In This Issue:

• GOVERNOR ACTS ON HUNDREDS OF BILLS

• SPECIAL SESSION ON WATER

• THEY’RE BAAAACK

• FEDS TO SET COMMERCIAL REAL-ESTATE LOAN MODIFICATIONS

• HIGH PRIORITY BILLS ACTED ON BY GOVERNOR

• ***HIGH PRIORITY*** GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

• BUILDING ENERGY EFFICIENCY STANDARDS AVAILABLE

• HIME REAPPOINTMENT UNANIMOUSLY APPROVED

• NORCAL CITY MANAGERS LUNCHEON

• 2009 STRATEGIC ISSUES CONFERENCE

• CBPA 2009-2010 CALENDAR

GOVERNOR ACTS ON HUNDREDS OF BILLS

Despite the threat of a mass veto unless a water deal was reached, last Sunday evening at the last possible moment, the Governor acted on more than 700 legislative bills. Below is a list of some of the key bills we have been following and their final outcome.
 

SPECIAL SESSION ON WATER

As part of the “deal” to get to the business of signing and vetoing legislation, the Governor and legislative leaders agreed to open a Sixth Extraordinary Session to deal with water issues. This is the second time in three years that a special session to deal with water has been called. According to the proclamation opening the session, here are the goals:

1) To consider and act upon legislation to protect and restore the Sacramento-San Joaquin Delta while also improving the reliability and quality of water supplies from that estuary; 2) to consider and act upon legislation to address the short term and long term improvement of California’s water management system including development of new surface and groundwater storage and improved conveyance facilities, ecosystem health and conservation strategies; 3) To consider and act upon legislation to appropriate funds, including appropriations for general obligation and lease revenue bonds, to improve water resource management, build additional water storage facilities, develop groundwater aquifers, improve groundwater quality and flood protection, and restore the Sacramento-San Joaquin Delta and other important ecosystem restoration projects; and finally 4) to consider and act upon legislation to place a general obligation bond and, as necessary, a lease revenue bond on the ballot.

Although the session was technically opened this Wednesday, by Thursday partisan tempers were already boiling. Insiders are not expecting to see any real action until next week at the earliest. We will keep you posted on the progress.
 

THEY’RE BAAAACK

In a highly unusual post-Session gathering, the California State Senate met this Wednesday. In a pro-forma meeting they opened special sessions dealing with Water and Taxes, but did not take any actions of substance.

The Senate did, however, “work the file,” and took up many bills that did not move in the final days of last session, including legislation related to Local Government funding, the City of Industry NFL stadium, and homebuyer tax credit.

We expect the Senate back next week to continue to work on the open items of Water and Taxes.
 

FEDS TO SET COMMERCIAL REAL-ESTATE LOAN MODIFICATIONS

According to federal regulators, losses on souring commercial real-estate loans pose the biggest risk to the banking industry, so they plan to issue guidelines to help guide financial institutions with loan modifications. Click here to see the story.

HIGH PRIORITY BILLS ACTED ON BY GOVERNOR

GREENHOUSE GAS/CLIMATE CHANGE
AB 1085 (Mendoza; D-Artesia) which will shine “sunlight” on important regulatory procedures at the State Air Resources Board (CARB), continues to move forward with strong industry support. This good government bill simply requires CARB to make available to the public each technical, theoretical, and empirical study, report, or similar document, if any, on which the agency relies, related to, but not limited to, air emissions, public health impacts, and economic impacts before the comment period for any regulation proposed for adoption by the state board.
Position: SUPPORT. Status: SIGNED INTO LAW

AB 1404 (De Leon; D-Los Angeles) 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. Status: VETOED click here for Governor’s Veto Message.

ACR 77 (Swanson; D-Oakland) Urges the State Air Resources Board to meet the statutory requirements of the Global Warming Solutions Act of 2006 by ensuring that its analysis of specified emission reduction measures include prescribed components.
Position: SUPPORT. Status: SIGNED INTO LAW

ENERGY
AB 64 (Krekorian; D-Burbank) & SB 14 (Simitian; D-Palo Alto) 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.
Position: OPPOSE. Status: VETOED click here for Governor’s Veto Message.

SB 279 (Hancock; D-Berkeley) Authorizes a community facilities district to finance and refinance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements to or on real property and in buildings. Authorizes a separate procedure for establishing a community facilities district where the district initially consists solely of territory proposed for annexation to the community facilities district in the future.
Position: SUPPORT. Status: VETOED click here for Gov’s Veto Message

AB 758 (Skinner; D-Berkeley) Requires the Energy Commission to establish a regulatory proceeding to develop a program to achieve greater energy savings in the state's existing residential and nonresidential buildings. Requires a new proceeding by the Public Utilities Commission to investigate the ability of electrical and gas corporations to provide customers energy efficiency financing options. Provides for no-cost energy audits.
Position: SUPPORT. Status: SIGNED INTO LAW.

SOLAR ENERGY
AB 920 (Huffman; D-San Rafael) Allow customers on a net metering rate schedule to receive a payment for excess generation at a wholesale rate. These customers have renewable projects on their homes or businesses that are sized to meet the on-site load only. But due to weather and on-site electricity consumption variances, they sometimes have generated more electricity than they use. Current law limits net metering to an annual ‘true-up’ so that the customer ‘loses’ the value of the excess generation. Some utilities roll the credit over to future years. If AB 920 is enacted, these customers will be allowed to either elect to roll over their credits or receive a payment for the excess generation.
Position: SUPPORT. Status: SIGNED INTO LAW.

