Alternative Fuels -- State Regulations for Oklahoma

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Oklahoma.

Vehicle Acquisition

State agency vehicles (recommendation)

All school and government fleets may convert their vehicles to operate on alternative fuels, and all school districts should consider purchasing only vehicles able to operate on alternative fuels. School and government vehicles capable of operating on an alternative fuel must use the fuel whenever a fueling station is located within a five-mile radius of the respective department or district and the price of the alternative fuel is cost competitive. If school and government vehicles must be fueled outside the five-mile radius and no fueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.3)

General

Definition (biodiesel)

Biodiesel is defined as a fuel that is comprised only of mono-alkyl esters of long chain fatty acids, is produced from vegetable oils or animal fats, and meets ASTM specification D6751. A biodiesel blend is a blend of biodiesel meeting ASTM specification D6751 and petroleum-based diesel fuel. (Reference Oklahoma Statutes 52-325)

Funding (alternative fuel vehicles)

Oklahoma has a private loan program with a 3% interest rate for the cost of converting private fleets to operate on alternative fuels, for the incremental cost of purchasing an original equipment manufacturer AFV, and for the installation of AFV fueling infrastructure. The repayment of the loan has a maximum six-year period.

Infrastructure (access to state facilities)

The Oklahoma Department of Central Services Fleet Management Division may construct, install, acquire, operate, and provide alternative fueling infrastructure for state agencies and local government use as well as the public in areas of the state where public access to alternative fuel infrastructure is not readily available. The Department of Central Services must discontinue public access to their fueling stations if a privately owned alternative fueling station opens within a five-mile radius. Alternative fuels include natural gas, liquefied petroleum gas (propane), ethanol, methanol, biodiesel, electricity, and hydrogen. (Reference Oklahoma Statutes 74-78)

Infrastructure (natural gas, development)

The Oklahoma Legislature intends to increase the amount of CNG fueling infrastructure in the state, with the overall goal of having one public fueling station located every 100 miles along the interstate highway system by 2015, and one public fueling station every 50 miles by 2025. The Department of Central Services Fleet Management Division may take steps to reach this goal by collaborating with private entities to build CNG fueling infrastructure. (Reference Oklahoma Statutes 74-78f)

Rebate (natural gas vehicle)

Oklahoma Natural Gas (ONG) offers rebates for NGVs purchased on or after June 18, 2012, in the amount of $2,500 for a dedicated NGV and $1,500 for a dual-fuel vehicle conversion. ONG also offers $2,500 toward the cost of a compressed natural gas home fueling station or appliance. Rebates are available on a first come, first served basis. For more information, including rebate fund availability, see the ONG CNG Rebate Program website.

Tax (alternative fuel vehicle)

In lieu of the motor fuel excise tax, AFV owners are subject to a motor vehicle fee. An annual flat fee applies to passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas (propane), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). Propane vehicles with a payload capacity of less than 2,000 pounds (lbs) are taxed at a rate of $50 per vehicle per year. LNG, methanol, and M85 vehicles with a payload capacity of less than 2,000 lbs are taxed at a rate of $100 per vehicle per year. Propane, LNG, methanol, and M85 vehicles with a payload capacity greater than 2,000 lbs are taxed at a rate of $150 per vehicle per year. If the owner acquires the vehicle or converts it to run on the alternative fuel after July 1 of the tax year, the flat fee is half of the above mentioned amount. AFVs must display a decal that the Oklahoma Tax Commission issues on an annual basis.For compressed natural gas (CNG) vehicles, instead of an annual flat fee, the state motor fuel tax is imposed as a direct tax paid at the pump per gasoline gallon equivalent (GGE) of CNG purchased. The tax rate is $0.05 per GGE until January 1, 2015, and $0.13 per GGE thereafter.(Reference Oklahoma Statutes 68-723 and 68-500.3 through 68-500.6)

Tax Credit (alternative fuel vehicle)

For tax years beginning before January 1, 2015, a one-time income tax credit is available for 50% of the incremental cost of purchasing a new original equipment manufacturer AFV or converting a vehicle to operate on an alternative fuel. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. Equipment used for conversions must be new and must not have been previously used to modify or retrofit any vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, hydrogen, and liquefied petroleum gas (propane). Tax credits may be carried forward for up to five years. (Reference Oklahoma Statutes 68-2357.22)

Tax Credit (alternative fueling infrastructure)

For tax years beginning before January 1, 2015, a tax credit is available for up to 75% of the cost of alternative fueling infrastructure. Eligible alternative fuels include compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and electricity. The infrastructure must be new and must not have been previously installed or used to fuel alternative fuel vehicles. A tax credit is also available for up to 50% of the cost of installing a residential CNG fueling system, for up to $2,500. The tax credit may be carried forward for up to five years. (Reference Oklahoma Statutes 68-2357.22)

Training

The Alternative Fuels Technician Certification Act (Act) regulates the training, testing, and certification of technicians who install, modify, repair, or renovate equipment used in fueling alternative fuel vehicles and in the conversion of any engine to operate on an alternative fuel. This includes original equipment manufacturer engines dedicated to operate on an alternative fuel. Electric vehicles (EVs), EV charging infrastructure, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 74-130.11 through 74-130.24)

Weight Limit Exemption (idle reduction)

Any vehicle equipped with idle reduction technology may exceed the state's gross vehicle weight limits by up to 400 pounds to compensate for the additional weight of the idle reduction technology. The additional weight may not exceed the actual certified weight of the idle reduction unit. (Reference Oklahoma Statutes 47-14-109)