THANK YOU FOR MAKING STRATEGIC ISSUES 2007 A SUCCESS!

BOMA California along with our co-hosts California Business Properties Association (CBPA), California Building Industry Association (CBIA), and Retail Industry Leaders Association (RILA) would like to thank everyone who attended and spoke at the Strategic Issues Conference 2007; Global Warming and the Business of Real Estate. In terms of numbers, this year’s conference was an overwhelming success – we sold out the hotel, and welcomed almost 30% more conferees than expected. We thank you for the support and look forward to seeing all of you in June at the California Commercial Real Estate Summit!

BUSINESS RESPONDS TO LATEST HEALTH CARE PROPOSAL

The California Chamber of Commerce responded to the latest health care proposal from Assembly Speaker Fabian Núñez (D-Los Angeles) and Senate President Pro Tempore Don Perata (D-Oakland).

The proposal would:
• Require employers to spend the equivalent of 6.5 percent of their payroll costs on health care or pay an equivalent amount into a state fund. Employers with payrolls under $250,000 would be required to spend 4 percent on health care, and those with payrolls under $100,000 would pay 2 percent.
• Mandate all Californians to obtain health insurance. Low earners would have their premiums subsidized by the state, and families of four earning up to $92,925 a year would receive a tax credit for the portion of premium costs that exceed 6.5 percent of their incomes.
• Require a state board to decide what minimum levels of insurance people would be required to purchase. Any family that would have to pay more than 6.5 percent of its income on premiums would be exempted from the mandate to have insurance.
• Increase the state's 87-cents-a-pack tobacco tax to $2.87 to help pay for the subsidies.
• Place a new tax on hospitals that would allow the state to qualify for several billion dollars more in federal aid.

The bill, AB 1x has been scheduled for a hearing on November 14. During his news conference, Speaker Núñez said that he hopes the Assembly will vote on the proposal around Thanksgiving.

Click here to read the CalChamber’s full press release.

2007 LEGISLATIVE WRAP-UP

The 2007 legislative year has drawn to a close with the Governor signing 750 bills and vetoing 214. The commercial, industrial and retail real estate industry did very well this year with five bills signed that we supported and no significant bills signed that we opposed.  Click here for a wrap-up of BOMA California’s 2007 high-priority legislation.

AB 32 ARB SCOPING PLAN WORKSHOPS

In more “ambitious but attainable” news, the California Air Resources Board (ARB) advanced the state's global warming fight on two fronts Thursday. By a unanimous vote, the board adopted strict standards for measuring the "carbon offsets" generated by well-managed forests. Separately, it started the regulatory wheels turning on a suite of new emissions-cutting schemes.

The regulations that are being written will impact the way you do business. The ARB is leading the effort to develop regulations on implementation of the state’s landmark Global Warming Solutions Act of 2006, commonly referred to by its legislative bill number, AB 32.

The ARB has developed a workshop schedule which we are providing below in hopes of getting people from our industry interested and involved in the process. BOMA and other business groups are there to engage on behalf of industry, but we are usually outnumbered 3-1 by environmentalists, no-growthers, chicken-littles, and others that understand the importance of this process in achieving their ultimate policy goals.

On November 30, 2007, ARB will hold a public workshop to explain the Scoping Plan process and schedule, and to initiate a discussion about the structure of the Scoping Plan such as how commitments should be designed, cost-effectiveness methodologies, and other basic elements of the Plan. This workshop will be held at the South Coast Air Quality Management District offices in Diamond Bar and will be webcast.

On December 14, 2007, ARB will hold a Sector-Based Workshop. Staff will provide an overview of the sectors responsible for the largest percentage of greenhouse gas emissions, and provide an overview of the staff's current thinking about potential emission reduction measures for the Scoping Plan. This workshop will be held at the Cal/EPA Headquarters Building in Sacramento and will be webcast.

In mid-January 2008, ARB will hold a Tools Workshop to discuss the various mechanisms that are available to achieve the 2020 emission reduction targets, including direct regulations, markets, voluntary actions, and incentives. The location for this workshop has not yet been finalized.

In late-March 2008, ARB plans to hold a Scenario Workshop to explore different emission reduction strategies. The staff will present different combinations of potential emission reduction measures and discuss preliminary analyses of the scenarios.

In October 2008, ARB staff plans to release its proposed Scoping Plan.

In November 2008, the ARB is scheduled to consider the Scoping Plan.

Click here for more information about these ARB workshops.

SCIENTISTS ANALYZE THREATS IN WILDFIRE AREAS

Staff from the Department of Water Resources are participating in U.S. Forest Service’s Burned Area Emergency Response (BAER) teams to assess the burned areas and develop emergency treatment plans for recent wildfires in Southern California. The teams, which include hydrologists and soil scientists from state and federal agencies, will analyze potential threats to water quality, water systems and watersheds in the burned areas. Click here for more information.

DELTA VISION PROCESS

The Delta Vision process, the governor’s Blue Ribbon Task Force developing a strategy for managing the Delta, has asked the Department of Water Resources to comment on how implementation of various resource management strategies described in Water Plan Update 2005 can help regions become less reliant on Delta exports by diversifying their regional water portfolios. Recently, DWR presented the task force with two documents on the role of integrated regional water management and potential benefits of different resource management strategies. The first is “Implementing Integrated Regional Water Management to Meet Future Water Demands" and the other is “Near Term Actions Related to Water Supply.” Water supply is one of the most important issues facing our industry and we are very involved in helping the state reach solutions.

WEEKLY ALERT ON HIATUS

Please note, the Weekly Alert will be on hiatus for the end of the year beginning next Friday, November 16. 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 11, 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 mhargrove@cbpa.com.

AB 32 AND CEQA FORUM

If you missed this topic at the Strategic Issues Conference, if you just can’t get enough greenhouse gas talks, or if your project involves CEQA or relies on public infrastructure, here is a workshop you might be interested in. Confronting Climate Change, AB32 & CEQA: A Brave New World, click here for more information. Featured speakers include Richard Lyon from the California Building Industries Association, Michael Zischke a noted CEQA attorney who assisted San Bernardino County in its recent settlement with Jerry Brown, and Dave Fogarty, Executive Director AB 32 Implementation Group.

BOMA CALENDAR 2008

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