BILL ANALYSIS
AB 18 X2
Page 1
Without Reference to File
ASSEMBLY THIRD READING
AB 18 X2 (Goldberg)
As Amended May 29, 2001
2/3 vote. Urgency
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.
2)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.
3)Provides that the amount of the grant shall be based on the
projected average number of kilowatts reduced during peak
demand periods.
4)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
AB 18 X2
Page 2
grant program for installing thermal energy storage technologies
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 : Joseph Lyons / E. C. & A. / (916)
319-2083
FN: 0001026