77R12877 MI-F By Danburg H.B. No. 2845 Substitute the following for H.B. No. 2845: By Carter C.S.H.B. No. 2845 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of an initiative to promote the 1-3 commercialization of fuel cell technologies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITION. In this Act, "energy office" means 1-6 the State Energy Conservation Office. 1-7 SECTION 2. FUEL CELL COMMERCIALIZATION INITIATIVE. (a) The 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; and 3-14 (5) small electric energy consumers. 3-15 SECTION 3. EFFECTIVE DATE. This Act takes effect September 3-16 1, 2001.