BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2297 (Levine) - Health facilities: reliable alternative clean  
          energy technologies.
          
          Amended: August 4, 2014         Policy Vote: Health 8-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2297 would authorize health facilities to use  
          clean energy technologies as their primary or backup power  
          system, if the system meets federal requirements. The bill would  
          require the Office of Statewide Health Planning and Development  
          to develop building standards for the use of clean energy  
          systems in health facilities for inclusion in the California  
          Building Standards Code.

          Fiscal Impact: 
              One-time costs of about $1.1 million for development of new  
              building standards and associated environmental review of  
              those building standards (Hospital Building Fund). The  
              Office of Statewide Health Planning and Development would  
              incur staff costs, over two years, to develop the new  
              building standards allowing clean energy technologies to be  
              used in health facilities. In addition, the Office indicates  
              that the development and adoption of this new building  
              standard would be subject to environmental review under the  
              California Environmental Quality Act. The Office would  
              contract out for consultant services to complete the require  
              environmental review.
              
              Minor costs to the Building Standards Commission to include  
              any building standards developed by the Office of Statewide  
              Health Planning and Development into the California Building  
              Standards Code.

          Background: Under current law, the Office of Statewide Health  
          Planning and Development develops building standards for health  
          facilities, such as hospitals and clinics. Once building  
          standards have been developed, they are incorporated in the  








          AB 2297 (Levine)
          Page 1


          California Building Standards Code, which is overseen by the  
          Building Standards Commission.

          Current federal rules and state building standards require  
          certain health facilities, such as hospitals, to have a backup  
          power system to power essential systems in the event of a power  
          failure. Under current practice, hospitals typically use diesel  
          generators for backup power.

          Proposed Law: AB 2297 would authorize health facilities to use  
          clean energy technologies as their primary or backup power  
          system, if the system meets federal requirements. 

          The bill would require the Office of Statewide Health Planning  
          and Development to develop building standards for the use of  
          clean energy systems in health facilities for inclusion in the  
          California Building Standards Code, if the clean energy  
          technologies meet federal requirements.

          Staff Comments: Under current federal rules governing the  
          Medicare program, hospital power systems are required to meet  
          specified standards. In particular, federal standards require  
          hospital power systems must use "prime mover" type generators  
          (typically gasoline powered engines, diesel powered engines, or  
          natural gas turbine engines). It is not clear whether there is  
          any "alternative clean energy technology" that would meet these  
          federal requirements.