Oklahoma Laws and Incentives for Natural Gas
The list below contains summaries of all Oklahoma laws and incentives related to Natural Gas.
Alternative Fuel Vehicle (AFV) Tax Credit
For tax years beginning before January 1, 2015, a one-time income tax credit is available for 50% of the incremental cost of purchasing a new original equipment manufacturer AFV or converting a vehicle to operate on an alternative fuel. 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. Equipment used for conversions must be new and must not have been previously used to modify or retrofit any vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, hydrogen, and liquefied petroleum gas (propane). Tax credits may be carried forward for up to five years. (Reference Oklahoma Statutes 68-2357.22)
Alternative Fueling Infrastructure Tax Credit
For tax years beginning before January 1, 2015, a tax credit is available for up to 75% of the cost of alternative fueling infrastructure. Eligible alternative fuels include compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and electricity. The infrastructure must be new and must not have been previously installed or used to fuel alternative fuel vehicles. A tax credit is also available for up to 50% of the cost of installing a residential CNG fueling system, for up to $2,500. The tax credit may be carried forward for up to five years. (Reference Oklahoma Statutes 68-2357.22)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Oklahoma Department of Central Services' Alternative Fuels Conversion Loan program provides 0% interest loans to government fleets for converting vehicles to operate on alternative fuels, the construction of AFV fueling infrastructure, and 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 AFV and up to $300,000 for the development or installation of fueling infrastructure. The borrower must repay the loan within a seven-year period. Repayment is collected through a surcharge on alternative fuel the borrower purchased in the amount equivalent to the per gallon fuel cost savings from using an alternative fuel. If the price of the alternative fuel does not remain below the price of the conventional fuel that it 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 through 74-130.5)
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
Energy Program Manager
Oklahoma Department of Commerce, State Energy Office
Phone: (405) 815-5347
Natural Gas Fleet Services - Clean Energy
Clean Energy Fuels offers services to the natural gas vehicle industry that include competitive compressed natural gas pricing for larger fleet customers, as well as alternative fuel vehicle financing.
Point of Contact
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone: (505) 554-6215
Compressed Natural Gas (CNG) Vehicle Conversion Loans - Allegiance Credit Union
The Allegiance Credit Union offers low-cost loans to customers for CNG vehicle conversions. For more information, see the Allegiance Credit Union CNG Conversion Loans website.
Natural Gas Vehicle Loans - Communication Federal Credit Union (CFCU)
CFCU offers loans to individuals and businesses that purchase new or converted compressed natural gas (CNG) vehicles. Conversion systems must be U.S. Environmental Protection Agency certified and installed by an insured and state licensed facility. New vehicle loans are available at amounts up to the manufacturer's suggested retail price plus the cost of the conversion. Pre-owned or CFCU member owned vehicles with a CNG fuel system or conversion installation are eligible for loans at up to 115% of the National Automobile Dealers Association suggested retail value. All financing is at CFCU standard auto loan rates. CFCU also offers loans for the cost of home fueling appliances. For more information, see the CFCU CNG Vehicle and Conversion Loans website.
Natural Gas Vehicle (NGV) and Infrastructure Rebate - Oklahoma Natural Gas
Oklahoma Natural Gas (ONG) offers rebates for NGVs purchased or converted on or after June 18, 2012, in the amount of $1,000 for a dedicated NGV and $500 for a dual-fuel vehicle. ONG also offers $1,000 toward the cost of a compressed natural gas home fueling station or appliance. Rebates are available on a first come, first served basis and are limited to three rebates per applicant, per calendar year. For more information, including rebate fund availability, see the ONG CNG Rebate Program website.
Natural Gas Infrastructure Technical Assistance - CenterPoint Energy
CenterPoint Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis within the CenterPoint Energy service area.
Point of Contact
Sales Manager Arkansas/Oklahoma Region
Phone: (501) 377-4837
Fax: (501) 377-4630
Laws and Regulations
Access to State Alternative Fueling Stations
The Oklahoma Department of Central Services Fleet Management Division may construct, install, acquire, operate, and provide alternative fueling infrastructure for state agencies and local government use as well as the public in areas of the state where public access to alternative fuel infrastructure is not readily available. The Department of Central Services must discontinue public access to their fueling stations if a privately owned alternative fueling station opens within a five-mile radius. Alternative fuels include natural gas, liquefied petroleum gas (propane), ethanol, methanol, biodiesel, electricity, and hydrogen. (Reference Oklahoma Statutes 74-78)
Compressed Natural Gas (CNG) Fueling Infrastructure Development
The Oklahoma Legislature intends to increase the amount of CNG fueling infrastructure in the state, with the overall goal of having one public fueling station located every 100 miles along the interstate highway system by 2015, and one public fueling station every 50 miles by 2025. The Department of Central Services Fleet Management Division may take steps to reach this goal by collaborating with private entities to build CNG fueling infrastructure. (Reference Oklahoma Statutes 74-78f)
State Energy Efficiency and Conservation Plans
Each state agency must develop and implement an energy efficiency and conservation plan. As part of its plan, each agency should make every effort to include purchasing preferences for vehicles that use alternative fuel sources, including compressed natural gas, hybrid technology, and biofuels. (Reference Oklahoma Statutes 27A-3-4-106)
Alternative Fuel Vehicle (AFV) Acquisition Requirements
All school and government fleets may convert their vehicles to operate on alternative fuels, and all school districts should consider purchasing only vehicles able to operate on alternative fuels. School and government vehicles capable of operating on an alternative fuel must use the fuel whenever a fueling station is located 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)
Alternative Fuel Vehicle (AFV) Fee and Tax
In lieu of the motor fuel excise tax, AFV owners are subject to a motor vehicle fee. An annual flat fee applies to passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas (propane), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). Propane vehicles with a payload capacity of less than 2,000 pounds (lbs) are taxed at a rate of $50 per vehicle per year. LNG, methanol, and M85 vehicles with a payload capacity of less than 2,000 lbs are taxed at a rate of $100 per vehicle per year. Propane, LNG, methanol, and M85 vehicles with a payload capacity greater than 2,000 lbs are taxed at a rate of $150 per vehicle per year. If the owner acquires the vehicle or converts it to run on the alternative fuel after July 1 of the tax year, the flat fee is half of the above mentioned amount. AFVs must display a decal that the Oklahoma Tax Commission issues on an annual basis.For compressed natural gas (CNG) vehicles, instead of an annual flat fee, the state motor fuel tax is imposed as a direct tax paid at the pump per gasoline gallon equivalent (GGE) of CNG purchased. The tax rate is $0.05 per GGE until January 1, 2015, and $0.13 per GGE thereafter.(Reference Oklahoma Statutes 68-723 and 68-500.3 through 68-500.6)
Alternative Fuel 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 alternative fuel vehicles 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), EV charging infrastructure, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 74-130.11 through 74-130.24)
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