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

October 28, 2022

• THE CODE NEVER SLEEPS - CARB 2022 SCOPING PLAN & CEC 2026 STANDARDS

• ADVANCED CLEAN FLEETS RULE - FIX THE ACF

• NOVEMBER BALLOT - OPPOSE UPLAND LOOPHOLE MEASURES



• $94M IN GRANTS FOR CA PORTS 

• LEGISLATIVE SESSION OVER - END OF SESSION UPDATE

• BILLS ON THE GOVERNOR'S DESK - SIGNED OR VETOED



• FAILED LEGISLATIVE PASSAGE

• CALL FOR LEGISLATION - THERE OUTTA BE A LAW!



• 2022 CBPA CALENDAR

The Code Never Sleeps -

CARB 2022 Scoping Plan & CEC 2026 Standards

As part of your membership benefit, we track and engage on California State Agencies and code cycles on behalf of your business and industry. We are part of a business coalition that has submitted comment to CARB on their Draft 2022 Scoping Plan Update – Recirculated Draft Environmental Analysis (“Draft EA”). Find a segment of that letter below, as VMT continues to hurt the industry.

“We continue to question why CARB is proposing to increase the stringency of the VMT reductions (and speeding up its target date) when the Draft Scoping Plan admits that we are not on track to achieve the VMT reduction called for in the 2017 Scoping Plan? We could understand increasing the stringency if the previous target was being met or VMT was declining, but the opposite is occurring.”

Click here for the Submitted Letter.

In other codes news, earlier this week the California Energy Commission kicked off stakeholder workshops to discuss its plans for the 2026 energy efficiency standards. There are still two months to go before the 2023 changes take effect, but the CEC is already mapping out where it wants to be in January 2026. While much of this will be worked out and finalized over the next 12-16 months, topics the CEC will be working on for non-residential buildings include:



·     Electric-ready commercial kitchens

·     Elevator efficiency levels

·     Refrigerated Warehouses

·     Mandatory solar heating for commercial pools and spas

·     Demand-Side Management and Daylighting controls

Most notably, it was mentioned that the CEC would investigate numerous proposals that would apply to additions and alterations in existing commercial buildings. Lastly, CEC Staff will be investigating whether to expand existing requirements for PV-solar and battery storage applications.

Advanced Clean Fleets Rule -

Fix the ACF

The California Air Resources Board (CARB) held a board hearing yesterday on their proposed ACF regulation.

The rule will require fleets of 50 or more vehicles, those with greater than $50 million in revenue, and port/rail fleets of any size to purchase only zero-emission trucks starting as early as 2024.

We represented the commercial real estate industry during the hearing and voiced the concerns of you, our members, urging the board to fix the rule before implementation, as its current form would deal a devastating blow to our state’s supply chain and lead to yet another toilet paper or baby formula shortage. We are working with other statewide organizations and submitted a letter of concern to CARB to show a united effort.

As California's supply chains continue to face challenges from overcrowded ports, labor shortages, and traffic congestion, the need for coordinated response from California's business community has never been more urgent. That's why we formed a new coalition under the Goods Movement Alliance to urge common sense solutions on goods movement issues at all levels of government.

The Air Resources Board is expected to hold a second hearing on the proposal and vote in the spring. Stay tuned for more updates on this proposed regulation.

November Ballot -

Oppose Upland Loophole Measures

There are currently a dozen local measures using the Upland Loophole recently blown into Prop. 13 by the courts to raise taxes with a simple majority vote instead of a two-thirds vote as it has been since Prop 13 was implemented. CBPA is sounding the alarm on all these measures and attempting to bolster efforts to stop them. Below find more information on some of the campaigns we are heavily involved in.

·      No on ULA/SP LA Transfer/Parcel Taxes

·      San Franciscans Against New Taxes No M&O

·      Santa Monica No On Measures DT & GS

·      SF No On DD for Good Public Policy

Consider supporting the CBPA PAC next year so we can continue to engage on major issues like this on your behalf. If you have properties in any of these and haven’t supported these campaigns directly, please consider doing that now. And if you happen to live in any of these jurisdictions – vote no!

$94M in Grants for CA Ports

California Association of Port Authorities (CAPA) today announced and applauded the $94 million in Transportation Department grants are going to bolster infrastructure at six key California ports with a focus on electrification, emissions reduction and port congestion.

California’s ports are a critical component of the nation’s economy. Approximately 40 percent of all U.S. imports and 30 percent of all U.S. exports travel through California ports. These grants will go toward critical repairs, container facilities, freight rail connections and electric port equipment to modernize California ports and make them more environmentally responsible.

The following grants were announced today:

• Port of Oakland: $36.6 million: The grant will fund construction of a 25-acre off-dock green container support facility, various port infrastructure upgrades and battery storage and charging stations.
• Port of Long Beach: $30.1 million: The grant will help replace diesel tractors with electric ones, construct electric equipment charging infrastructure and install of equipment to streamline cargo-handling operations.
• Port of Stockton: $9.6 million: The grant will help replace or upgrade nearly 13,400 feet of rail in the port.
• Port of San Francisco: $9.6 million: The grant will improve the port’s infrastructure to be more environmentally friendly.
• Crescent City Harbor District: $7.4 million: The grant will fund the construction of a new seawall as well as bolstering infrastructure to support the seafood industry.
• City of Eureka: $650,000: The grant will help replace nearly 40 failing or missing fender pilings on a quay used by commercial fishermen in Humboldt Bay.

This is an historic investment, took a lot of hard work, and we thank and applaud CAPA for its leadership in this area!

Legislative Session Over -

End of Session Update

The Governor had 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

Below, find a short list of priority bills that we worked on to advance or protect the office, industrial, and retail real estate industry. Many others did not make it through the Legislative process but rest assured – they will be back.

Bills on the Governor's Desk - 

Signed or Vetoed

SUPPORTED LEGISLATION

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

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

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

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

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. SIGNED.

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. SIGNED.

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. SIGNED.

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. SIGNED.

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. SIGNED.

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

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. SIGNED.

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

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

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. VETOED.

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. SIGNED.

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. SIGNED.

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. SIGNED.

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. SIGNED.

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. SIGNED.

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

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.

Bill Ideas for 2023 -

There Outta be a Law!

We are making our annual call for bill ideas! Before the Legislature reconvenes in January, we need your ideas on proactive changes to the law that our industry should consider pursuing.

Are there issues in statute that could be made better, more efficacious?

Something not addressed in statute that should be fixed?

Let us know so we can do the needed research and work with authors to get a bill introduced by the appropriate deadlines. Please reach out to Mathew (mhargrove@cbpa.com) or Rex W. (rhime@cbpa.com) with your valuable input as soon as possible. 

2022 CBPA Calendar

Tuesday, November 15

CBPA Board Meeting 

Sacramento

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