State and Local Policy Database

Oklahoma

State Scorecard Rank

44

Oklahoma

8.0Scored out of 50Updated 9/2016
State Government
Score: 1.5 out of 7
State Government Summary List All

Oklahoma offers incentives for consumer investments in energy efficiency. The state government used to lead by example by requiring energy-efficient public buildings, benchmarking energy use, and encouraging energy savings performance contracting, however, these programs ended in 2016. There are no major research centers focused on energy efficiency.

Financial Incentives List All

Financial incentive information for Oklahoma is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Oklahoma). The state does enable Property Assessed Clean Energy Financing (PACE), but it does not have any active PACE programs. 

Last Updated: July 2016

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Updated: July 2016

Public Building Requirements List All

In 2008, the Governor approved House Bill (HB) 3394, the “Conserving Oklahoma Act.” HB 3394 requires all new state-owned buildings or major renovations of state-owned buildings to meet Leadership in Energy and Environmental Design LEED standards. LEED includes a minimum energy performance level as a component but does not necessarily require buildings to optimize energy performance.

In 2011, the Governor adopted the Oklahoma First Energy Plan, which calls for a range of energy efficiency initiatives, most notably in state government facilities. The Plan calls for the state to establish savings targets between 0.5 to 2% per year. 

In 2016, the state ended its State Facilities Energy Conservation Program, which was established in 2012 through SB 1096 and directed all state agencies and higher education institutions to benchmark energy use in all state facilities using the ENERGYSTAR Portfolio Manager tool; achieve an energy efficiency and conservation improvement target of at least 20 percent by the year 2020 (20% x 2020); and seek to obtain an ENERGY STAR rating for all eligible facilities. 

Last Updated: July 2016

Fleets List All

No policy in place or proposed.

Note: For state efficient fleet initiatives, policies listed must make a specific, mandatory requirement for increasing state fleet efficiency. State alternative-fuel vehicle procurement requirements that give a voluntary option to count efficient vehicles are thus not included.

Last Updated: July 2016

Energy Savings Performance Contracting List All

ESPCs were included in the State Energy Facilities Program, which ended in 2016.

Last Updated: July 2016

Research & Development List All

No public research centers have a focus on energy efficiency.

Last Updated: July 2016

Important Links List All
Buildings
Score: 2 out of 7
Buildings Summary List All

Residential buildings must comply with the 2009 IRC, while commercial buildings must meet 2009 IBC standards. The energy chapter of the commercial code, however, generally follows the 2006 IECC. The state has completed a gap analysis and offers training and outreach.

Residential Codes List All

Oklahoma has in place mandatory statewide building codes for residential buildings. In June 2009, the Oklahoma Legislature passed a bill (SB 1182) creating the Oklahoma Uniform Building Code Commission (OUBCC) that reviews and recommends building codes for residential construction for adoption (BCAP 2012 ). Beginning in October 2010, the Commission held several meetings discussing code change proposals. On March 31, 2011, the Commission formally recommended a residential code based on the 2009 IRC with state-specific weakening amendments amendments. The statute became effective July 15, 2011. The state recently adopted amendments to bring the code up to equivalent to the 2009 IECC, which will go into effect November 1, 2016.

Last Updated: September 2016

Commercial Code List All

Oklahoma has in place mandatory statewide building codes for commercial buildings. In June 2009, the Oklahoma Legislature passed a bill (SB 1182) creating the Oklahoma Uniform Building Code Commission (OUBCC) that reviews and recommends building codes for residential and commercial construction for adoption (BCAP 2012). Beginning in October 2010, the Commission held several meetings discussing code change proposals. In January 2012 the OUBCC submitted recommendations for approval by the Oklahoma legislature to adopt several of the 2009 ICC Code editions, including the 2009 IBC. The recommended code was approved by the Oklahoma Legislature and the Governor and went into effect November 1, 2012. 

Last Updated: September 2016

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: BCAP worked with Oklahoma stakeholders in 2012 to develop its Gap Analysis and Strategic Compliance Plan.
  • Baseline & Updated Compliance Studies: NA
  • Utility Involvement: NA
  • Stakeholder Advisory Group: NA
  • Training/Outreach: Beginning in 2015, OUBCC provides free training to licensed building inspectors. These are one- or two-day training classes that utilize nationally recognized code certified trainers to teach the classes.

