SACRAMENTO BUDGET UPDATE

The State is now $28 billion in deficit and issuing IOU’s. Both the State Senate and State Assembly have adjourned until Monday. The Big 5 have been meeting but to no avail. The publicly reported issue is education funding; however, local government officials are “flipping out” (to use a technical term) over raids on local funds.
 

GOVERNOR SIGNS SUBDIVISION MAP EXTENSION MEASURE

Governor Schwarzenegger signed AB 333 (Fuentes), a bill to extend expiring subdivision maps for two additional years. The measure was sponsored by the Building Industry Association and strongly supported by the commercial, industrial, and retail real estate industry. The measure takes effect immediately, keeping hundreds of expiring subdivision maps alive for another 24 months. AB 333 is a key element of the development community’s recovery effort to get homebuilding and construction going again.

SUSTAINABLE BUILDING PREMIUM? YES, SOMETIMES

A recent study by researchers at UC Berkeley asks the question “is there a premium for ‘green’ buildings?” The answer is a qualified “yes,” as the study found significant value in constructing and operating sustainable buildings – at least as far as energy efficiency is concerned. In a finding that doesn’t square with the anecdotal buzz, a LEED certification does not seem to statistically be associated with an increase in marketplace value in the same way that Energy Star is.

The study analyzes the marketplace impact of “green buildings” in America. The authors obtained data (location, size, vacancy rate, etc.) for over 1300 buildings that had either an Energy Star rating or were certified under the US Green Building Council’s LEED program (or both). They combined this information with data gathered on non-Energy Star/non-LEED buildings within a quarter mile of the certified buildings in order to determine whether there is any incremental value derived from either Energy Star or LEED certification in terms of rents or resale values. The results are interesting, expected, and surprising, all at the same time. Click here to see the study.

STUDY FINDS AB 32 WILL ELIMINATE 1.1 MILLION JOBS

A new study has found that small businesses in California will pay an additional $49,691 as a result of the California Air Resources Board’s implementation of AB 32 and the policy will eliminate 1.1 million jobs in the state. Citing severe economic impacts, a coalition of small business organizations called today for the suspension of the regulatory proceedings to implement California’s greenhouse gas program until the report’s findings are analyzed and mitigation measures are added to the state plan. Click here to read more.
 

THE REAL ECONOMIC IMPACTS OF AB 32

The Office of Policy for the Senate Republican Caucus has released a scathing analysis of the California Air Resources Board (ARB) implementation of the state’s climate change law, AB 32. The report begins:

“Despite this massive regulatory encroachment upon how Californians live their lives and how business operates here, the ARB has decided to take a Pollyanna approach to economic forecasting, projecting that the imposition of all these regulatory changes and the costs associated with them will actually have a positive impact on California’s struggling economy. As ARB Chair Mary Nichols reflected in her press release, ‘This plan is California's prospectus for a more secure and sustainable economy. It will guide capital investments into energy efficiency to save us money, into renewable energy to break our dependence on oil, and promote a new generation of green jobs for hundreds of thousands of Californians.’ With all respect to the ARB, Sacramento is not Hollywood, and regardless of whether we build this, the revenues will not necessarily come.”

Click here to read the full report.

GREENHOUSE GAS CEQA GUIDELINES UNDERWAY

The Natural Resources Agency received recommended amendments to the CEQA Guidelines for greenhouse gas emissions from the Governor's Office of Planning and Research. Public hearings on the Proposed Guideline Amendments are scheduled for August 18, 2009 in Sacramento and on August 20, 2009 in Los Angeles. Written comments will be accepted until 5:00pm on August 20, 2009. Click here for more information on how to participate.
 

MANDATORY COMMERCIAL RECYCLING REGULATIONS

As a part of implementing the Mandatory Commercial Recycling measure outlined in the Climate Change Scoping Plan for the California Global Warming Solutions Act (AB 32), the CIWMB is hosting two informal workshops to solicit stakeholder feedback.

These workshops offer an informal opportunity to talk with CIWMB staff about issues related to design and implementation of this Mandatory Commercial Recycling measure. Representatives from the CIWMB will provide background information regarding this effort, including related legislation, related projects, and the overall timeline. CIWMB staff will be soliciting stakeholder input on a range of issues and conceptual regulatory language related to topics such as thresholds, exemptions, implementation, enforcement and costs.

This will impact your business. You are encouraged to attend or provide us with feedback on the proposals:

July 20, 2009
9:30 a.m. to 4:30 p.m.
Cal/EPA Headquarters
1001 I Street
Sacramento, California

August 6, 2009
9:30 a.m. to 4:30 p.m.
South Coast Air Quality Management District
21865 E. Copley Drive
Diamond Bar, California

SOUTHERN CALIFORNIA ALLIANCE PROGRAM

On Tuesday, August 4, you are invited to attend and learn about the current status of recent plans to locate an NFL team in the Los Angeles area and the huge investment in real estate needed to make this a reality. The Southern California Alliance Program, hosted by ICSC, will be discussing the intricacies of bringing an NFL football team back to the Los Angeles area, as well as the planning, design and development of a state of the art football/commercial/entertainment/retail destination complex. The meeting will be held on Tuesday, August 4, 2009, from 11:00am – 2:00pm at the Pacific Palms Conference Resort in The City of Industry. Click here for more information.

NORCAL CITY MANAGERS LUNCHEON

On Thursday, October 29, NAIOP is co-sponsoring the City Managers Luncheon with Lambda Alpha International at the Dante Club in Sacramento. Eight city managers are currently scheduled to appear and more are expected. This event will be moderated by our own Rex Hime. Sponsorship opportunities are available. Click here for more information.
 

BOMA CALIFORNIA 2009 CALENDAR

NOVEMBER 2009

November 5—
BOMA CA BOARD MEETING & ELECTION OF 2010 OFFICERS
Meritage Hotel, Napa, CA
11:00 a.m. - 2:00 p.m.

 November 5-6—
COMMERCIAL REAL ESTATE STRATEGIC ISSUES CONFERENCE
Meritage Hotel, Napa, CA