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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3724 By: Shaw
AS INTRODUCED
An Act relating to public utilities; defining terms;
stating applicability to high-demand facilities with
certain electricity requirements; prohibiting
taxpayer-funded subsidies for high-demand facilities;
detailing prohibited subsidies; prohibiting certain
public infrastructure investments; prohibiting
certain agreements; authorizing certain entities to
prohibit certain facilities; stating authority shall
not be preempted by state law or zoning
classification; requiring facilities fully fund
certain electric infrastructure upgrades; prohibiting
cost be passed to other retail ratepayers; requiring
certain monthly payments; requiring completion of
water impact assessment; requiring certain recycling
and reuse of water; prohibiting a water provider from
acquiring additional water rights for certain uses;
limiting daily water usage; prohibiting construction
by certain entities and on certain lands; prohibiting
attempts to evade provisions; requiring compliance
with ordinances; providing for enforcement; requiring
certain decommissioning plan; providing certain
details of plan contents; authorizing Corporation
Commission to promulgate rules; authorizing citizens
to undertake initiative and referendum petition;
stating requirements for petitions; providing for
counting of signatures; providing procedure for
protests; outlining procedure for ballot title;
providing for appeals to the wording of ballot title;
requiring certain notification for ballot title;
requiring question be presented to voters at next
general election; requiring certain notices be given
before general election; providing final outcome of
vote be binding; providing for codification; and
declaring an emergency.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 180.14 of Title 17, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
1. "Agricultural land" means land classified for ad valorem
taxation as agricultural land;
2. "Contract capacity" means the maximum electric demand
capacity reserved or contracted for by a high-demand facility;
3. "Electric utility" means any investor-owned, cooperative, or
municipally owned electric utility subject to regulation by the
Oklahoma Corporation Commission, Federal Energy Regulatory
Commission, or the Southwest Power Pool;
4. "Foreign principal" means any individual, entity, or
government defined as a foreign principal under 22 U.S.C., Section
611, including any entity owned or controlled directly or indirectly
by such principal; and
5. "High-demand facility" means any commercial, industrial, or
institutional facility that:
a. has a monthly minimum electric demand of seventy-five
megawatts (75 MW) or greater, or
b. is an existing facility proposing an expansion
reasonably expected to increase electric demand to a
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total equal to or greater than seventy-five megawatts
(75 MW).
B. This section shall apply to any high-demand facility
initiating electric or water service on or after the effective date
of this act and to any existing facility that expands or modifies
operations after the effective date of this act in a manner that
increases electric demand to a total equal to or greater than
seventy-five megawatts (75 MW).
C. No high-demand facility shall be eligible for any taxpayer-
funded subsidy, including, but not limited to:
1. State or local tax credits;
2. Rebates, refunds, or abatements;
3. Grants or forgivable loans;
4. Tax increment financing;
5. Sales, use, ad valorem, or income tax exemptions; or
6. Any incentive funded in whole or in part by public funds.
Public infrastructure investments made primarily or exclusively to
serve a high-demand facility shall constitute a prohibited subsidy
unless fully reimbursed by the facility. Any agreement entered into
in violation of this subsection shall be void and unenforceable.
D. A county, municipality, or other political subdivision may,
by ordinance or resolution, prohibit the construction, siting,
expansion, or operation of high-demand facilities within its
jurisdiction. Such authority shall not be preempted by state law
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and shall apply regardless of zoning classification unless otherwise
expressly authorized by the political subdivision.
E. A high-demand facility shall fully fund all electric
infrastructure upgrades required to serve the facility, including
those required now or in the future due to operational needs. No
costs associated with serving a high-demand facility shall be
allocated to or recovered from other retail ratepayers. A high-
demand facility shall pay monthly for:
1. Actual metered energy usage; or
2. Not less than eighty percent (80%) of contract capacity, if
usage is less than contracted capacity.
