| | Incentives, Funding and Regulations | | | 
| One of the main objectives of the Tulsa Area Clean Cities Coalition is to secure funding for our stakeholders. It is our goal to offer sound advice and instructions on how to obtain the money you need to facilitate your petroleum displacement program. In addition, coalitions may have access to a broad range of funding sources, including solicitations that are open year round. | | |
Funding Opportunities There are currently no open local solicitations Access the U.S. Dept of Energy's Clean Cities Web site at http://www.eere.energy.gov/cleancities/solicitations.html for the latest information on funding opportunities available to Clean Cities coalitions and stakeholders. To receive electronic updates of the Monthly Summary of Open Solicitations, which is produced by The Center for Economic and Environmental Partnership, Inc., e-mail your request to laurie.brown@ceepinc.org. Last updated October 2007 | | |
Oklahoma Tax Incentives Last updated July 2007; Source: US Department of Energy Biofuels Tax ExemptionBiofuels or biodiesel produced by an individual with feedstocks grown on property owned by the same individual and used in a vehicle owned by the same individual on public roads and highways are exempt from the state motor fuel excise tax. (Reference House Bill 1916, 2007, and Oklahoma Statutes 68-500.4 and 68-500.10) Alternative Fuel Vehicle (AFV) Tax CreditUntil January 1, 2009, Oklahoma provides a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel, or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer AFV. The alternative fuels eligible for the credit include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol, and electricity. Only the alt fuels listed in the statute apply, it does not extend to flexible fueled vehicles (vehicles that can use E85 fuel) or to vehicles converted to use E85. For qualified electric vehicle property propelled by electricity only, the basis for the credit is the full purchase price of the vehicle, but does not apply to vehicles manufactured principally for use off-street. For vehicles also equipped with an internal combustion engine, the basis for the credit is limited to the portion of such motor vehicle which is attributable to the propulsion of the vehicle by electricity. In the case where the exact cost basis of the AFV equipment installed cannot be determined, the credit is the lesser of 10% of the cost of the vehicle of $1,500.00. Any credit allowed but not used will have a three year carryover provision from the date the vehicle became an AFV, even if the AFV is resold. (Reference Oklahoma Statutes 68-2357.22; and OK Income Tax Form 511CR, Credit for Conversion of a Motor Vehicle to Clean Burning Fuels) Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Tax CreditThe state provides a tax credit for up to 50% of the cost of installing refueling infrastructure for AFVs. These tax credits may be carried forward for up to three years. The alternative fuels eligible for the credit include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol, and electricity. E85 is not included in the eligibility. (Reference Oklahoma Statutes 68-2357.22; and OK Income Tax Form 511CR) Biodiesel Production Facility Tax CreditFor tax years beginning after December 31, 2004, and before January 1, 2013, a biodiesel (B100) production facility is allowed a credit of $0.20 per gallon of biodiesel produced. An eligible biodiesel facility must produce at least 25% of its nameplate design capacity for at least six months after the first month for which it is eligible to receive the credit, on or before December 31, 2008. The credit is allowed for 60 months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2012. An eligible facility may also receive a credit of $0.20 per gallon for biodiesel produced in excess of the original nameplate design capacity which results from expansion of the facility completed on or after the effective date of this act and before December 31, 2008. Beginning January 1, 2013, a biodiesel facility may receive a credit of $0.075 per gallon of biodiesel, for new production for a period not to exceed 36 consecutive months. Additional restrictions apply. (Reference House Bill 1513, 2007, and Oklahoma Statutes 68-2357.67) Ethanol Production Tax CreditFor tax years beginning after December 31, 2003, and before January 1, 2013, an ethanol production facility is allowed a tax credit in the amount of $0.20 per gallon of ethanol produced, for 60 months beginning with the first month for which the facility is eligible to receive such credit. The credit may only be claimed if the ethanol facility maintains an average production rate of at least 25% of its nameplate design capacity for at least six months after the first month for which it is eligible to receive the credit, on or before December 31, 