In This Issue:

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

• THEY ARE BACK! BUDGET DEADLOCK CONTINUES, LEGISLATION FLOWS

• GOVERNOR’S BUDGET PROPOSAL

• STATE FREEZES PAYMENTS FOR TRANSPORTATION PROJECTS

• CBPA NEW LEGISLATOR LUNCHEON & BOARD MEETING

• CBPA 2009 CALENDAR

* * * 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.  Contact Melissa Martinez, 916-443-4676 or mmartinez@cbpa.com, for more information or to RSVP.
 

CBPA 2009 CALENDAR

February 18, 2009 (note date change)
CBPA Board Meeting and New Legislator Luncheon
Sacramento, CA (Hyatt)

March TBD (late March), 2009
CBPA Legislative Committee Meeting
Place TBD (Southern California)

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)