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ENGROSSED HOUSE AMENDME NT
TO
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 Redu ction
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 depo sit in certain
funds; updating statutory language; updating
statutory references; providing an effective date;
and declaring an emergency.
AUTHOR: Add the following House Coauthor: Archer
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"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 550 07, 55008, 55009, and
55010), which relate to the Oklahoma Emission
Reduction Technology Incentiv e Act; modifying intent;
modifying definitions; elimi nating rebate payment
limit; amending approval process ; modifying name of
revolving fund; modifying purpose of fund; creating
the Oklahoma Emission Reduction Technology Downstream
Incentive Revolving Fun d; stating sources of fund;
providing for expenditures fro m fund; providing for
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transfer of funds under certain circumstance;
providing for proportional payment s; updating
statutory language; updating statutory references;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PE OPLE 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, distribution, and transmission activities
serves the interests of the citizens 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, Sectio n 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
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2. Existing and new tec hnology projects that reduce emissions
from upstream and, midstream, and downstream oil and gas
exploration, production, completions, gathering gatherings, storage,
processing, refining, distribution, 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, venting of gas, flaring
of gas, or burning of gas using other combustion
control devices, or
c. the installation of systems and/or equipment to reduce
the per barrel consumption of energy, or
d. the installation of emissions monitoring equipment o r
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 t he Oklahoma Emission Reduction
Technology Rebate Program. There is hereby created a rebate in the
amount of up to twenty -five percent (25%) of doc umented expenditures
made in this state directly attributable to the implementation of a
qualified Emission R eduction Project.
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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 Incentive
Act.
C. To be eligible for a rebate payment:
1. The applicant responsible for the implementation of 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 Pro ject. The Department of Environmental Quality
shall additionally est ablish a process whereby an applicant may
submit a payment for approval prior to the expenditure of funds.
Any approval through this alternative process shall be subject to
final approval as determined necessary by the Department of
Environmental Quality ;
2. The applicant has filed all Okla homa tax returns and tax
documents which are required by the laws of this state; and
3. The applicant shall provide 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.
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D. The Department of Environmental Quality shall approve or
disapprove all claims for a rebate payment and sh all 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 claims from funds
in the Oklahoma Emission Reduction Technology Upstream and Midstream
Incentive Revolving Fund created in Section 5 of this act and the
Oklahoma Emission Reduction Technology Downstream Incentive
Revolving Fund, both created in Section 55010 of this tit le. If the
amount of the approved claims exceeds the amount available in either
fund, during a fiscal year, payments shall be made proportionally to
all the parties making a claim prior to the deadline which is
approved by the Depar tment of Environmental Quality. Rebate
payments from the fund shal l 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 th e 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
($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
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fiscal years in the order in which the claims are approv ed by the
Department.
E. Approved claims for rebate that exceed the balance of th e
Oklahoma Emission Reduction Technology Upstream and Midstream
Incentive Revolving Fund created in Section 5 of this act and the
Oklahoma Emission Reduction Technology Downstream Incentive
Revolving Fund, both created in Section 5501 0 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 b y 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 Reduction Tech nology Upstream and
Midstream Incentive Revolving Fund". The fund shall be a contin uing
fund, not subject to fiscal year limitations, and shall consist of
all monies received by the Tax Commission from any publ ic or private
donations, contributions, and g ifts received for the benef it 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 appropriated and may be budgeted and
expended by the Tax Commis sion for the purpose of pay ing rebates for
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emission reduction projects, except for p rojects pertaining 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 Stat e Treasurer against
claims filed as prescribed by law wit h 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 Rebat e Program, as provided in Section
7 55012 of this act 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 Technology Downst ream Incentive Revolving Fund".
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies received by th e Tax
Commission from any public o r private donations, contributions, and
gifts received for the ben efit 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 are here by
appropriated and may be budgeted and expended by the Tax Commission
for the purpose of paying reb ates for emission reduction projects
pertaining to refining activities as provi ded in this act.
Expenditures from the fund shall be made upon warrants issu ed by the
State Treasurer against cl aims filed as prescribed by law with the
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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 Te chnology Rebate
Program, as provided in Section 55012 of this title, shall be
transferred to the Gen eral Revenue Fund of this state.
SECTION 5. This act shall become effective July 1, 2024.
SECTION 6. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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 House of Representatives the 17th day of April, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of __________, 2024.
Presiding Officer of the Senate
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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 P EOPLE OF THE STATE OF OKLAHOMA:
SECTION 7. 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 8. 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 i n 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 combustio n
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 9. AMENDATORY Section 4, Chapter 34 6, 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 cre ated 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 Departme nt
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 Redu ction 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 Q uality 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 sh all 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 10. 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 creat ed 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 limita tions, 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 Fun d”.
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 amo unts
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 11. 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 Gener al 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 12. 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 13. This act shall become effective July 1, 2024.
SECTION 14. 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 sha ll 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