In This Issue:

• FINAL WEEK OF SESSION

• WATER CONFERENCE COMMITTEE BEGINS WORK

• BILLS TO EXPAND AB 32 CHALLENGED

• RENEWABLE PORTFOLIO STANDARD – GREEN ENERGY MANDATE

• BILLS TO EXPAND COASTAL COMMISSION POWER CHALLENGED

• FULL DISCLOSURE ON CARBON REGULATION SPENDING? NOT.

• GENERAL CONSTRUCTION STORM WATER PERMIT ADOPTED

• FACEBOOK AND TWITTER FOR LOW PROPERTY TAXES

• NORCAL CITY MANAGERS LUNCHEON

• 2009 STRATEGIC ISSUES CONFERENCE

• CBPA 2009-2010 CALENDAR

FINAL WEEK OF SESSION

The final week of the 2009 Legislative session is upon us. The legislature is feverishly working its way through hundreds of bills that will impact our state and your business. There are still many significant pieces of legislation that will impact our industry that we are following closely.
 

WATER CONFERENCE COMMITTEE BEGINS WORK

A fourteen member conference committee made up of eight Democrats and six Republican members from both Houses of the Legislature has been named to come up with a bill to resolve California’s water woes. And they have six days to do it. As usual, it seems to boil down to environmental priorities of some not squaring with the water needs of people in the state. The trick is to find a solution that does both.

We have been extremely proactive in the water debate and support the pursuit of a comprehensive strategy to address all the issues. Preserving and protecting the environment, especially the Sacramento-San Joaquin Bay Delta, are laudable goals that we can support, as long as they are balanced by a robust investment in a plan and program to improve the reliability of water supplies, conveyance of those supplies, and increasing storage.

There will be a lot of activity on water over the next week. We also hope there will finally be some positive action. We’ll keep you posted.
 

BILLS TO EXPAND AB 32 CHALLENGED

Several bills intended to expand the scope of California’s law to regulate and reduce greenhouse gasses are moving through the legislature on party line votes. In general, the business community opposes these bills because, in addition to being bad public policy, we think the Legislature should self-impose a moratorium on changing AB 32 until ARB has had a chance to actually write the regulations and complete a rigorous and sound economic analysis. By constantly tweaking AB 32, it is all but impossible for the state to correctly implement such a complicated set of rules and regulations.

Here are links to the full language of each bill, as well as summaries:

AB 1404 (De Leon - D) Limits the ability of building owners and developers to engage in market-based programs to reduce greenhouse gasses. Requires the ARB to limit the use of certain compliance offsets to a certain percentage of the greenhouse gas emission reductions. In other words – if you need capital up front to invest heavily in energy efficiency improvements for your building, you will have a difficult time finding someone to purchase any credits you may have. Position: OPPOSE.

AB 1405 (De Leon - D) Redirects fees paid by building owners and developers to mitigate carbon emissions to projects not related to such reductions. Establishes the Community Benefits Fund. Requires a specified percentage of revenues generated pursuant to the act include the above fees, to be deposited into the fund. Provides that fund moneys will mitigate health impacts and reduce greenhouse emissions in the most disadvantaged and impacted communities in the state. Position: OPPOSE.

SB 104 (Oropeza - D) Directs ARB to regulate any gas designated as a greenhouse gas by the United Nations Framework Convention on Climate Change. Position: OPPOSE.
 

RENEWABLE PORTFOLIO STANDARD – GREEN ENERGY MANDATE

SB 14 (Simitian - D) contains a number of new proposals that would impact the existing Renewable Portfolio Standard (“green energy”), mainly increasing it to 33%, as well as the current implementation of AB 32 at the California Air Resources Board. We oppose this bill based on a number of concerns that we hope will be addressed by the Legislature.

Despite our many efforts to increase energy efficiency in state, California remains a high energy cost state. This additional burden on businesses has worsened due to our weakening economy. We believe it is necessary to strengthen the cost containment language in SB 14 to ensure that ratepayers will be protected from substantial rate increases. Furthermore, since a 33% standard is a part of the AB 32 scoping plan, we believe it is necessary to uphold the same economic tests used for the AB 32 program. I.E., SB 14 should also include a “cost-effective and technologically feasible” standard to ensure ratepayers are not exposed to excessive and unnecessary cost.

The bill also has issues, as you note that would limit using power generated outside the state from counting against the 33% goal. In other words, the greenest energy from hydro in the State of Washington that we use during peak times in the summer would not be considered part of our green energy quota.

