2018 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 #:  18-023
Applications and Forms
Revised: 6/1/18

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 25% of the available funds ($3,062,087) for the replacement of diesel school buses by new diesel or alternative-fueled 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 June 1, 2018, NDEQ is soliciting applications to the Nebraska Diesel Emission Mitigation Program to fund school bus replacement projects. NDEQ anticipates awarding 24 school bus rebates during the first year of this program. NDEQ may adjust the number of rebate awards based on the number of applications received.


For public school districts, NDEQ will reimburse:
  • 50% of the base purchase cost (up to a maximum of $42,000) of a new diesel school bus certified to EPA 2017 emission standards.
  • 60% of the base purchase cost (up to a maximum of $57,000) of a new school bus powered by a propane or compressed natural gas engine certified to meet California Air Resources Board Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx.


For non-government recipients such as private schools or private companies providing student transport services under contract, the VW State Trust agreement limits reimbursement to 25% of the base purchase cost of a new school bus.

If you have questions about the program, please review the FAQ School Bus Rebate 2018.pdf (above). If you have additional questions or comments, please send them by email to NDEQ.VWSettlement@nebraska.gov. Please continue to refer to this page as it will be updated as questions are received.

Application deadline is 5:00 p.m., August 3, 2018

  • Any Nebraska public school district or private school system that offers primary or secondary education is eligible for this funding opportunity. Companies that own buses and have a current agreement with a school district/system are also eligible to apply if they are either headquartered or have an operational base office in Nebraska.
  • Each school district may apply for a maximum of one rebate for one bus.
  • Previous recipients of a Nebraska or EPA Clean Diesel School Bus Rebate (2013 or later) are eligible to apply, but preference will be given schools that are not previous rebate recipients.

  • Eligible vehicles are school buses with diesel engines with model year 2009 and older, and with Gross Vehicle Weight Rating of 14,001 pounds or greater (Class 4 to 8).
  • The bus must be currently used to transport students to and from school or school-related activities. Applicants are required to certify that their bus meets these criteria on the application form.

  • School buses with 2017 or newer model year engines certified to EPA emission standards.
  • The replacement school bus may operate using conventional diesel (ULSD) or alternative fuels (e.g. propane or compressed natural gas).
  • Diesel engines must be equipped with a diesel particulate filter (DPF).
  • The replacement school bus must be in the same Gross Vehicle Weight Rating class and operate in the same manner as the original school bus.

  • The new bus cannot be used to expand the applicant’s current fleet; it must replace a bus that is currently operational and in use.
  • The replaced bus must be disabled (scrapped) within 90 days of replacement.
  • If selected for an award, the rebate recipient must maintain ownership of the new school bus for at least three years from the date of purchase. If the new bus is sold before the end of the three-year period or used for purposes other than what is 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.


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. Incomplete applications will not be considered. NDEQ may contact you or your organization for clarification and/or additional information using the provided contact information. Applicants will have 10 calendar days to respond to any such request. Only one application per applicant will be accepted, and only one bus rebate is allowed per application.
Applications must be submitted and complete before 5:00 pm on August 3, 2018 in order to be considered.

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


If the number of complete, eligible applications is greater than the number of available rebates, rebate recipients will be drawn by lottery on August 10, 2018. Each applicant that has not received a previous Clean Diesel 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.

  • All rebate recipients must sign an agreement with NDEQ. The new bus cannot be purchased until the signed agreement is on file at NDEQ.
  • After NDEQ has received the signed agreement, the recipient will be notified that they can complete the purchase of the new bus. Note: the date of the purchase order cannot pre-date the signature date of the agreement.
Questions? Email us at NDEQ. VWSettlement@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
This Complete Form is only available as an Adobe Acrobat (PDF) file.
File size is 97 KB

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