F. A high-demand facility shall complete a water impact
assessment prior to approval of any water service contract,
including projected use, sources, conservation measures, and
sustainability impacts. Facilities shall utilize water recycling,
reuse, or closed-loop cooling systems to the maximum extent
practicable. Any entity providing water to a high-demand facility
shall not acquire additional water rights for the sole or partial
purpose of serving a high-demand facility. Contracted withdrawal
amounts shall be included in all future water availability
determinations. Requested daily withdrawals shall not exceed:
1. Twenty-five percent (25%) of the provider's current
withdrawal rate; and
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2. Five percent (5%) of the provider's total water rights that
are currently under contract.
G. A high-demand facility shall not be constructed, sited, or
operated by a foreign principal or on land classified as
agricultural land. Any attempt to evade this subsection through the
use of shell entities, lease arrangements, or reclassification after
the effective date of this act shall be prohibited.
H. All high-demand facilities shall be fully compliant with all
applicable local noise ordinances, including operational,
construction, and emergency operations, without exception or
variance unless expressly granted by the local governing authority.
I. All new high-demand facilities shall submit, prior to
construction or operation, a decommissioning plan for approval by
the applicable permitting authority. The decommissioning plan shall
provide for the complete decommissioning, dismantling, and removal
of all buildings, structures, equipment, foundations, and
improvements associated with the facility, as well as restoration of
the site to a condition reasonably comparable to its pre-development
use. The plan shall include a timeline for decommissioning, site
remediation measures, and an estimate of decommissioning costs. The
facility owner or operator shall remain responsible for full
compliance with the decommissioning plan upon cessation of
operations, expiration of permits, or abandonment of the facility.
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J. The Oklahoma Corporation Commission shall enforce the
electric utility and ratepayer protection provisions of this
section. Water use provisions shall be enforced by the local or
state entity with jurisdiction over the water resource to be
utilized. The Oklahoma Corporation Commission is authorized to
promulgate rules to effectuate the provisions of this section.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 180.15 of Title 17, unless there
is created a duplication in numbering, reads as follows:
A. Citizens of a county or municipality that are opposed to the
construction, siting, expansion, or operation of a high-demand
facility, as defined in Section 1 of this act, or are in
disagreement with the outcome of the vote of a board of county
commissioners or city council pursuant to subsection D of Section 1
of this act shall have the powers of initiative and referendum
petition as provided for by the Oklahoma Constitution and as
provided in this section.
B. 1. For purposes of this section, the form of the petition
for either initiative or referendum shall be substantially as
provided in Sections 1 and 2 of Title 34 of the Oklahoma Statutes.
A true copy of each measure proposed by initiative and referendum
shall be filed with the clerk of the city or town or with the
secretary of the county election board before it is circulated and
signed by the registered voters.
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2. Every petition for either the initiative or referendum shall
be signed by a number of the registered voters residing in the city
or town equal to at least twenty-five percent (25%) of the total
number of votes cast at the preceding general municipal election or
for counties, equal to at least ten percent (10%) of the registered
voters residing in the county. The signatures to each petition
shall be verified in the manner provided by law.
3. Signed copies of an initiative petition shall be submitted
to the clerk or secretary within ninety (90) days after the initial
filing of the measure with the clerk or secretary. Signed copies of
a petition invoking a referendum upon any ordinance or resolution
shall be submitted to the clerk or secretary within thirty (30) days
after the passage or adoption of the ordinance or resolution.
C. When signed copies of a petition are timely filed with the
clerk or secretary, the clerk or secretary shall make a physical
count of the number of signatures appearing on the petitions. He or
she shall then publish, in at least one newspaper of general
circulation in the municipality or the county and on any available
social media channels, a notice of the filing and the apparent
sufficiency or insufficiency of the petition. The notice shall also
state that any qualified elector of the municipality or the county
may file a protest to the petition or an objection to the count made
by the clerk or secretary.
