Oklahoma Policy Data

Summary

Oklahoma has a Flat Fee Decal Requirement for LNG and other Special Fuels, but not CNG which has its own tax rate as of January, 2012.

Oklahoma offers tax credits and incentives to both consumers and station owners, plus a loan program designed to incent both. The state passed legislation intended to increase the public NGV fueling infrastructure to one station every 100 miles by 2015 and one station every 50 miles by 2025. Further, the state has incorporated NGVs into its vehicle fleet purchase and conversion program. Finally, the state legislature passed regulations governing the training, testing, and certification of technicians who install or modify, renovate or repair equipment used in AFVs.

AFV vehicle owners are taxed based on vehicle weight greater or lesser than 2,000 pounds, paying $150 or $100 yearly. As of January 1, 2012, CNG vehicle are removed from this tax, instead paying $0.05 per GGE at the pump through 2015, and $0.13 per GGE thereafter.

2012 UPDATE - The Oklahoma Corporation Commission offers a new rebate program for NGV vehicle owners. The plan will provide rebates of $1,000 for a dedicated CNG vehicle; $500 for a bi-fuel vehicle conversion; and $1,000 toward the cost of a CNG home-filling station.

Vehicles

Current Estimated Fleet-based NGVs in Oklahoma

~952

Vehicles by Fuel Type

Stations

Current Fleet-based NGV Fueling Stations - 102 CNG / 1 LNG

Private NGV Fueling Stations - 22

Fuel Taxes

Oklahoma Motor Fuel Taxation Website

CNG - 5.0 ¢ / GGE - Reference

LNG - 5.0 ¢ / DGE Reference

Gasoline - 16.0 ¢ / Gallon

Diesel - 13.0 ¢ / Gallon

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before January 1, 2020, a one-time income tax credit is available for 45% (2014 - OK HB 3297) 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, and liquefied petroleum gas (propane), and electricity. 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), 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)

Natural Gas Vehicle Weight Exemption

A vehicle powered in whole or part by compressed or liquefied natural gas may exceed the state's gross and axle weight limits by up to 2,000 pounds, equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable diesel tank and fueling system. The exemption is allowed on all state roads and interstate highways, as defined in Title 23 of the Code of Federal Regulations section 127(s). (Reference Senate Bill 1317, 2016, and Oklahoma Statutes 47-14-109.3)

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. For more information, see the Oklahoma Department of Commerce loan application guidelines.

Point of Contact
Marshall Vogts
Director of Programs
Oklahoma Department of Commerce
Phone: (405) 815-5339
marshall_vogts@okcommerce.gov

LDC/Utility / Private Incentives

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 on or after June 18, 2012, in the amount of $2,500 for a dedicated NGV and $1,500 for a dual-fuel vehicle conversion. ONG also offers $2,500 toward the cost of a compressed natural gas home fueling station or appliance. Rebates are available on a first come, first served basis. For more information, including rebate fund availability, see the ONG CNG Rebate Program website.

Laws & Regs

Legislative Session Dates:	February 23 - May 24
Legislature Website:	http://www.oklegislature.gov/

Compressed Natural Gas (CNG) Fueling Infrastructure Inspection

The Oklahoma Corporation Commission may access and inspect any equipment, practices, or methods used in association with public CNG fueling infrastructure. (Reference Oklahoma HB1718)

Natural Gas Vehicle (NGV) Loan Program Development

The Oklahoma Cooperative Circuit Engineering Districts Board must develop and adopt rules and processes for a no-interest loan program to allow qualified county governments to purchase or convert NGVs. Counties that borrow funds must sell to a nongovernmental entity or properly dispose of a comparable number of conventional vehicles. Loan terms will be up to five years. (Reference Senate Bill 656, 2015, and Oklahoma Statutes 69-687.3C)

Alternative Fuels Technician Certificates

The Department of Labor (DOL) will issue a certificate to any person who has successfully passed the appropriate alternative fuels equipment, alternative fuels compression, or electric vehicle technician examination as provided in the Alternative Fuels Technician Certification Act. A certification fee applies. For companies, partnerships, or corporations involved in the business of installing, servicing, repairing, modifying, or renovating equipment used in converting or modifying engines or fueling equipment to be used with alternative fuels, DOL will issue a separate certificate.

