BILL NUMBER: SBX2 52	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 17, 2001
	AMENDED IN SENATE  JUNE 26, 2001

INTRODUCED BY   Senator Chesbro

                        MAY 17, 2001

   An act to add Section 25227 to the Public Resources Code, relating
to thermal energy storage.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 52, as amended, Chesbro.  Thermal energy storage:  off-peak
electricity.
   The existing Warren-Alquist State Energy Resources Conservation
and Development Act declares that it is the policy of the state to
develop all practicable and cost-effective conservation and
improvements in the efficiency of energy use and distribution that
offer equivalent or better system reliability, and which are not
being exploited by any other entity.
   This bill would require the commission to  establish a
program to significantly increase   analyze  the
use of thermal energy storage technologies  in specified
types of buildings  , as specified  .  The bill
would require the commission, on or before  November 1, 2001
  July 1, 2002  , to report to the Legislature
regarding thermal energy storage technologies.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) California is experiencing a shortage of electricity supplies
during peak demand periods due in large part to energy consumption
related to air-conditioning and industrial process cooling.
   (2) Thermal energy storage technologies reduce electrical demand
during peak air-conditioning periods by shifting electrical usage to
nighttime, off-peak periods.
   (3) Numerous California businesses and public institutions have
successfully used thermal energy storage systems in a variety of
applications, including schools and universities, office buildings,
wine making, and agricultural cooling applications.  
   (4) Architectural, engineering, heating, ventilation, and
air-conditioning companies are not aware of the benefits of thermal
energy storage systems, and consequently do not provide for their use
in the design of new buildings or industrial process cooling, or the
refurbishment of existing air-conditioning systems.
   (5)  
   (4)  Establishing public policy measures to increase the use
of thermal energy storage technology will lead to a reduction in peak
electricity demand, a reduction in the need for adding additional
peaking electrical generating capacity in the state, and will
decrease the likelihood of electricity shortages in the future.
   (b) It is the intent of the Legislature to  increase
  evaluate  the use of thermal energy storage
technologies in commercial, educational,  agricultural, and
industrial facilities by establishing state policies to shift
air-conditioning loads from peak to off-peak periods.  
agricultural, and industrial facilities. 
  SEC. 2.  Section 25227 is added to the Public Resources Code, to
read:  
   25227.  (a) The commission shall establish a program to
significantly increase the use of thermal energy storage technologies
in state-owned buildings, public and private schools, new commercial
and industrial buildings, agricultural applications, and other
commercial facilities where thermal energy storage technologies can
help reduce consumption of electricity during peak load periods.  The
commission shall consider both retrofit and new construction
applications.  On or before November 1, 2001, the commission shall
report to the Legislature a plan to ensure that thermal energy
storage technologies become a mainstream means of reducing peak
electricity demand by shifting air-conditioning and process cooling
electrical demand to off-peak load periods, including, but not
limited to, consideration of the following:
   (1) Changes in the nonresidential building energy efficiency
standards of Title 20 and Title 24 of the California Code of
Regulations to provide offsets or credits, or both, for energy
budgets that incorporate thermal energy storage.
   (2) Incentives to equip commercial buildings and electric
utilities with the capacity to automatically reduce loads on
air-conditioning equipment and shift these loads to thermal energy
storage equipment during periods of peak electricity demand through
dispatch signals from utilities or power suppliers.
   (b) As used in this section, the following terms have the
following meanings:
   (1) "Off-peak" means electrical generating capacity between the
hours of 10 p.m. and 6 a.m.
   (2) "Thermal energy storage" means a form of technology that uses
off-peak energy to produce and store cool energy in the form of ice
or chilled water for use the next day in air-conditioning or process
cooling.  
   25227.  The commission shall analyze thermal energy storage
technologies for cost-effectiveness and to determine if and how
thermal energy storage technology can help California meet its peak
energy needs.  The analysis shall consider different settings for the
technology, such as agricultural and commercial office applications.
  As part of the analysis, the commission shall consider the
effectiveness of working installations of the technology.  The
commission shall complete its analysis on or before July 1, 2002, and
shall report the analysis on that date to the Legislature.