CleanPowerSF Sfpuc Commission
May 28, 2024

1 Onsite Water Reuse Grant Program
San Francisco Public Utilities Commission Meeting
May 28, 2024
Services of the San Francisco Public Utilities Commission

Background on Onsite Water Reuse Grant Program
• Established in 2012
• Incentivize buildings to collect,
treat, and use alternate water
sources such as rainwater,
stormwater, graywater, foundation
drainage, condensate, and
blackwater for non-potable
applications
• To date, SFPUC has awarded 6
grants
2 Proposed Modifications
3 • Lower the potable water offset thresholds that dictate eligibility for grant funding:
• Projects that replace at least 3,600,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $200,000
• Projects that replace at least 8,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $500,000
• Projects that replace at least 24,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $1 million
• Shorten the required construction schedule from 4 to 2 years Justification for Modifications to Potable Offsets
and Construction Schedule
• Propose to scale down potable water offsets to reflect that grant projects may not have completed construction and be ready to achieve potable water offsets until 2 years after grant agreement is executed
• In practice, projects have 8 years to achieve potable offsets over the 10-year grant term
• Project costs remain the same
4 Additional Proposed Modifications
• Clarify the process for disbursing grant funds to be clearer when CEQA documentation must be submitted
• Clarify the insurance, prevailing wage, and LBE requirements (i.e. clarify that multi-family residential projects are exempt from prevailing wage)
• Require grantee to be the property owner so grantee is the same entity as the permittee of the onsite water system and to comply with the Chapter 21G sole-source requirements
• Make non-substantive corrections or modifications to the Grant Program Rules
5 Thank you
Questions?
6 DEPARTMENT

Water Enterprise

AGENDA NO.

14 MEETING DATE

May 28, 2024

AGENDA ITEM
Public Utilities Commission
City and County of San Francisco

Calendar: Regular Calendar
Project Manager: Taylor Nokhoudian

Approval of Modified Onsite Water Reuse Grant Program for San Francisco Retail Water Customers

Summary of
Proposed
Commission Action:

Approve modifications to the Onsite Water Reuse Grant Program t hat: (1) lower the potable water offset thresholds that dictate eligibility for certain levels of grant funding while keeping the funding levels the sa me to better align with the fact that grant projects may not have completed construction, be ready to operate the onsite water system, and achieve the potable water offsets until two years after the grant agreement is executed, and yet projects costs remain the same, as follows: ( a) projects that replace at least 3,600,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $200,000; (b) projects that r eplace at least 8 ,000,000 gallons of
SFPUC water over the 10- year grant ag reement would be eligible for up to $500,000; and (c) projects that replace at least 24,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $1 million; (2) require grant projects to be constructed, operational, and offsetting SFPUC water use within two years of the dated grant agreement; (3) clarify the process for disbursing grant funds; (4) clarify the insurance, prevailing wage, and Local Business Enterprise (LBE) Ordinance requirements; (5) require that the grantee be the property owner for the project site; and (6) make non - substantive corrections or modifications to the Grant Program Rules.

Background: On June 12, 2012, by Resolution 12 -0103, the San Francisco Public Utilities Commission (SFPUC) approved the Large Alternate Water Source Grant Program (referred to as the “Non-potable Grant Program”). The Non-potable Grant Program was established to provide incentives to retail water users to reduce SFPUC water use by collecting, treating, and using alternate water sources such as rainwater, stormwater, graywater, foundation dr ainage, condensate, and blackwater for non-potable applications in buildings.

On July 10, 2018, by Resolution No. 18- 0118, this Commission approved a modification of the Non -potable Grant Program that allowed onsite water reuse projects to qualify for up to $100,000 in grant assistance if the projects replace at least 450,000 gallons of potable water per year and added grant req
uirements for brewery process water treatment systems seeking grant assistance. The grant requirements for brewery process water treatment systems allow breweries to collect, treat, and use brewery process water for applications such as tank rinses, bottle rinses, packaging, clean-in- place, and Agenda Title: Approval of Modification of Onsite Water Reuse Grant Program for San Francisco Retail Water Customers Commission Meeting Date: May 28, 2024

production. The grant requirements for brewery process water treatment systems include water quality and monitoring requirements for pathogen, chemical, and organics control, as well as requirements for documentation, operation, reporting, and recordkeeping.

On October 8, 2019, by Resolution No. 19- 0190, this Commission approved a modification of the Non- potable Grant Program to change the name of the program to the Onsite Water Reuse Grant Program, expand requirements for brewery process water treatment systems, make non -substantive corrections or modifications to the Gr
ant Program Rules, and authorize the General
Manager to approve future modifications to the Grant Program Rules that do not materially increase the obligations or liabilities of the City.

On December 10, 2019, by Resolution No. 19- 0235, this Commission approved a modification of the Onsite Water Reuse Grant Program to: (1) expand eligibility to projects that are installing onsite water systems on a mandatory basis in compliance with the Non-potable Water Ordinance (NPO) that go above and beyond Baseline NP O Compliance (r eferred to now as “Above and Beyond Projects”) ; (2) require Above and Beyond projects that consist of mixed- use and multi -family residential buildings that are seek ing grant funding to install a wastewater heat recovery system; (3) require Above and Beyond projects that consist of multiple buildings to pursue a district - scale project approach if seeking grant funding; and (4) require all projects to estimate the energy offset that could be achieved by the project through the installation of a wastewater heat recovery system.

On January 28, 2020, by Resolution No. 20-0020, this Commission approved a modification to the Onsite Water Reuse Grant Program to double funding for eligible projects as follows: (1) projects that replace at least 450,00 0 gallons of SFPUC water per year are eligible for grant funding of up to $200,000; (2) projects that replace at least 1,000,000 gallons of SFPUC water per year are eligible for grant funding of up to $500,000; and (3) projects that replace at least 3,000, 000 gallons of SFPUC water per year are eligible for grant funding of up to $1,000,000.

Property owners seeking grant funding must comply with the Onsite Water Reuse Grant Program Rules. Under the Program Rules, with the exception of Above and Beyond Projects, grant funding will not be provided to projects that are undertaken to comply with a City and County of San Francisco ordinance, including but not limited to the Non -potable Water Ordinance, codified in the San Francisco Health Code at Article 12C. However, there are many onsite water reuse projects in San Francisco that are not mandated by law and will provide considerable reduction of SFPUC water use.

