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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1505 By: Paxton
AS INTRODUCED
An Act relating to rebate payments; amending Sections
2, 3, 4, and 5, Chapter 346, O.S.L. 2022 (68 O.S.
Supp. 2023, Sections 55007, 55008, 55009, and 55010),
which relate to the Oklahoma Emission Reduction
Technology Incentive Act; modifying intent; modifying
definitions; increasing rebate payment limit;
modifying name of revolving fund; mo difying purpose
of fund; creating the Oklahoma Emission Reduction
Technology Downstream Incentive Revolving Fund;
stating sources of fund; providing for expenditures
from fund; providing for transfer of funds under
certain circumstance; making appropriations to the
Oklahoma Tax Commission; directing depos it in certain
funds; updating statutory language; updating
statutory references; providing an effective date;
and declaring an emer gency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 2, Chapter 346, O.S.L.
2022 (68 O.S. Supp. 2023, Section 55007), is amended to read as
follows:
Section 55007. The Legislature hereby finds that the reduction
of emissions from upstream , and midstream, and downstream oil and
gas production, exploratio n, completions, gatherings, storage,
processing, refining, and transmission act ivities serves the
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interests of the citize ns of Oklahoma and such emission reduction
activities with new and innovative technologies should be encouraged
and incentivized.
SECTION 2. AMENDATORY Section 3, Chapter 346, O.S.L.
2022 (68 O.S. Supp. 2023, Section 55008), is amended to read as
follows:
Section 55008. As used in the Oklahoma Emission Reduction
Technology Incentive Act, “Emission Reduction Project” means and
includes, but is not limited to:
1. Existing and new technology projects that reduce on-site
emissions of regulated pollutants or carbon oxides from stationary
sources; and
2. Existing and new technology projects that reduce emissions
from upstream, and midstream, and downstream oil and gas
exploration, production, c ompletions, gathering gatherings, storage,
processing, refining, and transmission activities through the
following:
a. the replacement, repair, or retrofit of stationary
compressor engines,
b. the installation of systems and /or equipment to reduce
or eliminate the loss of gas, venti ng of gas, flaring
of gas, or burning of gas using other combustion
control devices, or
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c. the installation of systems and/or equipment to reduce
the per barrel consumption of energy, or
d. the installation of emissions monitorin g equipment or
devices.
SECTION 3. AMENDATORY Section 4, Chapter 346, O.S.L.
2022 (68 O.S. Supp. 2023, Section 55009), is amended to read as
follows:
Section 55009. A. Upon the effective date of t his act July 1,
2022, there is hereby created the Oklahoma Emission Reduction
Technology Rebate Program. There is hereby created a rebate in the
amount of up to twenty -five percent (25%) of documented expendi tures
made in this state directly attributable t o the implementation of a
qualified Emission Reduction Project.
B. The rebate program shall be administer ed by the Department
of Environmental Quality and the Oklahoma Tax Commission, as
provided in the Oklahoma Emission Reduction Technology Incentive
Act.
C. To be eligible for a rebate payment:
1. The applicant responsible for the implementation o f a
qualified Emission Re duction Project in this state shall submit
documentation to the Department of Environm ental Quality no later
than six (6) months after the end of the fisca l year in which the
expenditures were made stating the amount of expen ditures made in
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this state directly related to the implementation of the qualified
Emission Reduction Project;
2. The applicant has filed all Oklahoma tax returns and tax
documents which are required by the laws of this state; and
3. The applicant shall provide evidence of a cer tificate of
general liability insurance with a minimum coverage of One Million
Dollars ($1,000,000.00) and a workers’ compensation policy pu rsuant
to the laws of this state which shall include co verage of employer’s
liability.