DOL can issue an alternative fuels trainee certificate to any person who submits a trainee application within 15 business days of being hired by a licensed alternative fuels conversion or fueling station installation company. Reference House Bill 2622, 2016 and Oklahoma Statutes 40-142.8)

Committee of Alternative Fuels Technician Examiners

The Committee of Alternative Fuels Technician Examiners (Committee) was established to assist the Commissioner of Labor on matters relating to the formulation of rules and standards to comply with the Alternative Fuels Technician Certification Act. The Committee consists of eight members, including experts in the natural gas and electric vehicle industries. (Reference House Bill 2622, 2016 and Oklahoma Statutes 40-142.6)

Natural Gas Measurement

Effective November 1, 2015, the Oklahoma Department of Labor (DOL) must standardize compressed natural gas (CNG) and liquefied natural gas (LNG) measurements for retail motor vehicle fuel, unless the National Conference on Weights and Measures has established equivalent measures. Until the DOL standardizes measurements, a gasoline gallon equivalent is equal to 5.66 pounds (lbs.) of CNG and a diesel gallon equivalent is equal to 6.06 lbs. of LNG. (Reference House Bill 1283, 2015, and Oklahoma Statutes 83-119)

Alternative Fuel School Bus Conversion Research

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)

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 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)

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) Tax and Fee

Compressed natural gas (CNG) used in motor vehicles is subject to a state motor fuel tax of $0.05 per gasoline gallon equivalent (GGE) until January 1, 2020. Beginning January 1, 2020, the tax rate increases to match the rate imposed on diesel fuel. Effective January 1, 2014, liquefied natural gas (LNG) is also subject to a state motor fuel tax rate of $0.05 per diesel gallon equivalent (DGE) until January 1, 2020, after which the tax rate increases to match the rate imposed on diesel fuel.

In lieu of the motor fuel tax, some 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), 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. Effective January 1, 2014, LNG vehicles are no longer subject to the annual flat fee and decal requirements. (Reference SB-519, 2013, and 68-500.4)

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)

Proposed Bills

[printfriendly]

2016 Session - Proposed Legislation

HB-2622

Amends the Alternative Fuel Technician Act. Creates new trainee category and adjusts the fees so that fee for facilities with dispensers is lesser of $250 per dispenser or $1,000.Reference - HB2622 Bill History, Reference - HB2622 Bill Text Status: 2/24/16 substitute adds "meter" so that the fee is $250 per each dispenser meter or maximum of $1,000 per location. Passed House 3/1/16, passed Senate 4/14/16.

SB-1138

Sunsets the tax credits for alternative fuel vehicles as of Jan. 1, 2018 unless the legislature extends them. The incentives currently expire end of 2019.Reference - SB1138 Bill History, Reference - SB1138 Bill Text

SB-1177

Provides weight allowance for natural gas trucks based on the increased weight of fuel tank and fuel system. Extends to vehicles partially or wholly fueled by CNG or LNG. Effective date is July 1, 2016.Reference - SB1177 Bill History, Reference - SB1177 Bill Text

SB-1237

Makes minor changes to the revolving loan program for counties to purchase CNG vehicles. Adds requirement that counties report on disposition of gas powered vehicles and with this change also on diesel powered changes. As introduced it also added July 1, 2016 effective date. Reference - SB1237 Bill History, Reference - SB1237 Bill Text Status: Senate agrees to House amendments 4/28/16; signed by governor 5/5/16.

SB-1285

Modifies the tax credit for alternative fuel vehicles and fueling equipment so that after January 1, 2017, the credit values is reduced by 25%Reference - SB1285 Bill History, Reference - SB1285 Bill Text

SB-1317

Provides a weight allowance for natural gas trucks based on the increased weight of fuel tank and fuel system. Extends to vehicles partially or wholly fueled by CNG or LNG. Effective date is July 1, 2016.Reference - SB1317 Bill History, Reference - SB1317 Bill Text Status: enacted 4/14/16.