Description of
Action:

SFPUC staff propose that this Commission approve modification of the Onsite Water Reuse Grant Program Rules. The modifications to the Grant Program Agenda Title: Approval of Modification of Onsite Water Reuse Grant Program for San Francisco Retail Water Customers Commission Meeting Date: May 28, 2024

Rules, a redlined copy of which is attached to this report , lower the potable water offset thresholds that dictate eligibility for grant funding to the following levels:
(1) projects that replace at least 3,600,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $200,000; (2) projects that r eplace at least 8,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $500,000; and
(3) projects that replace at least 24,000,000 gallons of SFPUC water over the 10 -
year grant agreement would be eligible for up to $1
million.

The modifications to the Grant Progr am Rules also specify that the project must be constructed, operational, and offsetting SFPUC water use within two years of the dated grant agreement . The modified
Grant Program Rules
shorten the required construction schedule from four years to two years based on past experience, which shows that on average projects need one to two years to construct and operate an onsite water system after executing the grant agreement. Because the grant term is a total of 10 years, in practice, projects only have eight years to achieve the potable water offsets. SFPUPC staff has determined that scaling down the potable water offset thresholds to coincide with the eight-year timeline while keeping the funding levels the same will be more realistic and achievable and reflect the fact that grant projects may not have completed construction, be ready to operate the onsite water system, and achieve the potable water offsets until two yea rs after the grant agreement is executed, and yet projects costs remain the same.

SFPUC staff propose additional modifications to the Grant Program Rules, including:
(1) Clarifying the process for disbursing grant funds , including adding language requiring documentation of California Environmental Quality Act (CEQA) determination to be submitted to SFPUC prior to the first payment disbursement in order to be clearer on when CEQA compliance must be completed;
(2) Clarifying the insurance, prevailing wage, and LBE compliance requirements. An example of such a modification is
clarifying that
prevailing wage requirements do not apply to residential projects that are on private property in order to be clearer that multi- family residential projects are exempt;
(3) Requiring that the grantee be the property owner for the project site so that the grantee is the same entity as the permittee of the onsite water system and to comply with the San Francisco Administrative Code Chapter 21G sole-source requirements; and
(4) Making editorial and organizational modifications that add clarity to the requirements and do not substantially change the intent of the program. An example of such a modification is clarifying grantees must submit annual grant reports within 30 days of each year that the project is operational.

Agenda Title: Approval of Modification of Onsite Water Reuse Grant Program for San Francisco Retail Water Customers Commission Meeting Date: May 28, 2024

The proposed modifications to the Grant Program Rules still achieve the objectives of the Grant Program, which are to encourage retail water users to reduce SFPUC water supply usage.

Schedule: The modified Grant Program Rules would become effective on May 28, 2024, the date of the approval of this resolution.

Environmental
Review:

Modification of the Onsite Water Reuse Grant Program does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378(b)(4) because the Onsite Water Reuse Grant Program creates a government funding mechanism which does not involve commitment to any specific project which may result in any physical change in the environment.

Attachments: 1. Revised Onsite Water Reuse Grant Program Rules

2. Non-potable Water Ordinance

PUBLIC UTILITIES COMMISSION
City and County of San Francisco

RESOLUTION NO.

WHEREAS, The San Francisco Public Utilities Commission ( SFPUC) is incentivizing onsite water re use in new and existing developments to help meet the goal of developing an additional 10 million gallons per day of local water resources; and WHEREAS, On June 12, 2012, by Resolution No. 12- 0103, the Commission approved a grant program for retail water customers to make the best use o f non-potable supplies for onsite water reuse in buildings, referred to herein as the Non-potable Grant Program; and WHEREAS, In 2013, by Resolution No. 13- 0115, the Commi ssion expanded the Non- potable Grant Program to provide grant assistance beginning in FY 13/14 to district-scale (multi- parcel) non-potable water projects that treat and share non -potable water between two or more parcels; and
WHEREAS, In 2015, by Resolution No. 15-0206, the Commission approved modifications to the Non-potable Grant Program to reflect the Non-potable Water Ordinance (NPO), S.F. Health Code Article 12C, transitioning from a voluntary to a mandatory program; and WHEREAS, Properties or developments that are required by the City’s NPO to install non- potable onsite systems were not eligible for grant funding under the Non-potable Grant Program; and
WHEREAS, On July 10, 2018, by Resolution No. 18- 0118, the Commission approved modifications to th e Non-potable Grant Program to allow grant funding of up to $100,000 for projects that replace at least 450,000 gallons of potable water per year, allowing buildings with existing dual-plumbing and smaller buildings that are voluntarily installing an onsite non-potable water system to be eligible for grant assistance; and

WHEREAS, By Resolution No. 18-0118, the Commission also approved modifications to the Non-potable Grant Program to allow breweries to collect, treat, and use brewery process water for non- potable applications such as tank rinses, bottle rinses, packaging, clean -in-place, and production; and

WHEREAS, On October 8, 2019, by Resolution No. 19-0190, the Commission approved modifications to the Non -potable Grant Program to: (1) change the name of the program to the Onsite Water Reuse Grant Program; (2) expand requirements for brewery process water treatment systems; (3) make non-substantive corrections or modifications to the Grant Program Rules, and (4) authorize the General Manager, in consultation with the City Attorney, to approve future modifications to the Grant Program Rules that do not do not materially increase the obligations or liabilities of the City and that do not change the Rules’ approved maximum grant funding amounts for eligible projects; and

WHEREAS, On December 10, 2019, by Resolution No. 19- 0235, the Commission approved modifications to the Onsite Water Reuse Grant Program to : (1) expand eligibility to projects that are installing onsite water systems on a mandatory basis in compliance with the NPO that go above and beyond Baseline NPO Compliance (referred to now as “Above and Beyond Projects”); (2) require Above and Beyond proj ects that consist of mixed -use and multi -family residential buildings that are seeking grant funding to install a wastewater heat recovery system ; (3) require Above and Beyond projects that consist of multiple buildings to pursue a district-scale

project approach if seeking grant funding; and (4) require all projects to estimate the energy offset that could be achieved by the project through the installation of a wastewater heat recovery system; and

WHEREAS, On January 28, 2020, by Resolution No. 20-0020, the Commission approved modifications to the Onsite Water Reuse Grant Program to double the grant funding available to projects to the following levels: (1) projects that replace at least 450,000 gallons of SFPUC water per year would be eligible for grant funding up to $200,000; (2) p rojects that replace at least 1,000,000 gallons of SFPUC water per year would be eligible for grant funding up to $500,000 ; and (3) projects that replace at least 3,000,000 gallons of SFPUC water per year would be eligible for grant funding up to $1,000,000; and

