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	Amend CSHB 3168 by adding the following appropriately 
numbered SECTION and renumbering subsequent SECTIONS accordingly:
	SECTION ____. (a) The State Energy Conservation Office shall 
prepare a report that provides a coherent strategy for and 
recommends mechanisms for increasing the availability of 
low-emission automatic fuels. The report must include:
		(1) a list of recommended fuels;                                              
		(2) proposed mechanisms for increasing the availability 
of the fuels recommended under Subdivision (1) of this subsection 
to the majority of Texas drivers by 2010, including:
			(A) rebates for retrofitting vehicles to make them 
compatible with the recommended fuels, if necessary;
			(B) procurement agreements by municipalities and 
state agencies to purchase vehicles that are compatible with the 
recommended fuels; and
			(C) market incentives to producers and 
distributors of the recommended fuels;
		(3) an assessment of:                                                         
			(A) the anticipated effects on ground-level ozone 
levels in urban areas as a result of using the recommended fuels;
			(B) the cost to the state to implement the 
mechanisms proposed under Subdivision (2) of this subsection;
			(C) the possible benefits to the state in reduced 
health care costs that may result from using the recommended fuels;
			(D) the number of new jobs expected to be created 
in this state that may result from using the recommended fuels;
			(E) projected costs to Texas consumers of using 
the recommended fuels;     
			(F) the anticipated effect on state revenue as a 
result of new economic activity related to the production, 
distribution, and use of the recommended fuels; and
			(G) the net reduction of emissions projected to 
result from using the recommended fuels; and 
		(4) any statutory changes needed to implement the 
strategy or a recommended mechanism.
	(b) For each fuel in the list of fuels recommended under this 
section, the State Energy Conservation Office shall include an 
analysis of the life cycle emissions for the fuel and a 
determination of how well the fuel achieves the goal of producing at 
least 20 percent less emissions over its life cycle than 
conventional gasoline. The life cycle of a fuel includes emissions 
that occur in the production of the fuel. If part of the fuel's 
production process includes carbon capture and storage, also known 
as carbon sequestration, the resulting reduction in carbon dioxide 
emissions is included in computing the life cycle emissions for the 
fuel.
	(c) The State Energy Conservation Office may establish a task 
force to assist in developing the strategy and recommendations 
required by Subsections (a) and (b) of this section.
	(d) Not later than October 1, 2008, the State Energy 
Conservation Office shall deliver the report required by this 
section to the governor, the lieutenant governor, the speaker of 
the house of representatives, and the standing committees of the 
legislature with primary jurisdiction over environmental, 
economic, and transportation matters.