Electricity Laws and Incentives in Oklahoma
The list below contains summaries of all Oklahoma laws and incentives related to electricity.
Laws and Regulations
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)
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)
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 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.(Reference Oklahoma Statutes 40-142.3 and 40-142.8)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)
Electric Vehicle (EV) Charging Station Tax
Beginning January 1, 2024, public EV charging stations are subject to a tax of $0.03 per kilowatt-hour. The tax does not apply to EV charging stations at private residences. Tax revenue will be apportioned to the Driving on Road Infrastructure with Vehicles of Electricity (DRIVE) Revolving Fund. Oklahoma residents may apply EV charging station tax payments as income tax credits and may be carried forward for up to five years.
(Reference Oklahoma Statutes 68-6501 through 68-6510)
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)
Municipal Electric Vehicle (EV) Charging Station Fee Requirements
Beginning November 1, 2023, a municipality that owns or operates EV charging stations may not use revenue from the sale of electricity to construct or maintain such EV charging stations. This requirement only applies to electricity from municipally owned electric distribution systems. Additional conditions apply.
(Reference Senate Bill 502, 2023 and Oklahoma Statutes 17-160.35)
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)
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 Corporation Commission 165:35-13-1 and Senate Bill 502, 2023)
Public Utility Electric Vehicle (EV) Charging Station Requirements
Beginning January 1, 2024, retail electric suppliers may only offer direct current fast charging station services through a separate, unregulated entity and must offer the same fees, terms, charges, and conditions that private retail EV charging station providers offer. Beginning January 1, 2024, retail electric suppliers may not subsidize EV charging 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 Senate Bill 502, 2023 and Oklahoma Statutes 17-160.31 through 17-160.37)
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.
State Incentives
Alternative Fuel School Bus and Electric Vehicle (EV) Charging Station 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 Code of Federal Regulations 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 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) Charging Station Grant Program
The Oklahoma Department of Environmental Quality’s (DEQ) ChargeOK program offers grants for public EV charging stations. Eligible projects include direct current fast charging (DCFC) stations located along designated EV transportation corridors and DCFC or Level 2 EV charging stations 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.
Electric Vehicle (EV) Charging Station Tax Exemption
Public EV charging stations 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)
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.
Utility / Private Incentives
Alternative Fuel Vehicle (AFV) and Infrastructure Grants for Public Fleets
Under the Creating Long-term Energy Alternatives Now by Advancing Improvements Regionally (CLEAN AIR) Grants program, the Association of Central Oklahoma Governments (ACOG) issues grants for alternative fuel and advanced technology vehicle projects in the Oklahoma City Area Regional Transportation Study (OCARTS) area. Projects must provide a reduction in vehicle equipment emissions and cannot increase the number of vehicles in applicant fleets. Eligible projects may also include AFV fueling stations or charging infrastructure. Eligible applicants include OCARTS-member governments, certain public trusts and public authorities providing essential services to OCARTS-member governments, member entity public transit fleets, and public-school fleets whose district boundaries are contained partially or wholly within the OCARTS area. For more information, including open solicitations, see the ACOG CLEAN AIR Grants for Public Fleets website.
Electric Vehicle (EV) Infrastructure Support
Oklahoma utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
Electric Vehicle (EV) Rebate – Oklahoma Electric Cooperative (OEC)
OEC offers a rebate of up to $300 for customers who own an EV. Eligible customers must own a Level 2 EV charging station and schedule vehicle charging during off-peak hours. For more information, see the OEC Energy Efficiency Rebates website.
More Laws and Incentives
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