COMPREHENSIVE PLAN FOR CALIFORNIA’S WATER FUTURE

We applaud the Governor for calling a Special Legislative Session to address the state’s water crisis. On behalf of the commercial, industrial, and retail real estate industry, CBPA has provided input to, and thoroughly reviewed the Governor’s Comprehensive Plan for California’s Water Future and urges the Legislature to adopt this plan as quickly as possible.

California’s water system is in great need of improvements. Our population is expected to grow by more than 600,000 people each year, mushrooming the population to as many as 48 million by 2020; DWR projections show that this growth could increase annual water demands by 6 million acre feet by 2030; and recent studies predict that 25% of the snowpack, which is our largest water storage system, will be lost by 2050.

To accommodate for growth as well as these anticipated hydrological changes, California must be prepared to manage our water in a comprehensive, efficient manner. There are many impediments to doing so, including a tangible shortage of facilities, the lack of effective conveyance, and problems with the Delta. The shortfall is evident, the disaster is eminent, and this plan, if we can come together and agree on the details, the Governor’s Comprehensive Plan for California’s Water Future may help our state navigate its way out of this crisis.

Click here to read the Governor’s Comprehensive Plan for California’s Water Future

PERATA STATEMENT ON GOVERNOR’S WATER PROPOSAL

Below are highlights on what Senate President pro Tem Don Perata (D-Oakland) had to say about the Special Session on Water:

I applaud the Governor for engaging in the state’s quickly deteriorating water delivery system. I only wish he had provided more direction earlier in the year when the Senate struggled to get a bond bill to his desk, in anticipation of the federal court’s ruling.

Instead, now we have a gun muzzle at our temple; unless we take swift action for immediate relief, the court will effectively cut water as much as 60 percent to millions of California consumers and thousands of businesses.

I look forward to working with the Governor on a bond bill that makes a sizable investment in the immediate term.

VETOES REQUESTED ON THREE GREEN BUIDING MANDATES

Three separate bills dealing with green building issues in California have gone to the Governor: AB 35 (Ruskin; D-Redwood City) - Mandates LEED Gold for State Buildings; AB 888 (Lieu; D-Torrance) - Mandates LEED Gold for Commercial Buildings; AB 1058 (Laird; D-Santa Cruz) - Mandates LEED for Homes.

Although BOMA California supports the ultimate goals of all the bills, more sustainable buildings, we are leaders in a very large coalition of business and industry groups, opposing all three measures and asking that they be vetoed. None of the entities supporting these measures build, own, or operate buildings.

Aside from cost issues and disagreement with harsh mandates that provide no incentives encouraging companies to continue to move in this direction, we believe that codifying LEED, which is a voluntary program written by a private entity, would set several very bad policy precedents for our state including: 1) circumventing Title 24, which is arguably one of the most environmentally progressive building codes in the nation; 2) undercutting an ongoing green building codes writing process; 3) codifying standards that have no public process for input; 4) mandating different standards based on who owns a building not on its use or occupancy; 5) finally, they would mandate a competitive advantage to one certification program over other existing programs.

We understand that the developers of LEED are part of a respected private organization that has done much to advance sustainable buildings, and many of our members are affiliated with them; but even so, we don't believe the state should cede its rulemaking and building codes authority over to a non-public entity regardless of its positive nature and stature.

California's Building Standards Commission has served as the lead oversight agency for all building standards adopted in California for the past thirty years, and they have performed this highly technical and specialized task very well. Given that mandatory green building standards must be incorporated into the provisions of all six of the main state codes (building, fire, plumbing, mechanical, electrical and energy), we don't think they should or could just simply adopt an existing program "off the shelf", but need to go through the normal process, receive input from stakeholders, and draft a set of standards that make sense for our state. A lot of that might be based on the work of LEED but mandating their specific program, and their second highest standard at that, doesn't seem reasonable.

The BSC’s Green Building Committee is already well underway with the task of creating state standards and BOMA has been actively participating (see next story). We support that process as it is open and transparent and will incorporate economic considerations as well as input from industry experts. Once the state implements its green building policy we think there will be a huge market for LEED, Green Globes, and whatever other company that comes along to help guide the building more efficient buildings for those companies that choose to be certified.

Click here to find information about all three bills.

