In This Issue:

• LOW CARBON FUEL STANDARD ADOPTED BY CALIFORNIA AIR RESOURCES BOARD

• THOU SHALT NOT CONSIDER SCIENCE OR ECONOMICS

• INFRASTRUCTURE PROJECT FUNDS TO FLOW AGAIN

• SO MANY HEARINGS!

• OPR RELEASES CEQA GUIDELINES FOR GREENHOUSE EMISSIONS

• WATER LOSSES REPORT

• CBPA 2009 CALENDAR

LOW CARBON FUEL STANDARD ADOPTED BY CALIFORNIA AIR RESOURCES BOARD

In another dubious milestone, California has just become the first state in the nation to mandate carbon-based reductions in transportation fuels, known as the Low Carbon Fuel Standard (LCFS). The Air Resources Board (CARB) adopted the measure in its ongoing effort to cut the state's overall greenhouse gas emissions to 1990 levels as mandated by AB 32.

LCFS is the first major greenhouse gas emission reduction measure to be adopted under the AB 32 Scoping Plan adopted in December 2008. CBPA along with a very large business coalition expressed concern at the meeting that the rule is being adopted without an understanding of its economic impact, or the technologies even exist to meet the requirements. Click here to read the letter.

THOU SHALT NOT CONSIDER SCIENCE OR ECONOMICS

In a related and somewhat surreal story, legislators killed three bills this week that would have asked regulators implementing brave new environmental regulations to consider economics and science.

* AB 1107 (Blakeslee; R-San Luis Obispo) Would have required that the Environmental Protection Agency conduct an external peer review of the scientific basis for any proposed rule.

* SB 295 (Dutton; R-Inland Empire) Would have delayed AB 32 regulations until the state’s economy is better.

* ACR 14 (Niello) Called on the State Air Resources Board, prior to any regulatory action being taken consistent with the AB 32 scoping plan, to perform an economic analysis to give the State more information on costs and benefits of the implementation.

All three bills enjoyed broad support from business groups. All three bills were defeated along party lines.
 

INFRASTRUCTURE PROJECT FUNDS TO FLOW AGAIN

Following the sale of $6.85 billion in bonds, including $5.2 billion in Recovery Act-backed bonds, Governor Schwarzenegger announced more than 5,000 projects will be restarted in California, reviving economic activity and creating jobs. Restarted projects include everything from transportation to school construction to environmental and park projects and many more. These projects had been on hold since December 2008. California is the first state in the nation to sell Build America Bonds, taking advantage of this new opportunity provided by the federal Recovery Act. A complete list of the more than 5,000 projects will be available shortly at www.dof.ca.gov.
 

SO MANY HEARINGS!

Although “hope springs eternal,” around the Capitol, Spring is the time when policy committees seem to drag on for an eternity…. As we lead up to the major legislative checkpoint, “First House Policy Deadline” is when all 2500 bills that have been introduced in the Capitol get their first policy hearing. Just this past week, your fearless representatives in Sacramento have weighed in on and or provided direct testimony on over 30 bills. Next week we will see a similar number of bills heard. Once the dust settles we will report on all the actions.
 

OPR RELEASES CEQA GUIDELINES FOR GREENHOUSE EMISSIONS

California’s Office of Planning and Research has submitted its proposed amendments to the state CEQA Guidelines for greenhouse gas emissions, as required by SB 97 (2007). These proposed guideline amendments provide guidance to public agencies regarding the analysis and mitigation of the effects of greenhouse gas emissions in draft CEQA documents. The Natural Resources Agency will conduct formal rulemaking in 2009, prior to certifying and adopting the amendments, as required by Senate Bill 97. This rulemaking has the potential to significantly alter the way CEQA is applied to projects and we hope you will stay involved to assure we can represent your interests to the fullest extent. Please visit the OPR website at www.opr.ca.gov for more information.
 

WATER LOSSES REPORT

Policy experts at the Senate Republican Caucus have written a paper that examines one facet of the water crisis dealing with conservation and just how much water Californians can stand to do without. “As California suffers its first multi-year drought since 1987-1992, a “regulatory drought” has also arrived. The state has made considerable strides to enhance local supplies and improve efficiency, but we face greater challenges in meeting water demands than during the prior drought. There are 10 million more people to serve, and improved agriculture efficiency has reduced the effectiveness of conservation measures. Worst of all, available water supplies have dwindled and not because of any force of nature. Much like the conspirators in the movie “Chinatown,” regulators are steering more and more of our essential water supplies out to sea.” Read the full report here.

CBPA 2009 CALENDAR

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

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