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 $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

EPA Competitive DERA Grant

In November 2023 NDEE applied for an EPA Competitive DERA Grant on behalf of 11 Nebraska school districts and one refuse hauler. If fully funded, this grant would replace 11 diesel school buses and one diesel refuse truck with new, cleaner vehicles. EPA originally planned to announce awards in March 2024. Awards are now expected to be announced in summer 2024. NDEE will notify all participants when more information is available.

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

(The application period for this program closed at 5:00 pm on December 7, 2023.)

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 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.

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


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
Contact the Nebraska Clean Diesel Rebate Coordinator at (402) 471-4272 or by email:

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.

2023 Diesel Irrigation Engine Replacement Rebate Recipients
Replacement Technology
Rebate Amount
Baumgartner, Peter
Electric Motor
Boe, Sheralee
Electric Motor
Brummels, Peter E.
Electric Motor
Czarnick, Shane
Electric Motor
DBR Farms Inc
Electric Motor
Eagle Creek Acres
Electric Motor
Feeney, Harry
Electric Motor
Fricke, Lori
Electric Motor
Harimon, Terry K.
Electric Motor
Herman's Heritage LLCFillmoreElectric Motor
Jensen, CodyGreeleyElectric Motor
Keetle Farms Inc.AntelopeElectric Motor
Kemling Farms LLCPerkinsElectric Motor
Kerkman Sandhills FarmsAntelopeElectric Motor
Krupicka, CollinThayerElectric Motor
Krupicka, EricThayerElectric Motor
Maxwell-Zikmund LLCButlerElectric Motor
Reichmuth, KeithMadisonElectric Motor
Reichmuth, SandiMadisonElectric Motor
Sandberg, Robert JrKeithElectric Motor
Sanne TrustAntelopeElectric Motor
T&T Bader FarmsButlerElectric Motor
Trambly, Nelson & KellyFranklinElectric Motor
Trambly, Nelson F & MaryettaFranklinElectric Motor
Twin Pine RanchCusterElectric Motor
Winkelbauer, MatthewHoltElectric Motor
Woitaszewski, AdamHallElectric Motor
Woitaszewski, AndrewHallElectric Motor
Yindrick Farms LLCButlerElectric Motor
Yindrick, Todd
Electric Motor
Young Farms, Bruce
Electric Motor

List of Past Clean Diesel Awards