Oklahoma House committee advances bill to create hydrogen rebate incentive program

OKLAHOMA CITY — An Oklahoma House committee on Monday advanced legislation that would create a rebate program for companies that refine, manufacture or process hydrogen in small municipalities.

Rep. Tammy Townley, R-Ardmore, said Senate Bill 1428 requires a company to invest $800 million in capital expenditures before they could qualify for the $50 million rebate program. It would be limited to companies that acquire property in municipalities with populations between 20,000 and 30,000 based on the 2020 U.S. Census counts.

“Honestly, we are looking for hydrogen to be our next big energy move, and we have the chance to be on the forefront of the hydrogen movement,” Townley said of the measure.

She said lawmakers in 2017 or 2018 created a hydrogen task force to study the industry. This plan would vault Oklahoma to the forefront, she said. Supporters pitch hydrogen as a clean fuel source that will reduce carbon emissions..

The rebate payment would be equal to 6.25% of the cost of qualified capital expenditure. Funding for the new Commerce Manufacturing Activity Development Fund would be ongoing and not subject to budget limitations.

Any remaining funds as of Jan. 1, 2030, would be transferred back to the general revenue fund.

The Department of Commerce anticipates the incentive would cost state coffers $28,357 in budget year 2025, according to a fiscal analysis.

In October, federal officials rejected the state’s regional bid to become a federally designated hydrogen hub. The state partnered with Louisiana and Arkansas to try to form a consortium in hopes of receiving $1.25 billion.

President Joe Biden instead selected 16 other states to launch the country’s $7 billion program created under Congress’ bipartisan Infrastructure Law. 

Following the rejection, state officials said lawmakers should consider financially supporting hydrogen projects.

The measure advanced 7-0. It previously passed the full Senate by a 40-6 vote. The bill heads to a House appropriations committee for further consideration.