D. The Department of Enviro nmental Quality shall approve or
disapprove all claims for a rebate payment and shall notify the
Oklahoma Tax Commission. The Tax Commission shall, upon
notification of approval from the Department of Environmental
Quality, issue a rebate payment for all approved cl aims from funds
in the Oklahoma Emission Reduction Technology Upstream and Midstre am
Incentive Revolving Fund crea ted in Section 5 of this act Section
55010 of this title and the Oklahoma Emission Reduction Technology
Downstream Incentive Rev olving Fund created in Section 55010 of this
title. Rebate payments from the fund Oklahoma Emission Reduction
Technology Upstream and Midstream Incentive Revolving Fund shall not
exceed Ten Million Dollars ($10,000,000 .00) One Hundred Million
Dollars ($100,000,000.00) in any fiscal year, and rebate payments
from the Oklahoma Emission Reduction Techn ology Downstream Incentive
Revolving Fund shall not exceed Twenty -Five Million Dollars
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($25,000,000.00) in any fiscal year . If the amount of approved
claims exceeds the amount specified in this subsection , for either
fund, in a fiscal year, payments shall be made proportionately to
all of the parties making a claim prior to the d eadline which is
approved by the Department of Environmental Qual ity with the amount
to be paid to each approved party being product of the individ ual
claim amount times the percen tage resulting from Ten Million Dollars
($10,000,000.00) Twenty-five Million Dollars ($25,000,000.00)
divided by the total amount of approved claims for the period . If
an approved claim is n ot paid in whole or in part, the unpaid claim
or unpaid portion shall be paid in the following fiscal years in the
order in which the claims are approved by the Department.
E. Approved claims for rebate th at exceed the balance of the
Oklahoma Emission Red uction Technology Upstream and Midstream
Incentive Revolving Fund created in Section 5 of this act Section
55010 of this title and the Oklahoma Emission Reduction Technology
Downstream Incentive Revolving Fund created in Section 55010 of this
title may be paid in part and the unpaid portion shall be paid upon
the applicable fund reaching a sufficient balance in the or der in
which the claims are approved by the Department.
SECTION 4. AMENDATORY Section 5, Chapter 346, O.S.L.
2022 (68 O.S. Supp. 2023, Section 55010), is amended to read as
follows:
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Section 55010. A. There is hereby created in the State
Treasury a revolving fund for the Oklahoma Tax Commi ssion to be
designated the “Oklahoma Emission Reduction Technology Upstream and
Midstream Incentive Revolving Fund”. The fund shall be a continui ng
fund, not subject to fi scal year limitations, and shall consist of
all monies received by the Tax Commissio n from any public or pr ivate
donations, contributions, and gifts received for the benefit of the
fund and any amounts appropriated by the Oklahoma Legislature
designated for deposit in the fund. All monies accruing to the
credit of the fund are hereby appr opriated and may be budgeted and
expended by the Tax Commission for the purpose of payin g rebates for
emission reduction projects, except for pro jects pertaining to
refining activities, as provided in this act the Oklahoma Emission
Reduction Technology Incentive Act . Expenditures from the fund
shall be made upon w arrants issued by the State Treasurer against
claims filed as prescribed by law with the Director of the Of fice of
Management and Enterprise Services for approval a nd payment. Any
remaining unencumbered balance upon the cessation of the Oklahoma
Emission Reduction Technology Rebate Program, as provided in Section
7 of this act Section 55012 of this title, shall be transferred to
the General Revenue Fund of the State of Oklahoma this state.
B. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be designated the “Oklahoma
Emission Reduction Tec hnology Downstream Incentive Revolving Fund ”.
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The fund shall be a continuing f und, not subject to fiscal year
limitations, and shall consist of all monies received by the Tax
Commission from any public or pr ivate donations, contributions, and
gifts received for the benefit of the fund and any amounts
appropriated by the Legislature designated for depos it in the fund.
All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Tax Commission
for the purpose of paying rebates for emission red uction projects
pertaining to refining activ ities as provided in this act.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against clai ms filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment. Any remaining unencu mbered balance upon the
cessation of the Oklahoma Emission Reduction Technology Rebate
Program, as provided in Section 55012 of this title, shall be
transferred to the General Revenue Fund of this state.
SECTION 5. There is hereby appropriated to the Oklahoma Tax
Commission for deposit in the Oklahoma Emission Reduction Technology
Upstream and Midstream Incentive Revolving Fund from any monies not
otherwise appropriated from the General Revenue Fund of the State
Treasury for the fiscal year ending June 30, 2023, the sum of One
Hundred Million Dollars ($100,000,000.00).
SECTION 6. There is hereby appropriated to the Oklahoma Tax
Commission for deposit in the Oklahoma Emission Reduction Technology
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Downstream Incentive Revolving Fund from any monies not otherwise
appropriated from the General Revenue Fund of the State Treasury for
the fiscal year ending June 30, 2023, the sum of Tw enty-Five Million
Dollars ($25,000,000.00) .
SECTION 7. This act shall become effective July 1, 2024.
SECTION 8. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is her eby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
59-2-2875 QD 12/15/2023 10:54:56 PM