Req. No. 2660 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) SENATE BILL 1535 By: Burns AS INTRODUCED An Act relating to the Oklahoma Low Carbon Energy Initiative; amending 17 O.S. 2021, Section s 802.2 and 802.3, as amended by Section s 1 and 2, Chapter 27, O.S.L. 2022 (17 O.S. Supp. 2023, Section s 802.2 and 802.3), which relate to the duties of the Initiative and the Oklahoma Low Carbon Energy Initiative Board membership; modifying duties and membership of the Board; requiring electronic reporting; updating statutory reference; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 17 O.S. 2021, Section 802.2, as amended by Section 1, Chapter 27, O.S .L. 2022 (17 O.S. Supp. 2023, Section 802.2), is amended to read as follows: Section 802.2. A. There is hereby created the Oklahoma Low Carbon Energy Initiative, referred to in Section 802.1 et seq. of this title as the Initiative, wh ich shall serve as a strategic program designed to create, advance, and promote new and existing energy research and development, use, supply chain activity, and infrastructure related to Oklahoma’s core energy competencies by: Req. No. 2660 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Promoting research and develop ment in the areas of conventional and unconventional oil and natural gas development and production, hydrogen production, storage, and distribution, CO2 enhanced oil recovery, wind fo recasting, advanced b iofuels, energy storage, water management, nuclear energy, energy policy and economic analysis, energy system optimization, renewable energy integration into the electrical grid, and similar en ergy technologies; 2. Fostering communication and collaboration between state and federal governmental agencies, institutions of higher education, and private entities located throughout Oklahoma; 3. Advancing research an d development programs and growing production, supply chain activity, and infrastructure that provide benefits to all indust ries and regions of the state; 4. Streamlining research and development efforts between private and public industry to create synergistic relationships that coordinate, not duplicate, efforts; 5. Establishing Oklahoma as a regional resource and clearinghouse for transformative energy technologies in the areas of traditional energy, hydrogen production, storage, and distribution, and renewable resourc e research and development; 6. Attracting best-in-class researchers to Oklahoma in competency areas alig ned with Oklahoma’s natural resource base; Req. No. 2660 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7. Coordinating with the Oklahoma Department of Commerce to enhance venture capital investment in energy -related research and business opportunities; and 8. Promoting seed funding that c an be leveraged against s tate, federal, and private-source funding to establish sufficient startup resources. B. The Initiative may receive assistance from any state agency or public entity to implement the provisions of the Oklahoma Energy Initiative Act including, but not limi ted to, administrative assistance, staffing or legal counsel and provision of office space or equipment as necessary. A ssistance agreements may be mad e by memorandums of understanding or as otherwise provided by law. SECTION 2. AMENDATORY 17 O.S. 2021, Section 802.3, as amended by Section 2, Chapter 27, O.S.L. 2022 (17 O.S. Supp. 2023, Section 802.3), is amended to read as follows: Section 802.3. A. The Oklahoma Low Carbon Energy Initiative shall be administered and gove rned by the Oklahoma Low Carbon Energy Initiative Board, made up of representatives of the contributing institutions and entities of the Initiative which shall include but not be limited to the University of Oklahoma, Oklahoma State University, and the University of Tulsa. Additional contributing members may be added at the discretion of the Board, if they contribute to the purpose, objectives, and research coordinated by the Initiative. Req. No. 2660 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. The Board shall consist of eleven (11) thirteen (13) members as follows: 1. One member, who shall serve as the ch air of the Board, sha ll be the Secretary of Energy and Environment or a me mber otherwise appointed by the Governor; 2. One member shall be the Vice Presid ent for Research from the University of Oklahoma or a member otherwise appoin ted by the President of the University of Oklahoma; 3. One member shall be the Vice President for Research from Oklahoma State University or a member otherwise appointed by the President of Oklahoma State University; 4. One member shall be the Vice Pr esident for Research and Economic Development from the University of Tulsa or a member otherwise appointed by the President of the University of Tulsa; 5. One member who shall represent the Oklahoma Department of Commerce, appointed by the Director of the Department of Commerce ; 6. One member who shall represent the Department of Labor, appointed by the Commissioner of Labor; 7. One member who shall represent the Department of Environmental Quality, appointed by the Executive Director of the Department of Environmental Quality ; 8. One member who shall represent the Corporation Commission, appointed by the Chair of the Commission; Req. No. 2660 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9. One member who shall represent the Department of Transportation, appointed by the Director of the Department of Transportation; 10. One member who shall represent the Oklahoma Water Resources Board, appointed by the Executive Dire ctor of the Oklahoma Water Resources Board; and 11. One member who shall represent the Oklahoma Center for the Advancement of Science and Technology, appointed by the Executive Director of the Center for the Advancement of Science and Technology; 12. One member, who shall represent a n electric utility or cooperative regulated by the Corporation Commission, appointed by the President Pro Te mpore of the Senate; and 13. One member, who shall represent the nuclear energy industry, appointed by the Speaker of the House of Repres entatives. C. 1. The Board shall establish an Energy Industry Advi sory Council, appointed by the chair, for the purposes of providing industry expertise and knowledge, assisting the Board with annual report requirements, providing general recommendations , and other support as needed to advance the efforts of the Board. 2. Members appointed to the Council shall serve at the pleasure of the chair of the Board. D. Board members shall se rve for a term of four (4) years, which shall begin on January 1 of t he first year of the appointment Req. No. 2660 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and end on December 31 of the fourth year. There shall be no limit to the number of consecutive terms serv ed. If a vacancy should occur during a member’s term, the appointing authority for the vacant position shall appoin t a new member to fill the remainder of the unexpired term. Board members shall serve without compensation but may be eligible for necessary travel expenses pursuant to the State Travel Reimbursement Act. E. The Board shall be responsible for establishin g procedures for the Initiative and operations of the Board and the Advisory Council. The rules may provide for protection from public disclosure of trade secrets and proprietary information of any kind including, but not limited to, data, processes and technology, as the Board determines necessary. F. The Board shall undertake activities and commission programs, through the contribu ting institutions and entities, to achieve the purpose and satisfy the objectives of the Ini tiative as provided in the Oklahoma Energy Initiative Act. The Board shall have authority to distribute funding for such activities and programs. The Board may employ staff as it deem s necessary. G. The Board, in consultation with the Advisory Council and any other party deemed necessary, shall prepare submit and publish electronically an annual, written report to summarize t he annual progress of the Initiative including summaries of its programs and their progress and outcomes. The repo rt shall be made ava ilable to Req. No. 2660 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the public and shall be distributed electronically to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives. H. The provisions of the Oklahoma Central Purchasing Act shall not apply to any project, activity or contract of the Init iative or the Board. I. No Board member or any person acting on behalf of the Board , Advisory Council, or Initiative executing any contracts, commitments or agreements issued by or on behalf of the Oklahoma Low Carbon Energy Initiative shall be personally liable for the contracts, commitments, or agreements or be subject to any personal liability or accountability by reason thereof. No director or any person acting on behalf of the Board or Initiative shall be personally liable for damage or injury resulting from the performance of duties hereunder. SECTION 3. This act shall become effective November 1, 2024. 59-2-2660 RD 1/2/2024 4:23:02 PM