Oklahoma
State Scorecard Rank
37
Oklahoma
12.0Scored out of 50Updated 10/2019
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 2018
Carbon Pricing PoliciesList All
The State of Oklahoma does not yet have carbon pricing policies in place.
Both PSO and OG&E track avoided greenhouse gas emissions, but neither utility currently includes emissions reductions within benefit-cost testing calculations.
Last Updated: July 2020
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 Reviewed: July 2020
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 Reviewed: July 2020
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 Reviewed: July 2020
Research & Development List All
No public research centers have a focus on energy efficiency.
Last Updated: July 2018
Important Links List All
Buildings
Score: 1.5 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 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. 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 Reviewed: September 2019
Commercial Code List All
Oklahoma has in place mandatory statewide building codes for residential and commercial 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 2006 IECC.
Last Reviewed: September 2019
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 Reviewed: September 2019
CHP
Score: -0.5 out of 3
CHP Summary List All
The state has limited policies to encourage the deployment of CHP systems. One new CHP system was installed in Oklahoma in 2018.
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: July 2018
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: July 2018
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: July 2018
Additional Supportive PoliciesList All
There are currently no additional supportive policies to encourage CHP.
Last Updated: July 2018
Utilities
Score: 5.5 out of 20
Utilities Summary List All
Oklahoma utilities offer a growing portfolio of energy efficiency programs, but 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 2018
Energy Efficiency as a Resource List All
There is currently no policy in place that treats energy efficiency as a resource.
Last Updated: July 2018
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 2018
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 capped at 15% of total program costs.
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 2018
Evaluation, Measurement, & Verification List All
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Primary cost-effectiveness test(s) used: total resource cost test
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Secondary cost-effectiveness test(s) used: utility cost test, participant cost test, societal cost test, ratepayer impact measure
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 benefit-cost tests identified in the California Standard Practice Manual to evaluate energy efficiency programming. These are the Total Resource Cost (TRC), Utility/Program Administrator (UCT), Participant (PCT), Social Cost (SCT), and Ratepayer Impact Measure (RIM). The benefit-cost tests are required for overall portfolio, total program, customer project, and individual measure level screening. The rules for benefit-cost tests are stated in Title 165 CC Chapter 35 Electric Utility Rules. Gas utilities are subject to the same rules (See OAC k165:45-23-7).
According to the Database of State Efficiency Screening Practices (DSESP), Oklahoma specifies the TRC as its primary test for decision making. Oklahoma’s TRC accounts for the non-energy impact of net participant measure costs. Oklahoma’s low-income program, the weatherization residential assistance program (WRAP), may have a lower threshold for TRC test results. Additionally, non-resource benefits can be included in the TRC, but they are not in practice.
Further information on cost-effectiveness screening practices for Oklahoma is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP).
Last Updated: August 2019
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
Beginning in 2017 ONG combined the delivery of low income programs with both PSO and OGE. Combining the gas and electric low income programs has enhance both the success and reach of these programs across the state.
Last reviewed: July 2019
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 2018
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 2018
Transportation
Score: 2.5 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.
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 Reviewed: July 2019
Incentives for High-Efficiency Vehicles List All
No policy in place or proposed
Last Reviewed: July 2019
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 Reviewed: July 2019