Oklahoma Laws and Incentives

Listed below are the summaries of all current Oklahoma laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (10)
• Utility / Private Incentives (19)
• Laws and Regulations (21)

State Incentives

Oklahoma’s National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Oklahoma Department of Transportation (ODOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Oklahoma’s NEVI planning process, see the ODOT NEVI website. To review Oklahoma’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Electric Vehicle (EV) Charger Grant Program

The Oklahoma Department of Environmental Quality’s (DEQ) ChargeOK program offers grants for public EV chargers. Eligible projects include direct current fast charging (DCFC) stations located along designated EV transportation corridors and DCFC or Level 2 EV chargers located at destination locations or community charging hubs. DEQ will award competitive grants for up to 80% of eligible project costs. The program is funded by Oklahoma’s portion of the Volkswagen Environmental Mitigation Trust. For more information, see the DEQ ChargeOK website.

Alternative Fuel School Bus and Electric Vehicle (EV) Charger Rebate Program

The Oklahoma Department of Environmental Quality (DEQ) offers rebates for projects that repower or replace an actively used, engine model year 2009 or older, diesel school bus with a model that operates on alternative fuel. Eligible alternative fuels and technologies include all-electric, propane, and natural gas. Applicants may receive rebates of up to 45% of project costs. Charging infrastructure for electric buses is eligible for funding, but is subject to a per-charger maximum and project cap. The program is funded by Oklahoma’s portion of the Volkswagen Environmental Mitigation Trust. Applications must be submitted through Oklahoma’s Clean Diesel Program. For more information, see the DEQ Alternative Fuel School Bus Program website.

Alternative Fuel Vehicle and Idle Reduction Weight Exemption

A vehicle powered in whole or part by natural gas, electricity, or hydrogen may exceed the state’s gross and axle weight limits by up to 2,000 pounds (lbs.), equal to the difference between the weight of the vehicle with the natural gas tank, battery, or hydrogen fueling system and the weight of a comparable diesel tank and fueling system. The exemption is allowed on all state roads and interstate highways, as defined in Title 23 of the U.S. Code section 127(s).

Any vehicle equipped with idle reduction technology may exceed the state’s gross vehicle weight limits by up to 400 lbs. 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. Upon request, vehicle operators must provide proof or certification of the weight of the idle reduction technology and proof that the idle reduction technology is fully functional.

(Reference Oklahoma Statutes 47-14-109, 47-14-109.3, and 47-14-109.4)

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before December 31, 2028, a one-time income tax credit is available for up to $50,000 towards the cost of purchasing a new original equipment manufactured AFV or converting a vehicle to operate on an alternative fuel. Tax credit amounts vary depending in the gross vehicle weight rating (GVWR) of the vehicle:

GVWR	Maximum Amount
6,000 pounds (lbs.) or below	$5,500
6,001 lbs. to 10,000 lbs.	$9,000
10,001 lbs. to 26,500 lbs.	$26,000
Greater than 26,501 lbs.	$100,000

The state also provides a tax credit of 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, not previously used to modify or retrofit any vehicle, meet applicable federal and state safety standards, and must be installed by a state certified alternative fuels equipment technician. Eligible alternative fuels include natural gas, propane, and hydrogen. Tax credits may be carried forward for up to five years.

(Reference Oklahoma Statutes 68-2357.22)

Alternative Fueling Infrastructure Tax Credit

For tax years beginning before December 31, 2028, a tax credit is available for up to 45% of the cost of installing commercial alternative fueling infrastructure. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. The infrastructure must be new and not 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 propane, compressed natural gas, or liquefied natural gas fueling system for noncommercial purposes, up to $2,500. The tax credit may be carried forward for up to five years.

(Reference Oklahoma Statutes 68-2357.22)

Electric Vehicle (EV) Charger Tax Exemption

Public EV chargers with a charging capacity of less than 50 kilowatts are exempt from the $0.03 per kilowatt-hour tax on electricity used to recharge EVs.

(Reference Oklahoma Statutes 68-6504)

Ethanol Fuel Retailer Tax Credit

Retailers that sell fuel blends of gasoline containing up to 15% ethanol by volume (E15) are eligible for a motor fuel tax credit of $0.016 per gallon of ethanol blended into gasoline and sold in Oklahoma, as long as 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 Oklahoma that is in nonattainment with the National Ambient Air Quality Standards.

Ethanol Sales Tax Exemption

The portion of ethanol sold and blended with motor fuel is exempt from sales tax.

