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Oklahoma Legislature· SB 2173Referred to Appropriations

An act relating to agriculture, the official text

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1                            STATE OF OKLAHOMA

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2                  2nd Session of the 60th Legislature (2026)

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3 SENATE BILL 2173                     By: Boren
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6                            AS INTRODUCED

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7   An Act relating to agriculture; creating the

7   Landowner Energy Negotiation, Agricultural

8   Preservation, and Orphaned Well Mitigation Education

8   Act of 2026; providing short title; stating

9   legislative findings; defining terms; creating the

9   Landowner Energy Negotiation, Agricultural

10  Preservation, and Orphaned Well Mitigation Education

10  Program within the Oklahoma Cooperative Extension

11  Service; prescribing duties and program purposes;

11  requiring reporting; granting rulemaking authority;

12  appropriating funds; establishing fees for renewable

12  energy land remediation and education; providing for

13  collection and distribution of fees; creating a

13  revolving fund; authorizing land stewardship credits;

14  authorizing rulemaking; providing for codification;

14  providing an effective date; and declaring an

15  emergency.

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16

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17

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18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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19  SECTION 1.      NEW LAW  A new section of law to be codified

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20 in the Oklahoma Statutes as Section 4200 of Title 2, unless there is
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21 created a duplication in numbering, reads as follows:
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22  A. This act shall be known and may be cited as the "Landowner

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23 Energy Negotiation, Agricultural Preservation, and Orphaned Well
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24 Mitigation Education Act of 2026".
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    Req. No. 3283                                              Page 1
1   B. 1. The Legislature finds that landowners across this state

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2 require improved access to high-quality professional education to
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3 effectively negotiate oil, gas, wind, and solar energy agreements.
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4   2. The Legislature further finds that the rapid expansion of

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5 utility-scale wind and solar development necessitates training and
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6 technical assistance to ensure agricultural operations, including
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7 grazing, crop production, and soil conservation, may be preserved
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8 alongside energy production.
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9   3. The Legislature additionally recognizes the need for

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10 improved landowner awareness regarding environmental, safety, and
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11 financial risks posed by orphaned and abandoned oil and gas wells.
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12  4. It is the intent of the Legislature to support landowners

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13 through the Oklahoma Cooperative Extension Service by providing
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14 educational resources that promote informed negotiation, dual-use
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15 land management, agricultural preservation, the voluntary
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16 conservation and protection of soil and water resources for
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17 beneficial use, and environmental stewardship.
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18  5. The Legislature further finds that agricultural producers

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19 and rural landowners face increasing challenges related to the
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20 availability of water for beneficial use, including groundwater and
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21 surface water management, and that land use decisions associated
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22 with energy development may affect the conservation and protection
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23 of water resources.
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    Req. No. 3283                                               Page 2
1   6. The Legislature recognizes that the conservation and

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2 protection of water resources for beneficial use, consistent with
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3 existing law, is essential to the long-term viability of
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4 agriculture, grazing, soil health, and rural economies, and that
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5 education and technical assistance may assist landowners in
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6 voluntarily incorporating water-protective practices into energy-
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7 related land use agreements.
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8   C. As used in this section:

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9   1. "Dual-use land management" means land management strategies

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10 that allow agricultural activities, including grazing, crop
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11 cultivation, pasture improvement, or soil conservation, to continue
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12 on land leased for or impacted by wind or solar energy
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13 infrastructure;
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14  2. "Extension Service" means the Oklahoma State University

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15 Cooperative Extension Service and Langston University Cooperative
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16 Extension Service;
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17  3. "Landowner" means the legal owner of surface rights to real

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18 property within this state;
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19  4. "Orphaned or abandoned well" means any well identified by

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20 the Corporation Commission as unplugged, unmaintained, or lacking a
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21 responsible operator; and
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22  5. "Water conservation" means voluntary practices and

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23 management strategies that promote the beneficial use of water and
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24 the conservation or protection of groundwater and surface water
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    Req. No. 3283                                               Page 3
1 resources, consistent with the authority of the Oklahoma Water
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2 Resources Board and existing water rights law, including efficient
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3 water use, soil moisture retention, runoff reduction, and prevention
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4 of contamination.
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5   D. There is hereby established within the Extension Service the

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6 Landowner Energy Negotiation, Agricultural Preservation, and
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7 Orphaned Well Mitigation Education Program. The program shall
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8 provide education, training, and technical assistance to landowners
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9 related to energy development and agricultural compatibility and the
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10 voluntary conservation of soil and water resources, provided that
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11 nothing in this act shall be construed to regulate water rights,
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12 water use, or water allocation.
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13  E. The Extension Service shall administer the program and may