SB 32 (Negrete-McLeod; D-Chino) Creates a fixed price payment for generation from renewable energy projects based on the value of renewable generation (energy plus the value of GHG reduction, emissions reductions, location close to demand, relieves transmission congestion, and time of delivery coincident with times of the day/year when electricity demand is highest). Projects can be located anywhere on the local utility distribution system up to maximum project size of 3MW. By knowing the terms and the rate ahead of time, this bill will encourage entrepreneurs (building owners, property owners, 3rd parties) to build projects close to where electricity is needed, without requiring new transmission lines.
Position: SUPPORT. Status: SIGNED INTO LAW. Click here for Gov’s Signing Message.

MANDATORY BENCHMARKING
AB 531 (Saldana; D-San Diego) Delays the implementation of the state’s mandatory Energy Star benchmarking law AB 1103 and requires the Energy Commission to write implementing regulations.
Position: SUPPORT. Status: SIGNED INTO LAW.

PARKING
AB 1186 (Blumenfield; D-Van Nuys) Requires landlords to provide information about parking costs to companies eligible to participate in the State’s Parking Cash-Out Program.
Position: NEUTRAL (fixed). Status: VETOED. Click here for Gov’s Veto Message.

WORKPLACE MANDATES
SB 242 (Yee; D-San Francisco/San Mateo) New Lawsuits Against Small Business. Could result in new shakedown lawsuits against business establishments by making it a strict liability violation of the Unruh Civil Rights Act, subject to minimum damages of $4,000, if a business limits the use of a customer’s language, even if unintentionally.
Position: OPPOSE. Status: VETOED. Click here for Gov’s Veto Message.

WATER
SB 407 (Padilla; D-Pacoima) Mandates all residential and commercial buildings replace certain water fixtures by 2019. Declares that it is the intent of the Legislature that public entities that supply water exercise authority to enact ordinances that require the retrofitting of outdated, high water use plumbing fixtures, and the disclosure thereof, in connection with the transfer of real estate.
Position: SUPPORT. Status: SIGNED INTO LAW.

AB 474 (Blumenfield; D-Van Nuys) Authorizes the legislative body of any public agency to designate an area within which authorized city officials and free and willing property owners may enter into contractual assessments to finance the installation of water efficiency improvements that are permanently fixed to real property.
Position: SUPPORT. Status: SIGNED INTO LAW

PROPERTY CRIMES
AB 568 (Lieu; D-Torrance) Provides that if a person is convicted counterfeiting copyrighted materials such as DVD’s or name brand purses, then a nonresidential building or place used by that person for manufacturing, selling, or possessing for sale the counterfeit goods, including counterfeit of a registered mark or any recording or audiovisual work, the cover, box, jacket or label which does not disclose specified information shall be deemed a nuisance. Authorizes an action to abate and prevent the nuisance.
Position: Neutral (Fixed). Status: SIGNED INTO LAW.

AB 576 (Torres; D-Pomona) Relates to vandalism and graffiti. Amends existing law which provides that in every case in which a victim has suffered economic loss as a result of the defendant's or the juvenile offenders conduct, the court is required to impose an order for restitution. Adds to the definition of victim a governmental entity that is responsible for repairing, replacing, or restoring public or privately owned property that has been defaced with graffiti or other inscribed material and that has sustained an economic loss.
Position: SUPPORT. Status: SIGNED INTO LAW.

TAXES
SB 816 (Ducheny; D-San Diego) helps local tax officials more efficiently reassess properties when a change of ownership occurs. Under current law there are often multi-month and even multi-year delays in determining new property tax rates after ownership transitions. This delay causes an incredible hardship on both commercial landlords and tenants when taxes in arrears are discovered and assessed.
Position: SUPPORT. Status: SIGNED INTO LAW.
 

***HIGH PRIORITY*** GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

In an effort to promote sustainable buildings, California last year became the first state in the nation to adopt a statewide Green Building Code. Known as CalGreen, it is already being updated and industry input is critical. We are now in an “official” comment period with a 45-Day Notice of Proposed Action, which ends in mid November.

Your analysis and feedback is needed on the proposed changes for non-residential properties. To read the proposed changes for California Green Building Standards Code, Part 11, Title 24 -- Commercial, Industrial, and Retail Real Estate, click here.

It is very important that members of our industry read these regulations and identify issues that members of the Building Standards Commission should consider. We will compile industry comments and provide written and verbal testimony. Please send any and all comments by replying to this email or sending directly to Matthew Hargrove. Comments are due to CBPA by no later than Friday, November 6, 2009.
 

BUILDING ENERGY EFFICIENCY STANDARDS AVAILABLE

The Nonresidential Compliance Manual for the 2008 Building Energy Efficiency Standards is now available on the CEC website. The new Standards will be in effect as of January 1, 2010.

Please send this to anyone in your companies/networks responsible for management of energy, construction, or property management issues. We hope to make sure this is distributed widely as compliance is important for your bottom line, but also to help our industry meet AB 32 goals.

Our industry helped shape and ultimately supported the adoption of these standards. National groups are using this as a model for promulgated national guidelines and other states’ codes.

Click here for the compliance manual.
 

HIME REAPPOINTMENT UNANIMOUSLY APPROVED

On a vote of 38-0 our own Rex Hime has been re-confirmed by the State Senate to his re-appointment to the Board of Directors of the California Exposition and State Fair. Originally appointed by Governor Wilson, Hime was appointed again by Governor Schwarzenegger in 2006, and reappointed again in 2009. Hime serves as chair of Cal Expo’s real estate committee and has been one of the leading voices trying to rebuild the State Fairgrounds and has been working with the NBA on a potential stadium deal.
 

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 information.

2009 STRATEGIC ISSUES CONFERENCE

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. Sponsorship opportunities are available. Please contact Melissa Martinez or visit our website  for more information. Click here for registration and discounted room rates.
 

CBPA 2009-2010 CALENDAR

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

February 18, 2020
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