An Act
ENROLLED SENATE
BILL NO. 1505 By: Paxton of the Senate
and
Boles and Archer 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;
amending approval process; 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;
providing for proportional payments; updating
statutory language; updating statutory references;
providing an effective date; and declaring an
emergency.
SUBJECT: Oklahoma Emission Reduction Technology Incentive Act
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,
ENR. S. B. NO. 1505 Page 2
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, 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 project s 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 or
devices.
SECTION 3. AMENDATORY Section 4, Chapter 346, O.S.L.
2022 (68 O.S. Supp. 2023, Sec tion 55009), is amended to read as
follows:
ENR. S. B. NO. 1505 Page 3
Section 55009. A. Upon the effective date of this 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 expenditures
made in this state directly attributable to the implementation of a
qualified Emission Reduction Project.
B. The rebate program shall be administered by the Department
of Environmental Quality and the O klahoma 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 s ubmit
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 . The Department of Environmental Quality
shall additionally establish a process whereby an applicant may
submit a payment for approval prior to the expenditure of funds.
Any approval through this alternative proc ess shall be subject to
final approval as determined necessary by the Department of
Environmental Quality ;
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 pr ovide 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 rebate payment for all approved claims from funds
in the Oklahoma Emission Reduction Technology Upstream and Midstream
ENR. S. B. NO. 1505 Page 4
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 title. 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 i s
approved by the Department of Environmental Quality . Rebate
payments from the 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 amoun t
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 followi ng
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 t his act and the
Oklahoma Emission Reduction Technology Downstream Incentive
Revolving Fund, both 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 o rder 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 Reduction 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
ENR. S. B. NO. 1505 Page 5
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 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 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 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 Downstream 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 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 Commission
for the purpose of paying rebates for emission reduction projects
pertaining to refining activities as provided in this 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 55012 of this title, shall be
transferred to the General 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 ta ke effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 1505 Page 6
Passed the Senate the 21st day of May, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the 17th day of April, 2024.
Presiding Officer of the Hous e
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _______ __
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of _________________ _, 20 _______, at _______ o'clock _______ M.
By: _________________________________