In This Issue:

• GOVERNOR ASKS FOR DELAY IN AIR RESOURCES BOARD REGULATION

• AB 32 FAR BIGGER THREAT THAN GAS PUMP RULE

• CLIMATE CHANGE, CEQA, & GENERAL PLANS

• AMERICANS: ECONOMY TAKES PRECEDENCE OVER ENVIRONMENT

• NEW BILLS ON ENERGY

• WEBCAST ON SAVING ENERGY WITH TOTAL LIGHT MANAGEMENT

• CBPA 2009 CALENDAR

GOVERNOR ASKS FOR DELAY IN AIR RESOURCES BOARD REGULATION

Governor Arnold Schwarzenegger has asked the California Air Resources Board to delay a new rule that requires thousands of California gas stations to beef up their pump nozzles so that less fuel vapor escapes into the atmosphere when drivers fill their tanks. In what may be even more significant than the request itself is this acknowledgement from the Governor’s letter to ARB Board Chair Nichols, "current economic conditions require extreme caution in implementing new regulations that call for this type of investment by small business owners right now." We hope that this logic will also be applied to the AB 32 regulations currently in the breech. Click here to read the full story.

AB 32 FAR BIGGER THREAT THAN GAS PUMP RULE

In a great example of speaking truth to power, the San Diego Union Tribune has nailed it in an editorial that begins, “A showdown pitting the California Air Resources Board against Gov. Arnold Schwarzenegger over enforcement of a costly regulation seems to have been averted for now. Too bad. The central issue in this dispute – the economic toll of the state's strict environmental rules – demands a full, honest airing.” Click here to read the full editorial.

CLIMATE CHANGE, CEQA, & GENERAL PLANS

For those interested in general planning and climate change, on March 13th, the Attorney General’s office updated its “global warming” web-page, and added an eight-page document entitled: “Climate Change, the California Environmental Quality Act, and General Plan Updates: Straightforward Answers to Some Frequently Asked Questions.” It includes suggestions about CEQA requirements concerning general planning and the like. For example, it suggests the need to look beyond the year 2020 reduction called for by AB 32 when conducting CEQA analysis on a general plan. Click here for the full document.

AMERICANS: ECONOMY TAKES PRECEDENCE OVER ENVIRONMENT

For the first time in Gallup's 25-year history of asking Americans about the trade-off between environmental protection and economic growth, a majority of Americans say economic growth should be given the priority, even if the environment suffers to some extent. Click here to see the survey.

NEW BILLS ON ENERGY

Since the start of the 2009-2010 session our 120 State Legislators have collectively introduced 2,622 legislative measures. We have identified more than 500 that may have an impact on commercial, industrial, and retail real estate.

Below are quick synopses on a slug of bills that impact energy issues. Your input is needed to identify and prioritize those that will have the biggest impact on your company operations.

You can read the full text of any bill by pointing your browser to this site.

Thank you!

* AB 44 (Blakeslee - R) Authorizes the Public Utilities Commission to approve an increase in the rate of return for investment by a corporation in energy storage facilities that meet specified requirements. Requires the commission to develop a time-variant tariff that creates incentives for eligible energy storage facilities.

* AB 45 (Blakeslee - R) States the intent of the Legislature to encourage local agencies to support the state's renewable energy procurement requirements by developing and adopting ordinances that facilitate the installation of distributed generation small wind energy systems.

* AB 46 (Blakeslee - R) Amends the provisions of existing law that provides for the administration of the State Energy Conservation Assistance Account that provides grants and loans to local governments and public institutions for energy use savings. Extends the operation of those provisions. Extends the financial assistance program and the Local Jurisdiction Energy Assistance Account that provides loans to local jurisdictions for energy projects.

* AB 51 (Blakeslee - R) Expresses the intent of the Legislature to enact legislature to enact legislation that would require the Public Utilities Commission to integrate the demand-side management programs within its jurisdiction in order to enable offerings of integrated packages that will maximize savings and efficiency of utility program overhead.

