Southern California Office Real Estate Blog

SEE…DOE…HUD…DOT…EPA…NGA… IS BIG BROTHER WATCHING? SOCIALIZING URBAN DEVELOPMENT IN THE UNITED STATES

By Jodi Summers

Loyal readers of this blog are well aware that 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.

Taking further steps in that direction, more government agencies are getting involved to attempt to make our new millennium existence easier all around. The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) have formed the State Energy Efficiency (SEE) Action Network to help states achieve the maximum cost-effective energy efficiency improvements possible in offices, buildings, industries and homes by 2020.

SEE…DOE…HUD…DOT…EPA…that’s a lot of government agencies making sure cities develop in the “proper” manner…socialized urban growth.

But, oops we wander, back to SEE…under the oversight of the EPA and the DOE, SEE will work with representatives from state and municipal governments, business leaders, public utility commissioners and others to make life in this country of energy efficiency for all.

The group plans to work from the framework set by the National Action Plan for Energy

Efficiency Vision for 2025, which was laid out in 2006…only the new goal is to make it a 2020 initiative…following the model set forth by California. You know AB 32 - California’s landmark 2006 global warming initiative.

(Not only has AB 32 been adopted by the Obama Administration, the International Code Council announced the state’s newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide AND California participated in the launch of China’s first GHG emissions registry. When his term comes to an end in November, Arnold Schwarzenegger should follow in the steps of former Vice President Al Gore in becoming a champion for energy programs that influence national and international policies…perhaps even work warmly with Mayor Antonio Villaraigosa on Los Angeles’ 30/10 initiative…ah but we dream….)

SEE will offer technical assistance, and help with specific policy and program issues to advance energy efficiency efforts. Efforts may include financing solutions, residential efficiency programs and improving availability of energy usage information, etc…

Already the DOE and EPA have a request list that includes 32 state public utility commissions wanting assistance with energy efficiency programs.

SEE…DOE…HUD…DOT…EPA…and don’t forget the NGA…the National Governors Association is another national agency championing states with energy efficiency efforts.

Earlier this year, the National Governors Association Center for Best Practices selected six states - Colorado, Hawaii, Massachusetts, North Carolina, Utah and Wisconsin - to participate in the organization’s Policy Academy on State Building Efficiency Retrofit Programs.

The academy, funded by the DOE (you remember them, working with DOT among other liaisons…), is designed to help states develop strategies and action plans to improve the energy efficiency of existing building and reduce costs and emissions.

SEE…DOE…HUD…DOT…EPA…NGA… is Big Brother is watching?

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

http://www.socalgreenrealestateblog.com/?p=691

http://www.socalindustrialrealestateblog.com/?p=434

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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.”

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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

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TWO SOCAL BUILDINGS ARE EPA EFFICIENCY CONTEST FINALISTS

By Jodi Summers

The U.S. Environmental Protection Agency (EPA) has picked 14 commercial buildings for their first national energy efficiency contest – and two of the finalists are in Southern California. Kudos to the Courtyard by Marriott San Diego Downtown - San Diego, CA and JCPenney Store # 1778 - Orange, CA will be competing with 12 other commercial structures around the country to best streamline their energy usage and be heralded the winner.

Two hundred buildings entered the competition, which will run through October 26, 2010. Fourteen finalists were chosen for undisclosed reasons. (Meet the contenders @ http://www.energystar.gov/index.cfm?fuseaction=buildingcontest..contestants)

Each entrant was tagged with an energy use intensity (EUI) number portraying the building’s energy use. A building’s EUI is calculated by taking the total energy consumed in one year (measured in kBtu) and dividing it by the total floorspace of the building. The winner is the one who lowers their EUI by the greatest percentage. Obviously a candidate such as the Van Holten Primary School - Bridgewater, NJ (EUI 150) will use relatively little energy (particularly when school’s out) compared to the Solon Family Health Center in Cleveland, OH (EUI 318) or an office building 522 5th Avenue - New York, NY (EUI 242) . Each building will be judged on the percentage of reduction they achieve in their EUI.

The nominees will measure and track their building’s monthly energy consumption using Portfolio Manager, the EPA’s online energy tracking tool. The building that demonstrates the greatest percentage-based reduction through October 26^th will be recognized as the winner.

Now, a little about our local contestants -

The team name for the Courtyard by Marriott San Diego Downtown is “Money in the Bank” – appropriately named because the hotel is located in the historic San Diego Trust & Savings Bank building in the city’s Gaslamp district. Ten years ago, the building went through a spectacular adaptive reuse, transitioning from a bank and office building to the Courtyard by Marriott Downtown San Diego hotel with 245 guest rooms. The 1920s bank building has guest rooms and common areas retrofitted with efficient sensors and technology. The hotel lists four reasons why it is important for it to save energy, money, and reduce greenhouse gas emissions: 1) Its guests expect it, 2) Its owners require it, 3) Its employees know it is the right thing to do, and 4) It owes it to their community. MSD’s starting EUI is 162.