WHEREAS, Staff now recommends further modifying the Onsite Water Reuse Grant Program to: (1) lower the potable water offset thresholds that dictate eligibility for certain levels of grant funding while keeping the funding levels the same to better align with the fact that grant projects may not have completed construction, be ready to operate the onsite water system, and achieve the potable water offsets until two years after the grant agreement is executed, and yet projects costs remain the same, as follows: (a) projects that replace at least 3,600,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $200,000; (b) projects that replace at least 8,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $500,000; and (c) projects that replace at least 24,000,000 gallons of SFPUC water over the 10 -year grant agreement would be eligible for up to $1 million; (2) require grant projects to be constructed, operational, and offsetting SFPUC water use within two years of the dated grant agreement; (3) clarify the process for disbursing grant funds; (4) clarify the insurance, prevailing wage, and Local Business Enterprise (LBE) Ordinance requirements; (5) require that the grantee be the property owner for the project site; and (6) make non-substantive corrections or modifications to the Grant Program Rules; and

WHEREAS, A copy of the proposed modified Grant Program Rules is on file with the Commission Secretary and was presented to the Commission at its May 28, 2024 meeting; and

WHEREAS, The default term for these grant agreements is 10 years and requires the grantee to: (1) install, operate, and maintain the project for 10 years, which is reasonably related to the useful life for these systems ; and (2) record against the subject property a Declaration of Restrictions notifying subsequent property owners of the obligations to operate and maintain the system; and
WHEREAS, If the General Manager determines that a longer operation and maintenance obligation is warranted for a particular grant project, the General Manager may seek Board of Supervisors approval for a grant agreement term in excess of 10 years pursuant to Charter Section

9.118; and
WHEREAS, The estimated budget for the proposed grant assistance will be appropriated in each fiscal year, and grants awarded, subject to availability of funds; and WHEREAS, Grant applications are accepted based on availability of funds and on a first come, first served basis; and
WHEREAS, Modification of the Onsite Water Reuse Grant Program Rules does not constitute a “ project” under the California Environmental Quality Act Guidelines section 15378(b)(4) because the Onsite Water Reuse Program creates a government funding mechanism

which does not involve commitment to any specific project which may result in a physical change in the environment; now, therefore, be it

RESOLVED, That this Commission hereby approves the modifications to the Onsite Water Reuse Grant Program that: (1) lower the potable water offset thresholds that dictate eligibility for certain levels of grant funding while keeping the funding levels the same to better align with the fact that grant projects may not have completed construction, be ready to operate the onsite water system, and achieve the potable water offsets until two years after the grant agreement is executed, and yet projects costs remain the same, as follows: ( a) projects that replace at least 3,600,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $200,000, (b) projects that r eplace at least 8,000,000 gallons of SFPUC water over the 10 -year grant agreement would be eligible for up to $500,000, and ( c) projects that replace at least 24,000,000 gallons of SFPUC water over the 10-year grant agreement would be eligible for up to $1 million; (2) require grant projects to be constructed, operational, and offsetting SFPUC water use within two years of the dated grant agreement; (3) clarify the process for disbursing grant funds; (4) clarify the insurance, prevailing wage, and Local Business Enterprise (LBE) Ordinance requirements; (5) require that the grantee be the property owner for the project site; and (6) make non-substantive corrections or modifications to the Grant Program Rules.

I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 28, 2024

Secretary, Public Utilities Commission

1 Last update: July 11,2023April 18, 2024

Grant Program Overview

The San Francisco Public Utilities Commission (SFPUC) Onsite Water Reuse Grant Program provides grant funding to encourage retail water users to reduce SFPUC water supply usage by collecting, treating, and using alternate water sources including rainwater, stormwater, graywater, foundation drainage, air conditioning condensate, and blackwater for non‐potable uses such as toilet flushing, irrigation, and cooling tower makeup. Grant funding is available for three types of projects:

1. Projects that are installing Onsite Water Systems on a voluntary basis (Voluntary Projects);

2. Projects that are installing Onsite Water Systems on a mandatory basis in compliance with the Non‐ potable Water Ordinance that go above and beyond Baseline NPO Compliance (Above and Beyond Projects); and

3. Projects that are installing onsite treatment and reuse of brewery process water.

The SFPUC is seeking proposals for projects that meet one of the following criteria:1

1. Projects that replace at least 450,0003,600,000 gallons of SFPUC water per yearover the 10‐year Agreement are eligible for grant funding up to $200,000; or

2. Projects that replace at least 18,000,000 gallons of SFPUC water per yearover the 10‐year Agreement are eligible for grant funding up to $500,000; or

3. Projects that replace at least 3324,000,000 gallons of SFPUC water per yearover the 10‐year Agreement are eligible for grant funding up to $1,000,000.

Eligible projects that meet the grant guidelines will be considered for funding if they can demonstrate reduction of SFPUC water supplies by collecting, treating, and using alternate water supplies to meet onsite water demands. Types of activities considered for funding include the installation of collection systems for onsite alternate water sources, installation of treatment systems to improve the water quality of onsite alternate water sources for beneficial reuse, and/or storage of the treated water.

The SFPUC anticipates funding multiple projects during this solicitation round. Grant applications are accepted on a rolling basis. Provision of grant funding is based on the eligibility of the proposed project and

1 For Above and Beyond Projects, the estimated SFPUC Water Offset must be achieved above and beyond Baseline NPO Compliance to be eligible for grant funding.

Onsite Water Reuse
Grant Program Rules
2 Last update: July 11,2023April 18, 2024
availability of funds. Each application will be reviewed and evaluated on a case‐by‐case basis. Grant funding is available on a first come, first served basis. With the exception of Above and Beyond Projects, grant funding will not be provided to projects that are undertaken to comply with a City and County of San Francisco ordinance, including but not limited to the Non‐potable Water Ordinance, codified in the San Francisco Health Code at Article 12C.

The Onsite Water Reuse Grant Program helps support customer efforts to implement sustainable water practices in San Francisco and offset SFPUC water use. The collection, treatment and use of alternate water
sources for onsite applications helps diversify our water supply, making us more resilient for the future. In addition to advancing water supply reliability, the Onsite Water Reuse Grant Program supports the SFPUC’s Phased Water System Improvement Program Variant (WSIP) goals adopted by Resolution No. 08‐200 on October 30, 2008. WSIP included a goal of developing an additional 10 million gallons per day (mgd) of locally available water supplies.

Definitions

Terms used in this grant application package have the meanings described below:

Above and Beyond Projects ‐ projects that are installing Onsite Water Systems on a mandatory basis in compliance with the Non‐potable Water Ordinance that go above and beyond Baseline NPO Compliance.

