Oklahoma
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.
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)
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)
