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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 119 By: Green
AS INTRODUCED
An Act relating to economic development; creating
investment rebate program until certain date;
providing qualifying criteria; requiring submission
of application; requiring the Oklahoma Department of
Commerce to approve or disapprove certain claims and
issue payment; limiting source of payments; making
payments contingent upon deposits to certain fund;
providing amount of rebate; authorizing conditional
pre-qualification; creating the Commerce Energy
Manufacturing Activity Development Fund; establishing
fund procedures; providing sources of funds;
providing for expenditures from fund; directing
transfer of unencumbered fund upon certain date;
making appropriation; directing deposit in certain
fund; providing for codification; providing an
effective date; and declaring an emergency.
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 3648.1 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created until July 1, 2031, an investment
rebate program for the cost of qualified capital expenditures, as
defined by Section 3645.3 of Title 68 of the Oklahoma Statutes, by
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establishments defined by Section 3645.3 of Title 68 of the Oklahoma
Statutes, that:
1. Refine, manufacture, or process compounds or elements into
hydrogen-based products, including the production of blue hydrogen
through the process of autothermal reforming (ATR) and green
hydrogen through the process of electrolysis, and the refining of
domestically produced crude oil into cleaner transportation fuels in
industries defined or classified in the North American Industry
Classification System (NAICS) Manual under Subsector 324 or 325;
2. Generate and store emission free power and energy in
industries defined or classified in the NAICS Manual under Subsector
221, and water production from waste heat and ambient air; and
3. Have acquired at least a six hundred (600) acre parcel of
real property located within this state, where the qualified capital
will be located.
B. To be eligible for consideration for an investment rebate
payment awarded under the provisions of this act, the establishment
shall:
1. Submit an application and documentation to the Oklahoma
Department of Commerce, as required by the Department, outlining a
capital expenditure plan in this state associated with qualified
capital expenditures totaling no less than Seven Hundred Fifty
Million Dollars ($750,000,000.00);
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2. Have made qualified capital expenditures no less than twenty
percent (20%) of the capital expenditure plan outlined in the
application submitted by the primary establishment and approved by
the Oklahoma Department of Commerce, pursuant to the provisions of
this act; and
3. Have filed all Oklahoma tax returns and tax documents
required by law.
C. Notwithstanding any other provision of law, no investment
expenditure shall be utilized for calculation purposes that results
in the qualification of more than one establishment under the
provisions of this act, for investment rebate payments based on the
same expenditure.
D. 1. The Oklahoma Department of Commerce shall approve or
disapprove claims for rebates and shall issue payment for all
approved claims from funds held in the Commerce Energy Manufacturing
Activity Development Fund created in Section 2 of this act.
2. The Department shall disapprove all applications and claims
or any portion of applications and claims for rebates that would
exceed the balance of available funds in the Commerce Energy
Manufacturing Activity Development Fund.
3. The total amount of applications approved and investment
rebate payments awarded under the provisions of this act shall not
exceed the total amount of monies designated by law for deposit to
the Commerce Energy Manufacturing Activity Development Fund.
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E. 1. Subject to the approval and ongoing review of the
eligibility application by the Oklahoma Department of Commerce, the
investment rebate payment authorized by this act shall be equal to
six and sixty-seven one-hundredths percent (6.67%) of the cost of
the qualified capital expenditure in the year of expenditure.
2. The Department is authorized to conditionally pre-qualify
and account for anticipated future investment rebate payments. The
Oklahoma Department of Commerce shall not pre-qualify investment
rebate payments, encumber funds, pre-encumber funds, or otherwise
allocate resources that would result in the allocation of investment
rebate payments in excess of the balance of available funds in the
Commerce Energy Manufacturing Activity Development Fund.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3648.2 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a fund for the
Oklahoma Department of Commerce to be designated the “Commerce
Energy Manufacturing Activity Development Fund”. The fund shall be
a continuing fund, not subject to fiscal year limitations, and shall
consist of all monies designated for deposit to the fund by law.
All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Department for
the purpose of paying rebates as provided in this act. Expenditures
from the fund shall be made upon warrants issued by the State
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Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. All unencumbered funds remaining in the Commerce Energy
Manufacturing Activity Development Fund upon July 1, 2031, shall be
transferred to the State Treasurer for deposit in the General
Revenue Fund.
SECTION 3. There is hereby appropriated to the Oklahoma
Department of Commerce for deposit in the Commerce Energy
Manufacturing Activity Development Fund, from any monies not
otherwise appropriated from the General Revenue Fund of the State
Treasury for the fiscal year ending June 30, 2023, the sum of Fifty
Million Dollars ($50,000,000.00).
SECTION 4. This act shall become effective July 1, 2025.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-682 QD 12/26/2024 6:17:07 PM