A. There is hereby created the “Oklahoma Energy Efficiency and Emission Reduction Program”, to be administered by the Department of Environmental Quality. The purpose of the Oklahoma Energy Efficiency and Emission Reduction Program is to fund activities and projects designed to reduce regional air pollution.

B. The Oklahoma Legislature finds that any activity or project that reduces regional air pollution is desirable and advantageous and serves a compelling public interest. Further, improved air quality enhances the health and quality of life for the citizens of Oklahoma, helps maintain the abundant natural beauty and resources of the state, and fosters the economic well-being of the state by reducing the potential that the federal government will designate some or all of the state as in air-quality “nonattainment” status, resulting in extremely burdensome additional regulatory requirements.

C. 1. Any funds made available for the Oklahoma Energy Efficiency and Emission Reduction Program shall be used by the Department for matching grants to governmental and nongovernmental entities in Oklahoma to encourage the implementation of recognized air pollution reduction measures, including, but not limited to, the retrofitting of truck and bus fleets or locomotives to use cleaner fuels and the installation and implementation of energy efficiency measures.

2. Grants awarded under the Program shall be limited to ninety-five percent (95%) of the direct project costs in the case of governmental entities and seventy-five percent (75%) of the direct project costs in the case of nongovernmental entities.

3. In making grant awards, the Department shall enter into a contract or memorandum of agreement with the grantee that includes conditions and safeguards to ensure that the matching funds are expended for the purposes specified and that the state receives a clear benefit from the expenditure. In addition to any other conditions and safeguards deemed necessary and appropriate:

a.the Department shall require grant recipients to submit a report within a reasonable time after construction, installation, or implementation of the project that summarizes the results, including emissions reductions achieved and “lessons learned”. Information from the reports may be used by the Department in evaluation of future grant applications or proposals for the Oklahoma Energy Efficiency and Emission Reduction Program or any similar grant program and to determine the viability of other projects or programs that may be proposed to control or reduce air pollution in the state, and

b.to secure the maximum possible benefit by increasing awareness of the Oklahoma Energy Efficiency and Emission Reduction Program, the Department may require any grant recipient to post notice in a conspicuous place of participation in the Program and the nature of the funded project.

4. Before making any grants, the Department shall determine to its satisfaction that the proposed project will significantly reduce air pollution within the state. The Department is authorized to set a deadline for grant applications, and if the total grant funding sought exceeds the amount available under the Program, the Department shall give priority to those projects that appear to achieve the maximum public health benefit for citizens of the state.

5. Not more than twenty-five percent (25%) of the total sum available for grants under the Program shall be awarded to any single entity. Application of this limit shall not preclude participation by the recipient in any similar grant program in the future.

D. If funds are appropriated by the Legislature for the Oklahoma Energy Efficiency and Emission Reduction Program, not more than One Hundred Thousand Dollars ($100,000.00) annually of the funds shall be used by the Department for personnel and other costs associated with administration and management of the Program, and for providing technical assistance to entities applying for and participating in the Program.

E. On or before September 1, 2009, and by September 1 each year thereafter, the Department shall submit to the Governor, the Speaker of the House of Representatives, and the President Pro Tempore of the Senate a report on the Oklahoma Energy Efficiency and Emission Reduction Program. The report shall outline program expenditures, estimate emission reductions achieved, and health or environmental benefits associated with those reductions for the previous fiscal year, and any other information the Department determines is necessary to aid the Governor and Legislature in evaluating the Program.

Added by Laws 2008, c. 160, § 1, eff. July 1, 2008.