In This Update:
- IN MEMORIAM OF GOVERNOR GEORGE DEUKMEJIAN
- STATE MANDATES SOLAR ON NEW HOMES
- GOVERNOR BROWN RELEASES “MAY REVISE”
- THERE IS NO LOOPHOLE IN PROPOSITION 13
- CALIFORNIA BENCHMARKING REGULATION RESOURCES
- CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018
IN MEMORIAM OF GOVERNOR GEORGE DEUKMEJIAN
George Deukmejian’s California’s 35th governor (1983-91) passed away this week. According to a recent bio, he was “widely considered thoughtful, decent, humble and gracious, he often described himself as an ‘ordinary’ man. Occasionally characterized as ‘dull,’ he frequently responded by threatening to ‘’unleash my charisma.’”
Rex Hime, President and CEO of CBPA, remembered the Governor fondly, “Governor Deukmejian took over the state about the same time I was hired to run CBPA. Over the next eight years of his term we had many occasions to interact and I was always impressed with how smart he was and how he was able to think critically and problem solve. We were pleased that the Governor signed the very first piece of legislation that CBPA Sponsored. Governor Deukmejian was a great Governor, a wonderful person, and good friend to our industry. May he rest in peace.”
Click here to read a rememberece of Governor Deukmejian written by the New York Times.
STATE MANDATES SOLAR ON NEW HOMES
The State of California, through the state’s Energy Commission, adopted a first in the nation policy that requires solar energy systems for all new homes. Starting in 2020, the building energy efficiency standards, are meant to reduce greenhouse gas emissions by an amount equivalent to taking 115,000 fossil fuel cars off the road
The commission believes the regulation will increase the cost of a home by a minimum of $9,500 but will save $19,000 in reduced utility bills over a 30-year period.
“With this adoption, the California Energy Commission has struck a fair balance between reducing greenhouse gas emissions while simultaneously limiting increased construction costs,” said California Building Industry Association CEO and President Dan Dunmoyer. “We thank the Commissioners and their staff for working with the building industry during the past 18 months and adopting a set of cost-effective standards that ensures homebuyers will recoup their money over the life of the dwelling.”
The full release from the CEC can be found here.
The Commission has indicated that the next round of energy regulations will focus primarily on the non-residential sector. So, your building is next!
GOVERNOR BROWN RELEASES “MAY REVISE”
Governor Edmund G. Brown’s Office today “released a revised state budget proposal that boosts education funding to an all-time high, fills the Rainy Day Fund to the brim and directs billions of dollars in one-time surplus funding to combat homelessness, improve mental health services and rebuild crumbling infrastructure.”
“We’re nearing the longest economic recovery in modern history, and as Isaac Newton observed: What goes up must come down,” said Governor Brown. “This is a time to save for our future, not to make pricey promises we can’t keep. I said it before and I’ll say it again: Let’s not blow it now.”
“As California’s economy has recovered from the Great Recession, the state has continued to invest in its core priorities, including: increasing K-12 education funding to record levels; raising the minimum wage; expanding health care coverage to millions more Californians; improving transportation and water systems; and paying down debts.”
The Governor used these headers to describe the priorities of his budget:
* Counteracting the Effects of Poverty
* Saving for Uncertain Times
* Combating Homelessness and Investing in Infrastructure
* Supporting Students
* Fighting Climate Change
THERE IS NO LOOPHOLE IN PROPOSITION 13
Patricia Bates, the California Senate’s Republican leader, and Jon Coupal, president of the Howard Jarvis Taxpayers Association, explain why there is no so-called “loophole” in the Prop. 13.
There is an ambiguity that could be clarified – and CBPA sponsored a measure in the past to do just that. Senator Bates is attempting that fix again. Last time it was attempted the author of the measure – a Democrat – found the rug pulled-out from under him as advocates for eliminating Prop. 13 killed the bill so as not to take away an effective cudgel for their effort.
The bill, SB 1237 will be heard next week in the Senate Governance and Finance Committee.
Click here to read the article.
CALIFORNIA BENCHMARKING REGULATION RESOURCES
Several weeks ago, the State of California finalized the AB 1103/AB 802 Energy Benchmarking Regulations. This has been a long process, and we have been involved every step of the way. The bottom line is that as of June 1, 2018, all buildings over 50,000 square feet – with some exemptions – need to be benchmarked and data shared with the Energy Commission.
However, the rollout of the regulation is still unfolding. The CEC is working on materials and communications to help with compliance, and we are helping them work through the issues and work out the bugs.
We have set up a resource page where you can find an FAQ, the adopted regulations, and a link to the CEC page with more information.
Stay tuned for more information and webinars to help you comply by the June 1st deadline.
CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT JUNE 19-20, 2018
The California Commercial Real Estate Summit (CCRES) will be held at the California Chamber of Commerce Headquarters in Sacramento on June 19-20, 2018. This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers. The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.
CBPA has reserved a block of rooms at The Hyatt Regency Sacramento. Please contact the Hyatt Regency directly at 916-443-1234. Ask for the CBPA rate.
We encourage you to consider one of the sponsorship opportunities and to be a part of this exciting industry event. Click here for more information on becoming a sponsor!
We look forward to seeing you in June!
June 19-20, 2018
California Commercial Real Estate Summit
& Annual Meeting
October 25, 2018
Industry Awards Dinner & Board Meeting
The Duke Hotel, Newport Beach