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Public Utt!itlus Comtnisston
Hetch Hetchy 525 Golden Gate Avenue
San Francisco, CA 94102
1415.554.0725
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London N. Breed
Mayot
Anson Moran
President
Newsha AJaml
Vice President
Sophie Maxwell
Commissione(
Tim Paulson
Commissioner
Dennis J. Herrera
General Manager
DATE: September 30, 2022
TO: Clerk of the Board of Supervisors
Office ntroller
THROUGH: Denni a, General Manager
Barbara , Assistant General Manage ower
FROM: Michael Clark, Finance and Administration Manager, Power--- ---
SUBJECT: Annual Report on the Low Carbon Fuel Standard Credit Sales Fund Pursuant to Administrative Code Section 10.100-92
The following annual report has been prepared for the Board of Supervisors (Board) in accordance with Section 10.100-92 of the Administrative Code.
In Ordinance No. 199-19, the Board established the Low Carbon Fuel Standard Credits Sales Fund (Fund #25455) and authorized the General Manager of the San Francisco Public Utilities Commission (SFPUC) to enter into one or more agreements to sell Low Carbon Fuel Standard credits. The Board also required the SFPUC to "submit an annual written report to the Board of Supervisors and the Controller: (1) specifying the number of Low Carbon Fuel Standard credits sold during the previous fiscal year, the price received for each credit, and the total amount of the sales; and (2) describing the expenditures made from the Low Carbon Fuel Standard Credits Sales Fund during the previous fiscal year." This report meets the reporting requirements established by Section 10.100-92 of the Administrative Code for Fiscal Year 2022.
The City's Low Carbon Fuel Standard Credits
In Assembly Bill 32,1 entitled the Global Warming Solutions Act of 2006, the Legislature required California to reduce its greenhouse gas emissions to 1990 levels by 2020.
To achieve this goal, the California Air Resources Board adopted measures and programs to reduce greenhouse gas emissions from all sectors of the California economy. In 2009, at the direction of then Governor Schwarzenegger, the California Air Resources Board adopted Low Carbon 'Statutes 2006, Ch. 488.
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
Fuel Standard regulations to reduce the greenhouse gas intensity 2 of transportation fuels by 20% by 2030. The regulations set benchmarks for greenhouse gas emissions for each type of transportation fuel that are increasingly reduced over time. Transportation providers that use fuels with a carbon intensity (or greenhouse gas emissions) lower than the benchmark established by the California Air Resources Board generate Low Carbon Fuel Standard credits that can then be sold.
The San Francisco Municipal Transportation Agency (SFMTA) uses greenhouse gas-free electric energy provided by SFPUC's Hetch Hetchy Power to operate its electric public transit fleet (electric trolley buses, cable cars, historic streetcars, and light rail vehicles). Because this fleet operates with a carbon intensity significantly below the Low Carbon Fuel Standard target, the SFMTA accumulates credits that can be sold.
In October 2017, the SFPUC and SFMTA entered into a Memorandum of Understanding approved by the SFPUC in Resolution 17-0199 that specifies the SFPUC execute the sale of SFMTA's Low Carbon Fuel Standard credits.
The Memorandum of Understanding also states that SFPUC and SFMTA share equally the net revenues from these sales, and their use of the revenues support general operations that reduce San Francisco's carbon footprint and/or advance the City's sustainability goals.
FY22 Low Carbon Fuel Standard Credit Sales
For Fiscal Year 2022, the number of Low Carbon Fuel Standard credits sold, price received for each credit. and total amount of the sales are set forth in the table below. There was a total of one transaction in the fiscal year with revenue of $2.367,000.
Quantity
(Calendar
Year)
Credits
Sold
Average
Price
Received
Amount Date
Quantity 1
(2022) 22,200 $106.62* $2.367,000 6/9/2022
Total 22,200
$2,367,000
*This is an average of the prices received for the credits. Actual prices received per credit were in the range of $103.50-$108.00.
FY22 Low Carbon Fuel Standard Expenditures
Per the Memorandum of Understanding between the SFPUC and SFMTA, half of the Low Carbon Fuel Standard Fiscal Year 2021 credit sales proceeds, or 2 The Low Carbon Fuel Standard regulations use the term "carbon intensity" instead of greenhouse gas intensity.
$1,183,500, was transferred to SFMTA. The remaining $1,183,500 was retained by the SFPUC for the Hetch Hetchy Power program.
SFPUC spent $1,041,371 of Low Carbon Fuel Standard proceeds in FY22, as detailed in the table below. SFPUC will continue to expend Low Carbon Fuel Standard proceeds for these and similar projects in future fiscal years.
Project Name FY22
Expenditures
GoSolarSF $634,095
Electric Vehicles in New Construction $214,661
San Francisco Police Academy Solar Carport $98,361
Moscone West Solar Electric Project $70,116
Retail Customer Programs $20,970
Small Renewables $3,169
Total $1,041,371
• GoSolarSF supports the local solar industry and environmental goals with incentive offerings for customer adoption of rooftop solar throughout San Francisco, as well as addressing social and equity goals with a workforce program and low income and non-profit incentives.
o The Electric Vehicles in New Construction Program is a newly launched program that provides incentives for installing electric vehicle charging infrastructure in new buildings for Hetch Hetchy customers. o The San Francisco Police Academy Solar Carport Project includes a 150-kilowatt solar carport and battery storage system at the San Francisco Police Academy. Additional analysis will be performed to determine the feasibility of expanding the functionality of this renewable system into an islanding microgrid with electric vehicle charging. • The Moscone West Solar Electric Project will allow for the installation of an 800-kilowatt rooftop mounted photovoltaic generation system owned and operated by the SFPUC Power Enterprise.
• Retail Customer Programs promote emission reductions and decarbonization through electrification, energy efficiency, and improved utilization of SFPUC's Hetch Hetchy electricity within customer facilities and buildings.
• The Small Renewable Project funds municipal distributed energy resource projects, such as solar installations.
In Fiscal Year 2022, the SFMTA spent $735,000 of Low Carbon Fuel Standard proceeds in the SFMTA operating budget to support continuing SFMTA operations.
Should you have any questions, please contact Barbara Hale, SFPUC Assistant General Manager, Power, at [email protected] and 415-613-6341.