BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 18 X2
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 18 X2 (Goldberg)
          As Introduced May 17, 2001
          2/3 vote 

           SUMMARY  :  Requires the California Energy Commission (CEC) to  
          establish a grant program to reduce peak load demand by public  
          and private hospitals using thermal energy storage technologies,  
          and appropriates $20 million from the General Fund (GF).   
          Specifically,  this bill  : 

          1)Requires CEC to establish and administer a grant program to  
            reduce peak demand by public and non-profit hospitals, and  
            private hospitals subject to specified limitations, using  
            thermal energy storage technologies.

          1)Authorizes public and non-profit hospitals to apply to CEC for  
            a grant, and provides that no grant shall be awarded to a  
            for-profit hospital until all eligible non-profit hospitals  
            have been awarded grants.

          1)Provides that the amount of the grant shall be based on the  
            projected average number of kilowatts reduced during peak  
            demand periods.

          1)Appropriates $20 million from the GF to CEC.

           EXISTING LAW  requires CEC to administer specified laws with  
          respect to energy conservation.

           FISCAL EFFECT :  GF appropriation of $20 million. 

           COMMENTS  :  Current law requires hospitals to ensure that  
          buildings that house patients are able to withstand earthquakes  
          by 2008 [SB 1953 (Alquist) Chapter 740, Statutes of 1994].  Over  
          450 hospitals with approximately 2,700 buildings are required to  
          either retrofit or rebuild buildings, and must submit their  
          plans to the Office of Statewide Planning and Development by  
          January 1, 2002.  According to the author, the state currently  
          has a unique opportunity to work with hospitals and install new  
          systems that can permanently and substantially reduce peak load  
          demand to alleviate pressure on the grid.

          This bill appropriates $20 million to establish a competitive  
          grant program for installing thermal energy storage technologies  








                                                                  AB 18 X2
                                                                  Page  2

          at hospitals.  Thermal energy storage is a technology that  
          stores "cooling" energy in a thermal storage mass.  Energy is  
          used during nighttime (off-peak) periods to produce and store  
          cool energy in the form of ice or chilled water.  The cool  
          energy in storage is used the next day for air-conditioning or  
          process cooling during periods of peak energy demand.  

          Under this bill, public and private hospitals would be eligible  
          for the grants, but no grant would be awarded to a for-profit  
          hospital until all eligible non-profit hospitals have been  
          awarded grants.   

           
          Analysis Prepared by  :    Kelly Boyd / E. C. & A. / (916)  
          319-2083 
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