In a significant stride towards bolstering the manufacturing sector, the Oklahoma House of Representatives has given the green light to House Bill 2781, launching the Reindustrialize Oklahoma Act (ROA-25). The legislation endorses a substantial $4 billion investment from Emirates Global Aluminum (EGA) for establishing a new aluminum smelter in the state, as reported by the Oklahoma House of Representatives. This move is poised to double the nation's aluminum production capacity and is projected to create over 1,000 high-paying job opportunities.
The newfound collaboration, rooted in a deal negotiated by former President Trump, marks the construction of the United States' first aluminum smelter in nearly half a century. Touted by House Speaker Kyle Hilbert as a "generational opportunity," the project is a direct result of an "America First" economic agenda. "The Reindustrialize Oklahoma Act marks a generational opportunity to restore America’s manufacturing dominance and create meaningful jobs for our communities," Hilbert emphasized in a statement obtained by the Oklahoma House of Representatives.
The ROA-25 investment rebate program established by the bill is an incentive initiative that shall be managed by the Oklahoma Department of Commerce. Qualifying manufacturers need to commit at least $2 billion in investments and create 700 new jobs in the first year, ramping up to 1,000 in the subsequent years, to be eligible for performance-based rebate payments extending up till 2045. The legislation ensures financial accountability by employing a strategic long-term annuity structure that funds the rebates through the ROA-25 Revolving Fund and ROA-25 Beneficiary Fund.
According to Rep. Brian Hill, Chairman of Commerce and Economic Development, recognizing the project's significance, he said, "This investment marks a historic milestone for Oklahoma, national security and the future of American manufacturing. As the first new aluminum smelter built in the U.S. in over 45 years, it will create more than 1,000 direct jobs and thousands more across the supply chain," a claim echoed by the Oklahoma House of Representatives. The scheme operates independently of the Quality Jobs Program of Oklahoma, negating the possibility of concurrent benefits and thus ensuring the prudent use of state funds.
Building on the LEAD Committee's establishment through SB1447 in 2024, this bipartisan group has been instrumental in scrutinizing large-scale economic development proposals. This committee's creation has armed legislators with the capacity to assess significant investments. Rep. Mike Osburn, a lead proponent of both SB1447 and HB2781, noted on the Oklahoma House of Representatives, "The EGA aluminum smelter is exactly the kind of transformative project we envisioned when we created the committee. It's a bold step forward."
