The oil and gas industry in Oklahoma has secured $50 million under a newly allocated budget line item, to be managed through a revolving fund at the Oklahoma Tax Commission, allowing companies to claim up to 25% of their costs to retrofit oil and gas equipment.
The Emissions Reduction Technology Rebate Program offers rebates covering up to 25% of documented expenses within Oklahoma, specifically for qualified Oil and Gas (O&G) Industry “Emission Reduction Projects.” The rebate program is administered jointly by the Oklahoma Department of Environmental Quality (DEQ) and the Oklahoma Tax Commission (OTC).
Definition of an Emission Reduction Project:
OAC 252:100-49-3 defers to the statutory definition of “Emission Reduction Project.” in Title 68, Section 55008 to describe the types of oil and gas facilities and activities eligible for the program:
1. Existing and new technology projects that reduce emissions of regulated pollutants from stationary sources; and
2. Existing and new technology projects that reduce emissions from upstream and midstream oil and gas exploration, production, completions, gathering, storage, processing, and transmission activities through the following:
a. the replacement, repair, or retrofit of stationary compressor engines,
b. the installation of systems and/or equipment to reduce or eliminate the loss of gas, venting of gas, flaring of gas, or burning of gas using other combustion control devices, or
c. the installation of emissions monitoring equipment or devices.
Industry in Oklahoma sees the rebate as a response to environmental mandates by the Biden Administration and the state filed a lawsuit against the EPA’s methane regulations in March. Member companies may see an opportunity as operators seek to retrofit their equipment to comply with the new greenhouse gas emissions regulations, particularly those that focused on developing and deploying emissions reductions technologies.
Companies can submit an application by December 31, online: – https://www.deq.ok.gov/wp-content/uploads/air-division/Form_100-240.pdf
Maria Suarez-Simmons, Senior Director Energy Policy, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.
