Presentation Outline:

Legislative Update: Sunset; Oil & Gas; Electricity; Energy Efficiency; Air Quality; Alternative Fuel Vehicles; Other Regulatory Reform; Energy Tax Policy.

EPA Regulatory Threats: The EPA Avalanche; Oil & Gas; Electricity; Risks to Texas; What Can Texas do to Respond?

Overview of Process: Sunset Legislation

• “Sunset date”:Each agency is set to expire or “sunset” on a specific date.

• Sunset review:For the two years before an agency’s sunset date, the agency will undergo a review by the Sunset Advisory Commission, which involves interviews, analysis, and the publication of a report on the agency.

• Sunset recommendation:Sunset Advisory Commission will recommend to abolish the agency, continue the agency, or continue the agency with revisions.

• Development of legislation:The Commission will ultimately prepare legislative language that accomplishes its recommendation.

• “Safety net”:Near the end of the session, a bill will be passed that continues key agencies for which sunset legislation has not yet been made final.