Alternate Water Source – a source of non‐potable water that includes rainwater, stormwater, graywater, foundation drainage, air conditioning condensate, and blackwater, and/or any other source approved by the San Francisco Department of Public Health (SFPDH).

Applicant – property owner or property tenant that is a retail water customer of the SFPUC, and is seeking grant funds from the SFPUC for an alternate water source or brewery process water project, pursuant to the instructions and guidelines set forth in this application package.

Award – the decision by the SFPUC to provide grant funds, following the review and evaluation of a completed application. An award is made through a Grant Agreement.

Baseline NPO Compliance – the minimum volume of water required to be captured, treated, and used onsite to comply with the NPO based on the project’s approved Water Budget Application and Water Use Calculator. Based on the size and type of the project, the approved Water Budget will specify the amount of required alternate water sources (e.g. graywater, blackwater, foundation drainage, or condensate) produced onsite and the required non‐potable uses (e.g. toilet and urinal flushing, clothes washing, irrigation, and drain trap priming). Refer to the Onsite Water Reuse Program Guidebook for a summary of the requirements.

Blackwater – wastewater containing bodily or other biological wastes, as from toilets, dishwashers, kitchen sinks and utility sinks.

Brewery Process Water – water generated onsite at a brewery from sources such as filtration, production, packaging, and tank rinses.

Brewery Process Water Treatment System ‐ an onsite water system that treats brewery process water for a variety of end uses, including those that may come into contact with the product, or brewed in the product itself.

Building‐scale Project – the construction or alteration of any commercial, multi‐family, or mixed‐use building that includes an onsite water system.

Conditional Startup Mode: A period of 90 days after the permit for an Alternate Water Source System is issued during which system operation and performance is verified through more frequent monitoring, analysis and reporting, and during which diversion of treated water to the sewer may be required.

3 Last update: July 11,2023April 18, 2024
District‐scale Project – a project entailing the sharing of an onsite water system serving two or more parcels or for use in multiple structures, whether under the jurisdiction of one entity or several.

Eligible Expenses ‐ include Onsite Water System project costs paid, including, but not limited to materials, supplies, salaries and fringe benefits, and payments on construction contracts directly relating to the design, permitting, installation, operation, and maintenance of the Onsite Water System.  Plumbing fixtures such as toilets or urinals and landscape materials are excluded, and are not eligible for Grant Funding.

Engineering Report – a report prepared by a qualified engineer licensed in California that provides detailed information on elements including but not limited to alternate water sources that will be collected and treated for reuse, treatment processes used to meet required water quality criteria, and monitoring and reporting plans.

Foundation Drainage – nuisance groundwater that is extracted to maintain a building’s or facility’s structural integrity and would otherwise be discharged to the sanitary sewer system. Foundation drainage does not include non‐potable groundwater extracted for a beneficial use that is subject to City groundwater well regulations.

General Manager – the General Manager of the SFPUC, or any individual designated by the General Manager to act on his or her behalf.

Grant Agreement (Agreement) – a written contract between the SFPUC and the recipient of grant funds, which includes the obligations and conditions governing the use of grant funds.

Grant Funds/Funding – any and all funds allocated or disbursed to Grantee under the Grant Agreement.

Grantee – property owner or property tenant that is a retail water customer of the SFPUC to whom a grant is awarded.

Graywater – untreated wastewater that has not been contaminated by any toilet discharge, has not been affected by infectious, contaminated, or unhealthy bodily wastes, and does not present a threat from contamination by unhealthful processing, manufacturing, or operating wastes. Graywater includes, but is not limited to, wastewater from bathtubs, showers, bathroom sinks, clothes washing machines, and laundry tubs, but does not include wastewater from kitchen sinks or dishwashers.

Irrigation – water application on land to assist in the growing of landscaping or crops or to maintain vegetation on recreation areas, such as parks and golf courses.

Non‐potable Water – non‐potable water collected from alternate water sources, treated, and intended to be used on the applicant’s site or district parcels and is suitable for direct beneficial use. Non‐potable water is not of drinking water quality, but may still be used for many other purposes, depending on its quality.

Non‐potable Water Ordinance – Article 12C of the San Francisco Health Code.

Onsite Water System – the system of facilities necessary for providing water for use in a building‐scale or district‐scale project, including but not limited to all collection, treatment, storage, and distribution facilities.

Operating Year – each consecutive 12‐month period during the term of the grant agreement. The first Operating Year commences on the day that the onsite water system is placed in operation (“Operating Commencement Date”) and ends on the day before the one‐year anniversary of the Operating Commencement Date. A new Operating Year will commence on each successive anniversary of the Operating Commencement Date; however, the final Operating Year will end on the date the grant term expires or terminates, whether or not consisting of 12 full months.

Rainwater – precipitation collected from roof surfaces or other manmade, aboveground collection surfaces. Hydrocarbon‐based fuels, hazardous materials, or fertilizers are prohibited to be stored or used on such surfaces.
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Recycled Water – non‐potable water that meets California State Water Resources Control Board Division of Drinking Water statewide uniform criteria for disinfected tertiary recycled water. Recycled water is also known as “reclaimed water”.

Recycled Water Ordinance – Article 22 of the San Francisco Public Works Code.

Reservation Letter – a written notice of the reservation of grant funds.

Retail Water Customer/User – any institutional, industrial, residential, or commercial customer who receives a water bill directly from the SFPUC for their own water use, and not for resale.

SFPUC Water Offset – water provided by the SFPUC saved through the use of an appropriate alternate water source.

Stormwater – precipitation collected from at‐grade or below grade surfaces or from any surface where hydrocarbon‐based fuels, hazardous materials, or fertilizers are stored or used.

Treatment System Manager – the qualified person or entity responsible for the daily management and oversight of the onsite water system.

Voluntary Projects ‐ projects that are installing Onsite Water Systems on a voluntary basis.

Wastewater Heat Recovery – the extraction of thermal energy from graywater, blackwater, or other source, and subsequent beneficial use of this energy to offset a building’s energy needs. Common components of wastewater heat recovery systems include a wet well/equalization tank, solid‐liquid separation, heat exchanger, and heat pump.

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I. Grant Guidelines

Eligibility

Grant funds are available for building‐scale or district‐scale projects undertaken by Retail Water Customers of the SFPUC. Proposed projects must meet all of the criteria set forth below to qualify for grant funding.

Activities that do not meet one of more of the criteria listed below will be deemed ineligible.