JCPenney Store # 1778 - Orange, CA is calling their crew the Orange Power Rangers. That JCPenney Store opened in 1977. The store covers 100,853 gross square feet with a net sales floor space of 69,723 square feet. The Orange store is part of a group of 63 JCPenney stores that participate in the company’s Advanced Energy Management (AEM) Program, which focuses on energy awareness on both the facility maintenance and store associate level. With the help of an Interval Data Recorder (IDR) meter, the energy usage of this store is monitored on a next-day basis, and daily store energy use reports for all associates to see. JC Penny Orange is already using 35% less energy than it was last year. 1778. Their starting EUI: 165

Good luck to all of the finalists, may you make the world a better place. Btw, does anyone else know what the winner gets, other than a trophy and/or plaque to proudly display?

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http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.contestants

http://www.bustler.net/index.php/article/14_finalists_picked_in_epas_national_building_competition/

http://www.energyboom.com/emerging/epa-and-energy-stars-new-national-building-competition?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A%20energyboom%20%28EnergyBoom%20Daily%20Briefing%29

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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.

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

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

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

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LOS ANGELES WINS THE ENERGY STAR GRAND PRIZE…AGAIN

By Jodi Summers

Bravo to all of you greening your properties. According to our friends at the environmental protection agency, approximately 3,900 commercial buildings earned the Energy Star rating in 2009, representing annual savings of more than $900 million in utility bills and more than 4.7 million metric tons of carbon dioxide emissions. Impressively, nearly 9,000 buildings across the nation have earned the Energy Star for superior energy efficiency during the past 11 years.

A standing ovation for our beloved Los Angeles. The EPA ranked us as first on its annual list of metro areas with the most energy-efficient buildings. We led the field with 293 buildings labeled Energy Star in 2009, up from the 262 that qualified the city as No. 1 in 2008.

Kudos also go to our nation’s capitol. Washington, DC, ranked fourth place in 2008, is now in second, with 204 Energy Star buildings, up from 136 the previous year.

Energy Star is a voluntary labeling program run by the EPA and U.S. Department of Energy. In order to qualify, a building or manufacturing plant must score in the top 25 percent based , on the agency’s National Energy Performance Rating System and use less energy, reduce operating expenses and cause fewer greenhouse gas emissions.

Roll the credits - the top 25 cities with the most energy star labeled buildings in 2009 are:

1. Los Angeles, CA

2. Washington, DC

3. San Francisco, CA

4. Denver, CO

5. Chicago, IL

6. Houston, TX

7. Lakeland, FL

8. Dallas-Fort Worth, TX

9. Atlanta, GA

10. New York, NY

11. Minneapolis-St. Paul, MN

12. Portland, OR

13. Boston, MA

14. Seattle, WA

15. Detroit, MI

16. Sacramento, CA

17. San Diego, CA

18. Austin, TX

19. Miami, FL

20. Phoenix, AZ

21. Ogden, UT

22. Charlotte, NC

23. Indianapolis, IN

24. Des Moines, IA/Fort Collins, CO/Philadelphia, PA

25. Louisville, KY

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http://www.greenbiz.com/news/2010/03/23/la-takes-top-spot-epa-green-building-rankings

http://www.costar.com/News/Article.aspx?id=624F645516667EF93A09A56906607F8E&ref=100&iid=174&cid=383F14EEE265B182474DA2442BACBBBF

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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

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CALGREEN BUILDING CODE TRANSITIONS INTO EFFECT

CALGREEN BUILDING CODE TRANSITIONS INTO EFFECT

By Jodi Summers

We always find these to be statistics to think about - buildings account for 39 percent of the energy used in the United States, 71 percent of electricity use, and 39 percent of C02 emission.

Our new CALGREEN Code state building code – which went into effect August 1^st - aims to improve the odds. Adherence to the code is voluntary until 2010, then the provisions are expected to become mandatory.

“It is imperative to expedite the greening of California’s building standards,” Governor Schwarzenegger stated. “As such, I am directing the California Building Standards Commission to work with specified state agencies on the adoption of green building standards for residential, commercial, and public building construction for the 2010 code adoption process.”

State officials say that if all of the green-building measures were enacted, buildings would at least be comparable to the requirements of a silver rating under the LEED standards set by the USGBC.

A recent report by McKinsey & Company notes that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste.

By establishing the CALGREEN Code, the California Building Standards Commission

is setting minimum green-building standards that may, at the discretion of any local government entity, be applied. Local governments such as West Hollywood, Santa Monica and Los Angeles have already set up codes that exceed the CBSC standards.

The purpose of the code 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

The Governor notes that the CBSC and the other agencies are further developing the framework to include mandatory measures in the 2010 CALGREEN Code. Stakeholder workshops begin March 26, with technical review and public comment scheduled for later in the year. The 2010 version is planned to become effective on January 1, 2011.

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http://www.newsreview.com/chico/content?oid=1052010

http://www.mckinsey.com/clientservice/electricpowernaturalgas/US_energy_efficiency/

http://www.documents.dgs.ca.gov/green/meetings/brochure090508.pdf

http://www.buildersbook.com/Merchant2/merchant.mvc?Screen=PROD&Product_Code=BBI2411A08&Category_Code=97b

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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.

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

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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.

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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

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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.

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

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