R-Bristow, District 12
Oklahoma has always been an energy state, and the importance of our traditional energy sources cannot be understated. But as with any asset, it is critical to look at ways to expand and diversify. Last year, we took an important step in that direction with the passage of Senate Bill 1021, creating the Hydrogen Production, Transportation, and Infrastructure Task Force (OK H2 Task Force) to research and report on the viability of hydrogen production and use within our state and for export.
In an analysis of the estimated economic impact of two million metric tons of hydrogen production, the sales are estimated to be $4.2 to $4.7 billion a year. Direct employment at hydrogen production facilities in Oklahoma would result in the creation of 4,400 to 4,600 jobs, with a total payroll of $400 to $420 million annually. But there would also be thousands more indirect jobs created. The estimated total employment impact would be up to 20,000 jobs.
To put it more simply, this is about creating thousands of jobs and growing and diversifying our economy. In order to help get us where we need to be, I’ve authored Senate Bill 1859, which would add hydrogen manufacturing to Oklahoma’s Quality Jobs Act. This bill, which was suggested by the OK H2 Task Force, would further incentivize job creation in this industry. This measure was approved by the Senate Finance Committee and now moves to the full Senate Appropriations Committee for further consideration.
I’ve won approval for another of my measures, SB 1707, by the Senate Finance Committee. This bill was a recommendation from the Incentive Evaluation Commission to help us improve upon the 21st Century Quality Jobs program. This program requires a high wage in order to participate-it was $104,954 in 2021, and due to inflation, $112,100 in 2022. Companies that might participate in the program may have concerns that if their average wage falls below the high threshold, they’ll be cut from the program and not receive any incentive for the new jobs that they create. Under SB 1707, instead of being dismissed entirely from a Quality Jobs incentive, the company could elect to go to the regular Quality Jobs or Small Employer Quality Jobs program and receive a lower incentive amount if they do not meet that higher wage average.
The company must still meet all other requirements of the program they elect to enter, including payroll, jobs, wage and insurance requirements. It’s also a one-way election. The company cannot jump between programs, and once they elect to go into a different one, they cannot reenter the 21st Century Quality Jobs program.
Incentives should provide greater benefit to the state in terms of jobs and economic development than the cost, and that must be balanced with the goal of truly incentivizing companies to create more jobs in our state. Fine-tuning this program will help better ensure we are meeting each of those goals.
I thank you for the privilege of being your voice at the state Capitol. If you have any questions or concerns about legislation or other issues at the state level, please feel free to contact my office by calling 405-521- 5528, or email