Oklahoma Incentives and Laws

Last Updated August 2008

Oklahoma is the home of the Central Oklahoma (www.okcleancities.org) and Tulsa Area (www.tulsacleancities.com) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before January 1, 2010, Oklahoma provides a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel, or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer AFV. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, and electricity. For qualified electric vehicles propelled by electricity only, the basis for the credit is the full purchase price of the vehicle. For vehicles also equipped with an internal combustion engine, such as a hybrid electric vehicle, the basis for the credit is limited to the portion of such motor vehicle which is attributable to the propulsion of the vehicle by electricity. For more information, see Oklahoma Income Tax Form 511CR (PDF 219 KB). (Reference Senate Bill 1558, 2008, and Oklahoma Statutes 68-2357.22) Download Adobe Reader

Alternative Fueling Infrastructure Tax Credit

The state provides a tax credit for up to 50% of the cost of installing alternative fueling infrastructure. The tax credit may be carried forward for up to three years and expire January 1, 2010. The alternative fuels eligible for the credit include compressed natural gas, liquefied natural gas, liquefied petroleum gas, and methanol. (Reference Senate Bill 1558, 2008, and Oklahoma Statutes 68-2357.22)

Biodiesel Production Tax Credit

For tax years beginning after December 31, 2004, and before January 1, 2013, a biodiesel (B100) production facility is allowed a credit of $0.20 per gallon of biodiesel produced. An eligible biodiesel facility must produce at least 25% of its nameplate design capacity for at least six months after the first month for which it is eligible to receive the credit, on or before December 31, 2008. The credit is allowed for 60 months beginning with the first month in which the facility is eligible to receive the credit and ending not later than December 31, 2012. An eligible facility may also receive an expansion credit of $0.20 per gallon of biodiesel produced in excess of the original nameplate design capacity that results from expansion of the facility before December 31, 2008. Beginning January 1, 2013, a biodiesel facility may receive a credit of $0.075 per gallon of biodiesel for new production for a period not to exceed 36 consecutive months. If the credit allowed exceeds the amount of income taxes due, the excess amount may be carried forward as a credit against subsequent income tax liability for a period not to exceed five years. Additional restrictions apply(Reference House Bill 1956, 2008, and Oklahoma Statutes 68-2357.67)

Ethanol Production Tax Credit

For tax years beginning after December 31, 2003, and before January 1, 2013, an ethanol production facility is allowed a tax credit in the amount of $0.20 per gallon of ethanol produced, for 60 months beginning with the first month in which the facility is eligible to receive such credit. The credit may only be claimed if the ethanol facility maintains an average production rate of at least 25% of its nameplate design capacity for at least six months after the first month for which it is eligible to receive the credit, on or before December 31, 2010. Producers are also eligible for an expansion credit of $0.20 per gallon of ethanol produced in excess of the original nameplate capacity that results from expansion of the facility before December 31, 2008. Beginning January 1, 2013, an ethanol facility is eligible for a credit of $0.075 per gallon of ethanol, before denaturing, for new production for a period not to exceed 36 consecutive months. (Reference Oklahoma Statutes 68-2357.66)

Ethanol Fuel Retailer Tax Credit

A retailer of ethanol-blended fuel (blended gasoline consisting of not more than 15% ethyl alcohol by volume) may claim a motor fuel tax credit of $0.016 for each gallon of ethanol-blended fuel sold in Oklahoma, if the retailer provides a price reduction to the purchaser of the ethanol fuel in the same amount. This incentive is effective unless the federal government mandates the use of reformulated fuel in an area within Oklahoma that is in non-attainment with the National Ambient Air Quality Standards. (Reference Oklahoma Statutes 68-500.10-1)

Biofuels Tax Exemption

An individual that produces biofuels or biodiesel from feedstock grown on property and used in a vehicle owned by the same individual are exempt from the state motor fuel excise tax. (Reference <Oklahoma Statutes 68-500.4 and 68-500.10)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Oklahoma Department of Central Services has an Alternative Fuels Conversion Loan program to help convert government-owned fleets to operate on alternative fuels. This program provides 0% interest loans for vehicle conversions, for the construction of fueling infrastructure, and for the incremental cost associated with the purchase of an Original Equipment Manufacturer AFV. The program provides up to $10,000 per converted or newly purchased vehicle and up to $150,000 for the development or installation of fueling infrastructure. Repayment of the loan has a maximum seven-year period. If the price of alternative fuels does not remain below the price of the conventional fuel that was replaced, repayment is suspended. Eligible applicants include state and county agencies and divisions, municipalities, school districts, mass transit authorities, and public trust authorities. (Reference Oklahoma Statutes 74-130.4)

Alternative Fuel Vehicle (AFV) Loans

Oklahoma has a private loan program with a 3% interest rate for the cost of converting private fleets to operate on alternative fuels, for the incremental cost of purchasing an Original Equipment Manufacturer AFV, and for the installation of AFV fueling infrastructure. The repayment of the loan has a maximum six-year period.

Point of Contact

Carolyn Sullivan
Energy Program Manager
Oklahoma Department of Commerce, State Energy Office
Phone (405) 815-5347
carolyn_sullivan@odoc.state.ok.us

Biofuels Research and Development Promotion

The Oklahoma Bioenergy Center was established within the Department of Commerce to serve as a strategic partnership in the field of bioenergy research in order to assist Oklahoma in being a recognized leader in the fields of research and production of biofuels, bioenergy and related biobased products; advance research capacity of biofuels in the state; enable the competitive and sustainable production of liquid biofuels, including ethanol, in the state; and contribute to the national research effort to enable the U.S. to achieve prescribed levels of petroleum independence.