PROPOSED GREEN BUILDING GUIDELINES UNDER REVIEW

Draft Green Building guidelines under consideration by the CA Building Standards Commission (BSC) have been released and are available for review. The BSC the Department of Housing and Community Development (HCD), with the assistance of a Green Building Focus Group, are developing green building standards for new construction of buildings under their respective authorities, state buildings and homes. The standards will primarily be voluntary and use existing green building standards, best practices, guidelines, or other published material in their development

Initial drafts will be discussed on Monday at the Green Building Focus Group which is a voluntary group with representatives from a wide array of entities including environmental groups, state agencies, business and industry, and the legislature. Comments are timely through October. We need people from industry that are willing to review and provide comments on the draft proposal – please reply to this email if you are interested in seeing the guidelines and/or being involved in this process. This process is extremely important and will have long lasting impacts on our industry. Click here for more information on the Green Building Focus Group.

ENERGY COMMISSION WORKSHOP ON GREEN BUILDINGS

On Tuesday, Septembers 25, The California Energy Commission staff will conduct a workshop to receive input on obstacles to and possible incentives for increasing energy- and resource-efficient (green) building projects in the private commercial sector. Entitled “AB 2160 Workshop, Furthering Green Private Sector Commercial Building Projects,” the workshop will be held at the Energy Commission headquarters in Sacramento.

The purpose of this workshop is to receive comments from the parties identified in AB 2160 and from any other interested parties on obstacles to and incentives for furthering green building in private sector commercial buildings. Draft lists of obstacles and incentives are attached to this notice as a starting point for discussion. The Energy Commission is seeking additions, clarifications, refinements, and other comments on the draft lists. Energy Commission staff will take comments and compile final lists for inclusion in the report to the Green Action Team. Click here to see the full agenda .   BOMA California will have a presence at the workshop but your participation is highly encouraged as we need industry experts to help explain issues related to these policies. If you cannot make the workshop but would like to pass along thoughts and comments for consideration, please put your comments in writing and email to Matthew Hargrove.

CPUC APPROVES HISTORIC SUBMETERING AGREEMENT

The California Public Utilities Commission (CPUC) has approved an historic agreement between the Building Owners and Manager Association of California (BOMA California) and Pacific Gas & Electric (PG&E) to begin allowing commercial high-rise building owners and managers in PG&E’s service territory to “submeter” tenants and to reduce rates for large commercial users.

Ken Cleaveland, Director of Government and Public Affairs for BOMA San Francisco and Chair of BOMA California’s Energy Committee sees this as an industry-wide victory. “The recently approved submetering agreement with PG&E is extremely important to all the BOMA members, not just in California, but nationwide. This ruling finally recognizes the part that tenants can play in reducing overall energy consumption, and will allow owners to directly engage their tenants in both understanding and reducing their in-space energy usage.”

The submeter decision means owners can engage tenants directly in energy conservation measures which should further reduce future overall consumption in office buildings. In addition to submetering, the agreement also provides for a 9-10% reduction in commercial rates for large users such as most large commercial office buildings.

“This is a huge win for commercial real estate in California. BOMA International’s Industry Defense Fund and the monetary support of California BOMA local associations were essential in making sure commercial real estate was represented in these negotiations,” said Rob Cord, President of BOMA California. “We are pleased about this success, but the fight is not over. BOMA California must remain at the table to work on other energy issues that are important to the commercial real estate industry including expanding submetering to all areas of California, fighting for rate parity and direct access, and resisting critical peak pricing and mandatory demand response schemes.”

Under the administrative umbrella of BOMA California, local BOMA associations and BOMA International funded an effort to directly engage with utilities at the CPUC during General Rate Case proceedings. Both the rate reduction and the submetering agreement were a direct result of this industry funded effort to engage in the regulatory process and fight on behalf of the interests of commercial property owners and managers.

Click here to read more details about the Submetering agreement.

 

TRANSPORTATION COMMISSION ALLOCATES $625 MILLION IN NEW FUNDING

The California Transportation Commission has allocated $625 million in new funding for 114 transportation projects throughout the state. In addition, Business, Transportation and Housing Agency Secretary Dale E. Bonner has proposed that the CTC accelerate the implementation of the Proposition 1B $2 billion trade corridor infrastructure funding program to the end of the year. This new timeline would allow the project funding to be incorporated into the Governor’s 2008-2009 budget proposals in January. It will also provide an opportunity to work with the Legislature on these important priorities during the next session, instead of waiting for the 2009-2010 budget to invest in vital infrastructure projects.