* AB 64 (Krekorian - D) Recasts the renewables portfolio standard program to require that a retail seller and a local publicly owned electric utility procure specified percentages of its electricity from renewable energy resource. Relates to tariffs filed by electrical corporations for energy purchased from small-scale renewable source facilities. Establishes the Renewable Infrastructure Authority and related fund. Provides for renewable energy designation zones and transmission corridor zones. Requires annual procurement goals.

* AB 162 (Ruskin - D) Amends existing law that establishes a program under which entities offering electric services disclose information on the sources of energy that are used to provide such services. Defines the term unspecified sources of power for disclosure requirements. Changes reporting requirements from quarterly to annually. Amends other details regarding disclosures and eliminates certain reporting requirements. Provides that meeting disclosure requirements is compliance with renewables reporting requirements.

* AB 212 (Saldana - D) Requires the State Energy Resources Conservation and Development Commission to adopt building design and construction standards and energy and water conservation standards to require new residential constructions on a date by which the commission determines that the use of photovoltaic technology is cost effective, to be zero net energy buildings.

* AB 222 (Adams - R) Relates to biofuels and environmental quality, electrical system reliability, efficiency of energy-using technologies and lower electrical costs. States the intent of the Legislature to enact legislation to advance biofuels and green power production.

* AB 238 (Adams - R) Revises the legislative findings and declarations to declare that new and modified electric transmission facilities, including the employment of smart grid technologies, may be necessary to facilitate the state achieving its energy efficiency goals and renewables portfolio standard targets.

* AB 262 (Bass - D) Requires that any moneys received by the state pursuant to the federal American Recovery and Reinvestment Plan that are directed for energy related activities, programs, or projects, be administered by the state's energy and water agencies, and adhere to the principle of accountability while also adhering to existing state policies to promote energy efficiency and promote water conservation, renewable energy and green job training.

* AB 394 (Fuentes - D) States the intent of the Legislature to further facilitate the efforts of local publicly owned electric utilities to increase the installation of residential and commercial solar energy systems.

* AB 413 (Fuentes - D) Relates to the Public Utilities Commission authority to fix rates and charges for every public utility. Prohibits the commission from requiring or permitting an electrical corporation to employ time-variant pricing for residential customers. Authorizes the commission to authorize an electrical corporation to offer customers the option of receiving service pursuant to time-variant pricing.

* AB 531 (Saldana - D) Relates to uploading energy consumption data for the account specified for a building to the United States Environmental Protection Agency's Energy Star Portfolio Manager, exempts an electric or gas utility from these disclosure prohibitions when the electric or gas utility is uploading the energy consumption data for the account specified for a building to the United States Environmental Protection Agency's Energy Star Portfolio Manager.

* AB 546 (Knight - R) Exempts from sales and use taxes the gross receipts from the sale of, and the storage, use, or other consumption of, tangible personal property purchased for use primarily in the manufacturing of solar photovoltaic panels.

* AB 560 (Skinner - D) Requires that the standard contract or tariff for net energy metering be offered on a first-come first-served basis until the time that the total rated generating capacity used by customer-generators exceeds an unspecified percent of the electric distribution utility or cooperative's peak demand.

* AB 617 (Blumenfield - D) Requires the State Chief Information Officer to establish and enforce a state information technology strategic plan to protect the environment and reduce energy use.

* AB 695 (Berryhill B - R) Makes technical nonsubstantive change to existing law that establishes the California Renewables Portfolio Standard Program.

* AB 739 (Fuller - R) States the Legislature's intent to enact legislation to encourage the use and sitting of wind energy facilities.

* AB 758 (Skinner - D) Requires the Energy Commission to establish a regulatory proceeding to develop a comprehensive program to achieve greater energy savings in the state's existing residential and commercial building stock.

* AB 887 (Krekorian - D) States the intent of the Legislature to enact legislation to address the impediments to the sitting of facilities that produce electricity from renewable sources of energy, and the placement and construction of transmission infrastructure necessary to allow that electricity to be consumed by California taxpayers.

* AB 915 (Logue - R) Requires each retail seller of electricity to increase its total procurement of electricity generated by eligible renewable energy resources by an additional percentage so that its total net program retails sales from renewable energy resources will reach a specified percentage by a specified date.

