DIESEL REPLACEMENT REBATE PROGRAM
Diesel Replacement Rebate Program – Now Open Through 2028
Updates:
- Chargers that must meet the Build America Buy America requirements are not eligible for funding through DRR
- Additional non-highway agriculture vehicles are eligible for funding
- Program funding has been expanded. Rebates will be awarded on a rolling basis through September 30, 2028, or until funds are exhausted.
Jump to Build America Buy America Section
Note on Program Guide
The current Program Guide reflects Year 3 of the DRR program. An updated guide reflecting the program’s extension through 2028 is pending. The technical requirements and eligibility criteria remain the same; only program dates and related administrative details will be revised. Applicants may continue to use the existing guide until the updated version is posted.
The Diesel Replacement Rebate (DRR) program provides rebates for the replacement of medium- and heavy-duty diesel vehicles with new, battery-electric equivalents. Presented by the Hawai‘i State Energy Office in partnership with the Hawai‘i Department of Health, the DRR is funded by the Volkswagen Environmental Mitigation Trust, and the Diesel Emissions Reduction Act.
Hawai‘i has a goal of a net-negative carbon economy as soon as practicable but no later than 2045. This goal is supported by Hawai‘i’s objective to increase energy security and self-sufficiency by planning for the reduction and ultimate elimination of Hawai‘i’s dependence on imported fuels for electrical generation and ground transportation.
In 2020, Hawai‘i joined with 14 other states and the District of Columbia as signatories to the Multi-State Medium- and Heavy-Duty Zero Emission Vehicle Memorandum of Understanding (MOU), which, among other things, is an agreement to strive to make sales of all new medium- and heavy-duty vehicles in their jurisdictions zero-emission vehicles by no later than 2050. To ensure adequate progress toward the MOU 2050 goal, the signatory states aspire to make at least 30 percent of all new medium- and heavy-duty vehicle sales in their jurisdictions zero-emission vehicles by no later than 2030.
The Diesel Replacement Rebate is one way that Hawai‘i is supporting its community and encouraging the transition to zero-emission vehicles.
Year 1 of the Diesel Replacement Rebate (DRR) Program opened on October 29, 2021, at 9:00 a.m. (HST). The program started accepting applications under updated guidelines on February 7, 2022.
Year 2 of the DRR opened on February 7, 2023
Year 3 of the DRR program has opened on March 20, 2024
Program Now Extended Through 2028
The DRR program has been expanded, with additional funding available to support more vehicle replacements. Rebates will continue to be awarded through September 30, 2028, or until program funds are fully expended.
DRR PROGRAM INFORMATION AND RESOURCES
Available Funds
Over $7 million is currently available for program rebates. Rebates are worth up to 45% of project cost.
The Diesel Replacement Rebate (DRR) provides rebates toward the purchase of a new zero emission vehicle to replace an existing diesel vehicle. Participants are required to scrap the existing vehicle.
Please note that participants are responsible for scrappage costs.
DRR Program Information Guide
Potential applicants are strongly encouraged to thoroughly read the Program Guide prior to applying.
Note on Program Guide
The current Program Guide and Sample Application reflect Year 3 of the DRR program. Updated materials will be posted to reflect the program’s extension through 2028. The technical requirements and eligibility criteria remain the same; only program dates and related administrative details are being revised. Applicants may continue to use the existing materials until the updated versions are available.
Eligible Participants
Public and private organizations within the State of Hawai‘i with eligible projects are encouraged to apply. employees and contractors/sub-recipients of Hawaii Department of Health – Clean Air Branch and the Hawaii State Energy Office are not eligible. Funds will be reserved for eligible projects on a first come, first served basis.
Eligible Vehicle Types
- School buses.
- Transit, shuttle, and tour buses.
- Medium- or heavy-duty trucks.
- Diesel-powered non-road engines, equipment, or vehicles including those used in agriculture, and at ports and airports.
Replacement vehicles: battery electric or hydrogen-powered.
Charger: Projects can include the purchase of one charging unit per vehicle.
Process Overview
- Organization submits project application.
- Funds are reserved if project is eligible.
- Participant signs Agreement and begins project.
- Participant receives the new vehicle.
- Old vehicle is scrapped.
- Participant provides final documentation and receives rebate.
Required Documents
- Vendor Quote: Applicants will be required to submit a vendor quote for the vehicle (and charger, if applicable). The quote(s) should be dated and include a complete breakdown of all material costs as applicable: vehicle, hardware, warranty costs, freight or shipping costs, installation costs, setup fees, and the sales tax with the percentage rate indicated.
- Project Details Excel File: Applicants must submit a Project Details excel file at the time of application. This can be filled out in excel and uploaded with the application. Download a template by clicking here
Build America Buy America Requirements
Certain projects under this program are subject to the Buy America Sourcing requirements under the Build America, Buy America (BABA) provisions of the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58, §§70911- 70917) that requires that all of the iron, steel, manufactured products, and construction materials used in public infrastructure projects funded by federal dollars must be produced in the United States.
For the purposes of this rebate, infrastructure refers to electric vehicle chargers.
EV chargers funded through this program will be subject to this requirement if they serve a public function. For example, a charger is considered to serve a public function if it is publicly owned or supports a vehicle that serves a public function, such as a school bus.
On highway vehicles/engines and non-road engines/equipment funded by this program are not considered “infrastructure.”
Chargers that must meet the BABA requirements are not eligible for funding through the Diesel Replacement Rebate.
Applicants are encouraged to reach out to HSEO to discuss their project if they are unsure how BABA applies. Applicants can email [email protected].
Past Program Year Documents
Year 2 Program Documents
OTHER PROGRAMS YOU MAY BE ELiGIBLE FOR
Make Ready Pilot, offered by Hawaiian Electric
Pilot program allows Hawaiian Electric to design, build, own, and maintain make-ready infrastructure up to a point of connection with the customer’s charging equipment.
Charging Station rebates, offered by Hawai‘i Energy
Hawai‘i Energy is offering up to $35,000 per networked DC fast charging station.