Southern California Industrial Real Estate Blog

THE EPA WANTS TO IMPROVE YOUR BUILDING

By Jodi Summers

Southern California Edison is one of a handful of state utilities selected to partake in the U.S. Environmental Protection Agency’s new pilot program – the Building Performance with Energy Star program. The goal of the program is similar to some of SoCal’s green building initiatives - to further improve energy efficiency in commercial buildings.

According to the EPA, energy use in commercial buildings accounts for 17 percent of U.S. greenhouse gas emissions at a cost of over $100 billion per year. Energy Star Leaders prevented the emissions of more than 220,000 metric tons of carbon dioxide and saved more than $48 million across their commercial building portfolios in 2009.

The goal of the Building Performance with Energy Star program is to help utilities and state energy-efficiency programs become Energy Star Leaders and achieve greater energy savings and reduce greenhouse gas (GHG) emissions by targeting whole building energy improvements with their business customers.

In addition to Southern California Edison, pilot program partners are Com Ed, MidAmerican, National Grid, the New Jersey Board of Public Utilities, Pacific Gas & Electric and Wisconsin Focus on Energy.

Key elements of the pilot, which follows the EPA’s Home Performance with Energy Star program, include:

* Incorporating use of the EPA’s Portfolio Manager, the agency’s online energy measurement and tracking tool, to score building performance;

* Approaching energy efficiency opportunities in the context of findings from whole building assessments; and

* Creating a robust delivery network for whole building efficiency services.

The program will allow operators of commercial properties to realize greater savings by strategically planning and implementing whole-building energy efficiency improvements. SoCal Edison and the other selected partners are expected to help business customers plan and implement energy-efficiency improvements over time, starting with low-payback measures that can create revenue to fund capital upgrades in the future.

**

http://www.environmentalleader.com/2010/05/06/epa-help-states-utilities-reap-greater-energy-savings/

http://www.greenbiz.com/news/2010/05/06/epa-powers-building-performance-new-energy-star-program

http://www.cbpca.org/

http://yosemite.epa.gov/opa/admpress.nsf/e51aa292bac25b0b85257359003d925f/23d4c522b2e723da8525771a0057a925!OpenDocument

http://media.buildingsmedia.com/images/A_0908_HalfPrice1_lg.jpg

http://www.fypower.org/news/wp-content/uploads/2008/10/1007energystar21.png

GREEN REAL ESTATE – GOOD FOR CALIFORNIA, GOOD FOR THE COUNTRY?

By Jodi Summers

Once again, when it comes to green, what’s good for California tends to become good for the country. The US Environmental Protection Agency and the Department of Energy have formed an action group to help states achieve the maximum cost-effective energy efficiency improvements possible in offices, buildings, industries and homes by 2020. Dubbed the State Energy Efficiency (SEE) Action Network, they are seeking to create a national version our statewide CALGREEN building code.

The CALGREEN Code was devised California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Take the whole bunch of cities concept and spread it across a bunch of states. The DOE and EPA noted that 32 state public utility commissions requested help from the agencies last year regarding energy efficiency programs. SEE will be working with states to provide technical assistance and policy and program issues to advance energy efficiency efforts. Those state efforts may include financing solutions, residential efficiency programs and improving availability of energy usage information.

No doubt SEE’s goals will be similar to what we set forth in California. The purpose of CALGREEN’s codes is to improve public health, safety and general welfare by enhancing the design and construction of buildings through the use of building concepts that have a positive environmental impact, and by encouraging sustainable construction practices in the following categories:

• Planning and design

• Energy efficiency

• Water efficiency and conservation

• Material conservation and resource efficiency

• Environmental air quality

As California did with CALGREEN, now SEE and other DOE programs will help states develop strategies and action plans to improve the energy efficiency of existing building and reduce costs and emissions.

One small step for man, one giant leap for mankind.

**

http://www.businessgreen.com/business-green/news/2257243/agencies-action-buildings

http://www.socalmultiunitrealestateblog.com/?p=673

http://www.socalgreenrealestateblog.com/?p=764

http://www.hydrogenthusiast.com/uploaded_images/doe-786712-787007.gif

http://www.inhabitat.com/wp-content/uploads/2010/01/calgreen-ed01.jpg

http://www.socalofficerealestateblog.com/wp-content/newuploads/2009/08/calgreen_code_page_01.jpg

THE GOVERNMENT HAS $72 BILLION FOR GREEN REAL ESTATE

By Jodi Summers

Experts have calculated that the Obama administration has put together more than 30 programs worth $72 billion that can be used to increase energy efficiency in commercial buildings and multifamily housing.

