HBA-SEP H.B. 2845 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2845
By: Danburg
Energy Resources
7/17/2001
Enrolled


BACKGROUND AND PURPOSE 

Increased population in urban areas combined with a growing high tech
industry has increased the need for reliable electrical power which in the
past has been met through the construction of large central station power
plants.  However, transmission constraints in some areas could lead to
periodic shortages during peak demand times.  To ease the peak time strain
on the electrical grid, the Public Utility Commission of Texas has
encouraged the development of small scale distributed generation
technologies.  These technologies such as natural gas and diesel fuel emit
significantly more emissions per-kilowatt-hour than large central station
power plants which can contribute to an increase in air pollution.  Low
emission fuel cell technologies are or are near commercial availability,
though at current rates these units may not be available in significant
numbers at competitive prices for another five years.  Certain incentives
might encourage the use of fuel cells and accelerate the pace of
deployment.  House Bill 2845 requires the State Energy Conservation Office
to develop a statewide plan for the coordinated acceleration of the
commercialization of fuel cell generation in this state. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency or institution.   

ANALYSIS

House Bill 2845 amends law to require the State Energy Conservation Office
(energy office) to develop a statewide plan for the coordinated
acceleration of the commercialization of fuel cell generation in this
state.  The plan must explore and draw conclusions about the availability
and efficacy of alternative mechanisms that might be created in cooperation
with the private sector, utilities, and other agencies to accelerate the
commercial availability and economic viability of fuel cells for use in
this state.  The bill sets forth minimum considerations for the plan.  In
developing the plan and proposed rules, guidelines, and operating
procedures, the energy office is required to seek the assistance and
support of the Texas Natural Resource Conservation Commission, the Public
Utility Commission of Texas, and other state or local agencies.  The plan
must consider the impact of the use of fuel cell technologies in areas of
the state that the energy office determines are nonattainment areas or have
a high probability of being so designated.   

Not later than September 15, 2002, the energy office is required to issue
to the House Energy Resources Committee and the Senate Business and
Commerce Committee a report of its findings and recommendations for the
development of the fuel cell commercialization initiative.  The energy
office is required to appoint a fuel cell initiative advisory committee to
advise the energy office regarding development of the plan and to assist
the energy office in meeting the goals of this Act.  The energy office is
required to appoint to the advisory committee representatives of the fuel
cell industry, energy services providers, electric transmission and
distribution utilities, retail providers of electric energy, small electric
energy consumers, electric cooperatives, and municipally owned electric
utilities.   

EFFECTIVE DATE

September 1, 2001.