Upcoming Event: CBPA Legislative All-Star Lunch

February 25, Sacramento

Join commercial real estate industry leaders as we celebrate some of Sacramento’s all-star lawmakers. You won’t want to miss this opportunity to connect with peers and state representatives in a stunning 15th floor venue overlooking the Capitol!

Click here to learn more and register!

2026 Legislative All-Stars: Pictured left to right: Assemblymember Greg Wallis, Senator Rosilicie Ochoa Bogh, Senator Tim Grayson, Assemblymember Joe Patterson, Assemblymember Mark González, Assemblymember Diane Dixon, Assemblymember Lori Wilson, Assemblymember Rebecca Bauer-Kahan, Assemblymember Cottie Petrie-Norris, Assemblymember Juan Carrillo, Assemblymember Nick Schultz, Assemblymember Stephanie Nguyen, Assemblymember Patrick Ahrens, Senator Laura Richardson

New from CBIA: Building Standards Council Withdraws Costly Green Building Proposals

Last year, the Legislature passed AB 130, a budget trailer bill that included industry-supported reforms to California’s building code adoption process. The measure limits the types of changes that may be considered during the Intervening Code Adoption Cycle — which occurs 18 months after publication of a new code edition — to proposals that are strictly “clarifying, conforming, or coordinating” and that do not materially alter the substance or intent of existing code provisions.

Because AB 130 was enacted as an urgency measure, it took effect immediately upon the Governor’s signature on June 30. These restrictions now apply to the 2025 Intervening Cycle currently underway and have significantly narrowed the scope of code changes under consideration for non-residential buildings by the Building Standards Commission.

What this means for our industry: By limiting substantive code changes outside the regular three-year adoption cycle, AB 130 helps provide greater predictability and stability for commercial property owners, developers, and tenants, reducing the risk of mid-cycle regulatory shifts that can increase project costs, delay timelines, and create compliance uncertainty.

Thank you Bob Raymer and CBIA for the important work you are doing on behalf of the commercial real estate industry!

Indirect Source Rule Bill Reintroduced & Warehouse Moratorium Voted Down in Moreno Valley

The debate over Indirect Source Regulation (ISR) has returned to center stage with Assemblymember Garcia’s introduction of AB 1777, reviving last year’s AB 914. The bill would expand CARB’s authority over emissions tied to warehouses, ports, and other high-traffic facilities. As POLITICO recently noted, “CARB officials say it’s unclear, however, if the agency has the same regulatory power.” That uncertainty is at the heart of the issue. CARB has acknowledged questions about whether it has clear statutory authority to regulate indirect sources statewide. A broad coalition led by CBPA and the California Trucking Association successfully stopped similar legislation last year due to concerns over duplicative regulation and expanded fee authority. AB 1777 reopens that statewide debate and is expected to be a major policy fight in the months ahead.

At the regional level, ISR policy continues to evolve. South Coast AQMD has already adopted warehouse rules, and the Ports of Los Angeles and Long Beach reached a negotiated framework with the district last year—an effort CBPA proudly supported alongside the Pacific Merchants Shipping Association.

Meanwhile, Moreno Valley’s City Council recently rejected a proposed 45-day warehouse moratorium in a 3–2 vote. While several Inland Empire cities have paused new logistics development amid environmental concerns, Moreno Valley opted to keep applications moving forward, reflecting the ongoing regional tension between economic growth, job creation, and air quality impacts. Read the LA Times Story here: https://www.latimes.com/california/story/2026-02-05/moreno-valley-votes-against-warehouse-moratorium-bucking-local-trend

California Business Roundtable Marks 50 Years of Leadership

The California Business Roundtable (CBRT) recently celebrated its 50th anniversary, marking five decades of advocacy on behalf of California’s employers, job creators, and working families. Since its founding in 1976, CBRT has served as a leading statewide voice advancing policies that promote economic growth, fiscal responsibility, and a competitive business climate. Through its policy leadership and the work of the Center for Jobs and the Economy, CBRT has helped shape major tax, regulatory, infrastructure, and workforce debates while bringing data-driven credibility to complex statewide issues.

“Congratulations to the California Business Roundtable on 50 years of advancing a competitive and responsible business climate in California,” said CBPA CEO Matthew Hargrove. “CBRT has played a critical role in major tax and regulatory debates, including protecting Proposition 13 and helping refine policies impacting modern logistics and warehouse operations. We value our partnership with President Rob Lapsley and EVP Brooke Armour and look forward to continuing our work together in the years ahead.”

CBPA Congratulates NAIOP SoCal on Being Named Chapter of the Year

Congratulations to NAIOP SoCal on being named 2025 Chapter of the Year, a well-deserved recognition announced at the national conference in Washington, D.C. Matthew Hargrove, CBPA CEO, who was in attendance said, “This award reflects NAIOP SoCal’s outstanding work advocating for commercial real estate at the local, state, and federal levels. We especially appreciate Tim Jemal’s leadership and look forward to continuing to work together on behalf of our shared industry.” Congratulations to NAIOP SoCal on this milestone achievement!

You’re Invited: California Commission on Disability Access Business Community Stakeholder Summit | Tuesday, February 24 10:00 AM – 11:30 AM via Zoom
CCDA, on which CBPA’s Sarahann Shapiro serves, invites members of the business community to participate in a Business Community Stakeholder Summit as part of their ongoing strategic planning process. CCDA is currently developing a five-year Strategic Plan that will be completed in 2026 and will guide the Commission’s work through 2030.

This summit is intentionally designed as a facilitated listening and discussion session to gather perspectives from business stakeholders that may help inform this process. The summit will provide an opportunity for business stakeholders to engage in dialogue with one another and share insights related to accessibility, compliance, and partnership with CCDA. Input shared during the discussion will be considered alongside other stakeholder feedback as CCDA continues to refine its strategic direction.

Click here to register for the Zoom Summit

Key Bills in Motion
AB 1439 (R. Garcia) – Pension Investments and Labor Standards (Oppose)

AB 1439 restricts pension fund investments in development projects unless they meet specific labor standards, creating legal conflicts with existing agreements and reducing overall housing investment. The bill increases project costs and further strains statewide affordability.

STATUS: The bill passed the Assembly Floor on a 44-36 vote and will move to the Senate.

Click here to read our opposition letter

SB 667 (Archuleta) – Rail Operations and Safety Restrictions – (Oppose)

SB 667 would impose new operational restrictions and liability exposure on freight rail operations, creating significant uncertainty for rail-dependent supply chains across California. By expanding regulatory requirements beyond existing federal rail safety standards, the bill risks disrupting goods movement, increasing costs for shippers and consumers, and undermining statewide economic and infrastructure reliability.

STATUS: The bill passed the Senate Floor on a 26-11 vote and will move to the Assembly.

Click here to read our opposition letter.