The Petroleum Alliance of Oklahoma and 74 members of the Oklahoma Legislature have called on the state’s congressional delegation to help end the Clean Electricity Production Tax Credit (CEPTC) and the Clean Electricity Investment Tax Credit (CEITC), citing concerns over the credits’ impact on the state’s economy and grid reliability.

In a letter sent to Oklahoma’s congressional representatives, The Alliance and state legislators expressed strong opposition to these subsidies, arguing that they distort energy markets, undermine the reliability of the U.S. power grid, and harm Oklahoma’s economy by disadvantaging job creators in the oil and natural gas industry, which pays taxes statewide.

“The continuation of federal tax credits for weather-dependent electricity generation distorts the market, undermines Oklahoma’s economy, hurts grid reliability, and doesn’t reduce electricity bills,” Petroleum Alliance President Brook A. Simmons said. “All these tax credits do is transfer money from hard-working taxpayers to wind and solar businesses that will never make it on their own while wrecking the federal budget in the process.”

The CEPTC and CEITC were included in the Biden administration’s Inflation Reduction Act and provide financial incentives for wind, solar, and other renewable energy projects. The letter urges Oklahoma’s congressional delegation to support legislation that would eliminate or phase out these tax credits, ensuring a fair and competitive energy marketplace where all energy sources can compete based on their merits.

ABOUT THE PETROLEUM ALLIANCE – The Petroleum Alliance of Oklahoma is the only trade association in Oklahoma that represents every segment of the oil and natural gas industry, representing more than 1,700 individual and member companies engaged in the upstream, midstream, and downstream sectors of the state’s defining industry.