SB-1338

Sunsets the tax credits for alternative fuel vehicles as of Jan. 1, 2018 unless the legislature extends them. The incentives currently expire end of 2019. Shorter bill that only addresses AFV provisions.Reference - SB1338 Bill History, Reference - SB1338 Bill Text

SB-1339

Sunsets the tax credits for alternative fuel vehicles as of Jan. 1, 2018 unless the legislature extends them. The incentives currently expire end of 2019. Longer bill addresses other tax credits. Reference - SB1339 Bill History, Reference - SB1339 Bill Text

SB-1376

Modifies the tax credit for alternative fuel vehicles and fueling equipment so that after January 1, 2017, the credit values is reduced by 25% Reference - SB1376 Bill History, Reference - SB1376 Bill Text

SB-1435

SB-1581

Limits tax credits provided for vehicles and fueling stations is limited to $6 million annually starting with 2016. It also limits the current tax credit values to 75% of the amount otherwise allowed starting in 2017. Reference - SB1581 Bill History, Reference - SB1581 Bill Text Status: passed by Joint Committee on Appropriations and Budget 5/5/16.

SB-1612

Limits tax credits provided for vehicles and fueling stations is limited to $6 million annually starting with 2017. It also limits the current tax credit values to 75% of the amount otherwise allowed starting in 2017. Requires the Dept. of Taxation to calculate and publish a reduction of the percentage allowed based on the available tax credit amount. Reference - SB1612 Bill History, Reference - SB1612 Bill Text Status: passed by Joint Committee on Appropriations and Budget 5/17/16; passed Senate 5/25/16; legislature adjourned without the House passing the bill 5/27/16.

2015 Session - Proposed Legislation

HB-1277

Establishes a revolving loan program to fund the conversion or purchase of new compressed natural gas vehicles by local government entities. The funds for this program are to be equally apportioned to the 77 counties. Authorizes $4.8 million. Substitute version removes specific funding level. Reference - HB1277 Bill History, Reference - HB1277 Bill Text

HB-1282

Amends current fueling credit to include mobile fuelers if they refuel motor vehicles and provide CNG. . Credit is worth 75% of the cost of such vehicles. Effective Nov. 1, 2015. Reference - HB1282 Bill History, Reference - HB1282 Bill Text

HB-1283

Establishes weights and measure standards for dispensing natural gas using 5.66 lbs. for GGE of CNG and 6.06 lbs. for LNG. Also states that CNG may be sold in DGE units but does not prescribe number of pounds. Substitute version defines LNG DGE as 6.38 lbs. of natural gas. Reference - HB1283 Bill History, Reference - HB1283 Bill Text Substitute bill offered 2/26/2015

HB-1669

Amends current AFV credit to establish earlier expiration date of July 1, 2018. Reference - HB1669 Bill History, Reference - HB1669 Bill Text

HB-1728

Makes various changes to the Alternative Fuel Technician Act including removing the requirement to be bonded in order to perform conversions. However, companies who install conversions or work on fueling stations would have to have $1 million general liability insurance. Reference - HB1728 Bill History, Reference - HB1728 Bill Text Substitute version 2/25/15

SB-656

Amends state funding program under the Emergency and Transportation Revolving Fund - Circuit Engineering Board. Change specifically makes the purchase or conversion of CNG powered vehicles eligible for no interest loans. Reference - SB656 Bill History, Reference - SB656 Bill Text Status: Signed by Governor, 6/15/15

2014 Session - Proposed Legislation

HB-2954

Establishes a revolving loan program to fund the conversion or purchase of new natural gas vehicles by local government entities. The program as originally proposed was funded by a portion of the gross production tax on natural gas; this was later removed by Senate amendment. The funds for this program are to be equally apportioned to the 77 counties. Reference - HB2954 Bill History, Reference - HB2954 Bill Text Passed Senate 4/23/14 back to House for concur

HB-3297

Transfers authority to regulate conversions and fueling stations from the Corporate
Commission to the Dept. of Labor. Also modifies they alternative fuel vehicle credit by reducing the amount from 50% to 45% of the cost of converting a vehicle; the 5% savings is used to fund oversight of program. Creates a revolving fund to provide for oversight of natural gas vehicle safety. The funds shall be equal to 5% of the amount of tax credits provided for qualified clean-burning motor vehicle fuel property. The Tax Commission shall provide funds to the Office of Management and Enterprise Services to oversee and regulate the safety of converting vehicles to operate on CNG.Reference - HB3297 Bill History, Reference - HB3297 Bill Text Enacted 5/23/14