* AB 920 (Huffman - D) Revises provisions of the Public Utilities Act regarding electric utilities and solar and wind distributed generation. Relates to standard contracts and tariffs between the utility and customer-generators. Relates to net energy surpluses counting towards the utility's renewable portfolio standard purchasing requirements.

* AB 1016 (Villines - R) Establishes the Energy Commission and Department.

* AB 1023 (Ruskin - D) Relates to a requirement that a retail seller of electricity purchase a minimum percentage of electricity generated by renewable energy resources. Relates to the tariff for electricity generated by a facility owned by a retail customer of the electrical corporation. Increases the megawatt capacity of facilities for which a tariff is required to be filed with the Public Utilities Commission.

* AB 1027 (Blumenfield - D) Provides for the establishment of solar schools and nonprofits program to encourage schools, hospitals, and specified nonprofit public benefit corporations to install solar energy systems. Establishes a grant and revolving loan program for the installation of such systems by those entities. States the Legislature's intent that money from a specified settlement delegated for energy efficiency retrofitting projects be used for the program.

* AB 1028 (Blumenfield - D) Exempts from sales and use taxes gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, qualified renewable energy systems.

* AB 1029 (Blumenfield - D) Allows a credit against Personal Income Tax and the Bank and Corporation Tax in an amount equal to an unspecified percent of the amount paid or incurred during the taxable year by a qualified taxpayer in connection with the manufacture of qualified solar energy materials.

* AB 1031 (Blumenfield - D) Relates to the local government renewable energy self-generation program. Revises the definition of a local government to include an individual campus of the University of California or the State University and a joint powers authority or agency.

* AB 1035 (DeVore - R) Exempts an applicant for a nuclear fission thermal powerplant capable of producing up to 2,000 megawatts of energy that is the first California entity to obtain an early site permit from the United States Nuclear Regulatory Commission.

* AB 1103 (Duvall - R) Declares the intent of the Legislature to establish policies to reform the regulation of electricity rates for nonresidential customers.

* AB 1105 (Blakeslee - R) Implements the Building Energy Retrofit Revolving Loan Program to provide loans for energy conservation projects retrofitting nonresidential buildings built before 1978. Creates the Building Energy Retrofit Revolving Loan Program Fund.

* AB 1106 (Fuentes - D) Relates to electrical corporation renewable energy feed-in tariffs.

* AB 1108 (Fuentes - D) Authorizes the PUC, if it finds that a master-meter customer has failed to maintain or repair its submeter facilities beyond the master-meter, to order the master-meter customer to maintain or repair those facilities and authorizes the commission to order that moneys received as a result of the master-meter discount be held in trust to be expended for maintenance and repair of the submeter facilities.

* AB 1110 (Fuentes - D) Revises the existing definition of cogeneration where the use of thermal energy follows the generation of electricity, to allow technologies that utilize thermal energy internally to increase overall electrical efficiency to not less than 40% high heat value, as established by the Public Utilities Commission.

* AB 1111 (Blakeslee - R) Relates to financial assistance to certain entities for projects to generate new and renewable energy sources and develop clean and efficient distributed generation. Provides assistance for projects, machinery or equipment utilized for the design, technology transfer, manufacture, production, assembly, distribution, or service of an alternative source component.

* AB 1225 (De La Torre - D) Designates the Green Action Team that was established under a specified Executive Order as being responsible for evaluating opportunities for the state to participate in, and benefit from, the energy-related programs of the American Recovery and Reinvestment Act of 2009 and to coordinate the state's participation in any federal energy-related economic stimulus programs and the distribution of moneys for energy efficiency and renewable energy programs to specified entities.

* AB 1305 (Perez V - D) Require any person that imports certain electricity into the state, or causes that electricity to be imported into the state, to pay an air contaminant emission electricity generation mitigation fee. Provides the fee would be imposed only if the electricity is produced by a generating facility that is located within an air basin shared by a district and Mexico and is located in Mexico within 100 kilometers of the United State Border, if facility meets specified requirements.

* AB 1315 (Ruskin - D) Repeals the exemption and limitation of the Public Utilities Commission from provisions relating to the adoption, review, approval, and judicial review of regulations, and limits the application of provisions relating to the filing and publication of regulations to only the rules of procedure of the commission.

