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Political Outlook
After a quiet summer break, lawmakers will return to
Beacon Hill in September with an ambitious agenda.
Efforts to expand casino gambling will likely take
center stage as the state still grapples with how to
raise revenue. Increased media attention on a series of
accidents involving elderly drivers has put new momentum
behind a dangerous driving bill. Other issues including
CORI reform, charter schools and the second phase of
pension law changes could also see movement. Added to
this agenda is the politically complex issue of how
formulate a succession plan for the United States Senate
seat held by the late Edward Kennedy. For the first
time in twenty-five years lawmakers will be faced with
the dilemma of how to resolve the short term vacancy.
Existing state law requires a special election be held
within five months to fill a seat that becomes open
before the end of a term. Unless the law is amended,
the seat will remain vacant for 145 to 160 days giving
candidates time to file nomination papers, raise money
and mount a campaign.
Commercial Building Code Issue
Successfully Resolved
A troubling provision of the state
building code that imposed cumbersome new requirements
on commercial buildings built prior to 1975 has been
successfully amended. 780 CMR 4308 required that any
building with a floor area of 20,000 square feet or 50%
of the total floor area of a building undergoing
remodeling or rehabilitation would be required to
conduct a structural review and seismic load analysis of
the entire building. This regulation was being
triggered by routine tenant renovations as simple as
painting or installing new carpet. GBREB was a key
supporter of an amendment eliminating this requirement
for non-structural work. In comments before the Board
of Building Regulations and Standards, GBREB
successfully argued that this requirement has imposed
extraordinary hardships on the commercial real estate
industry in cases where tenant space was turning over,
delaying deals and adding significant cost. The BBRS
voted to approve the amendment which immediately takes
effect.
Click here to
view amendment
GBREB Fights Energy Rate
Increase
With the cost of energy continuing
to skyrocket, GBREB has remained focused on how to keep
rates down for consumers. National Grid recently filed
a petition with the Department of Public Utilities (DPU)
requesting an estimated $112 million increase in rates
as of January 1, 2010. It will represent an 18%
increase in distribution rates (5.5% of the total bill)
for residential customers and up to 17% for
commercial/industrial customers. If approved the
petition guarantees National Grid revenue under
decoupling and a return on equity of more than 11%.
GBREB expressed opposition to the measure at a recent
public hearing held in Quincy. GBREB argued that it is
unreasonable to assume that rate payers can continue to
absorb additional cost, particularly in these
challenging economic times. Existing cost structures
already implemented in Massachusetts may limit the
ability to attract new businesses while negatively
impacting existing consumers. This is the first
electricity decoupling case that may set a precedent and
establish the structure of rate design. GBREB continues
to oppose decoupling that guarantees utility companies
recovery of predetermined revenue without regard to the
number of units sold or the cause for lost revenues.
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