Amend CSHB 2713 (house committee printing) as follows:                       

(1)  On page 1, between lines 6 and 7, insert the following:

ARTICLE 1.  INTERIM SPECIAL COMMITTEE ON ELECTRIC ENERGY GENERATION 
CAPACITY AND ENVIRONMENTAL IMPACT
	(2)  On page 1, line 7, strike "SECTION 1" and substitute 
"SECTION 1.01".    
	(3)  On page 2, line 6, strike "SECTION 2" and substitute 
"SECTION 1.02".    
	(4)  On page 3, line 20, strike "SECTION 3" and substitute 
"SECTION 1.03".   
	(5)  On page 3, line 24, strike "SECTION 4" and substitute 
"SECTION 1.04".   
	(6)  On page 4, line 2, strike "SECTION 5" and substitute 
"SECTION 1.05".    
	(7)  On page 4, line 6, strike "Act" and substitute 
"article".               
	(8)  On page 4, line 12, strike "SECTION 6. EFFECTIVE DATE.  
This Act" and substitute "SECTION 1.06. EFFECTIVE DATE.  This 
article".
	(9)  Add the following appropriately numbered ARTICLES and 
SECTIONS and renumber the subsequent ARTICLES and SECTIONS of the 
bill accordingly:

ARTICLE ____.  ELECTRIC ENERGY STORAGE DEVICES
	SECTION ____.01.  DEFINITION.  In this article, 
"commission" means the Public Utility Commission of Texas.
	SECTION ____.02.  STUDY.  (a)  The commission shall conduct 
a study on the potential of electric energy storage devices to 
benefit the operation of transmission and distribution systems. In 
conducting the study, the commission shall consider any relevant 
issues, including:
		(1)  the effect of the devices on system reliability;                         
		(2)  the advantages and disadvantages of transmission 
and distribution utilities owning and operating those devices as 
transmission and distribution facilities;
		(3)  the manner in which the devices may be integrated 
into the ERCOT operating system, if applicable;
		(4)  the manner in which the devices may benefit power 
generation companies, retail electric providers, electric 
utilities, and transmission and distribution utilities; and
		(5)  the appropriate methods to bill and account for 
any costs and revenue associated with the electric energy that is 
used to charge, and that is later discharged from, a device.
	(b)  The commission shall  prepare a report on the results of 
the study. The report must include the commission's conclusions on 
the potential of electric energy storage devices and, as 
appropriate, recommendations to the legislature on legislation or 
other action necessary to realize that potential.  The commission 
shall include the report in the electric market scope of 
competition report required by Section 31.003, Utilities Code, that 
the commission submits to the 81st Legislature.
	(c)  The commission shall conduct the study and prepare the 
report as required by this section:
		(1)  with input from the ERCOT independent system 
operator; and             
		(2)  after requesting comments and input from all 
interested parties.       
	SECTION ____.03.  DEMONSTRATION PROJECTS. (a) The 
commission may authorize one or more electric utilities or 
transmission or distribution utilities to operate demonstration 
projects that involve facilities capable of not more than two 
megawatts of electric energy storage for the purpose of obtaining a 
better understanding of the facilities':
		(1)  cost;                                                                    
		(2)  value; and                                                               
		(3)  operational characteristics, including the 
efficient use of the transmission system and the facilities' effect 
on removing transmission constraints.
	(b)  The operation of a demonstration project under this 
section does not prejudice the study required by Section ____.02 of 
this article or any future determination relating to the 
appropriateness of an electric utility or transmission and 
distribution utility owning and operating electric energy storage 
facilities.
	(c)  This section may not be interpreted to require an 
electric utility or transmission and distribution utility to 
install an electric energy storage facility.
	SECTION ____.04.  EFFECTIVE DATE.  This article takes effect 
immediately if this Act receives a vote of two-thirds of all the 
members elected to each house, as provided by Section 39, Article 
III, Texas Constitution.  If this Act does not receive the vote 
necessary for immediate effect, this article takes effect September 
1, 2007.

ARTICLE ____.  EFFECTIVE DATE
	SECTION ____.01.  Except as otherwise provided by this Act, 
this Act takes effect September 1, 2007.