BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2297
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          Date of Hearing:  April 22, 2014

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                    AB 2297 (Levine) - As Amended:  April 2, 2014
           
          SUBJECT  :  Health facilities: fuel cell generators.

           SUMMARY  :  Allows certain health facilities to use reliable  
          alternative clean energy technologies as primary or backup power  
          sources if the technology meets reliability requirements set  
          forth by federal and state regulators.  Requires the Office of  
          Statewide Health Planning and Development (OSHPD) to submit  
          guidelines for the use of reliable alternative clean energy  
          technologies to the California Building Standards Commission  
          (CBSC) in the next triennial edition of the California Building  
          Standards Code.  

           EXISTING LAW  :  

          1)Establishes OSHPD which, among other things, is responsible  
            for developing the building standards for the adequacy,  
            safety, and sanitation of the physical plant of general acute  
            care hospitals and requires regulations adopted pursuant to  
            law to permit program flexibility by the use of alternate  
            concepts, methods, procedures, techniques, and equipment.

          2)Establishes the CBSC, consisting of the Secretary of the State  
            and Consumer Services Agency, and 10 members appointed by the  
            Governor, as specified.  California's building codes  
            (California Code of Regulations, Title 24) are published on a  
            triennial basis.  The CBSC is responsible for the  
            administration and implementation of each code cycle, which  
            includes the proposal, review, and adoption processes. 

          3)Requires any building standard adopted or proposed by state  
            agencies, including OSHPD, to be submitted to, and approved or  
            adopted by, the CBSC.  Requires building standards adopted by  
            state agencies and submitted to CBSC to be accompanied by an  
            analysis written by the state agency that proposes the  
            standards to justify the approval to the satisfaction of the  
            CBSC.

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.








                                                                  AB 2297
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           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, the health and  
            environmental risks of diesel exhaust have been  
            well-documented.  The author also notes that processes are  
            underway at the federal level to explore making current  
            regulations on essential backup technologies technologically  
            neutral, and that this means that, so long as technology is as  
            reliable and safe as diesel generators, they could be used as  
            replacements.  The author concludes that this bill simply  
            directs the state to prepare for these standards by allowing  
            for clean energy technologies that are at least as reliable as  
            diesel generators.

           2)BACKGROUND  .  Health facilities are required to maintain backup  
            generators to provide emergency lighting and power supplies in  
            case of a power failure.  State and federal regulations  
            require hospitals to store enough fuel to operate the  
            generators for 48 hours.  All general acute care hospitals in  
            California use diesel generators as their back-up.  

            State building standards.  Building standards submitted to the  
            CBSC for approval are required, by law, to be accompanied by  
            an analysis which will, to the satisfaction of the Commission,  
            justify their approval.  The approval of the proposed building  
            standards is based on a nine point list of criteria that must  
            be met, including whether or not the proposed building  
            standards conflict with, overlap, or duplicate other building  
            standards, and that the applicable national specifications,  
            published standards, and model codes have been incorporated  
            where appropriate. 

            Diesel.  Diesel engines emit a complex mixture of air  
            pollutants, including particulate matter.  In 1998, the  
            California Air Resources Board identified diesel particulate  
            matter as a toxic air contaminant based on its potential to  
            cause cancer and other adverse health effects.  In addition to  
            particulate matter, emissions from diesel engines include over  
            40 other cancer-causing substances.  A report issued in 2002  
            by the Environmental Defense Fund estimates that the cancer  
            risk from diesel exhaust is about 10 times higher than from  
            all other toxic air effects on the respiratory, neurological,  
            and immune systems, especially for vulnerable groups such as  
            children and people who are ill and at a higher risk of injury  








                                                                  AB 2297
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            and illness due to exposure to diesel exhaust.

            Environmental Protection Agency regulations, which go into  
            effect in 2015, will require emergency engines to use cleaner  
            fuel, ultra-low sulfur diesel however, the rules re-state that  
            in an emergency, such as a hurricane or earthquake, any engine  
            of any size can operate without meeting emission limits.

           3)SUPPORT  .  The National Resources Defense Council (NRDC)  
            supports this bill and writes that currently hospitals are  
            required to have diesel back-up generators on-site in case  
            electricity from the grid fails and these backup generators  
            are required to be tested at regular intervals.  NRDC further  
            argues that diesel back-up generators contribute to local air  
            pollution problems and that even though other technologies  
            exist that provide similar electrical back-up capacities and  
            are cleaner than back-up diesel generating technologies,  
            significant regulator impediments exist that prevent hospitals  
            from utilizing these cleaner technologies.

            The Environmental Defense Fund (EDF) also supports this bill  
            stating that researchers estimate that as many as 60,000  
            Americans die prematurely each year because of exposure to  
            fine particles and diesel back-up generators emit fine  
            particles at extremely high rates.  EDF states that this bill  
            will help allow for the adoption of less- or non-polluting  
            technologies in many of the areas of California most impacted  
            by localized air pollution.  

          4)PREVIOUS LEGISLATION  . 

             a)   AB 390 (Montanez), Chapter 676, Statutes of 2003,  
               reduces the testing frequency for testing diesel back-up  
               generators of health facilities and aligned California law  
               with The Joint Commission standards governing this type of  
               testing.


             b)   AB 2216 (Gaines), Statutes of 2010, Chapter 164,  
               extended until January 1, 2011, a requirement that health  
               facilities meet the most recent standards set by the Joint  
               Commission for testing of backup diesel generators.

           5)TECHNICAL AMENDMENTS  .  
           








                                                                 AB 2297
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              a)   As currently drafted, this bill requires OSHPD to submit  
               guidelines to the CBSC which would allow hospitals to use  
               reliable alternative clean energy technologies as primary  
               or back-up power sources if the technology meets  
               reliability requirements set forth by federal and state  
               regulators.  Existing law specifies that OSHPD proposes  
               building standards for CSBC approval, but does not submit  
               guidelines.  This bill should be amended to reflect this.
              
              b)   As currently drafted, this bill allows for the use of  
               reliable alternative clean energy technologies for  
               "essential services."  Regulations refer to generators as  
               "essential power systems."  This bill should be amended to  
               reflect this.
              
          6)POLICY COMMENT  .  Current state standards and codes for  
            hospital construction are based on federal standards and codes  
            and both specify that backup generators use technology that  
            employs "prime mover" technology, which is a device supplying  
            the turning force necessary to turn the shaft of a generator  
            or alternator.  Steam turbines or diesel engines are the most  
            common prime movers for electrical generators, and currently  
            diesel generators are the only types of generators that  
            satisfy those regulations.   
           
           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Bloom Energy
          ClearEdge Power, LLC
          Environmental Defense Fund
          Natural Resources Defense Council
          Sunrun, Inc.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097