1-1                                   AN ACT
 1-2     relating to the creation of an initiative to promote the
 1-3     commercialization of fuel cell technologies.
 1-5           SECTION 1.  DEFINITION. In this Act, "energy office" means
 1-6     the State Energy Conservation Office.
 1-8     energy office shall develop a statewide plan for the coordinated
 1-9     acceleration of the commercialization of fuel cell generation in
1-10     this state.  The plan must explore and draw conclusions about the
1-11     availability and efficacy of alternative mechanisms that might be
1-12     created in cooperation with the private sector, utilities, and
1-13     other agencies to accelerate the commercial availability and
1-14     economic viability of fuel cells for use in this state.  The plan
1-15     must consider, at a minimum, the use of:
1-16                 (1)  funds available to the energy office or additional
1-17     funding from other state, federal, or private sources for programs
1-18     of research and development, particularly incentives for commercial
1-19     installation of cells by residential, commercial, or industrial
1-20     utility customers;
1-21                 (2)  utility-administered incentive funds, consistent
1-22     with programs established under Chapter 39, Utilities Code;
1-23                 (3)  market mechanisms that might be created to assure
1-24     that clean emerging technologies may be compensated for their
 2-1     contribution to the reduction of harmful emissions; and
 2-2                 (4)  tax or other economic incentives.
 2-3           (b)  In developing the plan and proposed rules, guidelines,
 2-4     and operating procedures, the energy office shall seek the
 2-5     assistance and support of, as appropriate, the Texas Natural
 2-6     Resource Conservation Commission, the Public Utility Commission of
 2-7     Texas, and other state or local agencies. The plan must consider
 2-8     the impact of the use of fuel cell technologies in areas of the
 2-9     state that the energy office determines:
2-10                 (1)  are designated as nonattainment areas under
2-11     Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
2-12     7407); or
2-13                 (2)  have a high probability of being so designated in
2-14     the near future.
2-15           (c)  Not later than September 15, 2002, the energy office
2-16     shall issue to the House Energy Resources Committee and the Senate
2-17     Business and Commerce Committee a report of its findings and
2-18     recommendations for development of the fuel cell commercialization
2-19     initiative, including:
2-20                 (1)  the state of the industry or of specific
2-21     components of the industry;
2-22                 (2)  alternative programs to accelerate the commercial
2-23     availability of fuel cells, including similar efforts by other
2-24     states;
2-25                 (3)  programs considered to encourage the industry to
2-26     locate manufacturing, system integration, or related component
2-27     parts or services in this state; and
 3-1                 (4)  program recommendations, including how proposed
 3-2     programs would work, the impact anticipated on industry
 3-3     development, program costs and sources of funding, and proposed
 3-4     measures of performance.
 3-5           (d)  The energy office shall appoint a fuel cell initiative
 3-6     advisory committee to advise the energy office regarding
 3-7     development of the plan and to assist the energy office in meeting
 3-8     the goals of this Act.  The energy office shall appoint to the
 3-9     advisory committee representatives of:
3-10                 (1)  the fuel cell industry;
3-11                 (2)  energy services providers;
3-12                 (3)  electric transmission and distribution utilities;
3-13                 (4)  retail providers of electric energy;
3-14                 (5)  small electric energy consumers;
3-15                 (6)  electric cooperatives; and
3-16                 (7)  municipally owned electric utilities.
3-17           SECTION 3.  EFFECTIVE DATE.  This Act takes effect September
3-18     1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2845 was passed by the House on May
         4, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2845 on May 25, 2001, by a non-record
                                                 Chief Clerk of the House
               I certify that H.B. No. 2845 was passed by the Senate, with
         amendments, on May 18, 2001, by a viva-voce vote.
                                                 Secretary of the Senate
         APPROVED:  __________________________