Last Updated: July 2015

CHP
Score: 0 out of 4
CHP Summary List All

The state has limited policies to encourage the deployment of CHP systems. No new CHP systems were installed in Oklahoma in 2015.

Interconnection StandardsList All

There is currently no interconnection standard in place that applies to CHP.

For more information on interconnection standards, click here.

Last Updated: June 2016

Encouraging CHP as a ResourceList All

There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP.

Last Updated: June 2016

Deployment IncentivesList All

Net Metering: Oklahoma has been offering net metering to CHP systems since 1988 under OCC Order 326195. Utilities are not required to purchase net excess generation (NEG) from customers, but customers may request the utility to purchase their NEG. If the utility agrees, the NEG will be purchased at the utility's avoided-cost rate.

Last Updated: June 2016

Additional Supportive PoliciesList All

There are currently no additional supportive policies to encourage CHP.

Last Updated: June 2016

Utilities
Score: 3.5 out of 20
Utilities Summary List All

Oklahoma utilities offer a growing portfolio of energy efficiency programs, however their levels of investment and performance remain below the national average. The Oklahoma Corporation Commission (OCC) established rules for electric and natural gas efficiency programs following a series of stakeholder collaborative meetings in 2008, and utilities subsequently filed three-year program plans.  In 2012, AEP Public Service Oklahoma (PSO) received approval for another three-year (2013-2015) electric energy efficiency program cycle, and Oklahoma Gas & Electric (OGE) similarly received approval for their programs in early 2013.  Both utilities will be working with significantly larger budgets for the next few years, and savings as a percentage of sales are expected to double. The state’s major gas utilities, Oklahoma Natural Gas and CenterPoint, have also started administer energy efficiency programs since the rulemaking. The state’s IOUs may recover lost revenues and earn an incentive for implementing successful energy efficiency programs. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Customer Energy Efficiency Programs List All

All of Oklahoma's electric investor-owned utilities, Oklahoma Gas and Electric, Public Service Company of Oklahoma (PSO) and Empire District Company have implemented customer energy efficiency programs.  Under OAC 165:35-41-4, all electric utilities under rate regulation of the Oklahoma Corporation Commission (OCC) must propose, at least once every three years, and be responsible for the administration and implementation of a demand portfolio of energy efficiency and demand response programs within their service territories.

In Oklahoma, municipal and some cooperative electric providers do not fall under the regulatory authority of the Corporation Commission. Oklahoma Municipal Power Authority and Western Farmers Electric Cooperative also offer some customer energy efficiency programs. In 2009, the state legislature authorized municipal utilities and the Grand River Dam Authority to spend money encouraging energy conservation activities (S 293, enacted as Chapter 205).

Utility energy efficiency programs have been in place since 2008, when the Oklahoma Corporation Commission (OCC) initiated a "Demand Programs Collaboration" to examine issues associated with the funding and provision of customer energy efficiency programs by the state's energy utilities.  The collaborative meetings resulted in a permanent rulemaking for electric demand-side programs (Cause #200700007).  Both major electric investor-owned utilities, AEP Public Service Oklahoma (PSO) and Oklahoma Gas & Electric (OGE), implement programs targeting residential, low-income, and commercial customers, while large industrial customers have mostly opted-out of the programs.

Natural gas utilities also administer a growing portfolio of efficiency programs under the OAC § 165:45-23-1 et seq. Most recently, the Commission approved energy efficiency programs for CenterPoint Oklahoma for the 2014-2016 program cycle in Cause No. 201300033.

Oklahoma Natural Gas (Oklahoma Natural) energy efficiency programs for 2014 - 2016 were also approved, along with an increase in the program administration budget (see Cause No. 201300007).

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2016

Energy Efficiency as a Resource List All

There is currently no policy in place that treats energy efficiency as a resource.

Last Updated: July 2016

Energy Efficiency Resource Standards List All

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2016

Utility Business Model List All

Both Public Service Oklahoma (PSO) and Oklahoma Gas and Electric Company (OG&E) currently have lost revenue recovery mechanisms. Additional revenue recovery mechanisms will be determined on a case-by-case basis. (Cause No. PUD 200700449, ID No. 3710105. April 8, 2008)

The Commission declined to adopt decoupling (termed a formula-based rate) proposed by Public Service Co.  The Commission found, however, that the mechanism has merit and said it will re-examine the issue in the future if other parties wish to file proposals (See Cause 200600285, Order 545168, October 2007).