* AB 1348 (Blakeslee - R) Makes technical, nonsubstantive changes to the provision of existing law that requires the Energy Commission to design and implement an accounting system to verify compliance with the renewable portfolio standard by retail sellers.

* AB 1350 (Blakeslee - R) Requires the Energy Commission to establish a voluntary certification program to establish environmental performance standards for a biofuel qualifying as a state Sustainable Biofuel Resource. Requires the commission to consider certain factors in developing the standards. Authorizes moneys from the Alternative and Renewable Fuel and Vehicle Technology Fund be used by the commission to implement the voluntary certification program. Authorizes the commission to charge an entity a related fee for the fund.

* AB 1351 (Blakeslee - R) Recasts certain portions of the definition of an eligible renewable energy resource and would include in that definition, fuel cells that are required to utilize and increasing percentage of renewable fuel for the generation of electricity.

* AB 1453 (Buchanan - D) Makes technical changes to existing statutes that require the Public Utilities Commission to undertake certain steps in implementing the State Solar Initiative.

* AB 1508 (Torrico - D) States the intent of the Legislature to enact legislation that would encourage school districts to include solar energy in their projects for the modernization and new construction of school facilities.

* AB 1536 (Blakeslee - R) Changes the statute requiring the Public Utilities Commission to administer a self-generation incentive program for distributed generation resources.

* SB 7 (Wiggins - D) Relates to the Public Utilities Act, which imposes various duties and responsibilities on the Public Utilities Commission. Relates to a standard contract or tariff for net energy metering. Requires an electric distribution utility or cooperative, at the discretion of an eligible customer-generator to take specified action in relation to net surplus electricity produced. Provides that only part or all of the electricity needed by a consumer is eligible for monetary incentives under solar initiative programs.

* SB 14 (Simitian - D) Revises the requirement for retail sellers of electricity to meet and exceed a specified percentage of their procurement targets from renewable energy resources. Requires an accounting system to verify compliance by retail sellers and local publicly owned electric utilities to comply with the renewables portfolio standards program. Relates to Public Utility Commission and Independent System Operator responsibilities under the program. Relates to thermal energy facilities certification. Requires reports.

* SB 17 (Padilla - D) Requires the Public Utilities Commission to determine the requirements for a smart grid deployment plan consistent with the policies set forth in federal law. Requires each electrical corporation to develop and submit a smart grid deployment plan to the Commission.

* SB 32 (Negrete McLeod - D) Requires an electrical corporation to file with the Public Utilities Commission a standard tariff for the electricity purchased from an electric generation facility that is owned, leased, or rented by a retail customer of the corporation. Requires the facility to have a specified effective capacity. Requires the facility to be strategically located and interconnected to the electric grid. Requires that the tariff provide for a base payment rate utilizing a specified formula.

* SB 42 (Corbett - D) Prohibits a state agency from authorizing, approving or certifying a new power plant or industrial facility that uses once-through cooling or the expansion of an existing open seawater intake unless necessary to connect an alternative system. Prohibits a new, expanded, or existing open seawater intake for desalination unless certain findings are made. Requires the implementation of a phase-out schedule for once-through cooling at power plants. Requires a fee on facilities using once-through cooling.

* SB 338 (Alquist - D) Relates to the Alternative Energy and Advanced Transportation Financing Authority and a program to provide financial assistance to specified entities to generate new and renewable energy sources, states the intent of the Legislature to enact legislation related to the Authority and renewable energy companies.

* SB 366 (Aanestad - R) Relates to biomass renewable energy. Amends the definition of eligible customer-generators to include residential, small commercial, commercial, industrial or agricultural customs of an electric service provider that uses biomass electricity generating facilities.

* SB 376 (Simitian - D) Enacts the Liquefied Natural Gas Market Assessment Act, requires the Energy Commission to adopt the Liquefied Natural Gas Market Assessment Report of 2011 that would contain specified information. Prohibits the approval of construction or operation of an onshore or offshore liquefied natural gas terminal in the state until the Report has been issued and becomes final.