With the exception of Above and Beyond Projects, grant funds are not available for projects undertaken to comply with a City and County of San Francisco ordinance. Additionally, projects that have already received a Start‐up Permit from San Francisco Department of Public Health (SFDPH) and projects that have received
a certificate of occupancy from San Francisco Department of Building Inspection (SFDBI) before January 1, 2014 are not eligible for grant funding.

Grant Requirements

Eligibility Criteria
 The proposed Onsite Water System must be permanent and be operated until the end of the grant term, unless the General Manager authorizes a longer term.  The Grantee must be the Property owner.
 The proposed project must be undertaken by a Retail Water Customer of the SFPUC as part of the construction or alteration of any commercial, multi‐family, mixed‐use building, or brewery.  With the exception of Above and Beyond Projects, the Applicant cannot obtain grant funds for the mandatory installation of an onsite non‐potable water system to comply with the requirements of the Non‐potable Water Ordinance (Article 12C of the San Francisco Health Code). Additionally, Applicants cannot obtain grant funds to comply with San Francisco’s Stormwater Management Ordinance.  Onsite Water System projects must comply with San Francisco’s Onsite Water Reuse Program including the SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems. Brewery process water treatment systems must comply with the requirements contained in this document starting on Page 8.
 Project must be in compliance with all applicable local, state, and federal laws, regulations, and ordinances, including the California Environmental Quality Act (CEQA) and San Francisco Administrative Code Chapter 31 as applicable.
 Project must be in compliance with state prevailing wage requirements and San Francisco Administrative Code Chapter 21C, as applicable (see Taxes, Insurance, and Prevailing Wage below for more information).
 Project must be in compliance with San Francisco’s Local Business Enterprise (LBE) Ordinance, also known as Administrative Code Chapter 14B, as applicable (see Taxes, Insurance, Prevailing Wage, and LBE below for more information).
 GranteeProject must execute the Grant Agreement within six6 months of receiving the grant Reservation Letter from SFPUC, confirming the amount of grant funds reserved for the project.

GranteesProjects that fail to execute Grant Agreement within the timeline are eligible to reapply.  Project must be constructed, and operational, and offsetting SFPUC water use within fourtwo years of the dated Grant Agreement. and must begin to offset SFPUC water use within six months after the conclusion of the Conditional Startup Mode period required under the SFDPH Permit for the Operation of the Alternate Water Source System.
 Within 30 days after the end of each Operating Year, Grantees must submit an annual status reports to the SFPUC (one per Operating Year), documenting that the project consistently meets the eligibility criteria and water savings.

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Additional Requirements for Above and Beyond Projects
Projects Must Also Meet One of the Following Eligibility Criteria  Project is a new development that is voluntarily installing an Onsite Water System.  Project is an existing development that is voluntarily installing an Onsite Water System.  Project is a development that is voluntarily connecting to a district‐scale water system.  Project is an Above and Beyond Project achieving SFPUC Water Offset above and beyond Baseline NPO Compliance (see Additional Requirements for Above and Beyond Projects below).

SFPUC Potable Water Offset Thresholds for Grant Funding Levels Projects must demonstrate the ability to achieve at least one of the following thresholds for SFPUC Water Offset to be eligible for grant funding:

Estimated SFPUC Water Offset (average cumulative gallons per yearover 10‐Year Agreement for 10 years)
Grant Funding Available
> 4,5003,600,0001  Up to $200,000
> 108,000,0001  Up to $500,000
> 3024,000,0001  Up to $1,000,000
1For Above and Beyond Projects, the estimated SFPUC Water Offset must be achieved above and beyond Baseline NPO Compliance to be eligible for grant funding.

Wastewater Heat Recovery Requirement
Applicants must submit with the Grant Application an estimate of the energy offset that could be achieved by the project through the installation of a Wastewater Heat Recovery system. Applicants must also provide a description of the potential configuration of the Wastewater Heat Recovery system, including the following information:
 Whether raw or treated water would be used;
 What type of heat recovery equipment would be used, e.g. heat exchanger, heat pump, etc.; and  How the heat would be used in the building, e.g. hot water boiler pre‐heating, maintaining temperature of hot water storage tank, space heating and/or cooling, etc.

If an applicant determines that the installation of a Wastewater Heat Recovery system is infeasibile, a written justification explaining the basis for that determination must accompany the grant application.

Grant funding is available to Above and Beyond Projects that are installing onsite water reuse systems on a
mandatory basis in compliance with the NPO that can demonstrate SFPUC water offsets above and beyond Baseline NPO Compliance.

 Achieving SFPUC water offsets above and beyond Baseline NPO Compliance (i.e. the minimum volume of water required to be captured, treated, and used onsite to comply with the NPO) can be accomplished by capturing excess supply to meet non‐potable water demands above and beyond the requirements. For example, a commercial building that produces blackwater supply in excess of what is needed for toilet and urinal flushing and drain trap priming could elect to use the excess supply to meet other non‐potable demands such as cooling tower make‐up water.  Above and Beyond Projects that consist of multiple buildings that pursue a building‐scale project approach (as opposed to a district‐scale project approach) are not eligible for grant funding.  Above and Beyond Projects that consist of mixed‐use and multi‐family residential buildings that are seeking grant funding must install a Wastewater Heat Recovery system, unless the General Manager of 7 Last update: July 11,2023April 18, 2024
the SFPUC determines, based on documentation submitted by the Above and Beyond Project applicant, that installation of a Wastewater Heat Recovery system is infeasibile.  Above and Beyond Projects that consist of district‐scale projects and commercial buildings that are seeking grant funding are not required to install a Wastewater Heat Recovery system, but must submit with the Grant Application an estimate of the energy offset that could be achieved by the project through the installation of a Wastewater Heat Recovery system.

Grant Term

The default term for Grant Agreements will be 10 years. The grant agreements will require the grantee to (1) operate and maintain the project for until the end of the grant term, which is reasonably related to the useful life for these systems, and (2) record against the subject property a Declaration of Restrictions notifying subsequent property owners of the obligations to operate and maintain the system. If the General Manager of the SFPUC determines that a longer operation and maintenance obligation is warranted for a particular project, the General Manager of the SFPUC may seek Board of Supervisors approval for a grant agreement term in excess of 10 years pursuant to Charter Section 9.118.

