Diesel Replacement Rebate Year 3 Paused, pending update in June 2024

This year the Build America Buy America requirements go into effect for projects that include an EV charger. 

Jump to Build America Buy America Section

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 Available Funds

$1,035,253 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. employees and contractors/subrecipients 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.
  • 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 receives the new vehicle.
  5. Old vehicle is scrapped.
  6. Participant provides final documentation and receives rebate.

Required Documents

  1. 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.
  2. 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

3. Build America, Buy America Compliance Letter: BABA required documents, if applicable. See below

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.”

If the applicant has selected an EV charger that must meet BABA requirements, they must provide a letter from the manufacturer that attests to BABA compliance.

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


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.