Expired, Repealed, and Archived Oklahoma Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Plug-In Electric Vehicle Fee

Repealed: 10/24/2017

Beginning January 1, 2018, all-electric vehicle owners must pay an annual fee of $100 and plug-in hybrid electric vehicle owners must pay an annual fee of $30. These fees are in addition to standard registration fees. (Reference House Bill 1449, 2017)

Alternative Fuel Vehicle (AFV) Low-Interest Loans

Archived: 07/01/2017

Oklahoma has a private loan program with a 3% interest rate for the cost of converting private fleets to operate on alternative fuels and for the incremental cost of purchasing an original equipment manufacturer AFV. The loan repayment has a maximum six-year period. For more information, see the Oklahoma Department of Commerce website.

Clean Diesel Fleet Vehicle Grants

Archived: 07/01/2016

The Oklahoma Department of Environmental Quality (DEQ) Air Quality Division provides grants to help public and private fleets retrofit or replace diesel vehicles to reduce diesel emissions and improve fuel efficiency. Eligible projects include installation of idle reduction or aerodynamic technology and diesel vehicle replacement. Funding is currently not available for this incentive (verified July 2015). For more information, see the DEQ Clean Diesel Grant Program website.

Compressed Natural Gas (CNG) Vehicle Conversion Loans - Allegiance Credit Union

Archived: 07/01/2016

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.

Alternative Fuel School Bus Conversion Research

Archived: 07/01/2016

The School Transportation Task Force (Task Force) must investigate the costs and benefits of converting school buses and bus fleets to compressed natural gas or another alternative fuel system. The Task Force must make recommendations to the governor and legislature regarding the research findings by December 31, 2013. (Reference Executive Order 2013-13, 2013)

Natural Gas Vehicle (NGV) Production Support and Procurement

Archived: 04/01/2016

In 2011, Oklahoma joined Arkansas, Colorado, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.

All-Electric Vehicle (EV) Manufacturing Tax Credit

Repealed: 01/01/2014

Vehicle manufacturers are eligible for a tax credit for EVs, including low- and medium-speed EVs, manufactured on or after July 1, 2010. EVs that can legally be operated on interstate highways and turnpikes in the state are eligible for a $2,000 credit per vehicle. Four-wheeled medium-speed EVs are eligible for a $1,000 credit per vehicle. Four-wheeled low-speed EVs are eligible for a $500 credit per vehicle. Tax credits may be carried forward for up to five years. This incentive is available through December 31, 2013. (Reference House Bill 2308, 2013, and Oklahoma Statutes 68-2357.402)

Biodiesel Production Tax Credit

Repealed: 01/01/2014

A biodiesel facility may receive a credit of $0.075 per gallon of biodiesel for up to 36 consecutive months for new fuel production. To be eligible for this credit, the facility must not have received credits before January 1, 2013, must have expanded its capacity by at least two million gallons after January 1, 2013, or must have achieved annual production of more than twelve times the monthly average of the three highest production months in the previous year. The credit will be capped at ten million gallons of biodiesel per year per biodiesel facility. 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 up to five years. Additional restrictions may apply. This incentive is available through December 31, 2013. (Reference House Bill 2308, 2013, and Oklahoma Statutes 68-2357.67)

Ethanol Production Tax Credit

Repealed: 01/01/2014

An ethanol facility is eligible for a credit of $0.075 per gallon of ethanol, before denaturing, for new production for up to 36 consecutive months. To be eligible for this credit, the facility must not have received credits before January 1, 2013, must have expanded its capacity by at least two million gallons after January 1, 2013, or must have achieved annual production of more than twelve times the monthly average of the three highest production months in the previous year. The credit will be capped at ten million gallons of ethanol per year per ethanol facility and 30 million gallons of ethanol per year at all ethanol facilities in the state. Additional restrictions may apply. This incentive is available through December 31, 2013. (Reference House Bill 2308, 2013, and Oklahoma Statutes 68-2357.66)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

Archived: 08/01/2013

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)

State Energy Efficiency and Conservation Plans

Repealed: 05/08/2012

The following was repealed by Senate Bill 1096, 2012: 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)

Biofuels Research and Development Promotion

Archived: 07/31/2011

The Oklahoma Bioenergy Center (Center) is a strategic bioenergy partnership designed to assist Oklahoma in being a recognized leader in research and production of biofuels, bioenergy, and related biobased products; advance research capacity of biofuels; enable the competitive and sustainable production of liquid biofuels, including ethanol; and contribute to the national research effort to enable the United States to achieve prescribed levels of petroleum independence. The Center represents a research and economic development collaboration between the University of Oklahoma, Oklahoma State University, and the Samuel Roberts Noble Foundation.

Natural Gas Vehicle (NGV) Promotion

Archived: 04/08/2011

The Oklahoma Legislature urges the U.S. Environmental Protection Agency to take regulatory steps that will encourage the use of NGVs. Recommended steps include revising and streamlining aftermarket conversion certification requirements for small volume manufacturers; waiving requirements for re-certifying natural gas engine conversion kits if the kit has been previously certified for a vehicle model and neither the kit nor the specific vehicle model have substantially changed; providing additional guidance to small volume manufacturers regarding conversion of older vehicle models; and continuing NGV research, development, and demonstration. (Reference House Concurrent Resolution 1019, 2009)

Biofuels Development and Promotion

Archived: 06/01/2010

The Oklahoma Legislature created the Biofuels Development Act 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 must 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, biobased products, co-products, or by-products. (Reference Oklahoma Statutes 2-1950.10 and 2-1950.11)

Alternative Fuel Vehicle (AFV) Tax Credit

Expired: 01/01/2009

Prior to January 1, 2009, 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 a new OEM AFV. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. Additionally, the state provides a tax credit for up to 50% of the cost of installing refueling infrastructure for AFVs. These tax credits may be carried forward for up to three years. The alternative fuels eligible for the credit include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), ethanol, methanol, and electricity. This tax credit extends to low-speed electric vehicles as defined by NHTSA in 49 C.F.R. 571.500 and to forklifts and other similar self-propelled vehicles. (Reference Oklahoma Statutes Section 68-2357.22)

Alternative Fuel Promotion

Archived: 07/01/2006

Oklahoma's Bioenergy Initiative encourages Oklahoma to establish bioenergy production programs to improve energy security, create opportunities for economic development within the state, and reduce greenhouse gas emissions. Oklahoma shall develop and pursue bioenergy alternatives for cleaner energy sources, drawing on its vast supplies of crop residues, grasses, trees, animal waste, and other biomass resources. (Reference Executive Order 2001-22)

Alternative Fuels Commission

Archived: 07/01/2006

Pending the availability of supporting federal funds, a Fuel Cell Initiative Task Force, will serve between April 2004 and September 2005 to study and make recommendations regarding the state of the fuel cell industry, programs to accelerate the commercial availability of fuel cells, and related economic incentives. The Task Force will make a report to the Governor and Legislature by September 1, 2005. (Reference House Bill 2351, 2004 and Executive Order 2005-16)

Ethanol Development

Archived: 07/01/2006

The Oklahoma Ethanol Development Study Act and the Oklahoma Ethanol Development Advisory Committee were created in May 2001 to serve until June 2006 to encourage the processing, market development, promotion, distribution and research of products derived from grain, ethanol, or ethanol components, co-products or by-products, in part to provide efficient and less-polluting energy sources which will make Oklahoma less energy dependent and reduce atmospheric carbon monoxide levels. (Reference Oklahoma Statutes Section 2-1950.1 and 2-1950.2)