September 1, 2022
President Anson Moran
San Francisco Public Utilities Commission
525 Golden Gate Avenue
San Francisco, CA 94102
Re: Resolutions Adopted by the SFPUC Citizens’ Advisory Committee
Dear President Moran,
This letter is to inform you that the SFPUC Citizens’ Advisory Committee voted at their August 16, 2022, meeting, to pass a Resolution in Support of Deepening Public Power Evaluation and a Resolution in Support of Transparency Environmental Accountability and Labor Standards for California Community Power. Please see the attached adopted resolutions.
The SFPUC Citizens’ Advisory Committee was established by ordinance to publicly discuss and make recommendations to the General Manager of the Public Utilities Commission, the Public Utilities Commission, and the Board of Supervisors on the agency's long-term strategic, financial, and capital improvement plans. Our seventeen members are appointed by each of the Supervisors, with additional appointments by the Board President and the Mayor.
We appreciate the opportunity to comment on this important topic and look forward to having staff report back on the progress made towards the recommendations.
Sincerely,
Emily Algire
Full CAC Secretary
cc: Dennis Herrera, SFPUC General Manager
Ronald Flynn, SFPUC Deputy General Manager
Masood Ordikhani, Assistant General Manager, External Affairs Barbara Hale, Assistant General Manager, Power Enterprise
PROPOUNDED BY: Emily Algire
Resolution in Support of Deepening Public Power Evaluation
Sponsors: Emily Algire, Steven Kight
WHEREAS the SFPUC CAC previously passed a resolution in November 2020 supporting “the City’s continued efforts to evaluate and acquire PG&E assets,” and encouraging the City and the SFPUC to “continue negotiations with PG&E and other stakeholders to ensure a more reliable, safe, and clean electric grid for both San Francisco and California,” and
WHEREAS in the 2019 “SFPUC Preliminary Public Power Options Report” (“2019 report”) the SFPUC identified areas of further study to include “challenges in workforce recruitment and retention ... assuring that rates for customers would be affordable and stable ... equity considerations and any possible disproportionate impacts to communities and residents that could arise from the potential exit of PG&E’s electric services in the City,” and
WHEREAS the 2019 report states, “The City will evaluate the equity implications of a power independence business scenario” and lays out framework for further evaluation, and
WHEREAS the 2019 report states “the impacts on PG&E’s remaining customers because of separation would need to be considered. These elements require further engineering study,” but that work requires additional information from PG&E and has yet to be completed, and
WHEREAS these areas of further study have yet to be shared with the public, although a Power Enterprise analyst stated in a presentation September 27, 2021 that the SFPUC had started looking into studying workforce development, and
WHEREAS the San Francisco Planning Department on October 27, 2021 posted a Notification of Project Receiving Environmental Review studying impacts along the southern edge of the City were the City to purchase PG&E assets, and
WHEREAS the Citizens’ Advisory Committee recognizes that much of the work already conducted or contemplated is privileged and confidential and the City has commenced administrative litigation at the California Public Utilities Commission to obtain a valuation of the PG&E assets, and that some aspects of the PG&E acquisition proceedings may remain confidential to protect San Francisco’s interests; and
WHEREAS in the face of climate catastrophe, the City of San Francisco must act swiftly and deliberately to provide greener, safer, more reliable, and more affordable energy, yet the report states that “The transition from PG&E to City control would likely take many years and the full benefits will not be realized until the transition is complete,” and
PROPOUNDED BY: Emily Algire
WHEREAS the City Planning Department is studying the impact on Native Peoples, including on their lands, through the CEQA process, but we do not currently know whether this process would include the Association of Ramaytush Ohlone, and
WHEREAS the City’s goal is to have stable and enduring relationships with the Unions representing City workers, and have a long history of providing excellent health benefits, pension benefits and salaries, and seeks to retain a skilled workforce, and will seek to employ additional skilled workers to operate and maintain the electric grid in San Francisco, and
WHEREAS On November 8, 2021 IBEW 6, which represents San Francisco’s electricians, expressed its concerns about a potential takeover, focusing on the service and reliability implications of the City’s lower pay scale compared to PG&E, the extensive vacancies in electrical positions across the City, and staff scaling challenges; now, therefore be it
RESOLVED that the SFPUC Citizens’ Advisory Committee recommends that the San Francisco Public Utilities Commission continue the work identified in the 2019 report and continue to share progress and findings of that work with the public, including written reports addressing the below; and be it
FURTHER RESOLVED that these evaluations address the following recommendations from the 2019 Options report, including but not limited to the previously addressed workforce issues, rate changes, equity considerations, and effects on remaining PG&E customers; and be it
FURTHER RESOLVED that this work will include the following considerations should the City purchase PG&E’s assets to achieve full independence from PG&E within the City:
- Workforce considerations, such as job losses and gains, seniority implications, impacts on pensions and geographic flexibility, effects on collective bargaining, and other impacts to all potentially affected workers, with a focus on workers associated with the following unions: SEIU 1021, IBEW 1245, IBEW 6, and IFPTE 21. These considerations shall include competitive wage and benefits levels for utility workers, and will address goals for recruiting existing PG&E employees, San Francisco residents, and specifically disadvantaged communities in San Francisco. This fact- finding should be conducted along with outreach to organized labor, including IBEW 1245 and Local 6, and so as not to conflict with or supersede any on-going or future workforce negotiations and related activities.