Grant Process

Step 1 – Grant Application
 The Applicant must calculate the estimated amount of SFPUC water (in gallons per year) that will be offset by the project using the SFPUC’s Water Use Calculator available at https://sfpuc.org/construction‐contracts/design‐guidelines‐standards/onsite‐water‐ reusesfwaterwww.sfpuc.org/npo. .org/np.
o For Above and Beyond Projects, the grant application must include an estimate of the annual total volume of SFPUC Water Offset above and beyond Baseline NPO Compliance.  The Applicant must submit a complete grant application package, including the SFPUC’s grant application, water budget application, Water Use Calculator results, a list of applicable permits (e.g. building, plumbing, etc.), and other supplemental documentation such as the proposed project work plan, schedule, and budget.
 If seeking grant funding for a district‐scale project, the Applicant must provide information on enforceable legal agreements between property owners within the district‐scale project.  If seeking grant funding for a district‐scale project, the Applicant must provide documentation that each party is a willing and responsible participant in the district‐scale Onsite Water Reuse project and identify each role within the project’s Engineering Report.  If the Applicant’s project is selected for grant funding, the SFPUC will issue a Reservation Letter confirming the amount of grant funds reserved for the project.  A Reservation Letter is a provisional reservation and subject to availability of funds and completion of the following documentation and steps.

The Grantee must receive approval of the project’s Engineering Report from SFDPH, certifying completed design of the Onsite Water System in accordance with San Francisco’s Onsite Water Reuse Program including the SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems.


Step 2 – Grant Agreement
 Within six6 months of receivingthe date of the Reservation Letter from SFPUC, the Grantee must execute a Grant Agreement with the SFPUC, submit a W‐9 tax form, provide a valid copy of insurance 8 Last update: July 11,2023April 18, 2024
documentation, and become an approved Bidder and Supplier with the City and County of San Francisco.

Step 3 – Project Design
 The Grantee must receive approval of the project’s Engineering Report from SFDPH, certifying completed design of the Onsite Water System in accordance with San Francisco’s Onsite Water Reuse Program including the SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems.
 Within six months from the date of the Reservation Letter, the project’s Enginering Report must be approved by SFDPH.


Step 34 – Project Design, Documentation, and Construction  The Grantee must receive approval of the project’s Engineering Report from SFDPH, certifying completed design of the Onsite Water System in accordance with San Francisco’s Onsite Water Reuse Program including the SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems.Within two2 years of the dated Grant Agreement, the project must be constructed,  operational, and offsetting SFPUC water use.  The Grantee must reference the SFPUC’s funding and support in all public outreach materials and signage related to the project. The SFPUC will work with Grantee to procure signage if needed.

If installing a Wastewater Heat Recovery system, the Grantee must submit to the SFPUC a narrative description and schematic of the design and technology installed in conjunction with the Onsite Water System.
 The Grantee must comply with prevailing wage and LBE requirements, if applicable, prior to and during construction (see Taxes, Insurance, Prevailing Wage, and LBE below for more information).

Step 4 – Grant Disbursement
 Grant funds will be provided to the Grantee in three disbursements:
o Disbursement of up to 40% of the total grant will be made upon approval of the project’s Engineering Report. Approval letter from SFPUCSFDPH and documentation of California Environmental Quality Action (CEQA) determination are requiredAn approval letter from SFDPH is required.
o Disbursement of up to 50% of the total grant will be made upon completion of construction of the Onsite Water System, plus any remaining funds undisbursed from the First Disbursement. A System Construction Verification Letter per the SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems is required. o Disbursement of the final 10% of grant funds will be made after the Permit for the Operation ofto Operate the Alternate Water Source System has been issued by SFDPH, as applicable, the project is offsetting SFPUC water use and on track to meet the water savings estimated in their grant application, and the project complies with all permitting requirements. A copyVerification of the Permit for theto Operateion of the Alternate Water Source System from SFDPH and documentation of estimated anticipated water savings achieved to‐date and anticipated water savings for the remainder of the grant term are is required.  To receive grant disbursements, Grantee must submit a Request for Partial Reimbursement for eligible expenses up to the amount of grant funds specified in the Reservation Letter. Copies of invoices for eligible expenses must be included.

Expiration
9 Last update: July 11,2023April 18, 2024

The Grantee has a total of six months from the date of the Reservation Letter to fulfill project documentation and design requirements, including a sign edthe Grant Agreement and get approval from SFDPH of the project’s an approved Engineering Report by SFDPH. If a reservation period expires or the project scope changes, the project must reapply under the Onsite Water Reuse Grant Program’s next solicitation round. Once a Grant Agreement is executed, the project must be constructed and operational within fourtwo years.

The Grantee may request a time extension for project documentation and/or construction if a written justification is provided in writing to the SFPUC.

Disbursement Requirements

In order to receive anyprovide the three grant disbursements, the Grantee must submit the following documentation to the SFPUC:

 A completed W‐9 IRS tax form from the designated payee.  Insurance documentation described in the Grant Agreement.  A City and County of San Francisco Bidder and Supplier Number. For more information on doing business with the City, please see the San Francisco Office of Contract Administration at www.sfgsa.org.

Reporting and Monitoring
Grantees must submit an annual reports to the SFPUC within 30 days after the end of each Operating Year summarizing the project’s monthly offset of SFPUC water use and onsite water system production. In addition, for projects installing Wastewater Heat Recovery systems, the annual report must include the energy offset achieved by the system. Annual reports must be submitted to provide proof that the project will meet the cumulative water savings criteria over the 10‐year agreement2 of 3,600,000 450,000 gallons of SFPUC water saved per year over 10 years for grant funding up to $200,000; 18,000,000 gallons of SFPUC water saved per year over 10 years for grant funding up to $500,000; or 324,000,000 gallons of SFPUC water saved  per year over 10 years for grant funding up to $1,000,000.

Alternate water source projects must also comply with additional reporting and monitoring requirements specified under SFDPH Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems.

At the end of the project’s grant term, the Grantee shall prepare and submit a Project Completion Report including a final description
of the installed project, accounting of final system costs, annual SFPUC water savings, and a summary of any operational challenges and benefits.

Additionally, SFPUC staff may conduct site inspections at any reasonable time by SFPUC staff may be conducted for any grant‐funded activities, including post‐installation verification of water savings.

Grant Funding

2 For Above and Beyond Projects, the annual report must provide proof that the project will meet cumulative water savings criteria above and beyond Baseline NPO Compliance.

10 Last update: July 11,2023April 18, 2024
Funding Requirements
 Grant funding may be provided following the: (1) evaluation of each grant application and the estimated water savings identified in the water budget documentation;, (2) delivery of the project’s documentation required under the grant guidelines;, and (3) availability of grant funds as certified by the Controller of the City and County of San Francisco.