State Laws and Regulations

Medium-Speed Vehicles Access to Roadways

A medium-speed electric vehicle is defined as any self-propelled, electronically powered four-wheeled motor vehicle, whose top speed is greater than 30 miles per hour (mph) but not greater than 35 mph. Medium-speed electric vehicles must be registered according to the Oklahoma Vehicle License and Registration Act and must meet National Highway Traffic Safety Administration safety standards for low-speed electric vehicles as set forth in Title 49, Code of Federal Regulations, Section 571.500. Medium-speed vehicles may be operated on roadways with a posted speed limit of up to 45 miles per hour but are not permitted to travel on any highway in the state which is a part of the National System of Interstate and Defense Highways. (Reference House Bill 2695 and Senate Bill 1384, 2008)

Ethanol Labeling Requirement

No person may sell or offer for sale motor fuel from a motor fuel pump containing more than 1% ethanol or methanol unless the person prominently displays a label on the pump stating the fuel "Contains Ethanol" or "Contains Methanol" as applicable. The label must be displayed on each face of the motor fuel pump on which the price of the motor fuel mixture sold from the pump is displayed and must be displayed in a clear, conspicuous, and prominent manner. If a motor fuel pump dispenses fuel that contains at least 10% ethanol or 5% methanol, the label must also state the percentage of ethanol or methanol by volume. (Reference Senate Bill 1451, 2008)

Biofuels Development and Promotion

The Oklahoma Biofuels Development Act was created to encourage the processing, market development, promotion, distribution, and research of fuels derived from grain, ethanol or ethanol components, biodiesel, bio-based lubricants, co-products, or by-products. The Oklahoma Biofuels Development Advisory Committee will serve until June 1, 2010, to conduct a systematic review and study of the ethanol and biodiesel industry in Oklahoma and other states, study the feasibility of developing and enhancing the ethanol and biodiesel industry in Oklahoma, and otherwise encourage market development, promotion, distribution, and research on products derived from grain, ethanol or ethanol components, bio-based products, co-products, or by-products. (Reference Oklahoma Statutes 2-1950.10 and 2-1950.11)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Under the Alternative Fuels Conversion Act (Act), all school and government vehicles may be converted to operate on an alternative fuel, and all school districts should consider only purchasing school vehicles which have the capability to operate on an alternative fuel. The Act also requires all school and government vehicles capable of operating on an alternative fuel to use the fuel whenever a fueling station is in operation within a five-mile radius of the respective department or district and the price of the alternative fuel is cost competitive. If school and government vehicles must be fueled outside the five-mile radius and no fueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.3)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs manufactured in compliance with the National Highway Traffic Safety Administration standards for low-speed vehicles in Title 49 of the Code of Federal Regulations, section 571.500, are allowed to operate on Oklahoma streets and highways with a posted speed limit of 35 miles per hour or less. (Reference Oklahoma Statutes 47-11-805.1)

Alternative Fuel Labeling Requirement

In lieu of the motor fuel excise tax, Oklahoma imposes an annual flat fee on motor vehicles including passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas, compressed natural gas (CNG), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). CNG, LNG, methanol, and M85 vehicles weighing less than one ton gross vehicle weight are taxed at a rate of $100 per vehicle per year, and vehicles weighing more than one ton gross vehicle weight are taxed at a rate of $150 per vehicle per year. Vehicles must display a decal issued on a yearly basis by the Oklahoma Tax Commission. (Reference Oklahoma Statutes 68-723)

Alternative Fuel Vehicle (AFV) Technician Training

The Alternative Fuels Technician Certification Act (Act) regulates the training, testing, and certification of technicians who install, modify, repair, or renovate equipment used in fueling AFVs and in the conversion of any engine to operate on an alternative fuel. This includes Original Equipment Manufacturer engines dedicated to operate on an alternative fuel. Electric vehicles (EVs), electric charging stations, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 74-130.11 through 74-130.24)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Oklahoma.

Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Yvonne Anderson yanderson@acogok.org	Central Oklahoma Clean Cities Coalition	Clean Cities Coordinator	Phone: (405) 234-2264 x275 Fax: (405) 234-2200
Nancy Graham ngraham@incog.org	Tulsa Area Clean Cities Coalition	Clean Cities Co-Coordinator	Phone: (918) 584-7526 Fax: (918) 579-9518
Richard Smith rsmith@incog.org	Tulsa Area Clean Cities Coalition	Clean Cities Co-Coordinator	Phone: (918) 584-7526 Fax: (918) 579-9550
Neil Kirschner neil.kirschner@netl.doe.gov	U.S. Department of Energy, National Energy Technology Laboratory	Project Manager	Phone: (412) 386-5793 Fax:
Vaughn Clark vaughn_clark@odoc.state.ok.us	Oklahoma Department of Commerce	Director, Office of Community Development	Phone: (405) 815-5370 Fax: (405) 815-5344
Carolyn Sullivan carolyn_sullivan@odoc.state.ok.us	Oklahoma Department of Commerce, State Energy Office	Energy Program Manager	Phone: (405) 815-5347 Fax:
Richard Bailey rbailey@ong.com	Oklahoma Natural Gas Company	CNG and NGV Service, Maintenance and ManufacturingSupervisor	Phone: (918) 640-1591 Fax: (918) 377-2389
James Orsulak jorsulak@cleanenergyfuels.com	Clean Energy Fuels	Market Manager for Alternative Fuels	Phone: (303) 322-4600 Fax: (303) 322-4644
Anna Friend anna.friend@gsa.gov	U.S. General Services Administration	Transportation Operations Specialist	Phone: (303) 236-7221 Fax: (303) 236-7590
Sandra Rennie rennie.sandra@epa.gov	U.S. Environmental Protection Agency	Mobile Source Team Leader, Region 6	Phone: (214) 665-7367 Fax: (214) 665-7263