California Business Properties Association

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CBPA STAFF



Matthew Hargrove

President & CEO

Rex W. Hime

VP Strategic Communications

Crystal Whitfield

Executive Assistant

Rex S. Hime

Senior Advisor

CBPA

Weekly Update

September 9, 2022

• ICYMI: LEGISLATIVE SESSION OVER - END OF SESSION RECAP

• BILLS ON THE GOVERNOR'S DESK



• FAILED LEGISLATIVE PASSAGE

• BUILDING STANDARDS COMMISSION - CARBON REDUCTION & SUSTAINABILITY FOCUS

• 2022 ENERGY STANDARDS OVERVIEW - WHAT'S NEW?

• FEATURE STORY: CALMATTERS - BLACKOUTS LOOM AS RECORD HEAT WAVE BLANKETS CALIFORNIA



• 2022 CBPA CALENDAR

ICYMI: Legislative Session Over -

End of Session Recap

Last Wednesday was the final day of the 2022 California Legislative Session where they went into the wee hours of this morning finally adjourning after 3:00 a.m. 

The Governor has until September 30 to sign or veto bills passed by the Legislature before Sept. 1 and in the Governor’s possession on or after Sept. 1.

The Governor has already signed a few, including AB 257 (Holden), AB 2432 (Muratsuchi), and SB 846 (Dodd).

Below, find a focused list of priority bills that we worked on to advance or protect the office, industrial, and retail real estate industry. Many are now on the Governor’s Desk awaiting veto or signature. Many others did not make it through the Legislative process but rest assured – they will be back.

Bills on the Governor's Desk

SUPPORTED LEGISLATION

SB 301 (Skinner) California's version of the federal INFORM Consumers Act addressing organized retail crime and online sales of stolen products.

SB 846 (Dodd) Extends operations of Diablo Canyon Powerplant.

AB 1695 (Santiago) Incentivizes more use of adaptive reuse of residential and non-residential properties.

AB 1951 (Grayson) Sales Tax Exemption for Manufacturing Equipment Purchases.

AB 2164 (Lee) Extends the Certified Access Specialist (CASp) license fee which benefits property owners, small businesses, and customers increasing accessibility and protecting from frivolous lawsuits.

AB 2316 (Ward) Solar incentives for residential and commercial which prioritizes access to assistance for renters and those who cannot install on-site solar and storage while compensating customers for the value of producing clean electricity when the grid is most strained.

AB 2432 (Muratsuchi) L.A. County Electric Vehicle Operations and Signage. SIGNED.

AB 2836 (Garcia) Incentivizes cost-effective criteria pollutant emission reductions in trucks and provides creditable emission reductions towards air quality attainment goals that otherwise would be obtained via onerous regulation.

OPPOSED LEGISLATION/VETO REQUESTS

SB 679 (Kamlager) Establishes the Los Angeles County Affordable Housing Solutions Agency and establishes new taxes and fees on residential and commercial projects.

SB 1020 (Laird) Accelerates renewable and zero-carbon mandates and requires 100% of all retail sales of electricity to California end-use customers by 2045.

SB 1137 (Gonzalez) Mandates a setback of 3,200 feet between any new oil wells and certain “sensitive receptors.”

AB 257 (Holden) Puts significant fiscal and legal requirements on small business owners/franchisees of counter-service restaurants by creating a labor council to set wage and other workplace requirements.

AB 1279 (Muratsuchi) Increases the cost of energy by mandating our state to reach carbon neutrality by 2045.

AB 2106 (Rivas) Subjects a wide range of commercial, industrial, and retail properties to costly compliance measures and potential lawsuits.

AB 2438 (Friedman) Ensures long-term congestion and increased engine idling on already congested freeways and surface roads by requiring funding to incorporate road diets and lane reductions to reduce GHG impacts.

NEUTRAL/FIXED LEGISLATION

SB 6 (Caballero) Attempts to provide incentives for dense market rate mixed-use development projects in areas zoned commercial in exchange for adopting certain union pay and training requirements.

AB 1632 (Weber) Initially required onerous access to private employee restrooms in all public buildings to people with certain medical conditions. Amendments addressed our concerns.

AB 1738 (Boerner Horvath) Initially mandated fully functioning EV charging stations in all existing commercial parking lots. Amendments brought requirements in line with recent building code adoption addressed concerns.

AB 2011 (Wicks) Attempts to provide incentives for dense market rate and affordable mixed-use development projects in areas zoned commercial in exchange for adopting certain union pay and training requirements.

AB 2206 (Lee) Initially required all non-residential leases to break out individual parking stall costs. Amendments removed the mandate on property owners/managers and provided alternate ways of compliance for employers.

AB 2260 (Rodriguez) Requires trauma kits be installed anywhere an AED is currently required. Amendments addressed our concerns with training requirements and liability. 

Failed Legislative Passage

SB 15 (Portantino) Provides incentives for dense market rate mixed-use development projects in areas zoned commercial in exchange for adopting certain union pay and training requirements. NEUTRAL.

SB 260 (Wiener) Creates a tracking, reporting, and mandatory goal setting scheme for climate emissions in California that would negatively impact the economy and drive out jobs and tenants. OPPOSE.