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14 use funds appropriated pursuant to this section for the following
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15 purposes:
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16  1. Development and delivery of professional education and

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17 training programs for landowners regarding:
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18  a. negotiation of oil and gas leases, surface use

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19                 agreements, and related energy contracts,

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20  b. negotiation of wind energy leases and turbine siting

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21                 agreements, including impacts on agricultural

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22                 operations, access roads, drainage, and long-term land

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23                 value,

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    Req. No. 3283                                                 Page 4
1   c. negotiation of solar energy leases, including ground

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2                  cover requirements, panel spacing and height, panel

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3                  technology requirements, fencing, vegetation

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4                  management, and livestock-compatible or agrivoltaics

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5                  system layouts,

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6   d. incorporation of agricultural preservation clauses,

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7                  dual-use provisions, land restoration requirements,

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8                  and decommissioning assurances into energy contracts,

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9   e. legal and financial considerations associated with

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10                 energy development on privately owned agricultural

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11                 land,

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12  f. evaluation of risks and obligations related to energy

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13                 infrastructure on agricultural property,

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14  g. negotiation of timelines and procedures for

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15                 dismantling energy-related equipment and any

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16                 potentially necessary land restoration requirements,

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17  h. negotiation of clear ownership, responsibilities, and

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18                 procedures for any necessary repairs of energy-related

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19                 equipment during the life of the lease, and

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20  i. voluntary practices related to the conservation and

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21                 protection of groundwater and surface water resources,

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22                 including educational discussion of lease provisions

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23                 addressing water use during construction or operation,

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24                 protection of water wells regulated under state law,

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    Req. No. 3283                                                Page 5
1                  drainage alteration, erosion control, stormwater

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2                  management, and post-construction land restoration,

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3                  provided that such education does not alter, impair,

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4                  or adjudicate any existing water right;

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5   2. Creation and dissemination of technical assistance

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6 materials, including model contract provisions, negotiation guides,
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7 and decision-support tools related to energy development and
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8 agricultural compatibility including informational discussion of
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9 potential water conservation considerations, provided such materials
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10 are educational in nature and do not confer regulatory authority or
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11 modify existing law;
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12  3. Conducting workshops, field demonstrations, and educational

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13 programming related to:
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14  a. agricultural co-location with wind and solar energy,

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15                 including grazing under solar arrays, wind-compatible

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16                 grazing systems, and soil protection during

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17                 construction,

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18  b. identification, reporting, and remediation options

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19                 related to orphaned and abandoned oil and gas wells,

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20                 and

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21  c. voluntary soil and water conservation practices

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22                 related to energy development, including soil moisture

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23                 protection, runoff and drainage management, protection

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24                 of water wells and recharge areas, vegetative cover

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    Req. No. 3283                                               Page 6
1                  systems, and drought-resilient land management

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2                  practices, presented for educational purposes only;

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3   4. Supporting Extension Service personnel, including the hiring

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4 or training of specialists with expertise in renewable energy
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5 contracting, agricultural dual-use systems, energy law, soil and
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6 water conservation practices consistent with existing water law and
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7 environmental remediation; and
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8   5. Conducting outreach in rural and agricultural communities

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9 with high levels of oil, gas, wind, or solar development, or
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10 concentrations of orphaned or abandoned wells.
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11  F. In administering the program, the Extension Service shall

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12 coordinate with the Corporation Commission, county governments,
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13 agricultural producer organizations, tribal governments, and other
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14 relevant public or private stakeholders.
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15  G. On or before December 31 of each year, the Extension Service

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16 shall electronically submit a report to the President Pro Tempore of
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17 the Senate and the Speaker of the House of Representatives that
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18 includes:
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19  1. An accounting of expenditures made pursuant to this section;

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20  2. The number of landowners served;

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21  3. Outcomes related to energy negotiation literacy;

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22  4. Adoption of agricultural dual-use practices;

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23  5. Improvements in the landowner engagement related to orphaned

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24 or abandoned well reporting;
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    Req. No. 3283                                        Page 7
1   6. Recommendations that shall be made publicly available on the

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2 Extension Service's website; and
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3   7. Educational outcomes related to voluntary soil and water

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4 conservation practices, including landowner participation in water-
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5 protective programming or incorporation of informational water-
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6 related considerations into energy-related land use agreements.
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7   H. The Extension Service may adopt policies and procedures to

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8 implement the provisions of this section.
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9   SECTION 2.     NEW LAW         A new section of law to be codified

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10 in the Oklahoma Statutes as Section 4201 of Title 2, unless there is
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11 created a duplication in numbering, reads as follows:
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12  For fiscal year 2026, there is hereby appropriated from the

