Update: Diesel Replacement Rebate Year 2 Opens with Additional Funding Opportunities

Year 2 applications will be accepted starting on Tuesday, February 7th, 2023 at 9am.

Eligible Vehicles Include:

School buses.
Transit, shuttle, and tour buses.
Medium- or heavy-duty trucks
Nonroad Vehicles: Equipment at ports and airports, agricultural tractors

Replacement vehicles can be either battery electric or hydrogen-powered.

HSEO will be hosting an informational webinar on January 24th, 2023 at 10am that will review the process and requirements, and include a Q&A. This webinar will be recorded and posted on our website for those who can’t attend.

Register for the webinar here: https://us06web.zoom.us/j/89915960845?pwd=b3lUSjdpY1pWbUs0TTdNQVlLRVFUUT09

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.


Available Funds (Current Cycle)

Approximately $1.2 M will be 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.

Eligible Participants

Public and private organizations within the State of Hawai‘i with eligible projects are encouraged to apply. State employees are not eligible. Funds will be reserved for eligible projects on a first come, first served basis.

Vehicle types:

  • School buses.
  • Transit, shuttle, and tour buses.
  • Medium- or heavy-duty trucks.
  • Nonroad Vehicles: Equipment at ports and airports, agricultural tractors

Replacement vehicles: battery electric or hydrogen-powered.

Charger: Projects can include the purchase of one charging unit per vehicle.

Process Overview

  1. Organization submits project application.
  2. Funds are reserved if project is eligible.
  3. Participant signs Agreement and begins project.
  4. Participant received the new vehicle.
  5. Old vehicle is scrapped.
  6. Participant provides final documentation and receives rebate.


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.