Budget Items Eligible for Funding
 Onsite Water System project costs paid, including, but not limited to materials, supplies, salaries and fringe benefits, and payments on construction contracts directly relating to the design, permitting, installation, operation, and maintenance of the Onsite Water System.  Only accepted expenses incurred for preparation of the water budget documentation, Engineering Report, and other pre‐construction design expenses are eligible for reimbursement when incurred prior to executing the Grant Agreement.
 Unless otherwise agreed to in writing, no other costs are eligible for reimbursement by the SFPUC.

Budget Items Ineligible for Funding
 Plumbing fixtures such as toilets or urinals and landscape materials are not eligible for grant funding.

Return of Grant Funds
The purpose of
the Onsite Water Reuse Grant Program is to provide grant funding to encourage and support retail water users to reduce SFPUC water supply usage by maximizing onsite alternate water sources to meet water demands. Therefore, in the event that the project is not constructed and operational within fourtwo years of the dated Grant Agreement (unless otherwise extended by mutual agreement), and/or if the annual reports show that the project will not achieve the cumulative water savings criteria as specified in its grant application, the SFPUC may demand that the Grantee immediately return any previously disbursed grant funds that have been claimed or expended by the Grantee. The SFPUC reserves the right to evaluate each project’s activity on a case‐by‐case basis.

Taxes, Insurance, Prevailing Wage, and LBE Compliance

A grant may be taxable.  It is the responsibility of the Grantee to determine whether a tax liability exists.

The designated Grantee will receive a 1099‐Misc tax form from the City in the February after award of the grant.  By issuing a 1099‐Misc, the City is fulfilling its legal obligation for tax reporting. In order to issue a 1099‐Misc, SFPUC will request relevant tax information from a designated Grantee through a W‐9 IRS tax form, which must be completed and returned before a grant disbursement will be made.

The City requires evidence of insurance for all funded
activities.  Prior to beginning post‐grant award work
on an activity, the Grantee must provide proof of the following insurance coverage for its installation contractor for the Project, in amounts to be set at the time Grant award: General Liability Insurance and produce a Certificate of General Liability as well as proof of Worker’s Compensation Insurance. The Grantee’s contractor’s General Liability insurance policy shall name as additional insureds the Grantee, as well as the City and County of San Francisco, the San Francisco Public Utilities Commission, its board members and commissions, and all authorized agents and representatives, and members, directors, officers, trustees, agents and employees, and waive subrogation as to all as additional insureds. The contractor’s Worker’s Compensation policy must also waive subrogation as to these parties.

Prevailing Wage
• Projects that receive over $1,000 from a SFPUC grant program and involve hiring contractors for construction, alteration, demolition, installation or repair at sites other than single family homesresidential projects that are on private property are considered public works projects and are subject to prevailing wage requirements under California and City and County of San Francisco law. 11 Last update: July 11,2023April 18, 2024
• Additionally, such projects that receive $25,000 or more from a SFPUC grant program are required to submit certified payroll reports and fringe benefit statements into the City’s electronic payroll reporting system (LCPtracker).
• For more information about prevailing wage requirements and how to comply, read the San Francisco Office of Labor Standards Enforcement (OLSE) fact sheet and other materials on OLSE’s web page.

Please also reference the SFPUC’s Onsite Water Reuse Grant Process for Applicant Flowchart.

Additionally, the SFPUC may occasionally receive state grant funding. When this occurs, individual Grantees may need to meet the prevailing wage requirements. If the Grantee cannot meet requirements of San Francisco’s Labor Compliance Program, please contact the SFPUC as soon as possible. The SFPUC will inform Applicants at the time of the application if the SFPUC plans to seek or apply state grant funds.

Contingent on the type of grantee below, the applicability of the Chapter 14B Local Business Enterprise (LBE) Ordinance Requirements will be established on a case‐by‐case basis depending on the project covered by the grant:

 If a grantee is a non‐profit entity, the LBE Subcontracting Participation Requirement and LBE rating bonus are not applicable, per Chapter 14B LBE Ordinance; OR  If  a  grantee  is  a  for‐profit  business,  bid  discounts  or  rating  bonuses  may  apply  during  the  grant evaluation  phase  in  accordance  with  Administrative  Code  Chapter  14B.  The  LBE  Subcontracting Participation Requirement may be established by a CMD Contract Compliance Officer assigned at the Project level on a project‐by‐project basis, depending on the scope of work and LBE availability. In accordance  with  the  City’s  Local  Business  Enterprise  (“LBE”)  Ordinance,  the  LBE  subcontracting requirement may be established and applied to a project where the work is estimated by the SFPUC to meet or exceed 50% of the Minimum Competitive Amount or 50% of the Threshold Amount. To learn more about the Local Business Enterprise program and to find the online LBE Directory, please visit  the  program’s  website  at  https://sfcitypartner.sfgov.org/pages/LBESearch/supplier‐ search.aspx.

LBE Compliance
 The Grantee shall use good faith efforts to attempt to obtain at least three bids from Micro and/or Small Local Business Enterprises (LBEs), as those terms are defined in Section 14B.3(B) and (C) of the San Francisco Administrative Code, to serve as the prime contractor(s) for the construction portions of the grant‐funded Project.
 A list of the various certification categories is available here:
https://sfgov.org/cmd/sites/default/files/Images/Categories%202017_0_1_2.pdf  The City’s directory that provides the contact information for Micro and/or Small LBEs broken down by certification category is available here: http://mission.sfgov.org/hrc_certification/  If Grantee is unable to utilize a LBE as prime contractor for the design and/or construction of the Project, Grantee shall submit to the City a written explanation as to why it was unable to do so, as well as provide the firm names of the Micro and/or Small LBEs that Grantee has performed the aforementioned outreach to—in  said cases, Grantee should provide proof of the Grantee’s outreach (e.g., copies of emails, etc.).  Such written explanation shall be submitted to City prior to the commencement of design work for the Project.  In the event that Grantee already hired the design contractor prior to award of this Grant, the written explanation shall be submitted prior to commencement of construction.
 If Grantee has questions regarding the good faith efforts, please contact Kate Svyatets at 415‐551‐ 4335.  If Grantee have questions regarding the various certification categories or how to access the Certification Directory, please contact the Certification Unit at 415‐581‐2310. Please also reference the SFPUC’s Onsite Water Reuse Grant Process for Applicant Flowchart for more information.

12 Last update: July 11,2023April 18, 2024

Environmental Review

All projects must comply with applicable local, state, and federal permit requirements. Grant funds will not be disbursed A grant will not be awarded until a building site permit is issued and the activity has completed compliance with the California Environmental Quality Act (CEQA) and San Francisco Administrative Code Chapter 31 is complete (e.g. categorical exemption, negative declaration, mitigated negative declaration or EIR). An SFPUC inspection of installed systems does not constitute a building inspection by SFDBI or SFDPH having jurisdiction to issue permits to operate the system.

