzberg, Mark | Merrick | Electric Motor | $20,000 |
French Farms Inc | Holt | Electric Motor | $20,000 |
Greenamyre, Rodney | Antelope | Electric Motor | $20,000 |
H and P Land Co | Hall | Electric Motor | $20,000 |
Janak Farms | Butler | Electric Motor | $20,000 |
Kallhoff, Dorothy J Trust | Lincoln | Electric Motor | $20,000 |
Klabenes Trucking Inc | Rock | Electric Motor | $19,803 |
Nielsen, Tim | Knox | Electric Motor | $17,636 |
OBrien, Dale | Hayes | Electric Motor | $20,000 |
Panowicz, John | Hall | Electric Motor | $14,364 |
Sabata, Greg | Butler | Electric Motor | $20,000 |
Thies Farms North LLC | Holt | Electric Motor | $16,762 |
Yindrick Farms LLC | Butler | Electric Motor | $20,000 |
List of Past Clean Diesel Awards
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