SB-1852

Clarifies that OK law does not prohibit a person who not a certified alternative fuel technical from being able to covert their own vehicle. Reference - SB1852 Bill History, Reference - SB1852 Bill Text Pending: House Energy & Aerospace Committee

2013 Session - Proposed Legislation

HB-1371

Amends numerous tax credits to indicate that unless the legislature takes specific action otherwise such credits shall no longer be available after June 30, 2014.Reference - HB-1371 Bill History, Reference - HB-1371 Bill Text 2013-02-05 - Second Reading referred to Appropriations and Budget

HB-1583

Compressed Natural Gas Incentives Act Reference - HB-1583 Bill History, Reference - HB-1583 Bill Text Pending: House Appropriations and Budget Committee

HB-1718

Amends requirements relating to fueling equipment to allow state authorities to inspect public fueling station equipment for natural gas stations. Amends the tax credits for qualified alternative fuel vehicles to add a requirement that the equipment be installed by a certified technician. Reference - HB-1718 Bill History, Reference - HB-1718 Bill Text Action: 2013-04-22 - Approved by Governor 04/22/2013

SB-34

Makes various amendments to the fleet management provisions. Authorizes the Director of the Office of Management and Enterprise Services to make alternative fuel available to the public at government owned facilities if public fueling is not available within 5 miles and instructs them to cease providing fuel when it does become available. Reference - SB-34 Bill History, Reference - SB-34 Bill Text Status: Introduced on February 4 2013 - 25% progress, died in chamber

SB-343

Amends the existing tax credits for clean fuel vehicles and fueling equipment which currently are available until end of 2014. The credits previously extended to a number of fuels including CNG and LNG but the new language drops the other fuels and only retains CNG. Credits is worth 50% of cost of conversion or 10 percent or no more that $1,500 for dedicated or bi-fuel OEM CNG vehicle. Fueling station credit is worth 75% of cost of equipment per location, 50% or $2,500 for home fueling equipment. Vehicle credits may be taken by subsequent purchaser if no credit has been claimed, value is 10% of cost, or $1,500 whichever is less. Reference - SB-343 Bill History, Reference - SB-343 Bill Text Action: 2013-05-30 - Approved by Governor 05/29/2013

SB-612

Extends current incentives for clean fuel vehicles and fueling infrastructure until end of 2019; previously set to expire at end of 2014. Unlike SB 343 leaves in place the incentives for other fuels. Reference - SB-612 Bill History, Reference - SB-612 Bill Text Pending: Senate Finance Committee

SB-904

Extends current incentives for clean fuel vehicles and fueling infrastructure until end of 2019; previously set to expire at end of 2014. Unlike SB 343 leaves in place the incentives for other fuels. Appears to be same as SB 612. Reference - SB-904 Bill History, Reference - SB-904 Bill Text Pending: Senate Finance Committee

HB-1984

This bill started as making only minor changes the fleet management rules. The substitute would remove the authority of the Office of Management and Enterprise Services to build alternative fuel infrastructure. Reference - HB1984 Bill History, Reference - HB1984 Bill Text Signed by Governor 5/16/2013; Chapter No. 301

HB-2005

Very similar to SB 343. Leaves in place existing tax credits for NGVs and other fuels but extends the deadline from Jan. 1, 2015 to Jan. 1, 2020 (so incentives are available through 2019. Removes now obsolete EV language but leaves obsolete hydrogen language in place. Reference - HB2005 Bill History, Reference - HB2005 Bill Text

SB-75

Amends the state tax credit for alternative fuel infrastructure to cover the cost of constructing or installing electric vehicle charging equipment. Leaves in place and unchanged the credits for NGVs and NG fueling stations. Reference - SB75 Bill History, Reference - SB75 Bill Text Pending: Senate Finance Committee

SB-519

This bill previously had nothing to do with LNG tax. Changes appear to pick up same provisions contained in SB 322. LNG would be taxed based on DGE of 6.06 pounds instead of per liquid gallon and initially assessed at a rate of $0.05 and then raised to $0.13 in future. Current rate is $0.16 per liquid gallon. Reference - SB519 Bill History, Reference - SB519 Bill Text Action: 2013-05-30 - Approved by Governor 05/29/2013
[printfriendly]

This state was last examined and updated in August, 2016.