The total value of the 114 transportation projects approved by the CTC is $625 million, of which $123 million is funded from Proposition 1B, the voter approved transportation bond. For a complete list of allocated projects click here.

AIR RESOURCES BOARD BEGINS PROCESS TO DISBURSE VOTER APPROVED FUNDS

The California Air Resources Board (CARB) has initiated the process to disburse the initial investments from Proposition 1B to accelerate badly-needed reductions of emissions from the movement of goods in California. The 2007-08 budget signed by Governor Schwarzenegger funded the initial $250 million of the $1 billion set aside in Proposition 1B to pay for air quality improvement projects from the movement of goods in California. Proposition 1B was part of Gov. Schwarzenegger’s Strategic Growth Plan, put on the ballot by the Legislature and before the voters in November 2006.

Voters overwhelming approved the near $20 billion bond which also made significant investments in highway improvements, congestion relief, expanded public transit, safer rail crossings and improved anti-terrorism security at shipping ports.

Under the Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006, the Air Resources Board is authorized to spend a total of $1 billion on air quality improvement projects in California’s major trade corridors. These corridors include the Los Angeles/Inland Empire Region, the Central Valley, the Bay Area and the San Diego/Border Region. CARB will begin the process of crafting an allocation plan and establishing guidelines and criteria for evaluating proposed air quality improvement projects. Likely projects to be considered by the Air Board include:

• Upgrade of old, high-emitting trucks used to serve ports and intermodal rail yards, as well as to transport goods and farm produce throughout the state
• Electrification of piers that serve frequent visitor ships, to avoid the use of onboard diesel generators
• Replacement of older switch engines and other locomotives with new models meeting ultra-low emissions levels
• Replacement of existing diesel engines on harbor craft with new, cleaner engines

According to the CARB, once fully implemented, funded projects are likely capable of reducing combined emissions of nitrous oxide and diesel particulate matter by more than 250,000 tons (or more than 500,000 weighted tons) during the life of the bond-funded equipment.

CPUC COMMISSIONER WANTS YOU “OFF THE GRID” BY 2030

California Public Utilities Commissioner Dian M. Grueneich released a proposed decision that would require new commercial buildings to be “zero net energy” or self-sufficient and “off the energy grid” by 2030 and residences to the same a full ten years earlier. Grueneich said the goals are ambitious but attainable. Others have said the goals are fantasy and we are nowhere near the ability to have all new construction at zero net energy within the next 20 years. A similar proposal, AB 1065 (Lieber; D-Mountain View) was introduced in the Legislature this year and died due to its immense cost and impossible policy.

In order to meet these goals, very expensive on-site generation of electricity (solar, fuel cell, wind, or some yet unknown technology) will have to be combined with stringent energy efficiency measures. And while the mass application of PV solar energy system technology is farther along than fuel cell technology, neither one of these technologies is cost-effective or easily implementable. With regards to PV energy system costs, the fact of the matter is that instead of going down in cost by 6%-8% per year (estimates used in the Capitol over the past 3 years); PV solar energy system costs have actually increased by 25% over the past 18 months. Even if solar technology was cost effective, most high-rise commercial buildings don’t have anywhere near enough roof-space to house the number of panels that would be needed to power a building, not to mention shading issues from neighboring buildings and local codes conflicts for roof arrays. Click here to read some press coverage about the proposal.

CITY OF REDLANDS PROPOSES NEW TAX

The Inland Empire Chapter of NAIOP is leading the battle against a proposed new business license tax aimed at distribution centers. The proposed tax saddles the twelve Distribution Center Businesses with $350,000 in new taxes – or 14% of the total taxes collected by the City. Distribution Center Businesses want to be good neighbors and pay their fair share, but this new tax is simply unfair. Redlands charges less to massage parlors, pawnshops and fortunetellers.

These commercial properties already generate over $4.5 million in annual property taxes and provide over 1,550 jobs.

The election is rapidly approaching and what happens in Redlands can spread throughout the state. CBPA urges you to contact Robert Evans, Executive Director of the National Association of Industrial and Office Properties Inland Empire Chapter at rob@naiopie.org or (951) 324-0350.

