BOMA CALIFORNIA PRODUCES BIG WIN FOR COMMERCIAL REAL ESTATE

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.

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.

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 visit the BOMA California Website and read the CPUC press release and a newspaper account of the agreement.

SENATE ADJOURNS WITH NO ACTION ON GREEN BUILDING BILLS

With less than one week left of Session in 2007, the Senate has adjourned for the weekend leaving many major issues still undecided. Although they have dealt with a wide range of issues including providing condoms to prison inmates, legalizing the importation of shoes made from kangaroo skin, and forcing your kids to use a booster seat in the car until they are eight-years old, important issues such as the green building mandates for commercial, residential, and state buildings have yet to be voted on. The traditionally less efficient Assembly has been working well into the evenings this week and is expected to continue to working longer hours. Although the Legislature’s Constitutional deadline to pass legislation is not until Friday, September 14, they have set a self-imposed adjournment date of the Tuesday before to observe the Jewish High Holy Days.

FLOOD BILL PASSES ON PARTISAN VOTE

Two bills from a five-bill package of flood-related measures passed the Assembly after a sometimes rancorous debate on the Floor of the Assembly. The business community has been very concerned about the proposed policies in some of these bills as they would provide powerful new tools for environmental groups to restrict development and sue local governments. Two years after Hurricane Katrina, California legislators are using its specter to move policies that severely restrict much needed housing and commercial development to accommodate growth in the Central Valley. Read more about this flood legislation by clicking here.

CARB PROPOSES TO TRIPLE AB 32 EARLY ACTION MEASURES

Just when you thought the news couldn’t get much worse…. the California Air Resources Board (CARB) has re-opened proceedings to consider additional early regulations for AB 32 (the Global Warming Solutions Act). Earlier this year the Air Board approved a list of early actions including a low carbon fuel standard which University of California researchers have estimated will increase the cost of gasoline by 21 cents per gallon. The actual list of potential regulations has not yet been released, but small and large businesses may be at risk from these measures. Instead of adding new regulations, our coalition will be advocating that the Air Board approve a certified early plan that would provide greater regulatory certainty for companies that would encourage them to invest in energy efficiency projects that help reduce greenhouse gas emissions.

Members of the AB 32 Implementation Group hope that individuals from the business community will be willing to help convey the message that there are more than enough early action regulations and what is needed is more regulatory certainty. If you would like to join the fun and testify at CARB’s Early Actions workshop scheduled for September 17 at 1:30 PM in Sacramento, here are some messages for you:

* If the state wants early reductions, create more certainty for companies that would like to invest in energy efficiency projects, but are holding back because they are uncertain if they will be penalized later on for doing so now or at least wouldn't get credit for them. That's why we support a certified early action program.

* Whatever regulations are proposed must meet the cost-effectiveness and technological feasibility test required under AB 32.

* The existing early action measures while few in number are high in potential reductions - especially LCFS and they already have a high price tag attached to them. The UC researchers, for example, estimated the cost of LCFS at an increase of 21 cents per gallon.

HEALTH CARE CONUNDRUM STILL LOOMS

The title says it all, and this piece by Sacramento Bee Political Columnist Dan Walters is the best summation of the confusion that is the “Health Care Debate” in California. Bottom line is after all the headlines and promises, two business days from the scheduled adjournment of session, we do not appear to have a deal in sight.  Click here to learn about the politics of health care reform in California.

PORT TAX BILL DROPS ANCHOR

From the offices of the Governor and Senator Lowenthal (D-Long Beach), the following statement was issued regarding SB 974 port container fee legislation:

"Our ports are an integral component of goods movement in and out of California. I support the concept of SB 974 and want to work together with Senator Lowenthal on the bill so it addresses the future of goods movement while also reducing environmental impacts. I look forward to working during the fall recess with the Senator, his fellow legislators and all interested parties to craft a solution that will protect California's air quality and also facilitate the goods movement through California," said Governor Schwarzenegger.

"I am pleased that the Governor understands the need to fund air quality improvements and rail infrastructure, especially grade separations. I accept the Governor's offer to work together and make SB 974 a reality." stated Lowenthal.

SB 974 would impose a fee on all container cargo going in and out of the ports of Los Angeles, Long Beach and Oakland. The revenue from that fee would fund projects that would alleviate pollution of containerized cargo moved to and from these ports and improve the movement of such cargo in California.

This means that the Governor and Lowenthal have agreed on having a package early next year. Watch for all interested parties to roll-up their sleeves to work on this Administration-driven initiative.

JUNK DEALER CRACKDOWN SCRAPPED

Earlier in the year we reported the defeat of Assembly Bill 844 by Assemblymember Tom Berryhill (R-Modesto), a good measure that attempted to make it more difficult for thieves who steal metals from construction sites, farms, and existing buildings/facilities to profit from such theft. Each year hundreds of thousands of dollars worth of brass, copper, bronze, stainless steel, aluminum and other metals are stolen from our member’s properties, then “sold” to recyclers. Our buildings and job sites are vulnerable targets of opportunity for thieves who have no regard for the economic losses to those businesses they target. CBPA felt trying to do something to curb this activity, this year, was extremely important and attempted to move the policy forward in a different bill. Unfortunately, politics being what they are, the bill again failed passage, due to a variety of lingering concerns from the bill being too strong, to the bill not being strong enough, to its impact on local ordinances. Hopefully when the Legislature reconvenes in January, we can re-group and help move a measure forward that will help stem this illegal activity.

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

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