BOMA BOARD OF DIRECTORS MEETING

On January 15, the BOMA California Board of Directors will gather for its first board meeting of 2009. BOMA California is a federation of all eight metropolitan BOMA local associations and serves as the collective membership through its mission of “preserving and promoting the interest of California commercial real estate professionals through legislative and regulatory advocacy.”

Several substantive discussions are on the agenda, including a 2008 legislative update and discussion of 2009 sponsored legislation; a discussion about how the commercial real estate industry is going to engage in the AB 32 Greenhouse Gas regulatory process, mandatory “green” building codes update; and funding of a study that looks at the most cost effective ways to reduce the carbon footprint of existing buildings.

BOMA California is headquartered in Sacramento and has a full time presence at the Capitol and regulatory agencies. Each local association nominates up to five of its members to represent that association on the BOMA California Board of Directors. Therefore, every BOMA member in California has a voice in the setting of policies of BOMA California vis-à-vis their local association representation on the state association's governing board. For more information click here.

INDUSTRY DEFENSE FUNDS REQUESTS

BOMA California is requesting two grants from the BOMA International Industry Defense Funds program at the Winter Business Meeting schedule. Both grants would allow BOMA California to partner with BOMA International on issues unfolding in California that will eventually impact members across the nation.

The first request is for Industry Defense Funds to provide full-time technical engagement and representation on climate change policy issues as part of the AB 32 process in front of the California Regulatory Agencies crafting the plan – Air Resources Board, Energy Commission, Public Utilities Commission, Integrated Waste Management Board, and Office of Planning and Research; and to fund an Existing Building Energy Efficiencies Strategies study to provide objective data to regulators about the most cost-effective and technologically feasible measures to reduce the carbon footprint of existing buildings.

The real estate sector is part of the second largest target for greenhouse gas reductions (second only to vehicle emissions). It remains to be seen if California will incentivize energy efficiency and greenhouse gas reductions in this sector through market-based programs (such as carbon credits) and cost effective programs (such as subsidized retrocommissioning), or through expensive command-and-control mandates that may not even be technologically feasible.

The second request is to continue funding for electrical rate case advocacy at the California Public Utilities Commission. Funds will be used to represent the interests of BOMA members throughout California in negotiations before the CPUC, which governs electricity rate-setting for each of the three Investor Owned Utilities presently operating in the state. Funds will supplement local BOMA and BOMA California funding for BOMA’s lobbying on “Rate Parity” – our attempt to rectify the economic burden borne by our industry that results from a rate-setting scheme which fails to fairly approximate utility pricing for our members with the cost to service them, vs. the service costs and rates of other customer classes. Past work in this area has generated tens of millions of dollars in savings for large commercial customers.

Such funding opportunities from BOMA International are extremely important to assuring that important state level work can be done for the benefit of all members. We appreciate the opportunity to compete for IDF monies and thank BOMA members from throughout the nation for funding this innovative program. Keep your fingers crossed that we are successful in our request!

* * * ACTION * * * CEQA GUIDELINES AND GREENHOUSE GASSES

The Governor’s Office of Planning & Research (OPR) has drafted amendments to the CEQA Guidelines for greenhouse gas emissions as required by Senate Bill 97 (SB 97). OPR will be holding two workshops to present the amendments and obtain input from the public. The workshops will include a presentation by OPR and the Resources Agency staff, an overview of the Preliminary Draft CEQA Guideline amendments, and the process for adopting the regulations by 2010.

Workshops will be held on January 22, 2009 in Los Angeles and on January 26, 2009 in Sacramento.

Click here to view the workshop agenda.
Click here to view the Preliminary Draft CEQA Guideline Amendments.

* * * CBPA ACTION NOTE: CBPA will submit a letter on behalf of the industry and we are soliciting your input. If you would like to contribute comments on this proceeding as part of the Association’s letter, please send comments to Matthew Hargrove no later than Monday, January 19th.

