2021 Clean Diesel School Bus Rebate Application Information
This information is provided by the Nebraska Department of Environment and Energy to assist the public and regulated community.
Form #: 21-027 Applications and Forms Revised: 10/1/21

The Nebraska Department of Environment and Energy (NDEE) announces that funding is available to replace older diesel school buses. The newer, cleaner replacement bus must be powered by 2019 or newer model year engine fueled by propane and certified to meet California Air Resources Board Optional Low-NOx Standards; or fueled by diesel and certified to meet EPA or CARB emission standards.

NDEE will reimburse:

  • 35% of the base cost of each new propane-fueled bus up to a maximum rebate of $33,000.
  • 25% of the base cost of each new diesel bus up to a maximum rebate of $21,000.

The school bus owner is responsible for the remainder of the purchase price (mandatory cost-share). NDEE anticipates awarding rebates for eight (8) diesel or gasoline and two (2) Low-NOx propane replacement buses. NDEE will determine the number and type of school rebates to award after evaluating applications for all Nebraska Clean Diesel programs. This funding is made possible by the U.S. Environmental Protection Agency’s State Clean Diesel Grant program.

If you have questions about the program, please review the FAQ Clean Diesel Rebate 2021 document (above). If you have additional questions or comments, please send them by email to NDEE.AirQuality@Nebraska.gov. Please continue to refer to this page as it will be updated as questions are received.


  • Any Nebraska public or private school district or school system that offers primary or secondary education.
  • Companies that own buses and have a current agreement with school districts/systems are also eligible to apply if they are either headquartered or have an operational base office in Nebraska.
  • Each applicant may submit only one application for replacement of one bus.
  • Previous recipients of school bus rebates through NDEE are eligible to apply, but preference will be given to schools that are not previous recipients.

  • Operational diesel-powered school bus (Type A, B, C, or D) with engine model year 2009 or older (diesel or gasoline replacement), or engine model year 2017 and older (Low-NOx propane replacement).
  • The bus must be used currently to transport students to and from school or school-related activities.
  • The bus must be painted National School Bus Glossy Yellow and the words “School Bus.
  • The applicant must certify that they have owned and operated the bus to be replaced during two full years prior to the date of submission of the application.
  • The bus must have driven at least 7,000 miles during calendar year 2019 (January-December).
  • The bus must have at least three years of remaining life at the time of the application (as estimated by the owner based on age, usage, and condition).

  • New or used buses with 2019 or newer model year CNG engines 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.
  • New or used buses with 2019 or newer model year diesel engines 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.,
    • GVWR Class 5 = 16,001 to 19,500 lbs.,
    • GVWR Class 6 = 19,501 to 26,000 lbs.,
    • GVWR Class 7 = 26,001 to 33,000 lbs., and
    • GVWR Class 8 = 33,001 lbs.

  • 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.
  • Applicants must submit documentation of ownership for the prior two years for the bus to be replaced and for usage and annual mileage for calendar year 2019.
  • One bid or quote for the replacement bus must be submitted with the application.
  • If selected for an award, 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.


By August 31, 2023, the selectee must:

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


For the application and instructions, please see the link above.

Only one application per applicant will be accepted, and a maximum of one bus rebate is allowed per application.

Applications will only be accepted if complete and received in the NDEE Lincoln office

on or before

5:00 p.m., January 13, 2022.

If the number of complete, eligible applications is greater than the number of available rebates, rebate recipients will be drawn by lottery. Each applicant that has not received a previous school bus rebate will have two entries in the drawing, while each previous rebate recipient will have one entry in the drawing.

Applicant names will be drawn and placed in corresponding order (omitting duplications) until the number of available rebates is reached.

The remaining applicant names will be drawn and placed in order on an alternate list. If an applicant on the rebate list withdraws, funds will be offered to the next applicant on the alternate list.


Mail or e-mail applications to:

Nebraska Clean Diesel Rebate Program

Nebraska Department of Environment and Energy
P.O. Box 98922
Lincoln NE 68509-8922


Only signed and dated original applications will be accepted. You will receive an e-mail confirming NDEE’s receipt of your application.

The application deadline is 5:00 p.m., January 13, 2022. Applications received or incomplete after 5:00 p.m. on that date will not be eligible.

NDEE is not responsible for any applications that are delayed or lost in the mail. It is the applicant’s responsibility

to ensure that their application was received by the department by the deadline.

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

Note: Effective Oct. 1, 2009, any individual submitting any application or form that would derive public benefit from the state must also fill out a United States Citizenship Attestation form. This applies to individuals submitting the forms on their own behalf. If applicable, please fill out the United States Citizenship Attestation form below and submit it with the relevant applications and forms.

United States Citizenship Attestation Form
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