“The Obama Administration has tremendous, untapped opportunities to use legal tools already at its disposal to enhance the energy efficiency and sustainability of the nation’s multifamily and commercial buildings — all without seeking new funds or authority from Congress,” observes a report prepared by Van Ness Feldman. “All told, the programs identified in this report have the potential to directly provide or facilitate over $72 billion in funding or loan guarantees, and can leverage hundreds of billions of dollars in private investment through instruments such as mortgage insurance and regulation of the real estate lending market.”

Titled “Using Executive Authority to Achieve Greener Buildings: A Guide for Policymakers to Enhance Sustainability and Efficiency in Multifamily Housing and Commercial Buildings,” the legal analysis, suggests several ways the Obama administration can use existing programs to enhance building efficiency:

* Reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac Greening federal banking regulations

* Promoting flexible FHA insurance products

* Integrating energy efficiency and sustainability criteria into competitive grants and funding formulas

* Strengthening minimum property standards for federal housing and economic development programs to reflect energy efficiency and sustainability standards

* Improving performance standards applicable to federal buildings and leases

* Refining guidance applicable to the energy efficient commercial buildings tax deduction and the national historic preservation tax credit

* Using SBA funding mechanisms to support small business energy efficiency investments

* Streamlining Title 17 loan guarantees to make them suitable for buildings

“As an early adopter of green buildings and the LEED green building certification system, the federal government has been a leader in bringing green buildings to cities and towns across America,” said Roger Platt, the USGBC’s senior vice president of Global Policy & Law declared. “This new report unveils an even larger opportunity for the Obama Administration to increase our nation’s energy efficiency, while creating thousands of jobs and saving taxpayers money.”

**

http://www.usgbc.org/government

http://www.greenbiz.com/news/2010/04/30/obama-already-has-72b-tap-green-buildings-study-says

http://www.boulderindependentbusiness.org/wordpress/wp-content/uploads/2009/02/namaste_obama_0093.jpg

http://www.rechargenews.com/multimedia/archive/00032/obama_solar_3_32125a.jpg

Energy to Sell - States with Renewable Portfolio Standards

States with Renewable Portfolio Standards

Edited by Jodi Summers

Here is a nifty map and chart from the U.S. Department of Energy showing states with renewable portfolio standards - a state policy that requires electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date.

California is stellar with the objective of 33% renewable energy by 2030, but not nearly as aggressive as Maine, which is shooting for 40% renewable by 2017.

Currently there are 24 states plus the District of Columbia that have RPS policies in place. Together these states account for more than half of the electricity sales in the United States. Five other states, North Dakota, South Dakota, Utah, Virginia, and Vermont, have nonbinding goals for adoption of renewable energy instead of an RPS.

The chart below gives a rough summary of state renewable portfolio standards and links to organizations that are administering these standards or explain the details involved. Percentages refer to a portion of electricity sales and megawatts (MW) to absolute capacity requirements. Most of these standards phase in over years, and the date refers to when the full requirement takes effect.

http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm?prin

MAYOR VILLARAIGOSA’S 30/10 INITIATIVE WILL BRING INDUSTRIAL GROWTH TO LOS ANGELES

By Jodi Summers

Bravo to Mayor Antonio Villaraigosa for going to Washington to push his 30/10 initiative. The mass transit financing method that he has proposed so that Los Angeles can build their 30-year mass transit model in 10 years’ time, could be a new model for federal-local partnership, that could help cities across the country rebuild their infrastructure, strengthen urban development and revitalize the economy, and stimulate industrial growth.

“We are trying to define density not as a bad word, but as a word that can have elegance to it, and be green, and be smart,” the mayor said. “Yet the city needs to change even more, and the 30/10 plan is one of the routes to that change.”

Senator George Voinovich from Ohio, a former mayor, noted that regions like Los Angeles should be rewarded for raising our own transportation funding.

The 30/10 proposal would allow Metro to construct the full Westside extension, but also two easterly extensions of the Gold Line, two new branches for the Green Line, several busways in San Fernando Valley, a link along I-405, and new light rail lines downtown, along Crenshaw Boulevard, to Santa Monica, and via the West Santa Ana branch corridor. The West Santa Ana branch corridor would be served by commuter rail. All by 2020.