- Potential for reinforcing a cleaner, equitable, localized, reliable and affordable future for San Francisco ratepayers through local grid acquisition that recognizes environmental costs and benefits, including jobs and air quality and
PROPOUNDED BY: Emily Algire
- Potential timelines for completion of assets transfer from PG&E, with an eye toward enacting climate-friendly changes in a timely manner
- Measures to make sure the preservation of CleanPowerSF’s mission, and commitment to carbon free energy as and when the program is integrated into the expanded utility
- Potential impacts on rates for ratepayers in San Francisco’s jurisdiction and in the remaining PG&E territory
- Potential fiscal impact from the purchase of PG&E’s assets, including potential litigation from the project’s opponents
- An action plan for negotiating free, prior, and informed consent from the ARO (Association of Ramaytush Ohlone) who have stewarded these lands since time immemorial and who know how best to approach ecological restoration in a way that protects Ohlone sacred sites and areas of ecological sensitivity or concern. - Alignment with the goals of the City’s Climate Action Plan, including achieving 100% renewable energy and complete decarbonization, and be it
FURTHER RESOLVED that the Citizens’ Advisory Committee’s intent is to enable the SFPUC’s further evaluations to proceed as rapidly as possible, while protecting the City’s ability to take the necessary steps to pursue the transaction and to fully evaluate the purchase, risk exposure, and risk mitigation strategies; and be it
FURTHER RESOLVED that the Citizens’ Advisory Committee requests that the progress and results of these evaluations be reported, as appropriate, by the SFPUC to the public regularly, and in a form, level of detail, and on a schedule that will help ensure timeliness, transparency, and accountability in the City’s pursuit of local public power.
As adopted by the Full Citizens’ Advisory Committee on August 16, 2022.
PROPOUNDED BY: Moisés García, Emily Algire
Resolution in Support of Transparency, Environmental Accountability, and Labor Standards for California Community Power
Sponsors: Moisés García, Emily Algire
WHEREAS, The San Francisco Board of Supervisors (the Board) established a Community Choice Aggregator (CCA), a local publicly-owned energy provider to procure renewable energy, in 2004 (Ordinance 86-04) and has implemented CleanPowerSF through the work of the San Francisco Public Utilities Commission (SFPUC) in consultation with the San Francisco Local Agency Formation Commission (Ordinances 146-07, 147-07, and 232-09); and
WHEREAS, CleanPowerSF and other interested CCAs formed a new joint powers authority, California Community Power Agency (CCP), to leverage their combined buying power to achieve economies of scale, lower costs, and more favorable terms and conditions for products and services; and
WHEREAS, The Commission by Resolution No. 21-0023 and the Board by Ordinance No. 25-21, authorized CleanPowerSF to become a member of CCP, and in April 2021 the CCP Board approved CleanPowerSF’s membership (Resolution 21-04-09); and
WHEREAS, The Commission by Resolution No. 20-0182 adopted CleanPowerSF’s 2020 Integrated Resources Plan, to achieve a 100% renewable electricity portfolio by 2025, five years sooner than San Francisco’s citywide goal (Resolution No. 20-0182) and which called for CleanPowerSF to procure long-duration energy storage (“LDS”) resources. LDS is a technology that can store and discharge energy for at least eight hours; and
WHEREAS, On June 24, 2021, the California Public Utilities Commission (“CPUC”) ordered retail sellers of electricity, which includes CleanPowerSF, to procure 11,500 megawatts of new resources, including 1,000 megawatts of LDS; CleanPowerSF’s share of the CPUC’s LDS requirement is 15.5 megawatts; and
WHEREAS, The Commission by Resolution No. 22-0041 and the Board by Resolution No. 22-0145 approved participation in CCP’s Tumbleweed Energy Storage long duration storage project over a twenty (20) year term to serve CleanPowerSF customers with approximately 11.1 megawatts of LDS; and
WHEREAS, The Commission by Resolution No. 22-0041 and the Board by Resolution No. 22-0331 approved participation in CCP’s Goal Line Battery Energy Storage System 1 long duration storage project over a fifteen (15) year term to serve CleanPowerSF customers with approximately 8.4. megawatts of LDS; and
WHEREAS, Labor, environmental and environmental justice advocates spoke up in CCP meetings expressing concern that CCP could potentially be misused to procure resources in a manner inconsistent with adopted labor policies of member CCAs; and
WHEREAS, Environmental justice organizations have broadly supported and have been closely involved with CCAs to help ensure access to cleaner energy, promote greater local control over energy sources, and build a more equitable and democratic energy system; and
PROPOUNDED BY: Moisés García, Emily Algire
WHEREAS, In February 2021, the CCP Policy Ad Hoc Committee was tasked to develop a policy that supported member agency interests, while being responsive to the requests of stakeholders and Board members on a variety of issues including competitiveness, fair labor standards, environmental justice, environmental protection, community outreach, and transparency; and
WHEREAS, The CCP Board by Resolution 21-11-02 approved a Policy Approach for CC Power Project Requirements that will seek to award contracts and negotiate contract terms consistent with the local values and goals of each participating CC Power member; now, therefore, be it
RESOLVED, The San Francisco Public Utilities Commission Citizens Advisory Committee recommends that the SFPUC adopt a resolution explicitly supporting staff leadership to develop and implement a Workforce and Environmental Justice Policy for Energy Procurement (Attachment A); and be it
FURTHER RESOLVED, The San Francisco Public Utilities Commission Citizens’ Advisory Committee recommends that the SFPUC direct its representative to the CCP Board to advocate for adoption of the attached proposed CA Community Power Workforce, and Environmental Justice Policy for Energy Procurement; and be it
FURTHER RESOLVED, The San Francisco Public Utilities Commission Citizens’ Advisory Committee recommends the SFPUC direct its representatives to the CA Community Power Board to advocate to form a public advisory committee, including labor, environmental and equity representatives, to ensure transparency and public engagement in CCP’s operations and procurement practices; and be it
FURTHER RESOLVED, That this resolution shall be forwarded to the General Manager, the Clerk of San Francisco Public Utilities Commission, the Clerk of the Board of Supervisors, and the Clerk of Local Agency Formation Commission.