Biofuels Tax Exemption

Biodiesel or other biofuels produced by an individual from feedstocks grown on the individual's property and used in the individual's own vehicle are exempt from the state motor fuel excise tax. (Reference Oklahoma Statutes 68-500.4 and 68-500.10)

Utility / Private Incentives

Association of Central Oklahoma Governments - Oklahoma

Association of Central Oklahoma Governments is utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by this organization related to alternative fuels and vehicles. For more information on these incentives, see the Association of Central Oklahoma Governments website.

Residential Incentives

Non-Residential Incentives

CKenergy Electric Cooperative - Oklahoma

CKenergy Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the CKenergy Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Canadian Valley Electric Cooperative - Oklahoma

Canadian Valley Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Canadian Valley Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Central Rural Electric Cooperative - Oklahoma

Central Rural Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Central Rural Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Cimarron Electric Cooperative - Oklahoma

Cimarron Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Cimarron Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

City of Cushing - Oklahoma

City of Cushing is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Cushing website.

Residential Incentives

Non-Residential Incentives

City of Edmond - Oklahoma

City of Edmond is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Edmond website.

Residential Incentives

Non-Residential Incentives

City of Lexington - Oklahoma

City of Lexington is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Lexington website.

Residential Incentives

Non-Residential Incentives

City of Prague - Oklahoma

City of Prague is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Prague website.

Residential Incentives

Non-Residential Incentives

City of Purcell - Oklahoma

City of Purcell is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Purcell website.

Residential Incentives

Non-Residential Incentives

City of Stroud - Oklahoma

City of Stroud is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Stroud website.

Residential Incentives

Non-Residential Incentives

Cotton Electric Cooperative - Oklahoma

Cotton Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Cotton Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Oklahoma Electric Cooperative (OEC) - Oklahoma

Oklahoma Electric Cooperative (OEC) is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Oklahoma Electric Cooperative (OEC) website.

Residential Incentives

Non-Residential Incentives

Oklahoma Gas & Electric Company - Oklahoma

Oklahoma Gas & Electric Company is an investor-owned utility (IOU) that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Oklahoma Gas & Electric Company website.

Residential Incentives

Non-Residential Incentives

Oklahoma Natural Gas - Oklahoma

Oklahoma Natural Gas is an investor-owned utility (IOU) that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Oklahoma Natural Gas website.

Residential Incentives

Non-Residential Incentives

People's Electric Cooperative - Oklahoma

People's Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the People's Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Public Service Company of Oklahoma (PSO) - Oklahoma

Public Service Company of Oklahoma (PSO) is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

Rural Electric Cooperative - Oklahoma

Rural Electric Cooperative is a cooperative that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Rural Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Town of Orlando - Oklahoma

Town of Orlando is a municipal utility that operates in Oklahoma. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Town of Orlando website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Fee

EV owners must pay an annual vehicle registration fee in addition to standard vehicle registration fees. Fee amounts vary depending on the gross vehicle weight rating (GVWR) of the vehicle:

GVWR	Annual EV Registration Fee	Annual PHEV Registration Fee
6,000 pounds (lbs.) or below	$110	$82
6,001 lbs. to 10,000 lbs.	$158	$118
10,001 lbs. to 26,500 lbs.	$363	$272
Greater than 26,501 lbs.	$2,250	$1,687

A percentage of the revenue from the annual fee will be apportioned to the Driving on Road Infrastructure with Vehicles of Electricity (DRIVE) Revolving Fund.

(Reference Oklahoma Statutes 68-6511)

Electric Vehicle (EV) Charger Tax

Public EV chargers are subject to a tax of $0.03 per kilowatt-hour. The tax does not apply to EV chargers at private residences. Tax revenue will be apportioned to the Driving on Road Infrastructure with Vehicles of Electricity (DRIVE) Revolving Fund.

(Reference Oklahoma Statutes 68-6501 through 68-6510)

Regional Electric Vehicle (EV) and Autonomous Vehicle (AV) Support

Oklahoma joined Arkansas (Signatory States) in signing a memorandum of understanding (MOU) to support advanced mobility solutions, including EVs, AVs, and battery manufacturing. Signatory States are committed to:

• Establishing a launch pad for research and commercialization of EVs, AVs, and battery manufacturing;
• Collaborating with industry leaders and fueling stations;
• Supporting workforce development opportunities; and,
• Coordinating EV, AV, and battery manufacturing economic development efforts across the region.