We are also concerned because the bill does not appropriately deal with transmission line issues. If we are going to start generating all this new green energy from wind near the coast, solar panels in the desert, water in the North, then we need to be able to get it from point A to B. There are serious impediments to building needed transmission lines and any bill that mandates a change to the mix in how energy is produced, must take such infrastructure issues into account.
 

BILLS TO EXPAND COASTAL COMMISSION POWER CHALLENGED

Two bills that would further empower the California Coastal Commission’s ability to stymie legitimate development will be heard by the full California State Senate sometime in the next week. Over the vociferous objections of many business, real estate, and landowner groups, both bill have moved forward on strictly party line votes. Here are links to the full language of each bill, as well as summaries:

AB 226 (Ruskin - D) Relates to coastal development permitting. Allows the Coastal Commission to assess penalties and keep the monies to fund further enforcement activity. Creates a “bounty hunter” provision and will further stymie legitimate development. Position: OPPOSE.

AB 291 (Saldana - D) Infringes on the right of “due process” to property owners by prohibiting acting upon an application for a coastal development permit for development on any property that is subject to an existing violation case. Position: OPPOSE.

Even if you do not develop or manage properties within the Coastal Zone, these bills have the potential to negatively impact you by setting such a bad precedent of giving a state regulatory agency the power to fund its activities through fines and deny approvals without a fair hearing.
 

FULL DISCLOSURE ON CARBON REGULATION SPENDING? NOT.

The Orange County Register brings some attention to the public information request lawsuit that the business community has had to file to find out how monies are being spent to implement the state’s greenhouse gas reduction regulations. In addition to the CalChamber and several other business and industry groups, CBPA, ICSC, NAIOP California Council, and BOMA California are all plaintiffs in a lawsuit filed to force the California Air Resources Board (ARB) to explain how it has spent more than $57 million in tax dollars to implement AB 32.

Spending on these regulations are unchecked by the problems with the state budget or the bad economy, because the state agency has been given authority to charge fees to cover costs of the program. Yes, you understand that correctly, they are devising a program with no administrative budget constraints, and have the legal authority to charge you to pay for the costs of that regulation, thank you very much. With such enormous power to regulate and impact the states job producers and energy providers, we think the transparency of action is the least we can expect. Click here for the full editorial.

GENERAL CONSTRUCTION STORM WATER PERMIT ADOPTED

Over the strenuous objections of a broad coalition of business groups, the State Water Resources Control Board adopted the new General Construction Storm Water Permit by a 3-1 vote (Chair Hoppin was the lone “no” vote). Although several helpful modifications to the permit were made during the hearing, most of the concerns raised by the opposition were not addressed in the final draft. We anticipate the final permit that incorporates all of the changes made during the hearing to be made available soon. The coalition is considering possible next steps. For more information on the permit click here.
 

FACEBOOK AND TWITTER FOR LOW PROPERTY TAXES

Californians Against Higher Property Taxes now has a social networking presence. If you want quick and easy updates, and a way to stay involved and in the loop on the fight to protect Proposition 13, join one or both of the following pages:

Facebook

Twitter
 

NORCAL CITY MANAGERS LUNCHEON

On Thursday, October 29, NAIOP is co-sponsoring the City Managers Luncheon with Lambda Alpha International at the Dante Club in Sacramento. Eight City Managers are currently scheduled to appear and more are expected. This event will be moderated by our own Rex Hime. Sponsorship opportunities are available. See this flyer for more information.

2009 STRATEGIC ISSUES CONFERENCE

UPDATE - Room Rate Drops to $169 A Night!

Please join us on Nov. 5-6, as several major industry groups combine forces to sponsor a high level discussion regarding “Climate Change” policy and its impact on business in California. From AB 32 greenhouse gas regulations to the legislative and regulatory focus on land use, 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 industry can proactively be at the table and positively influence policy. Click here for registration and discounted room rates. Please contact Melissa Martinez or click here for more information.

CBPA 2009-2010 CALENDAR

November 5-6, 2009
CBPA Board Meeting &
Strategic Issues Conference
Meritage Resort, Napa

February 18, 2010
CBPA Board Meeting
Sacramento

June 22-23, 2010
Annual CBPA Board Meeting &
CA Commercial Real Estate Summit
Sacramento

October 21, 2010
CBPA Board Meeting
&
CBPA Industry Awards Dinner
The Fairmont Hotel, Newport Beach