SOUTH DAKOTA Department of
Environment & Natural Resources

Protecting South Dakota's Tomorrow...Today!
Joe Foss Building
523 E Capitol
Pierre, SD 57501
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Air Quality



South Dakota Diesel Emission Reduction Act (DERA) & Volkswagen School Bus, Shuttle Bus, and Transit Bus Rebate Programs


DENR Announces Rebate Recipients for Round Eleven

The South Dakota Department of Environment and Natural Resources (DENR) announces rebate recipients for the eleventh round of funding under the South Dakota Clean Diesel Grant Program. Initially, there was approximately $274,000 of Diesel Emissions Reduction Act (DERA) funds available for the projects. On March 5, 2019, the Governor signed HB1258, giving spending authority for the Volkswagen Mitigation Trust funds. The Department will use VW funds from Category 10 (The DERA Option) for the project; and if the response for projects is extensive, Category 2 (Class 4-8 Buses) may also be used.

The program provides rebates to assist in purchasing new buses to replace old, high-emitting diesel buses. The primary goals of the programs are to reduce your school children’s exposure to both fine particulate and smog-forming pollution and to facilitate the improvement and protection of the ambient air quality throughout South Dakota.

The South Dakota programs will provide rebates to help public schools, non-public schools, state special schools, approved educational programs, shuttle or transit system providers, and school bus contractors purchase new buses to replace old, high-emitting, diesel buses. Total rebate per replacement bus will be up to 25% of the purchase price of a 2018 engine model year or newer engine certified to EPA emission standards, 35% of the purchase price of a 2018 engine model year or newer engine certified to meet CARB’s Low-NOx standards, or 45% of the purchase price of an all-electric bus. DENR intends to award funds to as many eligible applicants throughout the state as possible. 

 Note: Funds cannot be used for replacements that would have occurred through normal attrition/fleet turnover within three years of the project start date. Bus purchases must not occur before applicants execute an agreement with DENR.


Tentative Schedule for October 2017 - September 2019  




November 6, 2017

Call for Round Ten Projects Opens

December 15, 2017

Call for Round Ten Projects Deadline


December 18, 2017 - January 5, 2018


Evaluate & Select Round Ten Projects

January 8, 2018

Announce Round Ten Awarded DERA Projects

January 2018 -

August 2018

Schools will purchase buses for Round Ten

September 2018


Deadline for all invoices and paperwork to be submitted to DENR for Round Ten

November 5, 2018 Call for Round Eleven Projects Opens
December 14, 2018 Call for Round Eleven Projects Initial Deadline
December 17, 2018 - January 11, 2019 Evaluate & Select Initial Round Eleven Projects
January 14, 2019

Round Eleven Initial 11 Projects Posted.  Email rebate agreements to 11 highest ranking applicants.

Week of March 18, 2019 Round Eleven Next 19 Projects Posted. Email rebate agreements to the remaining 19 applicants meeting initial deadline.
Week of March 18, 2019 Reopened Round Eleven for additional project applications
April 5, 2019 Deadline to submit additional applications.
Week of April 8, 2019 Round Eleven Additional 13 Projects. Email rebate agreements to the recipients.

January 2019 -

April 2019

All recipients will order buses and email DENR copies of purchase orders.
September 2019 Deadline for all invoices and paperwork to be submitted to DENR for Round Eleven


 FORMS (Note: If the Word document does not open for you, try the save option instead.)

Additional information about the Program is available by emailing the Program Administrator at or calling the Program Hotline at 1-800-GET-DENR (1-800-438-3367).


Round Eleven rebate applications are due by 5:00 PM on April 5, 2019


Email appications to or mail applications to:

     Bus Rebate Programs

     SD DENR AQ Program

     523 E Capitol

     Pierre, SD  57501

Information on Oct 2009 - Sept 2012 Grant Period

Information on Oct 2012 - Sept 2014 Grant Period

Information on Oct 2014 - Sept 2017 Grant Period