2010. Producers are also eligible for an expansion credit of $0.20 per gallon of ethanol produced in excess of the original nameplate capacity that results from expansion of the facility before December 31, 2008. Beginning January 1, 2013, an ethanol facility is eligible for a credit of $0.075 per gallon of ethanol, before denaturing, for new production for a period not to exceed 36 consecutive months. (Reference House Bill 1513, 2007, and Oklahoma Statutes 68-2357.66) Ethanol Fuel Retailer Tax CreditA retailer of ethanol-blended fuel (blended gasoline consisting of not more than 15% ethyl alcohol by volume) may claim a motor fuel tax credit of $0.016 for each gallon of ethanol fuel sold in Oklahoma, if the retailer provides a price reduction to the purchaser of the ethanol fuel in the same amount. This incentive is effective unless the federal government mandates the use of reformulated fuel in an area within the State of Oklahoma that is in non-attainment with the National Ambient Air Quality Standards. (Reference Oklahoma Statutes 68-500.10-1) | | |
Oklahoma Loan Funds Zero-interest Loan Fund for Government Entities: Alternative Fuel Vehicle (AFV) and Refueling Infrastructure LoansThe Oklahoma Department of Central Services has an Alternative Fuels Loan program to help convert government-owned fleets to operate on alternative fuels. This program provides 0% interest loans for converting vehicles to operate on an alternative fuel, for the construction of refueling infrastructure, and for the incremental cost associated with the purchase of an Original Equipment Manufacturer AFV. The program provides up to $10,000 per converted or newly purchased vehicle and up to $150,000 for refueling infrastructure. Repayment is made from fuel savings during a maximum seven-year period. If the price of alternative fuels does not remain below the price of the conventional fuel that was replaced, repayment is suspended. Eligible applicants include state and county agencies and divisions, municipalities, school districts, mass transit authorities, and public trust authorities. (Reference Oklahoma Statutes 74-130.4) Alternative fuels as defined in the Alternative Fuels Conversion Act include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG - propane), ethanol, methanol, M-85 (a mixture of methanol and gasoline containing at least 85 percent methanol), and electricity. In 2005, biodiesel and B20 were added to the definition. (Reference Oklahoma Statutes Section 74-130.2) Contact: Oklahoma Department of Central Services (405) 521-2206. Low-interest Alternative Fuel Vehicle (AFV) Loan Fund for Private FleetsOklahoma has a private loan program with a 3% interest rate for the cost of converting private fleets to operate on alternative fuels. These low-interest loans may be secured for the incremental cost of purchasing an Original Equipment Manufacturer AFV and/or the eligible purchase and installation of converting vehicles to alternative fuels. Eligible fuels include compressed natural gas (CNG), and liquid petroleum gas (LPG - propane). It is possible that other alternative fuels may be considered. It does not include loans for fueling infrastructure. The repayment of the loan is made from fuel savings during a maximum six-year loan period. Click here for the loan application. Point of ContactCarolyn Sullivan
Energy Program Manager
Oklahoma Department of Commerce, State Energy Office
Phone (405) 815-5347
carolyn_sullivan@odoc.state.ok.us | | |
Oklahoma State Laws & Regulations Last updated July 2007; Source: US Department of Energy Biofuels Development and PromotionThe Oklahoma Biofuels Development Act was created to encourage the processing, market development, promotion, distribution, and research of fuels derived from grain, ethanol or ethanol components, biodiesel, bio-based lubricants, co-products, or by-products. The Oklahoma Biofuels Development Advisory Committee will serve until June 1, 2010, to conduct a systematic review and study of the ethanol and biodiesel industry in Oklahoma and other states, study the feasibility of developing and enhancing the ethanol and biodiesel industry in Oklahoma, and otherwise encourage market development, promotion, distribution, and research on products derived from grain, ethanol or ethanol components, bio-based products, co-products, or by-products. (Reference Oklahoma Statutes 2-1950.10 and 2-1950.11) Alternative Fuel Vehicle (AFV) Acquisition RequirementsUnder the Alternative Fuels Conversion Act, all school and government vehicles may be converted to operate on an alternative fuel, and all school districts should consider only purchasing school vehicles which have the capability to operate on an alternative fuel. The Act also requires all school and government vehicles capable of operating on an alternative fuel to use the fuel whenever a refueling station is