For more information, see the Oklahoma Governor’s Office press release.

Oklahoma Commercial Property Assessed Clean Energy (C-PACE) Program Authorization

Counties are authorized to establish C-PACE programs to facilitate loans between qualifying property owners and private lenders. Loans may be offered to commercial properties for projects related to alternative fuel vehicles and associated infrastructure. For more information, including eligibility requirements, see the Oklahoma C-PACE website.

(Reference Oklahoma Statutes 19-460.5)

Autonomous Vehicle (AV) Regulation Authorization

Only the State of Oklahoma may enact a law or take any other action to regulate the operation of AVs in Oklahoma. An AV is defined as a vehicle equipped with automated driving system technology that allows vehicle automation to perform the entire driving task on a sustained basis as specified in SAE international J3016. A county or municipality may not prohibit, restrict, or regulate the operation of AVs.

(Reference Oklahoma Statutes 47-1701 and 47-1702)

Autonomous Vehicles (AVs) Council

The governor established the Aerospace and Autonomous Systems Council (Council) to review the development of AVs and related technologies, including research and development, education, economic development, job creation, and capital investment. The Council will provide recommendations to the Governor and submit and periodically review strategic plans.

(Reference Executive Order 2019-39)

Compressed Natural Gas (CNG) Vehicle Loan Program Development

The Oklahoma Cooperative Circuit Engineering Districts Board must develop and adopt rules and processes for a no-interest loan program to allow qualified county governments to purchase or convert CNG vehicles. Counties that borrow funds must sell to a nongovernmental entity or properly dispose of a comparable number of conventional vehicles. Loan terms will be up to five years.

(Reference Oklahoma Statutes 69-687.3C)

Natural Gas Measurement

The Oklahoma Department of Labor (DOL) must standardize compressed natural gas (CNG) and liquefied natural gas (LNG) measurements for retail motor vehicle fuel, unless the National Conference on Weights and Measures has established equivalent measures. Until the DOL standardizes measurements, a gasoline gallon equivalent is equal to 5.66 pounds (lbs.) of CNG and a diesel gallon equivalent is equal to 6.06 lbs. of LNG.

(Reference Oklahoma Statutes 83-119)

Compressed Natural Gas (CNG) Fueling Infrastructure Inspection

The Oklahoma Department of Labor may access and inspect any equipment, practices, or methods used in association with public CNG fueling infrastructure.

(Reference Oklahoma Statutes 40-142.2)

Hydrogen Infrastructure Support

The Hydrogen Production, Transportation, and Infrastructure Task Force (Task Force) must evaluate incentives to develop hydrogen technology and infrastructure and the viability of existing hydrogen resources and infrastructure. In December 2021, the Task Force submitted a report of its findings and recommendations to the legislature. For more information, see the Task Force website.

(Reference Senate Bill 1021, 2021)

Access to State Alternative Fueling Stations

The Oklahoma Office of Management and Enterprise Services (OMES) Fleet Management Division may construct, install, acquire, operate, and provide alternative fueling infrastructure where public access to alternative fuel infrastructure is not readily available. OMES 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, propane, ethanol, methanol, biodiesel, electricity, and hydrogen.

(Reference Oklahoma Statutes 74-78 and 74-130.2)

Low- and Medium-Speed Vehicle Access to Roadways

A low-speed electric vehicle (EV) is any four-wheeled EV powered by an electric motor that draws current from rechargeable storage batteries or other sources of electric current and whose top speed is greater than 20 miles per hour (mph) but not greater than 25 mph. Low-speed EVs may not operate on streets or highways with posted speed limits greater than 35 mph, but may cross a street or highway with a posted speed limit greater than 35 mph.

A medium-speed EV is defined as any self-propelled, electrically powered four-wheeled motor vehicle, whose top speed is greater than 30 miles per hour (mph) but not greater than 35 mph. Medium-speed EVs must be registered according to the Oklahoma Vehicle License and Registration Act. Medium-speed EVs may operate on roadways with a posted speed limit of up to 45 mph but are not permitted to travel on any highway in the state that is a part of the National System of Interstate and Defense Highways. Low- and medium-speed EVs must meet the safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500.

(Reference Oklahoma Statutes 47-11-805.1, 47-1102.2, and 47-1151.4)

Public Utility Definition

An entity that is not a regulated utility that provides retail electric vehicle (EV) charging services is not defined as a public utility and may sell electricity if it is used for the purpose of fueling an EV.