* SB 408 (Padilla - D) Relates to public buildings. Expresses the intent of the Legislature to enact legislation that promotes standards for high efficiency construction practices within the state.

* SB 412 (Kehoe - D) Extends the self-generation incentive program for nonsolar distributed generation resources. Limits the eligibility for incentives to distributed generation resources that will support the state's goals for reduction of greenhouse gas.

* SB 463 (Strickland T - R) Amends the Personal Income Tax Law and the Corporation Tax Law. Allows a credit for costs paid or incurred for the purchase and installation of renewable energy resources or renewable energy resources conversion technology projects.

* SB 488 (Pavley - D) Establishes an ongoing procedure to develop an energy efficiency financing program to allow residential, commercial, industrial and municipal participants to finance energy efficiency improvements funded through cost avoidance of the energy saved by the implemented measure.

* SB 523 (Pavley - D) Requires electrical corporations a specified number of service connections to develop standard-offer contracts and feed-in tariffs. Requires the corporation to purchase every kilowatt hour delivered to the grid generated by a tariff-eligible facility. Requires the approval contract and tariff. Authorizes corporations to offer contracts and tariffs. Authorizes modification of the requirements for corporations with a lesser amount of connections.

* SB 542 (Wiggins - D) Expands the participation of multiunit residential and commercial rental properties in utility energy efficiency and solar energy programs and to submit a report on the program to the Legislature.

* SB 551 (Strickland T - R) Relates to a certificate of public convenience and necessity of a thermal powerplant and electric transmission lines. Includes an electric powerline that carries electricity from any powerplant to a point of junction with an interconnected transmission system.

* SB 581 (Leno - D) Authorizes the City and County of San Francisco to elect to designate specific renewable electricity generation facilities at-site renewable generation as Hetch Hetchy Water and Power remote renewable generation. Authorizes the City and County of San Francisco to elect to designate specific renewable facilities or a portion of specific renewable electricity generation facilities.

* SB 695 (Wright - D) Prohibits the Public utilities Commission from requiring or permitting an electrical corporation to employ dynamic pricing for residential customers, but to offer the option of receiving service pursuant to dynamic pricing. Requires the commission to establish the CARE program for assistance to low-income electric and gas customers. Requires the electrical corporations in energy efficiency and weatherization programs, to target energy efficiency and solar programs.

* SB 696 (Wright - D) States that it is the intent of the legislature to enact legislation to ensure that there are sufficient emission reduction credits available for essential public services and new clean efficient power plants.

* SB 699 (Alquist - D) Declares the intent of the Legislature to enact legislation that would exempt from sales and use taxes, the sale and purchase of manufacturing equipment that reduces energy and water use, and increases energy efficiency and water recycling.

* SB 758 (Cogdill - R) States the intent of the Legislature to establish incentives for agriculture to install cogeneration and anaerobic digester electrical generation facilities, including requiring electrical utilities to purchase excess electricity not used by the agricultural generator.

* SB 805 (Wright - D) Relates to the Renewable energy portfolio requirements of electrical corporations.

* SB 806 (Wiggins - D) Relates to electrical corporation energy efficiency programs. Requires the Public Utilities Commission to limit the administrative costs of such programs.

SCA 13 (Strickland T - R) Proposes an amendment to the Constitution to authorize the Legislature to exclude from property tax classification as newly constructed the addition of small wind turbines or geothermal heat pump system.
 

WEBCAST ON SAVING ENERGY WITH TOTAL LIGHT MANAGEMENT

Did you know that lighting accounts for the most energy usage in a commercial building? This 75-minute webcast will review several light management strategies -- occupancy sensing, daylight harvesting, light leveling tuning, demand response, and automated shading -- that can save 60% or more in lighting energy while improving the comfort and productivity of the people inside.

Learn more at a free webcast entitled, "Saving Energy with Total Light Management" on Tuesday, April 7 at 1:00 pm ET. This 75-minute webcast is presented by Glenn Hughes Consulting Associates and sponsored by Lutron.

Attendance is free, but space is limited. Click here to register today.

CBPA 2009 CALENDAR

April 8, 2009
CBPA Legislative Committee Meeting
Cox Castle Nicholson
Los Angeles, CA

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)