PROPOUNDED BY: Moisés García, Emily Algire
Attachment A to Resolution in Support of Transparency, Environmental Accountability, and Labor Standards for California Community Power Workforce and Environmental Justice Policy Framework for Energy Procurement
1. Competitive, low carbon power supply: CCP shall supply low carbon power supply and services to customers at competitive rates. CCP shall further the low carbon power supply and competitive rates of its Members.
2. Workforce: Whether or not a construction project is a public work as defined by the California Labor Code, contracting partners shall comply with California prevailing wage provisions applicable to public works projects, including but not limited to the Labor Code sections pertaining to employment of apprentices on public works projects.
All construction work that falls within an apprentice able occupation in the building and construction trades shall be performed by a skilled and trained workforce in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
A preference for a Project Labor Agreement (PLA) will be incorporated into the bidder evaluation ranking process: Work done under a PLA shall be deemed to meet the requirements of payment of prevailing wages and use of apprentices, and shall supersede the skilled and trained workforce requirement.
For projects that do not implement a PLA, an audit will be required to ensure compliance with payment of prevailing wages, compliance with skilled and trained workforce requirements and to demonstrate any employment of apprentices.
Encourage the use of local labor with a deliberate emphasis on targeted hiring of women, minorities, gender non-conforming, residents of low-income communities, the formerly incarcerated and veterans.
CCP-developed projects shall be constructed through a multi-trade project labor agreement or through multiple such agreements, consistent with the Public Contract Code provisions authorizing such agreements by public agencies.
CCP shall first give a preference to projects that are located in a county or city that receives electric service from CCP, then to projects that are located within California, and then to projects whose first point of connection is within California.
3. Environmental: All projects must meet the permitting requirements of the appropriate governing authority/authorities.
CCP shall state a preference in the request for proposals for projects that avoid sensitive habitat areas and that comply with relevant conservation plans such as the Desert Renewable Energy Conservation Plan.
CCP shall require in the request for proposals that developers of construction projects address how the project will avoid or mitigate, to the extent feasible, PROPOUNDED BY: Moisés García, Emily Algire
potential environmental and environmental justice impacts of the project.
The request for proposal shall request Global Electronics Council EPEAT ecolabel registration status and level for inverters and modules.
4. Environmental Justice: CCP shall meaningfully engage with “disadvantaged community” stakeholders residing within the CCP service area or proposed project area and incorporate input in the decision-making process.
CCP shall identify disadvantaged community stakeholders (DAC) from the vicinity of projects using a variety of tools such as Cal EnviroScreen and the State Department of Housing and Community Development’s opportunity maps.
CCP shall make information easily accessible to disadvantaged stakeholders using various outreach methods including workshops, virtual webinars, and presentations at existing community meetings or events.
CCP shall require in the request for proposals that developers of construction projects conduct a cost/benefit impact analysis with an emphasis on evaluating disproportionate impacts on disadvantaged communities.
CCP shall require in the request for proposals that developers of construction projects identify project benefits to communities in the project vicinity.
Developers of construction projects shall state opposition to using forced labor in the supply chain.
5. Unbundled Renewable Energy Credits (RECs): CCP shall avoid projects involving the use of unbundled renewable energy credits (RECs) to meet its members’ renewable energy goals.
6. Project evaluation and selection: CCP shall evaluate and select energy projects with a structured, multi-criteria evaluation process which utilizes the policy principles discussed herein. This evaluation process should holistically consider workforce, environmental justice, and community benefits balanced with technical and financial considerations.
CCP shall publicly publish detailed project evaluation and selection documentation during project approval.
As adopted by the Full Citizens’ Advisory Committee on August 16, 2022.