Transit Bus Rebate Application Information
This information is provided by the Nebraska Department of Environmental Quality  
to assist the public and regulated community .

Form #:  18-022
Applications and Forms
Revised: 5/23/18

Nebraska Diesel Emission Mitigation Program

Funded by the Volkswagen Environmental Mitigation Trust for State Beneficiaries

The Nebraska Department of Environmental Quality (NDEQ) has established the Nebraska Diesel Emission Mitigation Program to administer funds allocated to Nebraska from the Volkswagen Diesel Emissions Environmental Mitigation Trust for State Beneficiaries, Puerto Rico, and the District of Columbia (VW State Trust). In January 2018, NDEQ finalized an initial Volkswagen Environmental Trust Beneficiary Mitigation Plan outlining Nebraska’s plans to utilize funds from the VW State Trust to reduce diesel emissions in the state. This plan proposed to utilize 10% of the available funds ($1,224,835) to reimburse up to 50% of the cost for the replacement of diesel transit buses by new diesel, alternative-fueled, or all-electric transit buses in accordance with Eligible Mitigation Action 2 in Appendix D-2 of the Environmental Mitigation Trust Agreement for State Beneficiaries (VW State Trust Agreement) *.

Beginning May 23, 2018, NDEQ is soliciting applications to the Nebraska Diesel Emission Mitigation Program to fund transit bus replacement projects. The following transit agencies in Nebraska are eligible to apply for funding for these projects: StarTran (City of Lincoln) and Metro (City of Omaha).

  • Eligible vehicles are transit buses with diesel engines, model year 2009 and older, with Gross Vehicle Weight Rating of 14,001 pounds or greater (Class 4 to 8).
  • Buses must be owned by a public transit agency in Nebraska and currently in operation transporting passengers.
  • Lincoln StarTran is eligible to replace up to 2 (two) transit buses.
  • Omaha Metro is eligible to replace up to 3 (three) transit buses.


Eligible replacement vehicles are new transit buses (2017 model year or later) powered by:
  • Compressed natural gas (CNG)
  • An all-electric drivetrain

The replacement buses must be in the same or higher weight class as the replaced bus and must be used to transport transit passengers.

  • A new bus cannot be used to expand the applicant’s current fleet; it must replace exactly one bus that is currently operational and in use.
  • Each replaced bus and its diesel engine must be disabled (scrapped) within 90 days of replacement.
  • Recipients must maintain ownership of the new buses for at least three years from the date of purchase. If a new bus is sold before the end of the three-year period, moved out of state, or used for purposes other than specified under this program, the rebate recipient must notify NDEQ and may be required to return up to the full amount of the rebate to NDEQ. The amount required to be returned is at the discretion of NDEQ, and will be determined on a case-by-case basis.
  • Recipients will be required to file annual reports of mileage and fuel use for the duration of the agreement.


Applicants selected for funding shall have two years to complete their project. Prior to submitting an application, it is recommended that all applicants also review 1) the portions of the Appendix D-2 of the VW State Trust Agreement that apply to their funding request and 2) Nebraska’s Beneficiary Mitigation Plan.


Applications must be submitted and complete before 5:00 pm on June 8, 2018 in order to be considered.

All applicants must completely fill out and submit the attached Application Form and provide all of the listed supporting documents in order to be considered for funding. Only signed and dated original applications received by mail, e-mail, or in person at the address below will be accepted. Rebate applications cannot be submitted by fax. The department is not responsible for any applications that are delayed or lost in the mail. Applicants will receive an e-mail confirming NDEQ’s receipt of the application. It is the applicant’s responsibility to ensure that their application was received by the department by the respective deadline.

Mail, e-mail, or hand-deliver applications to:
Nebraska Clean Diesel Rebate Program
Nebraska Department of Environmental Quality
1200 N Street, Suite 400
Lincoln NE 68509-8922
Questions? Email us at

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
This Complete Form is only available as an Adobe Acrobat (PDF) file.
File size is 97 KB

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