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13 General Revenue Fund to the Oklahoma Cooperative Extension Service
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14 the sum of Three Million Five Hundred Thousand Dollars
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15 ($3,500,000.00) to implement the program. Monies appropriated
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16 pursuant to this section shall be used solely for the purposes
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17 specified in Section 1 of this act.
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18  SECTION 3.     NEW LAW         A new section of law to be codified

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19 in the Oklahoma Statutes as Section 4202 of Title 2, unless there is
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20 created a duplication in numbering, reads as follows:
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21  A. As used in this section:

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22  1. "Cooperative Extension Service" means the Oklahoma State

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23 University Cooperative Extension Service and the Langston University
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24 Cooperative Extension Service;
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    Req. No. 3283                                          Page 8
1   2. "Disturbed acreage" means the total surface area within this

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2 state that is occupied or materially altered by a renewable energy
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3 project, including turbines, panels, substations, access roads,
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4 laydown areas, and related facilities; and
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5   3. "Renewable energy project" means a facility or

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6 infrastructure used for the generation or storage of electricity
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7 from renewable resources, including wind energy facilities, solar
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8 energy facilities, battery or energy storage facilities, and
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9 associated collection or transmission infrastructure.
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10  B. 1. The Corporation Commission shall levy and collect a

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11 State Renewable Energy Land Remediation and Education Fee on
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12 renewable energy projects located within this state.
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13  2. The fee shall be assessed annually and shall not exceed

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14 Twenty-five Dollars ($25.00) per acre of disturbed acreage,
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15 beginning on the date construction commences and continuing until
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16 the date of decommissioning or completion of site reclamation.
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17  3. The fee imposed by this section shall be a fee and not a

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18 tax, shall be reasonably related to land disturbance impacts, and
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19 shall not regulate the siting, permitting, or operation of renewable
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20 energy facilities.
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21  C. 1. All fees collected pursuant to this section shall be

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22 deposited in the State Treasury to the credit of a revolving fund to
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23 be designated the Renewable Energy Land Remediation and Education
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24 Fund.
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    Req. No. 3283                                               Page 9
1   2. Not less than eighty percent (80%) of all monies deposited

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2 to the fund shall be distributed to the Cooperative Extension
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3 Services, and such monies shall be divided equally as follows:
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4   a. fifty percent (50%) to the Oklahoma State University

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5                  Cooperative Extension Service, and

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6   b. fifty percent (50%) to the Langston University

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7                  Cooperative Extension Service.

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8   3. Monies distributed pursuant to paragraph 2 of this section

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9 shall be used solely to support the Landowner Energy Negotiation,
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10 Agricultural Preservation, and Orphaned Well Mitigation Education
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11 Program created pursuant to Section 1 of this act, including
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12 technical assistance, education, outreach, and land stewardship
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13 support for landowners affected by renewable energy development,
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14 agricultural dual-use practices, and water conservation.
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15  4. Not more than twenty percent (20%) of all monies collected

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16 pursuant to this section may be retained by the Corporation
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17 Commission for the purpose of administering this section, including
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18 fee collection, verification of disturbed acreage, processing of
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19 stewardship credits, auditing, reporting, and rulemaking.
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20  D. 1. The owner or operator of a renewable energy project

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21 shall be eligible for a stewardship credit if the project
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22 incorporates agrivoltaic or dual-use land management practices.
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23  2. Eligible practices may include:

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    Req. No. 3283                                             Page 10
1            a. grazing of livestock beneath or around renewable

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2                  energy facilities,

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3            b. cultivation of crops, pollinator habitats, or native

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4                  vegetation compatible with energy infrastructure,

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5            c. soil health practices that prevent erosion or

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6                  compaction, or

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7            d. site design that preserves agricultural productivity

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8                  during the operational life of the project.

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9   3. The Corporation Commission shall grant a credit of up to

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10 fifty percent (50%) of the annual per-acre fee for acreage actively
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11 managed using approved agrivoltaic or dual-use practices.
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12  4. Eligibility for a credit shall be demonstrated through

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13 documentation, site management plans, or technical verification or
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14 certification from the Cooperative Extension Service.
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15  E. The Corporation Commission shall promulgate rules as

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16 necessary to implement and administer the provisions of this
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17 section.
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18  F. Nothing in this section shall be construed to authorize this

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19 state to prohibit renewable energy projects or to impose operational
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20 standards unrelated to the assessment or administration of the fee.
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21  SECTION 4. This act shall become effective July 1, 2026.

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22  SECTION 5. It being immediately necessary for the preservation

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23 of the public peace, health or safety, an emergency is hereby
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    Req. No. 3283                                               Page 11
1 declared to exist, by reason whereof this act shall take effect and
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2 be in full force from and after its passage and approval.
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    Req. No. 3283                                            Page 12
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