(Reference Oklahoma Statute 17-160.33, Oklahoma Corporation Commission 165:35-13-1, and Senate Bill 502, 2023)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

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. Alternative fuels include natural gas, propane, ethanol, methanol, electricity, biodiesel, hydrogen, and more. 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 school district or government department and the price of the alternative fuel is cost competitive with the displaced conventional fuel. 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 74-130.2 and 74-130.3)

Alternative Fuel Vehicle (AFV) Tax and Fee

Compressed natural gas (CNG) used in motor vehicles is subject to a state motor fuel tax of $0.05 per gasoline gallon equivalent (GGE). Liquefied natural gas (LNG) is also subject to a state motor fuel tax rate of $0.05 per diesel gallon equivalent (DGE).

In lieu of the motor fuel tax, some alternative fuel vehicle (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 propane, natural gas, methanol, or blends of 85% methanol and 15% gasoline (M85). Propane and natural gas vehicles with a payload capacity of less than 2,000 pounds (lbs.) are taxed at a rate of $50 per vehicle per year. 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, 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 listed amount. AFVs must display a decal that the Oklahoma Tax Commission issues on an annual basis.

(Reference Oklahoma Statutes 68-500.4 and 68-723)

Alternative Fuel Technician Training

The Alternative Fuels Technician Certification Act (Act) regulates the training, testing, and certification of technicians and trainees who install, modify, repair, or renovate equipment used in alternative fueling infrastructure and in the conversion of any engine to operating on an alternative fuel. Alternative fuels include propane, natural gas, methanol, ethanol, electricity, hydrogen, biodiesel, and more. This includes original equipment manufacturer engines dedicated to operating 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 40-142.1 through 40-142.16)

Committee of Alternative Fuels Technician Examiners

The Committee of Alternative Fuels Technician Examiners (Committee) was established to assist the Commissioner of Labor on matters relating to the formulation of rules and standards to comply with the Alternative Fuels Technician Certification Act. The Committee includes experts in the natural gas, propane, and electric vehicle industries.

(Reference Oklahoma Statutes 40-142.6)

Alternative Fuels Technician Certificates

The Department of Labor (DOL) will issue a certificate to any person who has successfully passed the appropriate alternative fuels equipment, alternative fuels compression, or electric vehicle technician examination as provided in the Alternative Fuels Technician Certification Act. A certification fee applies. For companies, partnerships, or corporations involved in the business of installing, servicing, repairing, modifying, or renovating equipment used in converting or modifying engines or fueling equipment to be used with alternative fuels, DOL will issue a separate certificate. Alternative fuels include propane, natural gas, methanol, ethanol, electricity, hydrogen, biodiesel, and more.

DOL can issue an alternative fuels trainee certificate to any person who submits a trainee application within 15 business days of being hired by a licensed alternative fuels conversion or fueling station installation company.

Municipal Electric Vehicle (EV) Charger and Hydrogen Fueling Fee Requirements

A municipality that owns or operates EV chargers or hydrogen fueling stations may not use revenue from the sale of electricity to construct or maintain such EV chargers or hydrogen fueling stations. This requirement only applies to electricity from municipally owned electric distribution systems. Additional conditions apply.

(Reference Oklahoma Statutes 17-160.35)

Public Utility Electric Vehicle (EV) Charger and Hydrogen Fueling Station Requirements

Retail electric suppliers may only offer direct current (DC) fast charger or hydrogen fueling station services through a separate, unregulated entity and must offer the same fees, terms, charges, and conditions that private retail EV charger providers offer. Retail electric suppliers may not subsidize EV chargers or hydrogen fueling stations with fees or services charges collected through regulated service offerings. The Oklahoma Corporate Commission may enforce penalties on any retail electric suppliers that violate these requirements. Additional conditions apply.

(Reference Oklahoma Statutes 17-160.31 through 17-160.37)

Ethanol and Methanol Labeling Requirement

Ethanol fuel retailers must clearly label motor fuel pumps dispensing 15% ethanol (E15) fuel blends. The labeling must follow established, federal labeling specifications for E15, including prominent display of fuel type, blend, and vehicle applicability. All motor fuel pumps dispensing ethanol or methanol must state “Contains Ethanol” or “Contains Methanol.” Additional requirements apply.

(Reference Oklahoma Statute 17-347, Code of Federal Regulations 1090.1510, and Oklahoma Senate Bill 255, 2023)