HONOLULU — Public and private organizations looking to replace medium- and heavy-duty diesel vehicles with clean, zero-emission battery electric vehicles are invited to apply for a rebate that could fund up to 45 percent of the cost through the Diesel Replacement Rebate Program (DRR).

Presented by the Hawaii State Energy Office in partnership with the Hawaii Department of Health, the DRR is funded by the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act. The program has approximately $2.1 million in diesel replacement rebates available, and applications will be accepted beginning October 29, 2021, at Diesel Replacement Rebate Program – Hawai‘i State Energy Office (

To be eligible for the rebate, applicants must own and operate a fully operational medium or heavy-duty school, transit, shuttle, or tour bus; or medium-, or heavy-duty truck located in the state of Hawaii that still has at least three years of remaining expected life at the time of replacement. The replacement vehicle must be fully electric with a new battery-electric, zero-emission engine; resemble the existing unit in form and function; should be the most recent model and year available; and it must operate in the state of Hawaii for a minimum of 5 years immediately following deployment.

The DRR will fund up to 45 percent of the selected vehicle cost, including the charger if applicable. Applicants must cover the remaining cost of the vehicle, and this cannot include funding from federal sources including grants. The final rebate amount will be determined upon submission of all documentation. Vehicles purchased prior to project selection are not eligible for the rebate. Any single organization cannot reserve more than $1.2 million in available funds, regardless of the number of applications submitted. Other eligibility requirements may apply, and funds are available on a first come-first served basis.

Hawaii has a goal of a net-negative carbon economy as soon as practicable but no later than 2045. This goal is supported by Hawaiʻi’s objective to increase energy security and self-sufficiency by planning for the reduction and ultimate elimination of Hawaii’s dependence on imported fuels for electrical generation and ground transportation. The Diesel Replacement Rebate is one way that Hawaii is supporting its communities and encouraging the transition to zero-emission vehicles.

Learn more about the Diesel Replacement Rebate Program at Diesel Replacement Rebate Program – Hawai‘i State Energy Office ( and click on the DRR Program Guide link on the site for more information regarding the requirements of applicants, the vehicle being replaced, the replacing vehicles, the charging station, and scrappage requirements.



The Hawaii State Energy Office (HSEO) is an attached agency of the state’s Department of Business, Economic Development and Tourism. The HSEO’s mission is to promote energy efficiency, renewable energy, and clean transportation to help achieve a resilient, clean energy, decarbonized economy. Toward this end, the HSEO is developing policies and programs to achieve our energy and climate change goals while identifying strategies that create jobs, lower costs, and improve quality of life in Hawaii. For more information, visit


Claudia Rapkoch
Public Affairs Officer
Hawaii State Energy Office
(808) 460-5998
[email protected]