It was a brilliant solution to an intractable political problem by ensuring the extension of transit in corridors everywhere in the county within a tight time frame. The fight over which lines to prioritize would simply not have to happen

The 30/10 proposal that went to Washington looks something like this:

o Current long-range transportation plan assumes $18.3 billion in transit expenditures over 30 years. 65% of funds would come from Measure R, with 23% from New Starts and 12% from other sources.

o The 30/10 Initiative would allow total expenditures to be reduced to $14.7 billion because of avoided inflation, since projects would be completed in ten years, twenty years ahead of schedule. More cost savings could also be possible because of a cheaper construction market.

o Of that $14.7 billion, $5.8 billion is expected to be available from existing sources, with around $8.8 billion still necessary, which could be provided through a loan from the federal government.

o Measure R would then pay back its $8.8 billion in debts for projects completed between 2010 and 2020 with $10.4 billion in tax revenue received between 2020 and 2040.

In Washington, Mayor Villiarigosa got support Oregon Democratic Representative Peter DeFazio, who chairs the House Subcommittee on Highways and Transit. California Democratic Senator Barbara Boxer also supports the effort. Secretary of Transportation Ray LaHood signaled that he was open to the opportunity in a meeting in Los Angeles

“Four years ago, when I talked about the subway to the sea, people laughed,”

Villaraigosa recalls. “But we are going to build it. All of these transit plans will happen.”

**

http://www.laedc.org/businessscan/index.html

http://www.globest.com/newspics/la_urbanmarketplacepanel.jpg

http://www.thetransportpolitic.com/2010/03/01/how-feasible-is-antonio-villaraigosas-3010-gambit-for-los-angeles-transit/

http://la.streetsblog.org/2010/04/22/3010-survives-the-metro-board-of-directors/

http://articles.latimes.com/2010/feb/26/opinion/la-oe-rutten27-2010feb27

http://www.globest.com/news/1622_1622/losangeles/184054-1.html

http://www.socalgreenrealestateblog.com/wp-content/uploads/2008/05/subwaymayor-760786.jpg

CALGREEN – > CALIFORNIA NOW HAS THE COUNTRY’S GREENEST BUILDING STANDARD

By Jodi Summers

Bravo to us! California has adopted the greenest building standards in the United States…and the world.

The new code, called Calgreen, goes into effect next January 2011. It requires all builders to:

v Install plumbing that cuts indoor water use.

Mary Nichols, chairwoman of the California Air Resources Board, said the new building code would require developers to slash water use in their buildings by 20%, using more efficient toilets, shower heads and faucets.

v Divert 50 percent of construction waste from landfills to recycling.

v Use low-pollutant paints, carpets and floorings

v Buildings will be given certificates of occupancy occupied only after strict energy standards were verified.

In addition, for non residential buildings:

v Install separate water meters for different uses.

v Mandates the inspection of energy systems by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently.

v It allows local jurisdictions, such as Los Angeles and San Francisco, to retain their stricter existing green building standards, or adopt more stringent versions of the state code if they choose.

“California should be proud… These are simple, cost-effective green practices. …” notes Tom Sheehy, acting secretary of the state Consumer Services Agency and chair of the California Building Standards Commission, which approved the standards. “This is (something) no other state in the country has done - integrating green construction practices into the very fabric of the construction code.”

While California’s largest metropolitan areas have adopted their own green building standards, these new regulations will be particularly useful for smaller jurisdictions that have been unable to develop their own green construction guidelines.

This is a positive alternative to LEED construction standards. Sites Sandra Boyle, an executive vice president of Glenborough, a developer, “The cost for owners to go through this rating system is astronomical — in a very challenging commercial real estate market.”

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Buildings currently account for about one-quarter of the state’s total greenhouse gas emissions. These new standards are applauded as an important step in helping California meet its goal in reducing the state’s greenhouse gas emissions by 30 percent by 2020.

**

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL#ixzz0dJ9grkaW

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL

http://www.latimes.com/business/la-fi-green-building11-2010jan11,0,1841989.story

http://www.thedailygreen.com/cm/thedailygreen/images/WA/Kohler-DualFlush-BR08-lg.jpg

HUD AND DOT WORKING TOGETHER FOR MORE LIVABLE CITIES

HUD AND DOT WORKING TOGETHER FOR MORE LIVABLE CITIES

By Jodi Summers

Government statistics show that the average working American family spends nearly 60 percent of its budget on housing and transportation costs - making these two areas the largest expenses for the average household. Now the government wants to help.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Transportation (DOT) are working together in hopes of helping American families gain better access to affordable housing, more transportation options, and lower transportation costs by creating affordable, sustainable communities.

