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ENGROSSED SENATE
BILL NO. 1505 By: Paxton of the Senate
and
Boles of the House
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; eliminating rebate payment limit;
modifying name of revolving fund; modifying 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 deposit in certain
funds; updating statutory language; updating
statutory references; providing an effective date;
and declaring an emergency.
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, exploration, completions, gatherings, storage,
processing, refining, and transmission activities serves the
interests of the citizens of Oklahoma and such emission reduction
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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 l imited 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, completions, 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 s ystems and/or equipment to reduce
or eliminate the loss of gas, venting of gas, flaring
of gas, or burning o f gas using other combustion
control devices, or
c. the installation of systems and/or equipment to reduce
the per barrel consumption of energy, or
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d. the installation of emissions monitoring 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 this act July 1,
2022, there is hereby created the Oklahoma Emission Reduction
Technology Rebate Pr ogram. There is hereby created a rebate in the
amount of up to twenty -five percent (25%) of documented expenditures
made in this state directly att ributable to the implementation of a
qualified Emission Reduction Project.
B. The rebate program shall be administered by the Department
of Environmental Quality and the Oklahoma Tax Commission, as
provided in the Oklahoma Emission Reduction Technology In centive
Act.
C. To be eligible for a rebate payment:
1. The applicant responsible for the implementation o f a
qualified Emission Reduction Project in this state shall submit
documentation to the Department of Environmental Quality no later
than six (6) months after the end of the fiscal year in which the
expenditures were made stating the amount of expenditures made in
this state directly related to the implementation of the qualified
Emission Reduction Project;
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2. The applicant has filed all Oklahoma ta x returns and tax
documents which are required by the laws of this state; and
3. The applicant shall provid e evidence of a certificate of
general liability insurance with a minimum coverage of One Million
Dollars ($1,000,000.00) and a workers ’ compensation policy pursuant
to the laws of this state which shall include coverage of employer ’s
liability.
D. The Department of Environmental 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 rebat e payment for all approved claims from funds
in the Oklahoma Emission Reduction Technology Upstream and Midstream
Incentive Revolving Fund created i n 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. Rebate payments from th e fund shall not exceed Ten Million
Dollars ($10,000,000. 00) in any fiscal year. If the amount of
approved claims exceeds the amount specified in this subsection in a
fiscal year, payments shall be made proportionately to all of the
parties making a claim prior to the deadline which is approved by
the Department of Environmental Quality with the amount to be paid
to each approved party being product of the individual claim amount
times the percentage resulting from Ten Million Dollars
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($10,000,000.00) divided by the total amount of approved claims for
the period. If an approved claim is not 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 that exceed the balance of the
Oklahoma Emission Reduction 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 order 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:
Section 55010. A. There is hereby created in the State
Treasury a revolving fund for the Oklahoma Tax Commission to be
designated the “Oklahoma Emission Reducti on Technology Upstream and
Midstream Incentive Revolving Fund ”. The fund shall be a continuing
fund, not subject to fiscal year limitations, and shall consist of
all monies received by the Tax Commission from any public or private
donations, contributions , and gifts received for the benefit of the
fund and any amounts appropriated by the Oklahoma Legislature
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designated for deposit 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 reduction projects, except for projects pertainin g to
refining activities, as provided in this act the Oklahoma Emission
Reduction Technology Incentive Act . Expenditures from the fund
shall be made upon warrants issued by the State Treasurer against
claims filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and 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 titl e, 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 revolvi ng
fund for the Oklahoma Tax Commission to be designated the “Oklahoma
Emission Reduction Technology Downstream Incentive Revolving Fund ”.
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies receive d by the Tax
Commission from any public or private donations, contributions, and
gifts received for the bene fit of the fund and any amounts
appropriated by the Legislature designated for deposit in the fund.
All monies accruing to the credit of the fund a re hereby
appropriated and may be budgeted and expended by the Tax Commission
for the purpose of paying rebates for emission reduction projects
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pertaining to refining activities as provided in this act.
Expenditures from the fund shall be made upon warran ts issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office o f Management and Enterprise Services for
approval and payment. Any remaining unencumbered balance upon the
cessation of the Oklahoma Emission Reduc tion 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 Thirty
Million Dollars ($30,00 0,000.00).
SECTION 6. There is hereby appropriated to the Oklahoma Tax
Commission for deposit in the Oklahoma Emission Reduction Technology
Downstream Incentive Revolving Fund from any monies not otherwise
appropriated from the General Rev enue Fund of the State Treasury for
the fiscal year ending June 30, 2023, the sum of Twenty Million
Dollars ($20,000,000.00).
SECTION 7. This act shall become effective July 1, 2024.
SECTION 8. It being immediately necessa ry for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the Senate the 11th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2024.
Presiding Officer of the House
of Representatives