in operation 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 refueled outside the five-mile radius and no refueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.3) Neighborhood Electric Vehicle (NEV) Access to Roadways NEVs manufactured in compliance with the National Highway Traffic Safety Administration standards for low-speed vehicles in Title 49 of the Code of Federal Regulations, section 571.500, are allowed to operate on Oklahoma streets and highways with a posted speed limit of 35 miles per hour or less. (Reference Oklahoma Statutes 47-11-805.1) The photo at right is a Neighborhood Electric Vehicle owned by The Metropolitan Environmental Trust, a Tulsa Area Clean Cities stakeholder. Alternative Fuel Labeling RequirementIn lieu of the motor fuel excise tax, Oklahoma imposes an annual flat fee on motor vehicles including passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas, compressed natural gas (CNG), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). CNG, LNG, methanol, and M85 vehicles weighing less than one ton gross vehicle weight are taxed at a rate of $100 per vehicle per year, and vehicles weighing more than one ton gross vehicle weight are taxed at a rate of $150 per vehicle per year. Vehicles must display a decal issued on a yearly basis by the Oklahoma Tax Commission. (Reference Oklahoma Statutes 68-723) Alternative Fuel Vehicle (AFV) Technician TrainingThe Alternative Fuels Technician Certification Act regulates the training, testing, and certification of technicians who install, modify, repair, or renovate equipment used in the fueling of AFVs and the conversion of any engine to an alternative fueled engine. This includes Original Equipment Manufacturer engines dedicated to operate on an alternative fuel. Electric vehicles (EVs), electric charging stations, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 74-130.11 through 74-130.24) | | |
Federal Tax Incentives Alternative Motor Vehicle Credit Section 1341 of the Energy Policy Act of 2005 provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle after January 1, 2006. The legislation provides for a tax credit equal to 50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near-zero emissions (SULEV or Bin 2 for vehicles <14,001 lb GVWR). The IRS has issued two notices to establish rules for manufacturers and qualified vehicle buyers to claim the credit. A Current Tax Credit table has information on certified vehicles and available credits. The credit is available on the purchase of light-, medium, and heavy-duty vehicles and fuel-cell, hybrid, and dedicated natural gas, propane, and hydrogen vehicles. Light-duty lean burn diesel vehicles are also eligible. Vehicles are subject to the following incremental cost limitations: $5,000: 8,500 GVWR or lighter $10,000: 8,501 - 14,000 GVWR $25,000: 14,001 - 26,000 GVWR $40,000: 26,001 GVWR and heavier
For non-tax-paying entities, the credit can be passed back to the vehicle seller. The tax credit can be applied to vehicle purchases made after December 31, 2005. The credit expires December 31, 2010. Alternative Fuel Infrastructure Tax Credit Section 1342 of the Energy Policy Act of 2005 provides a tax credit equal to 30% of the of cost alternative refueling property, up to $30,000 for business property. Qualifying alternative fuels are natural gas, propane, hydrogen, E85, or biodiesel mixtures of B20 or more. Buyers of residential in-home refueling equipment can receive a tax credit for $1,000. For non-tax-paying entities, the credit can be passed back to the equipment seller. The credit is effective on equipment put into service after December 31, 2005. It expires December 31, 2009 (hydrogen property credit expires in 2014) This legislation also extends the Tax Deduction Timeline that was established by EPAct 1992, Section 179, and extended by the Working Families Tax Relief Act of 2004. In May 2006, the Internal Revenue Service (IRS) published Form 8911, which provides a mechanism to claim the infrastructure tax credit. Owners who install qualified refueling property on multiple sites can utilize the credit for each property. The instructions define what is considered qualified property and the value of the credit. See IRS Form 8911. Hybrid Motor Vehicle Credit Section 1341 of the Energy Policy Act of 2005 provides a tax credit for light-duty hybrid vehicles (<8,501 lb GVWR) based on their improved fuel economy and their life-time fuel savings potential. The IRS will certify vehicles for the credit and publish qualifying credit amounts as vehicles are certified. The Current Tax Credit table has the most recent information from the IRS. The fuel economy portion of the credit is based on the following efficiency gains over model year 2002 baselines. 125%-149%: $400 150% -174%: $800 175%-199%: $1,200 200%-224%: $1,600 225%-249%: $2,000 250%+: $2,400
