In This Issue:

• AB 32 SCOPING PLAN - CEQA COMMENTS

• AB 32 ECONOMIC ANALYSIS BLASTED BY STATE'S OWN PEER REVIEW TEAM

• AB 32 SCOPING PLAN BLASTED BY CA LEGISLATIVE ANALYST

• CARB STAFF DISMISSES ECONOMIC ANALYSIS CRITICISM

• SPLIT-ROLL PROPERTY TAX STUDY

• STATE OF THE SANTA ANA RIVER WATERSHED CONFERENCE

• WEEKLY ALERT ON HIATUS

• CBPA 2009 CALENDAR

AB 32 SCOPING PLAN - CEQA COMMENTS

The California Air Resources Board (CARB) is expected to adopt the AB 32 Scoping Plan on December 11, 2008. Developing workable and effective CEQA thresholds will be one of the critical steps in working to implement California’s greenhouse gas reduction goals.

To help facilitate that goal, California Business Properties Association (CBPA) and California Building Industry Association (CBIA) have submitted a joint letter regarding the plan's “Recommended Approaches for Setting Interim Significance Thresholds for Greenhouse Gases under the California Environmental Quality Act” (CEQA). Click here to read the CBIA/CBPA AB 32/CEQA Thresholds letter.
 

AB 32 ECONOMIC ANALYSIS BLASTED BY STATE'S OWN PEER REVIEW TEAM

The independent economic "peer review" team assembled by the Air Resources Board to analyze the AB 32 Regulatory Plan has concluded that the state has intentionally skewed analysis of the economic effects of the climate change plan to show positive outcomes

The state's analysis found a net increase in gross state product and individual earnings due to the proposed climate change policies through 2020.

However, all six economists on the review panel found the analysis flawed. Several stated they believe the state cherry-picked data to improve the plan's arguments for reducing greenhouse gas emissions. This independent economic analysis supports arguments and concerns that CBPA and other business and taxpayer groups have been expressing throughout the regulatory process.

Click here to read the ARB's AB 32 Peer Review of the Economic Supplement to the AB 32 Draft Scoping Plan.
 

AB 32 SCOPING PLAN BLASTED BY CA LEGISLATIVE ANALYST

Assembly Republican Leader Mike Villines (R-Clovis) and Assemblymember Roger Niello (R-Sacramento) asked the independent California Legislative Analyst's Office (LAO) to report on the draft scoping plan of the Air Resources Board (CARB) for implementation of the Global Warming Solutions Act of 2006 (better known as AB 32).

The LAO's report on the AB 32 Scoping Plan is highly critical of almost every aspect of the plan. Here is a summary of the LAO's conclusions:

"We conclude that (1) the scoping plan’s overall emissions reductions and purported net economic benefit are highly reliant on one measure—the Pavley regulations, (2) the plan’s evaluation of the costs and savings of some recommended measures is inconsistent and incomplete, (3) Macroeconomic modeling results show a slight net economic benefit to the plan, but ARB failed to demonstrate the analytical rigor of its findings, (4) economic analysis played a limited role in development of the scoping plan, and (5) despite its prediction of eventual net economic benefit, the scoping plan fails to lay out an investment pathway to reach its goals for GHG emissions levels in 2020."

The LAO's conclusions support the many issues and concerns raised by CBPA and many other business and taxpayer groups. You can read the full report by clicking here: CA Legislative Analyst's Office report on AB 32 Scoping Plan.

Click here to read a news account of the LAO analysis.
 

CARB STAFF DISMISSES ECONOMIC ANALYSIS CRITICISM

At today’s Meeting of the Economic and Technology Advancement Advisory Committee – an advisory committee of the Air Resources Board intended to help guide and advise the board as it drafts the AB 32 regulatory framework – CARB staff essentially dismissed their own peer review economic analysis and criticisms from the LAO and stated they are recommending adoption of the Scoping Plan based on their internal economic analysis. The basic stance of the staff is that implementing the scoping plan – as is – will result in positive economic activity for the state.

One member of the committee compared the AB 32 economic analysis with the state’s analysis that was done for electrical deregulation, where every scenario was “rosy.” There was uncomfortable laughter in the room at the resemblance of this economic analysis and the disastrous outcome of the electrical deregulation effort.
 

SPLIT-ROLL PROPERTY TAX STUDY

A study that examines the potential economic impact of a split-roll property tax, taking into account how a split roll would affect the behavior of individuals and businesses who own commercial property, has been completed and distributed to policymakers in California. Click here to read the study entitled "The Economic Effects of California Adopting a Split Roll Property Tax."

CBPA serves on the executive committee for Californians Against Higher Property Taxes, a recently formed coalition of business and taxpayer groups with a mission to educate the public and policymakers about the devastating impacts of higher property taxes. Although higher property taxes are very unpopular and voters have rejected them time and again, some policymakers and advocacy groups often push the issue as a way to raise additional tax revenue.

The study shows that such proposals for property tax increases will only hurt California consumers, seniors and taxpayers, and further damage our state’s struggling economy.
 

STATE OF THE SANTA ANA RIVER WATERSHED CONFERENCE

The Santa Ana River Watershed is a region of 2,800 square miles spanning across four counties and home to 4.8 million residents. It is the fastest growing region in California, with a population estimate of 10 million residents by the year 2050. Join other stakeholders to discuss regional solutions to the issues facing residents, local governments, and businesses at the “State of the Santa Ana River Watershed Conference” on January 29, 2009, at the Ontario Convention Center. This conference will sell out so register now. Click here for more information.
 

WEEKLY ALERT ON HIATUS

Please note, the Weekly Alert will be on hiatus from now until the new year. But don’t worry, if anything major happens, we’ll be sure to let you know. We will return to our regular schedule on Friday, January 9, to bring you all the news, gossip, and inside-information from Sacramento. In the meantime, if you have any questions, comments, or need information, please email Matthew Hargrove.
 

CBPA 2009 CALENDAR

Please note, the date of the February meeting has been changed  – please make the appropriate notation in your schedules.

February 18, 2009
CBPA Board Meeting and New Legislator Luncheon
Sacramento, CA (Hyatt)

March TBD (late March), 2009
CBPA Legislative Committee Meeting
Place TBD (Southern California)

June 9-10, 2009
CBPA Board Meeting and
California Commercial Real Estate Summit (CCRES)
Sacramento, CA

November 5-6, 2009
CBPA Board Meeting and
Real Estate Industry Strategic Issues Conference
Napa, CA (Meritage)