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Amend HB 965 as follows:                                                     
	(1)  In SECTION 1 of the bill, in the proposed heading to 
Section 382.0275, Health and Safety Code (committee printing page 
1, line 15), strike "PROHIBITION ON".
	(2)  In SECTION 1 of the bill, strike proposed Subsection 
(b), Section 382.0275, Health and Safety Code (committee printing 
page 1, lines 21-23), and substitute the following:
	(b)  The commission shall direct the executive director to 
perform a study, to be completed by December 31, 2005, regarding the 
technical and economic feasibility of regulating residential water 
heaters.  If the executive director's study shows that regulation 
of residential water heaters is technically or economically 
infeasible, the executive director shall recommend to the 
commission that the rules concerning water heaters be repealed not 
later than December 31, 2006, and shall propose emission reductions 
to offset the loss of state implementation plan credits from the 
rules.  The commission shall provide notice of and hold a public 
hearing on the study.