It is extremely important that our industry engage in this process. Your company/firm is highly encouraged to analyze the proposals, attend the workshops, and submit comments. This proceeding will change the template for the environmental review process and must be informed by those with practical knowledge on the topic.

THEY ARE BACK! BUDGET DEADLOCK CONTINUES, LEGISLATION FLOWS

For anyone worried that the Ship of State was rudderless during the holidays, should rest assured that the Governor and Legislature are back in Sacramento and fully in control of the government. However, 2009 has started like 2008 ended, with a massive budget problem, an impending cash flow problem, and no solution in sight. In fact, the Governor has put off his “State of the State” speech by a week in hopes that he might have something positive to report.

On Monday both houses of the Legislature met to kick-off the 2009-2010 Legislative Session with quick Floor meetings. Very little legislative activity will occur over the next few weeks aside from a steady stream of bill introductions. After two days, more than 150 bills have already been introduced ranging on issues from spending, Transportation, Water, and Solar Energy. CBPA reads every bill and will alert and engage members on those issues impacting the industry.

GOVERNOR’S BUDGET PROPOSAL

In an unusual move, signaling “action,” the governor released the outlines of an 18 month budget in late December. The Governor intends to formally submit the plan to the Legislature today, as the only financially responsible solution to a budget gap estimated to reach $41.6 billion by the middle of next year. The plan relies on borrowing $5 billion against future state lottery earnings, $7 billion in new infrastructure bonds and $11.3 billion in short-term borrowing so that the state does not run out of money.

Amidst this drama, the Governor has also vetoed a plan sent to him with only Democratic votes. The details of the plan are almost beside the point, as the precedent of sending a spending proposal that clearly needs at 2/3’s vote under Proposition 13, was seen as unacceptable by most business, industry, and tax groups.

The State’s Legislative Analyst Mac Taylor weighed in on the Governor’s plan and reiterated the urgency of the state's financial plight with a classic quote. "'In November, we used words like dire, bleak and awful and since then the problem has gotten a lot worse. And we're running out of adjectives." I am sure we can come up with a few more.

Click here to watch the Governor’s press conference on the budget.

STATE FREEZES PAYMENTS FOR TRANSPORTATION PROJECTS

In one of the first major signs that the fiscal “Armageddon” is really upon us, Controller John Chiang is refusing to write checks to contractors currently working on road and highway projects. This action is not only stopping future work but is blocking payments to contractors for work that has already been performed. Although this move has received very little fanfare, the implications of stopping huge infrastructure projects and state government ceasing to pay its bills, should shock you like a bolt of blue. Click here to read the full story.

CBPA NEW LEGISLATOR LUNCHEON & BOARD MEETING

If you have not already done so, please RSVP for the bi-annual CBPA New Legislator Luncheon on February 18 in Sacramento. This is your opportunity to meet with new Assemblymembers and Senators in a relaxed atmosphere to discuss issues of importance to the commercial, industrial, and retail real estate sector. The luncheon follows the first meeting of 2009 for the CBPA Board of Directors. We expect a high Legislator turnout this year. As an affiliate member of CBPA, BOMA California holds a seat on its board and members are welcome to attend. Contact Melissa Martinez, 916-443-4676, for more information or to RSVP.

BOMA CALIFORNIA 2009 CALENDAR

JANUARY 2009

January 15—
BOMA CALIFORNIA BOARD MEETING
Renaissance Esmeralda, Indian Wells, CA
1:00 p.m. - 5:00 p.m. (Dinner Follows)

January 16-19 –
BOMA INTERNATIONAL WINTER BUSINESS MEETING
Renaissance Esmeralda, Indian Wells, CA

FEBRUARY 2009

February 18 (note date change) —
CBPA NEW LEGISLATOR LUNCHEON
Sacramento (Hyatt)

MARCH 2009

March TBD (Late March)—
BOMA/INDUSTRYWIDE LEGISLATIVE COMMITTEE MEETING
TBD (in Southern California)

March 23-24—
BOMA INTERNATIONAL, NATIONAL ISSUES CONFERENCE
Washington D.C.