Like putting in our light rail system, this is a long process. Over the next four years, every major metropolitan area in the country will do an analysis of integrated housing, transportation, and land use planning and investment.

Recently, HUD Secretary Shaun Donovan and DOT Secretary Ray LaHood presented the official vision for sustainable communities at a U.S. House of Representatives Appropriations Subcommittee on Transportation and Housing hearing titled, “Livable Communities, Transit Oriented Development, and incorporating Green Building Practices into Federal Housing and Transportation.”

“One of my highest priorities is to help promote more livable communities through sustainable surface transportation programs,” offered Secretary LaHood. “This partnership will help expand every American family’s choices for affordable housing and transportation,” said Secretary Donovan. “HUD’s central mission - ensuring that every American has access to decent, affordable housing - can be achieved only in context of the housing, transportation, and energy costs and choices that American families experience each day.”

DOT and HUD have created a high-level interagency task force to better coordinate federal transportation and housing investments and identify strategies to give American families:

• More choices for affordable housing near employment opportunities;

• More transportation options, to lower transportation costs, shorten travel times, and improve the environment; and

• Safe, livable, healthy communities.

The HUD/DOT task force has the goal of enhancing integrated regional housing, transportation, and land use planning and investment. Planning grants will be made available to metropolitan areas, and create mechanisms to ensure those plans are carried through to localities. DOT will encourage Metropolitan Planning Organizations (MPOs) to conduct this integrated planning as a part of their next long-range transportation plan update and will provide technical assistance on scenario planning, a tool for assessing future growth alternatives that better coordinate land use, and transportation planning.

http://www.hud.gov/offices/cir/test090318.cfm

http://www.inman.com/news/2009/03/19/partnership-targets-affordability-transportation

http://transit-safety.volpe.dot.gov/safety/sso/MeetingSummary/images/1-dotlogo.gif

http://t4america.org/logos/t4logo_square.jpg

SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

By Jodi Summers

Arnold Schwarzenegger is now an international superstar in more than one arena. First it was movies, now it’s global warming. During his terms as governor, California’s bold energy programs are influencing national and international policies.

Three years after California adopted AB 32 - California’s landmark 2006 global warming initiative,

1- The Obama Administration announced that the U.S. Environmental Protection Agency will adopt a vehicle emissions standard modeled after California’s first-in-the-nation standard

2- The International Code Council announced the state’s newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide.

3- California participated in the launch of China’s first GHG emissions registry.

Being a leader in clean energy standards has made California a leader in clean energy investment and green jobs. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue. According to a recent study, California is on track to more than double its power generated by solar panel installations in 2009.

Sounds brilliant, yet our economy is currently down the tubes. Only our future is filled with green.

**

http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

http://www.pollsb.com/photos/o/38053-relase_greenhouse_gasses_atmosphere_believed_cause_global_climate_changes_following_causes_increase_greenhouse_gas_emissions.jpg

http://tvtropes.org/pmwiki/pmwiki.php/Main/ArnoldSchwarzenegger

http://en.cop15.dk/files/images/1col_492px/chinaenergy_19980822-134048-7_web.jpg

GREEN LEGISLATION DOMINATES IN SACRAMENTO

A HOST OF GREEN BILLS PASS IN CALIFORNIA LEGISLATURE

by Jodi Summers

Once his term as state leader is finished, do not be surprised if Governor Arnold Schwarzenegger crosses party lines and unites with former Vice President Al Gore in working for a greener world.

Green legislation and regulations have been a favorite in Sacramento since the adoption of Assembly Bill 32 in 2006, and this year is no different. The basics of the green bills signed into law this year by Schwarzenegger include:

Energy

* Assembly Bill 758 (Skinner, D-Berkeley): Requires the California Energy Commission to establish a program encouraging energy savings in existing residential and nonresidential buildings.

* Assembly Bill 920 (Huffman, D-San Rafael): Allows customers with solar and other alternative energy generators participating in a net-metering rate schedule the option of rolling over credits for excess energy generation into the following year or receiving payments from the utility at a wholesale rate.

* Senate Bill 32 (Negrete-McLeod, D-Chino): Creates a fixed-price payment for energy generated from renewable projects based on the value of renewable generation. The legislation makes it easier for the owners of storage units, vacant land, warehouses and other properties that require minimal energy consumption to transform their properties into independent solar power plants that sell back to utilities.