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A protest to the petition or the count of signatures shall be
filed in the district court in the county in which the situs of the
city, town, or county is located within ten (10) days after the
publication. Written notice of the protest shall be served upon the
clerk or secretary and the parties who filed the petition. In the
case of the filing of an objection to the count, notice shall also
be served upon any party filing a protest. The district court shall
fix a day, not less than ten (10) days after the filing of a
protest, to hear testimony and arguments for and against the
sufficiency of the petition. A protest filed by anyone, if
abandoned by the party filing it, may be revived within five (5)
days by any other qualified elector. After the hearing, the
district court shall decide whether such petition is in form
required by law.
D. 1. The parties submitting a petition for either initiative
or referendum shall also prepare and file a ballot title for the
measure. The ballot title may be filed with the clerk or secretary
prior to circulating the petition, but it must be submitted no later
than the time that the signed copies of the petition are filed with
the clerk or secretary. The ballot title shall contain the gist of
the proposition couched in language that may be readily understood
by persons not engaged in the practice of law. The ballot title
shall contain language which clearly states that a "yes" vote is a
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vote in favor of the proposition, and a "no" vote is a vote against
the proposition. The ballot title may not:
a. exceed one hundred fifty (150) words,
b. reflect partiality in its composition or contain any
argument for or against the measure, or
c. contain language whereby a "yes" vote is, in fact, a
vote against the proposition and a "no" vote is, in
fact, a vote in favor of the proposition.
2. The clerk or secretary shall immediately forward a copy of
the proposition and ballot title to the municipal attorney or
district attorney. Within three (3) days after the filing of the
ballot title, the attorney shall notify the clerk or secretary in
writing whether or not the proposed ballot title is in legal form
and in harmony with the law. If the ballot title is not in proper
form, in the opinion of the attorney, he shall prepare and file a
ballot title which does conform to the law within the three-day
period.
E. A qualified elector who is dissatisfied with the wording of
a ballot title may appeal, within ten (10) days after the ballot
title is filed with the clerk or secretary, to the district court in
the county in which the situs of the city, town, or county is
located. The petition for appeal shall offer a substitute ballot
title for the one from which the appeal is taken. Written notice of
the appeal shall be served upon the clerk or secretary and upon the
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parties who filed the ballot title at least five (5) days before
such appeal is heard by the court. The municipal attorney or the
district attorney shall, and any interested citizen may, defend the
ballot title from which the appeal is taken. After the hearing of
the appeal, the district court may correct or amend the ballot
title, or accept the substitute suggested, or may draft a new one
which will conform with the law.
F. When a ballot title has been decided upon, either as
approved by the municipal attorney or district attorney or by the
district court, the clerk or secretary shall notify the mayor or the
chairman of the board of county commissioners in writing, and attach
a copy of the petition and ballot title.
G. When an initiative petition demands the enactment of an
ordinance or resolution, the mayor or the chairman of the board of
county commissioners shall present the petition to the governing
body at its next meeting. If the petition is not granted more than
thirty (30) days before the next general municipal or county
election, the mayor or the board of county commissioners shall
submit the ordinance or act so petitioned to the registered voters
of the city, town, or county at the next general municipal or county
election.
H. Whenever a referendum is demanded against any measure passed
by the city, town, or county governing body, the question shall be
submitted to the registered voters of the city, town, or county for
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their approval or rejection at the next general municipal or county
election.
I. In addition to the procedural requirements of this section,
if signatures are successfully gathered and the ballot measure is
approved, notice of said ballot shall be provided by the
municipality or board of county commissioners in local newspapers
and on any available social media channels for two (2) weeks before
the general county election. The company proposing the high-demand
facility shall provide notice by U.S. mail of the ballot measure to
all landowners within the project boundary and all landowners within
a radius of five (5) miles of the perimeter of the project at least
thirty (30) days before the general county election.
J. If the initiative or referendum petition is sufficient and
the measure is submitted to and decided by a vote of the registered
voters of the municipality or county, the final outcome of such
election shall be binding upon the municipality or the board of
county commissioners and upon any company proposing, constructing,
or operating a high-demand facility project that is the subject of
the initiative or referendum. No such company shall proceed with,
resume, or continue development, construction, or operation of the
project in a manner inconsistent with the result approved by the
voters.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-2-14694 JBH 01/13/26