SB 1105 (Hueso) Establishes the San Diego Regional Equitable and Environmentally Friendly Housing Agency and creates new taxes and fees without engagement with local stakeholders. OPPOSE.

SB 1393 (Archuleta) Requires local governments to consider cost and technological feasibility before requiring residential and commercial property owners to switch out their gas equipment with electric. SUPPORT.

AB 1778 (Garcia) Deprives communities of desperately needed state highway dollars to alleviate the congestion and freight corridor issues that contribute to the poor air quality experienced in these communities. OPPOSE.

AB 1858 (Quirk-Silva) Extends existing inspections and code enforcement to any buildings used for human habitation, regardless of zoning, and creates tenant protections when buildings are deemed unsafe. OPPOSE.

AB 1897 (Boerner Horvath) Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which covers certain single-use packaging and plastic single-use food service ware. NEUTRAL.

AB 1953 (Maienschein) Requires installation of Water Bottle Refill stations in most buildings. OPPOSE.

AB 2133 (Quirk) Adopts an aggressive 2030 GHG emissions reduction target to 55% below 1990 level. OPPOSE.

AB 2143 (Carrillo) Declares construction of all renewable electrical generation and battery storage of more than 15kWs installed on a non-single-family homes a public works project requiring Prevailing Wage. OPPOSE.

AB 2237 (Freidman) Makes road construction more difficult/expensive by requiring state and local transportation funding be consistent with a Sustainable Communities Strategy (SCS) and all state climate goals. OPPOSE.

AB 2829 (Low) Provides Grants to tenants for Certified Access Specialist (CASp) inspection. SUPPORT

AB 2840 (Reyes) Bans the building of any industrial facility 100,000 square feet or more within 1,000 ft of a “sensitive receptor,” which has a broad definition including almost any non-industrial/commercial use. OPPOSE.

Building Standards Commission -

Carbon Reduction & Sustainability Focus

Even though the latest update to California's building standards do not take effect for another 3½ months, the Building Standards Commission is already working hard on the next set of measures that will take effect in July of 2024.

This week, the BSC conducted public workshops to discuss carbon reduction strategies, cool pavements, shade trees, sustainable wood certification, and (yet again) bird-friendly building standards.

The good news about the bird-friendly standards is that after three previous failed efforts, the proponents are responding to comments by industry and code officials and are only seeking to put recommendations in the voluntary appendix.

If adopted, these measures would be available for voluntary use by architects and for local jurisdictions to consider as local ordinances, something they can already do. For years, the industry has successfully argued that, while well-intended, these measures can easily conflict with the CEC's energy standards, create security issues and create conflicts with our Wildland Urban Interface fire safety standards.

The carbon reduction measures are far more concerning as they could limit industry access to commonly used building materials which might have to be replaced with new and unproven materials at a much higher cost.

Supply chain issues are also a big concern. As always, we will be following these proceedings closely.

Below, find the workshop presentations that were held and please provide feedback as it will be helpful as we move forward through this process:

Bird-friendly Standards Workshop

Carbon Reduction Standards Workshop

2022 Energy Standards Overview -

What's New?

There are Building Energy Efficiency Standards (Energy Code) requirements for residential and nonresidential buildings. The following information contains multiple-subject matter overviews, of both residential and nonresidential requirements, to help comply with the Energy Code.

Below to find links to Fact Sheets and short summaries for each standard overview and what is new:

Non-Residential

“Under the 2022 Building Energy Efficiency Standards(Energy Code), major changes to nonresidential and hotel/motel building requirements include new photovoltaic (PV) and energy storage system requirements, a prescriptive heat pump space-conditioning baseline for certain climate zones, requirements for DOAS, and the addition of new covered processes, including controlled environment horticulture spaces. A definition for “Multifamily Building” was added, and multifamily buildings now have their own sections, beginning with §160.0.”

Multi-Family

“The 2022 Energy Code reorganizes low-rise (three or fewer habitable stories) and high-rise (four or more habitable stories) multifamily buildings into one building type, updates the multifamily buildings definition, and moves all requirements for multifamily buildings to their own subchapters under Sections 160.0-180.4.”

Feature Story: CalMatters - 

Blackouts Loom as Record Heat Wave Blankets California

CalMatters wrote a great piece recently about the issues California is dealing with on the electrical infrastructure front. Although rolling blackouts were narrowly avoided due in large part to conservation from the commercial real estate industry and large energy users, the threat was very real.

 “California teetered on the edge of rolling blackouts Tuesday, as the state entered the most sweltering stretch of a heat wave that Gov. Gavin Newsom described in a video message as “the hottest and the longest on record for this state and many parts of the West for the month of September.”

As high-temperature records fell across the state — downtown Sacramento reached 116 degrees, surpassing the previous record of 114 degrees set in 1925 — it was clear that state officials were pulling out all the stops to avoid another round of power outages just two years after California experienced its first in nearly two decades.”

2022 CBPA Calendar

Tuesday, November 15

CBPA Board Meeting: 1:30 p.m. – 4:30 p.m.

Zoom

For more information on any of our events, please contact Crystal Whitfield at 916-443-4676 or cwhitfield@cbpa.com.