Both Public Service Oklahoma (PSO) and Oklahoma Gas and Electric Company (OG&E) currently have shared benefit incentive plans. The shared savings program for Public Service Oklahoma allows for a shared savings mechanism with two components: the shared benefit component for those programs whose Utility Cost Test (UCT) net benefit is above 1.0, and the program incentive component for those programs whose net benefits are difficult to quantify. For the shared benefit component, PSO is allowed to collect 15% of the UCT net benefit attributed to the demand portfolio. For the program incentive, PSO is allowed to collect 15% of the program costs. (Cause No. PUD 201200128; Order 604214). OG&E is also allowed to earn an incentive on the amount of energy efficient reductions achieved. This incentive is calculated using the Total Resource Cost Test (TRC) for each program (See Cause No. PUD 201200134; Order 605737).

Oklahoma Natural Gas and CenterPoint Oklahoma are allowed a shared benefit incentive plan for programs that pass the Total Resource Cost ("TRC") Test. The companies are allowed to collect 15% of the net benefits of such programs and 15% of the program costs for those programs that do not pass the TRC Test (See Cause No. PUD 201000143; Order 585366 and Cause No. PUD 201000148; Order 683869). The gas companies also use performance-based rates and true up annually. 

Last Updated: July 2016

Evaluation, Measurement, & Verification List All
  • Cost-effectiveness test(s) used: TRC, UCT, PCT, SCT, RIM
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in Oklahoma relies on regulatory orders and Commission rules, (Title 165 CC Chapter 35 Electric Utility Rules Subchapter 41. Demand Programs 165:35-41-7). The administering utilities are primarily responsible for timely evaluation, measurement, and verification of their energy efficiency programs. Oklahoma uses all of the five classic benefit-cost tests identified in the California Standard Practice Manual to evaluate energy efficiency programming. These are the Total Resource Cost (TRC), Utility/ProgramAdministrator (UCT), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). Oklahoma specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for overall portfolio, total program, customer project, and individual measure level screening, with exceptions made for low-income programs, pilots, and new technologies. The rules for benefit-cost tests are stated in Title 165 CC Chapter 35 Electric Utility Rules.

Last Updated: July 2016

Self Direct and Opt-Out Programs List All

All transportation-only gas customers are eligible to opt-out. For electric utilities, any customer with consumption greater than 15 million kWhs annually may opt out. Combined meters may meet the threshold. Approximately 90% of eligible customers opt-out, representing about 30% of total load.

Last Updated: July 2016

Data AccessList All

Guidelines for Third Party Access

The Electric Usage Data Protection Act authorizes all utilities to provide third parties under contract with customer energy use data. The party shall agree in writing that it will maintain the security and confidentiality of all customer information. 

Requirements for Provision of Energy Data

Oklahoma does not have any policies in place that require the provision of energy data. 

Energy Use Data Availability

Under the electric usage data protection act, utilities may provide customers with aggregated energy usage data at their request for purposes such as promoting energy assistance, conservation, environmental advocacy, research, or measuring performance. 

Last Updated: July 2016

Transportation
Score: 1 out of 10
Transportation Summary List All

The state allowed its high-efficiency vehicle incentives expire in 2014 and has not pursued any additional policies to encourage efficient transportation systems.

Tailpipe Emission Standards List All

No policy in place or proposed.

Last Updated: July 2015

Transportation System Efficiency List All

Transportation and Land Use Integration: No policy in place or proposed.

VMT Targets: No policy in place or proposed.

Complete Streets: No policy in place or proposed.

MAP 21 Freight Plans and Goals: Oklahoma has a state freight plan in place but it does not highlight concrete freight system efficiency strategies or include efficiency performance measures. 

Last Updated: June 2016

Transit Funding List All

No policy in place or proposed

Last Updated: July 2015

Incentives for High-Efficiency Vehicles List All

No policy in place or proposed

Last Updated: July 2015

Appliance Standards
Score: 0 out of 2
Appliance Standards Summary List All

Oklahoma has not set appliance standards beyond those required by the federal government.

Last Updated: July 2016