7 minute read
Advocating for CRE in DC
BOMA SF Advocates for You in DC
More than a dozen BOMA SF members traveled to Washington, D.C. for BOMA International’s 2022 Winter Business Meeting and National Issues Conference in February. BOMA locals from across the country were able to come together, share ideas and continue to map out the future of the commercial real estate industry for the first time since the 2019 meeting. Below are some highlights.
BOMA International Leads on Carbon Reduction
At this year’s conference, BOMA advocates from across the country discussed issues impacting the commercial real estate industry with key members of Congress. The policy priorities advanced on Capitol Hill were: BOMA International’s carbon reduction priorities; workforce development and the establishment of a Commercial Real Estate Industry Registered Apprenticeship Program through the U.S. Department of Labor; and the Green Energy Loan Enhancement Act, authored by Congressman Jason Crow (D-Colo.). This legislation would expand the cap on Small Business Administration 504/CDC loans.
As a BOMA member, you can be a part of BOMA International’s work by joining one of BOMA’s advocacy committees or sub-committees. There are committees on energy, tax, workforce, state affairs and more. Each of these committees also has a role in developing our future carbon strategy, a topic of great interest to BOMA members. (See below for how some of our members participate.)
BOMA SF Members Contribute
“BOMA SF will be able to offer considerable insight on BOMA International’s carbon reduction initiatives, as we’re at the forefront of engagement with local authorities on how commercial real estate and local government can and must work together to move the needle on climate action,” said Ana Duffy, Hudson Pacific Properties’ Sustainability Analyst, who is the Emerging Professional on the BOMA International Executive Committee. “We look forward to sharing these lessons learned with other locals and BOMA International as the carbon reduction initiative evolves.”
“We were also pleased to learn about improvements and developments in education offerings from BOMI International, including the move towards digital coursebooks and an ESG course track that is in the works,” she added.
BOMA SF President Glenn Good, Vice Chair of BOMA International’s Workforce Development Committee, reported on the group’s initiatives. These included: advancing apprenticeship programs, rolling out state workforce development toolkits,
(Continued on page 18) Shown above: Front row: Cortney Shadel, Longfellow Real Estate Partners; Rebecca Aguilar, Transwestern; Colin Shinners, Vanbarton Group; Glenn Good, Brookfield; David Harrison, BOMA SF; Julie Taylor, BOMA Oakland/East Bay; Christine Mann, Rockhill Management; Sarah MacIntyre, Ellis Partners. Back row: John Bryant, BOMA SF; Mark Kelly, ABM/ABLE; Marc Gille, Rockhill Management; and Ben Fish, ABM/ABLE.
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It’s more critical now than ever that we defend the commercial real estate industry from bad policy. BOMA educates elected officials about our business and why a healthy commercial property industry is vital to our city and our state’s tax base. We work to elect the right candidates to public office and stand against ballot measures that increase the cost of doing business.
Please consider supporting BOMA-SF-PAC to defend your assets at the ballot box! Visit www.bomasf.org/boma-sf-pac
Special Sponsored Report
By Manuel Fishman and Jonathan Kendrick, Buchalter
As a complement to David Harrison’s article on the City’s Climate Action Plan, we thought it would be helpful to review basic steps building managers and operators can take to make their buildings more energy efficient over and above that currently required by the San Francisco Environmental Code requirements on build out of tenant improvements. The most basic step is system re-commissioning and data analytics. “Re-commissioning” is the process of fine-tuning existing building systems to bring them in line with efficient operations through scheduling, sequencing, controls programming, and optimizing set points. PG&E offers a program that pays building owners and operators for going through the process based on energy savings achieved through recommissioning. It is generally acknowledged that recommissioning of building systems can save approximately 15% in energy costs.
Secondly, building managers should look into engaging an energy consultant to perform an energy survey to measure, analyze and model a building’s exact energy usage. The results provide buildings with a better understanding of baseline energy use and can uncover hidden energy inefficiencies based on a particular building’s actual needs. Related to this, buildings should consider the opportunities available for alternative financing of energy efficiency projects. There are several companies—many of whom are BOMA San Francisco members— that will work with owners and operators in financing a variety of energy savings capital improvements—including the financing of major building systems in a manner that enables these costs to be passed through as regular operating expenses (not as capital improvements).
Lastly, aligning your tenants’ interests to operate efficiently with the building’s interest to lower energy costs must be considered in the context of a building’s lease. The most obvious example is for direct metering or “net” metering, as opposed to including the cost of energy consumption as a building operating expense (the “industrial gross” model”). In addition, implementing rules and regulations requiring lighting controls in
each tenant’s space should be considered. Lighting alone uses about 35% of the electricity in a commercial building, more than any other building system. Another area where building owners and managers need to pay attention is the California Public Utilities Commission (the “PUC”). This is an incredibly powerful regulatory agency that most Californians have never given much thought to. The PUC’s authority affects the rates Californians pay for energy, the reliability of Manuel Fishman the electrical grid, the safety of natural gas pipelines, and efforts to achieve California’s climate goals. As an owner, developer, or manager of commercial buildings, you need to make sure that you are paying attention to the PUC because the decisions it makes, particularly around energy (electric and natural gas) have profound impacts on the rate you pay for energy and on your ability to pass through those costs to tenants. For example, if your building uses onsite combined heat and power (CHP) cogeneration as a cost-effective and efficient technology for meeting your building’s thermal and electric Jonathan Kendrick needs, you should be very aware of the push by policymakers and activists to “electrify everything” by replacing natural gas as a fuel source with electricity. Interested commercial owners should pay particular attention to the PUC’s rulemaking proceedings addressing building decarbonization (R.19.01.011) and long-term gas planning (R.20.01.007). Commercial owners who ignore these proceedings risk making poor investment choices for building systems that may become stranded assets in the near future. The most effective path to getting your voice heard by the PUC is to become a party or intervener in a PUC proceeding. For many businesses, becoming a party in a PUC proceeding is too burdensome a task to take on alone. BOMA California monitors these proceedings and you should remain involved in BOMA California for the latest information. Owners of large portfolios of properties in California may have outside counsel and consultants to keep them informed. You can also, without becoming a party, submit written comments in any PUC proceeding using the “Public Comment” tab of the online docket card for that proceeding on the PUC website. Written comments timely submitted become a part of the administrative record of a proceeding and any final decision by the PUC is required to summarize relevant written comments received. Please feel free to reach out to us to discuss how to implement energy efficiency programs into your building operations.