PRELIMINARY INJUNCTION AGAINST SF RESTRICTIONS ON INDEPENDENT PACS

BOMA San Francisco, in conjunction with The Committee on Jobs, a local association representing San Francisco's largest employers, received a huge victory September 20 when the Federal District issued a preliminary injunction against San Francisco's contribution limits to Independent Expenditure PACs. BOMA San Francisco had established such a political action committee ten years ago, but was restricted to only receiving $500 or less in individual or corporate contributions. Independent Expenditure PACs are committees that raise funds and get involved in candidate or issue elections but are run completely "independent" of any association or coordination with the official candidates' campaigns. The BOMA San Francisco Political Action Committee Board of Directors had always objected to this artificial contribution limit, and never thought it would stand constitutional muster. So, in August, 2007, BOMA teamed up with the Committee on Jobs, which didn't have an IE PAC, but was interested in testing the rule, and together filed a challenge to the city law. The result: a huge victory for BOMA, the Committee on Jobs, and free speech. This win is particularly sweet as San Francisco continues to do everything it can to limit the involvement of the business community in the local political process.

BOMA CALIFORNIA CODES COMMITTEE; VOLUNTEERS NEEDED

Issues related to California Codes will be among the major actions that will impact on the commercial real estate industry over the next decade and BOMA California is well positioned to assure it has a seat at the table and is part of the decision-making process. We have retained a firm in Sacramento with access to experts that puts someone in the room at agency hearing that will impact our industry as regulators discus issues from Green Building Codes to ADA compliance. However, BOMA California needs to build a committee of individuals from our member companies that can start prioritizing and directing our Sacramento to take specific actions, closely follow specific issues, and act as a sounding board. We need individuals with varied backgrounds to build a robust committee that can assess a broad range of issues. If interested, please respond to this email or email BOMA California Administration.

STRATEGIC ISSUES CONFERENCE: GLOBAL WARMING AND THE BUSINESS OF REAL ESTATE

***This is the last week to reserve a hotel room at the Meritage under the rate of $199 per night plus applicable taxes and fees – please contact Tracy Fujii at tfujii@cbpa.com

Four major industry groups are combining forces to sponsor a high level discussion regarding the impacts of “global warming” policy on our industry. From AB 32 greenhouse gas regulations to the legislative focus on “green building” mandates, this conference promises to deliver the most up to date thinking about the politics driving these policies and will offer strategic discussion to set the course on how we can proactively be at the table and positively influence policy.

Click here to see the Strategic Issues Conference Website.

Joint sponsors for this event include: California Business Properties Association (CBPA), California Building Industry Association (CBIA), Building Owners and Managers Association of California (BOMA California), and Retail Industry Leaders Association (RILA),

The event will be held November 1-2, 2007, at the Meritage Resort in Napa Valley. A stellar line-up of policy and decision-makers from Industry, the Schwarzenegger Administration and Legislature, as well as a respected member of the political press corps, is coalescing for the conference. Until we can announce confirmed names of speakers, here is the framework agenda:

THURSDAY, NOVEMBER 1, 2007
4:30 p.m. – 6:00 p.m. Kick-off Reception in the Wine Caves
6:00 p.m. – 8:30 p.m. Dinner with Special Guest Speaker

FRIDAY, NOVEMBER 2, 2007
8:00 a.m. – 9:00 a.m. Breakfast with Special Guest Speaker
9:00 a.m. – 11:30 a.m. Panel Presentations
* Building Green/Green Building Policies
* CEQA / AB 32
11:30 a.m. – 1:00 p.m. Luncheon with Special Guest Speaker

For early-bird registration information and special room rates, please contact Tracy Fujii at CBPA, 916-443-4676, or tfujii@cbpa.com.

Don’t just react – be a leader – participate in this conference and shape important issues that will affect your businesses.

BOMA CALENDAR 2007/2008

November 1 & 2 – BOMA Cal/CBIA/CBPA Fall Joint Legislative Conference
BOMA Cal Annual Meeting
Napa Valley (Meritage Resort)

January 15 – BOMA Cal Board Meeting
Los Angeles
In conjunction with IREM/BOMA GLA Forecast Breakfast

March/April (date TBD) – BOMA Cal Board Meeting
Location TBD

June 10-11 – CA Commercial Real Estate Summit – BOMA Cal Board Meeting
Sacramento (Hyatt Regency)

October/November (date TBD) - BOMA Cal Annual Meeting/20th Anniversary Event
Location TBD