Amend CSHB 3693 by adding the following sections, numbered 
appropriately, and renumbering the sections of the bill 
accordingly:
	SECTION ____. Chapter 39, Utilities Code, is amended by 
adding Section 39.9051 to read as follows:
	Sec. 39.9051. ENERGY EFFICIENCY DEMONSTRATION PROJECTS FOR 
SOLAR ELECTRIC SYSTEM; GRANT PROGRAM. (a) The commission by rule 
shall establish grant programs for:
		(1) a demonstration project for installation of solar 
electric systems for new residential subdivisions;
		(2) a demonstration project for installation of solar 
electric systems for new or established affordable housing for 
persons with low incomes; and
		(3) a demonstration project for installation of solar 
electric systems for not more than three small businesses.
	(b) To qualify for a grant under this section, the solar 
electric system must be a device that:
		(1) generates electricity using solar resources;                       
		(2) has a generating capacity of not more than 1,000 
kilowatts; and  
		(3) is installed with a warranty against breakdown or 
undue degradation for a period of at least five years.
	(c) A demonstration project grant program established under 
this section must provide for full or partial payment of the cost of 
equipment and installation for the solar electric systems. The 
commission shall establish for each grant program a competitive 
bidding process for grant applicants. The commission shall consider 
the value of funding demonstration projects in different parts of 
this state, after considering the demographic and geographic 
diversity of this state.
	(d) To qualify for a grant under Subsection (a)(1) the 
applicant:     
		(1) must be a person whose primary business activity is 
the building of residential housing developments; and
		(2) must have installed or must be contractually 
obligated to install qualifying solar electric systems in each 
residence constructed in a residential subdivision.
	(e) To qualify for a grant under Subsection (a)(2) the 
applicant must have installed or be contractually obligated to 
install a qualifying solar electric system for residential real 
property:
		(1) appraised in accordance with Section 23.21, Tax 
Code, as affordable housing property; or
		(2) subject to a contractual obligation that the 
property will be appraised in accordance with Section 23.21, Tax 
Code, as affordable housing property within a reasonable time after 
the grant is received.
	(f) To qualify for a grant under Subsection (a)(3), the 
applicant must be a small business or owner of a small business that 
meets qualifications adopted by the commission after consideration 
of federal Small Business Administration standards for 
qualification for loans from that administration.
	(g) The commission shall issue a report to the governor, 
lieutenant governor, and speaker of the house of representatives 
not later than December 1 of each even-numbered year summarizing 
the status of the grant programs established under Subsection (a). 
The report must include the amount of money granted to each 
demonstration project and an evaluation of whether the projects 
demonstrate the economic and ecologic viability of solar electric 
system installations.
	(h) This section expires December 31, 2010.                             
	SECTION ____. (a) The Public Utility Commission of Texas may 
apply to a demonstration project grant program established under 
Section 39.9051, Utilities Code, as added by this Act, any money 
appropriated to the commission that may be used for that purpose.
	(b) The Public Utility Commission of Texas may solicit and 
accepts gifts, grants, and other donations from any source to carry 
out the demonstration grant program established under Section 
39.9051, Utilities Code, as added by this Act.
	(c) Contingent on the passage and becoming law of SB 482, Acts 
of the 80th Legislature, Regular Session, 2007, or similar 
legislation that enacts a provision that establishes a fee on 
retail electric provider related to the number of customers the 
provider gains in a given period, notwithstanding any law 
dedicating that fee revenue for a particular purpose, that fee 
revenue may be appropriated for use by the Public Utility 
Commission of Texas for a demonstration project grant program under 
Section 39.914, Utilities Code, as added by this Act.
	(c) This section expires December 31, 2010.