State and Local Policy Database

Oklahoma

State Scorecard Rank

40

Oklahoma

10.0Scored out of 50Updated 9/2016
State Government
Score: 3 out of 6
State Government Summary List All

Oklahoma offers incentives for consumer investments in energy efficiency. The state government leads by example by requiring energy-efficient public buildings, benchmarking energy use, and encouraging energy savings performance contracting. 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 2017

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Updated: July 2017

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 2012 the state established the State Facilities Energy Conservation Program through SB 1096, directing 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. The 20 x 2020 program is managed by the Office of Management and Enterprise Services.

Last Updated: July 2017

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 2017

Energy Savings Performance Contracting List All

ESPCs in Oklahoma are managed by the Division of Capital Assets Management within the Office of Management and Enterprise Services as part of the state's Performance-Based Efficiency Program. In 2016 Oklahoma underwent a bid process and prequalified two service companies. ESPCs are also included in the State Energy Facilities Program

Last Updated: July 2017

Research & Development List All

No public research centers have a focus on energy efficiency.

Last Updated: July 2017

Important Links List All
Buildings
Score: 2 out of 8
Buildings Summary List All

Residential buildings must comply with the 2015 IRC, however, the energy chapter references the 2009 IRC. Commercial buildings must comply with the 2915 ICC/IBC standards, however, the energy chapter references the the 2006 IECC. The state has completed a gap analysis and offers training and outreach. State Minimum Building Energy Codes are amended by the Oklahoma Uniform Building Code Commission (OUBCC) and adopted by the Legislature.

Residential Codes List All

Oklahoma has in place mandatory statewide building codes for residential and commercial buildings buildings. The Oklahoma Uniform Building Code Commission (OUBCC) reviews and recommends building codes for residential and commercial construction. Residential buildings must comply with the 2015 IRC, however, the energy chapter references the 2009 IRC.

Last Updated: August 2017

Commercial Code List All

Oklahoma has in place mandatory statewide building codes for residential and commercial buildings buildings. The Oklahoma Uniform Building Code Commission (OUBCC) reviews and recommends building codes for residential and commercial construction. Commercial buildings must comply with the 2915 ICC/IBC standards, however, the energy chapter references the the 2006 IECC.

Last Updated: August 2017

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 2016.

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: August 2017

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: August 2017

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: August 2017

Additional Supportive PoliciesList All

There are currently no additional supportive policies to encourage CHP.

Last Updated: August 2017

Utilities
Score: 4 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 Oklahoma gas utilities use a performance-based ratemaking (PBR) mechanism to review earnings annually. The PBR includes a bandwidth around allowed return and revenues can be adjusted if return is outside of the bandwidth. 

Both Public Service Oklahoma (PSO) and Oklahoma Gas and Electric Company (OG&E) have shared benefit incentive plans. The Demand Program rules for electric utilities base the incentive on the performance of utility programs. Utilities must achieve at least 85% of goals to gain an incentive; the incentive is adjusted based on performance to goal. Incentives are also capped at 15% of total program costs.  These new incentive rules for programs apply to natural gas utilities beginning in 2017.

Oklahoma Natural Gas and CenterPoint Oklahoma previously were allowed a shared benefit incentive plan for programs that pass the Total Resource Cost ("TRC") Test. The companies could potentially collect 15% of the net benefits of such programs and 15% of the program costs for those programs that did not pass the TRC Test (See Cause No. PUD 201000143; Order 585366 and Cause No. PUD 201000148; Order 683869).  

Last Updated: July 2017

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

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income 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. The regulations specify that demand portfolios address programs for low-income customers and hard-to-reach customers “to assure proportionate Demand Programs are deployed in these customer groups despite higher barriers to energy efficiency investments.”

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

OAC 165:35-41-4 directs that demand programs targeted to low-income or hard-to-reach customers may have lower threshold cost-effectiveness results than other efficiency programs.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2017

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 2017

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.

FAST Freight Plans and Goals: No freight plan or goals in place.

Last Updated: July 2017

Transit Funding List All

No policy in place or proposed

Last Updated: July 2017

Incentives for High-Efficiency Vehicles List All

No policy in place or proposed

Last Updated: July 2017

Equitable Access to TransportationList All
Oklahoma does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, nor does it consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Last Updated: July 2017
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: June 2017