The conservation credit increases the fuel economy credit based on the following lifetime fuel savings: 1,200-1,799 gal: $250 1,800-2,399 gal: $500 2,400-2,999 gal: $750 3,000 gal+: $1,000
To qualify for the credits, the vehicles must meet at least Bin 5 standards if they are up to 6,000 lb GVWR, or Bin 8 standards if the vehicles are 6,001 lb-8,500 lb GVWR. Heavy-duty hybrid vehicles are subject to the following incremental cost limitations: This tax credit replaces the tax deduction previously available to purchasers under the Clean Fuel Vehicle Property guidance. This tax credit expires December 31, 2010. The IRS issued guidance to automobile manufacturers in January 2006. Specifically, this notice provides procedures for a vehicle manufacturer to certify to the Internal Revenue Service both that the vehicle meets certain requirements for the credit and information to calculate the amount of the credit allowable with respect to that vehicle. Excise Tax Credit to the Seller of CNG or LNG
PL 109-59 provides for a tax credit of 50-cent per gasoline-gallon-equivalent of CNG or liquid gallon of LNG for the sale of CNG and LNG for use as a motor vehicle fuel. The credit begins on October 1, 2006 and expires on September 30, 2009. Partially offsetting the value of the excise tax credit is an increase in the motor fuels excise tax rate for both CNG and LNG. The CNG rate would increase from 6 cents per gallon equivalent to 18.3 cents. The LNG rate would increase from 18.3 cents to 24.3 cents on a liquid gallon basis. Under this approach, CNG and LNG will pay the same rate of tax into the Highway Trust Fund as all other transportation fuels, but then CNG and LNG would receive an excise tax credit paid out of the general fund. The credit will be paid to eligible recipients on a regular basis. The credit is effective on October 1, 2006 and is scheduled to expire on September 30, 2009. Biodiesel and Ethanol (VEETC) Tax Credit The American Jobs Creation Act of 2004 (Public Law 108-357) created tax incentives for biodiesel fuels and extended the tax credit for fuel ethanol. The biodiesel credit is available to blenders/retailers beginning in January 2005. It also established the Volumetric Ethanol Excise Tax Credit (VEETC), which provides ethanol blenders/retailers with $.51 per pure gallon of ethanol blended or $.0051 per percentage point of ethanol blended (i.e., E10 is eligible for $.051/gal; E85 is eligible for $.4335/gal). The incentive is available until 2010. Section 1344 of the Energy Policy Act of 2005 extended the tax credit for biodiesel producers through 2008. The credits are $.51 per gallon of ethanol at 190 proof or greater, $1.00 per gallon of agri-biodiesel, and $.50 per gallon of waste-grease biodiesel. If the fuel is used in a mixture, the credit amounts to $.0051 per percentage point ethanol or $.01 per percentage point of agri-biodiesel used or $.0050 per percentage point of waste-grease biodiesel (i.e. E100 is eligible for $.51 per gallon) For more information, visit IRS Form 637 and IRS publication 510. | | |
Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Oklahoma. |
Last updated August 2007
Points of Contact NAME | AGENCY | TITLE | PHONE | FAX | EMAIL | Yvonne Anderson | Central Oklahoma Clean Cities Coalition | Clean Cities Coordinator | (405) 234-2264 x275 | (405) 234-2200 | yanderson@acogok.org | Nancy Graham | Tulsa Area Clean Cities Coalition | Clean Cities Program Manager | (918) 584-7526 | (918) 579-9518 | ngraham@incog.org | Neil Kirschner | U.S. Department of Energy, National Energy Technology Laboratory | Project Manager | (412) 386-5793 | | neil.kirschner@netl.doe.gov | Vaughn Clark | Oklahoma Department of Commerce | Director, Office of Community Development | (405) 815-5370 | (405) 815-5344 | vaughn_clark@odoc.state.ok.us | Clayton Robinson | Oklahoma Department of Commerce, State Energy Office | SEP Projects/ Alternative Fuels Loan Program Officer | (405) 815-5249 | | clayton_robinson@odoc.state.ok.us | Richard Bailey | Oklahoma Natural Gas Company | CNG and NGV Service, Maintenance and ManufacturingSupervisor | (918) 640-1591 | (918) 377-2389 | rbailey@ong.com | Gary Marchbanks | Oklahoma Gas and Electric, Electric Services | Manager of Government Accounts | (405) 553-8188 | (405) 553-8264 | marchbgj@oge.com | Gordon Lancaster | U.S. General Services Administration | Transportation Operations Specialist | (303) 236-7599 | (303) 236-7590 | gordon.lancaster@gsa.gov | Sandra Rennie | U.S. Environmental Protection Agency | Mobile Source Team Leader, Region 6 | (214) 665-7367 | (214) 665-7263 | rennie.sandra@epa.gov | Robert O'Loughlin | Federal Highway Administration, Resource Center | Air Quality Specialist | (415) 744-3823 | (415) 744-2620 | robert.o'loughlin@fhwa.dot.gov |
Updated: December 6, 2006 Back to Top
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