Greenhouse Gas Reductions/Climate Change

* Assembly Bill 1085 (Mendoza, D-Artesia): Shines “sunlight” on important regulatory procedures at the California Air Resources Board (aka CARB) by requiring it make available to the public each technical, theoretical and empirical study, report or similar document, if any, on which the agency relies, related to, but not limited to, air emissions, public health impacts and economic impacts before the comment period for any regulation proposed for adoption by the state board.

* Assembly Concurrent Resolution 77 (Swanson, D-Oakland): Urges CARB to meet the statutory requirements of the Global Warming Solutions Act of 2006, or AB32, by ensuring that its analysis of specified emission reduction measures include prescribed components.

* Assembly Bill 210 (Hayashi, D-Hayward): Encourages cities, counties and other local jurisdictions to adopt energy-efficient building standards that surpass those already included in the state’s landmark Green Building Standards Code. That code requires structures to use at least 15 percent less energy than current requirements, and sets goals for air quality, water conservation and other environmental concerns.

* Assembly Bill 531 (Saldana, D-San Diego): Delays the implementation of the state’s mandatory Energy Star benchmarking law - Assembly Bill 1103 - and requires the state Energy Commission to write implementing regulations.

Water

* Senate Bill 407 (Padilla, D-Pacoima): Requires all residential and commercial buildings to install water-conserving fixtures by 2019. Also authorizes public entities that supply water to require such retrofitting whenever real estate is transferred.

* Assembly Bill 474 (Blumenfield, D-Van Nuys): Authorizes the legislative body of any public agency to designate an area within which authorized city officials and free and willing property owners may enter into contractual assessments to finance the installation of water-efficiency improvements that are permanently fixed to real property.

* Addendum: The state remains without a water deal despite Schwarzenegger’s scheduling of a special session on the topic.

Under Governor Schwarzenegger, California has become an international leader in clean energy standards, enriching the state with clean energy investment, green jobs and a better quality of life. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue, with assistance both on the state and national level.

**

http://www.carealestatejournal.com/newswire/index.cfm?sid=&tkn=&eid=905490&evid

http://www.socalgreenrealestateblog.com/?p=825

http://www.consrv.ca.gov/smgb/PublishingImages/CaliforniaStateCapitol02.jpg

http://www.blogcdn.com/www.autoblog.com/media/2006/12/the-governator—64_1280.jpg

http://www.greentechforum.net/wp-content/uploads/2007/06/california_state_flag.png

http://www.limitstogrowth.org/WEB-Graphics/CaliforniaPostcardGreetings.jpg

http://www.internationalrivers.org/files/images/Windturbines.jpg

http://forcechange.com/wordpress/wp-content/uploads/2008/03/cfl-float.jpg

URGENT! CONTACT YOUR CONGRESSMAN TO AVOID COMMERCIAL REAL ESTATE TAX HIKES

Action to Oppose More Than Doubling of Taxes on Real Estate Carried Interests

Edited by Jodi Summers

In early December, Congressman Charles Rangel Ways, chairman of the Ways and Means Committee of the House of Representatives, introduced the “Tax Extenders Act of 2009″ (H.R. 4213). Wrapped in this legislation package is a proposal that would more than double the taxes on carried interest received by general partners in real estate partnerships. Under this legislation, carried interest would no longer be taxed as capital gains at 15 percent, but as ordinary income at rates as high as almost 35 percent…making everyone’s investment real estate holdings a lot less sexy.

Kick us while we’re down. Those investing in commercial real estate are already feeling economic distress because of the decline of property values and the lack of loans available. The proposed legislation would more than double the taxes imposed on many real estate entrepreneurs.

If H.R. 4123 enacted into law, this proposal could be the largest modification to the taxation of real estate since the Tax Reform Act of 1986.

This bill was past stealthfully, proposed on December 7^th, it bypassed the customary legislative process, bypassing the House Ways and Means Committee, and going directly to the House floor for a vote on December 9, reducing meaningful opportunities to amend the bill.

Safeguard your real estate assets; communicate with your Congressional Representatives and Senators! Let them know that this tax increase on carried interest will further damage the commercial real estate industry and undermine efforts in their own communities to spur job growth and economic recovery.

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO has letters ready to go to your congressmen.

Save your assets and contact them.

**

http://www.capwiz.com/naiop/issues/alert/?alertid=14439831&type=CO

http://www.ysop.org/images/Capitol.jpg