Ethanol Laws and Incentives in Oklahoma

The list below contains summaries of all Oklahoma laws and incentives related to ethanol.

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.

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)

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)

State Incentives

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)

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.

select a state Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Federal