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.
Since its inception, NDEE’s Clean Diesel Program has:
- awarded $1,897,696 to 66 recipients
- funded early replacement of 27 school buses by new cleaner-burning buses
- funded early replacement of 5 diesel refuse trucks by new cleaner-burning trucks
- funded replacement of 6 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 661 tons
- reduced diesel particulate emissions by 25 tons
- reduced hydrocarbon emissions by 40 tons
- reduced carbon monoxide emissions by 115 tons
2019 Nebraska Clean Diesel Rebate Program
The Nebraska Department of Environment and Energy’s 2019 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.
Diesel Truck Replacements by Diesel or Low-NOx Compressed Natural Gas-Powered Trucks
(The application period for this program closed January 17, 2020.)
Funding is available through the Nebraska Clean Diesel Program to replace older diesel refuse trucks and medium to heavy-duty local diesel freight, delivery, and maintenance trucks. NDEE anticipates funding replacement of five (5) refuse trucks and seven (7) local freight, delivery, or maintenance trucks.
- Refuse trucks with diesel engine model years1996 through 2009 are eligible for replacement (or 1996 and newer if being replaced by a Low-NOx CNG truck).
- Medium and heavy-duty diesel trucks that are used in local delivery, construction, or maintenance operations and have engine model year 1996 through 2009 are eligible for replacement (or 1996 and newer if being replaced by a Low-NOx CNG truck).
- Each replaced truck must be disabled (scrapped).
- The new replacement truck must be powered by a 2016 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
- 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 and to projects in the following EPA-designated priority counties: Buffalo, Dodge, Douglas, Gage, Jefferson, Keith, Lancaster, Lincoln, Platte, and Scotts Bluff.
- 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 is 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
Agricultural Irrigation Pump Diesel Engine Replacement with Electric Equipment
The application period for this program closed to February 21, 2020.
Funding is available through the Nebraska Clean Diesel Program to assist farmers with the replacement of an irrigation pump diesel engine with:
a) an electric motor or
b) connecting a submersible pump directly to the electric grid.
NDEE anticipates funding seventeen (17) irrigation engine rebates. Engine eligibility is based on the current engine model year and horsepower, as shown in the table below.
Current Diesel Engine Horsepower
Current Engine Model Year
2006 and Newer
1996 and Newer
1986 and Newer
- The current diesel engine must be in operating condition and have operated at least 250 hours per year over the past three years.
- 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.
- Preference will be given to projects in the following EPA-designated priority counties: Buffalo, Dodge, Douglas, Gage, Jefferson, Keith, Lancaster, Lincoln, Platte, and Scotts Bluff.
- 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 is selected to receive a rebate, information on carrying out and documenting your project and requesting reimbursement can be found here: 2019 Clean Diesel Irrigation Engine Rebate Selectee Information.
Who to Contact with Questions:
Contact the Nebraska Clean Diesel Rebate Coordinator at (402) 471-4272 or by email: NDEQ.email@example.com.
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 Environmental Quality.
2019 Diesel Truck Replacement Rebate Recipients
City of Lincoln – Fleet Services
2 Diesel Snow Plow Trucks
S2 Rolloffs, LLC
2 Diesel Refuse Trucks
2 CNG Refuse Trucks
Soil Dynamics Composting Farm
2 Diesel Refuse Trucks
2019 Diesel Irrigation Engine Replacement Rebate Recipients
Blase Farms LLC
Ox Hoof LLC
Rainbow Farms Inc.
Rodney Heiss Family Farms
Ruth, Barton D.
List of Past Clean Diesel Awards