Grant Rules and Process for Brewery Process Water Treatment Systems

All Onsite Water Reuse Grant Program Rules stated above are applicable to brewery process water treatment systems. If a conflict exists, the Grant Rules for Brewery Process Water Treatment Systems shall take precedence.

Breweries must use the following four strategies to ensure protection of public health for brewery process water treatment systems:

1. Source characterization to understand the nature of the source water;

2. Source control to prevent contaminants from entering the source water to the maximum extent possible;

3. Treatment to remove contaminants; and

4. Ongoing monitoring to verify the functioning of the treatment barriers and the quality of the treated water on an ongoing basis.

Step 1 – Grant Application
 The Applicant must calculate the estimated amount of SFPUC water (in gallons per year) that will be offset by the project.
 The Applicant must submit a complete grant application package, including the SFPUC’s grant application, water budget application, and water savings calculations.  If the Applicant’s project is selected for grant funding, the SFPUC will issue a Reservation Letter confirming the amount of grant funds reserved for the project. A Reservation Letter is a provisional reservation and subject to availability of funds and completion of the following documentation and steps.

Step 2 – Grant Agreement
 The Grantee must execute a Grant Agreement with the SFPUC, submit a W‐9 tax form, provide a valid copy of insurance documentation, and become an approved Bidder and Supplier with the City and County of San Francisco.

Step 3 – Engineering Report
 The Grantee shall submit an Engineering Report to SFPUC for review and approval. The Engineering Report must demonstrate the ability of the system to comply with the requirements for source characterization, source control, treatment, and ongoing monitoring as described below.  The Engineering Report shall be prepared by a qualified engineer licensed in California and experienced in the field of wastewater treatment, and shall use the Engineering Report template provided by SFPUC.

Source Characterization and Source Control Requirements 13 Last update: July 11,2023April 18, 2024
o Grantee must ensure that there are no cross connections between the sanitary wastewater collection system and the process water collection system. o Grantee must consider and document all potential routes for contamination of the process water with microbial pathogens.
o Grantee must conduct a survey of all the chemicals used on site to determine which ones have the potential to be present in the brewery process water. o Grantee must implement standard operating procedures (SOPs) to mitigate contamination from chemical and microbial contamination.
o Source characterization assessment must be repeated on an annual basis or after significant changes have been made to the process water collection system or inputs.

Treatment and Ongoing Monitoring Requirements

Table 1. Chemical and physical quality requirements for brewery process water treatment systems.

Parameter  Requirement  Monitoring
Frequency
Total Organic
Carbon (TOC)
The concentration in treated effluent shall not exceed 1 mg/L at any time.

Daily (during startup)1
Weekly (ongoing)
Turbidity  Turbidity of treated effluent shall not exceed 0.3 NTU at any time.

Daily (during startup)1
Weekly (ongoing)
Chlorine Residual  The chlorine residual in the distribution system shall be maintained at or above 0.5 mg/L.  Daily
pH  At all times, the treated effluent pH shall be between 6 and 9.  Weekly Odor  The system shall not emit offensive odors.  n/a
Regulated
Chemicals
Monitoring of the full suite of regulated chemical
contaminants2 (i.e., all constituents with maximum
contaminant levels) in the treated effluent.

Once at startup
Once per batch of beer
brewed with treated
process water
Targeted chemicals
Monitoring must be conducted in the  treated effluent for compounds known to be present at the brewery, e.g., cleaning products, as well as any regulated compounds that approach or exceed the maximum contaminant levels.

Quarterly
Once per batch of beer
brewed with treated
process water
1 At least 30 days.
2 See Appendix A.

Table 2. Microbiological requirements for brewery process water treatment systems.

Parameter  Requirement  Monitoring
Frequency
Virus  Treatment must achieve 5‐log reduction in enteric virus using a combination of filtration and disinfection
Continuously
(via surrogate
parameter(s))
E. coli   E. coli always < 1 MPN / 100 mL in the treated effluent  Daily (during startup)1 Weekly (ongoing)
Total coliform   Total coliform always < 1 MPN / 100 mL in treated effluent  Daily (during startup)1 Weekly (ongoing)
1 At least 30 days.

Step 4 – DBI and DPW Permit(s)
 The Grantee must submit evidence of Department of Building Inspection (DBI) and Department of Public Works (DPW) permit(s), as needed.

14 Last update: July 11,2023April 18, 2024
Step 5 – System Construction
 The Grantee must submit a system construction verification letter provided to SFPUC on company letterhead, signed and stamped by qualified engineer licensed in California stating that the brewery process water treatment system was constructed in accordance with the approved Engineering Report, professionally certified plans, specifications and applicable sections of state and local code.

Step 6 – Additional Project Documents
 If the brewery process water treatment system differs in any way from the approved Engineering Report, the Grantee must submit an updated Engineering Report to SFPUC. Any modifications to the system are subject to review and approval by SFPUC.
 The Grantee must submit an Operations and Maintenance Manual to SFPUC for review and approval using the template provided by SFPUC.
 The Grantee must submit an affidavit signed by the designated Treatment System Manager that verifies knowledge, skills, abilities and training to operate the system.  The Grantee must submit evidence of a contract with a certified laboratory to perform water quality analysis.
 The Grantee must submit evidence of satisfactory performance upon cross‐connection wet‐test overseen by certified personnel from the SFPUC Water Quality Division or other certified personnel as determined by the SFPUC.

Step 7 – Project Conditional Startup
 Grantee must notify SFPUC of conditional startup date. SFPUC will provide Grantee with written
notification of end date for conditional startup.
 Grantee must initially operate system in conditional startup mode during which treated process water must be diverted to the sewer. The standard duration of the conditional startup period is 30 days, unless special circumstances warrant a shorter or longer duration, as determined by the SFPUC. If a brewery process water treatment system does not meet the water quality and treatment requirements from Tables 1 and 2 above at any point during the conditional startup period, the duration of conditional startup will be extended by at least 30 days from the date of the violation.  If the system fails at any point to meet the water quality and treatment requirements from Tables 1 and 2 above, Grantee must notify the SFPUC within 2 hours (phone: 415‐551‐4734, email:
[email protected]). Notification must include a description of the violation and the initiated or proposed corrective action. SFPUC will provide Grantee with written notification of a new end date for conditional startup.
 Upon completion of conditional startup (i.e. once system has reached end date specified by SFPUC AND been operated without water quality violations for at least 30 consecutive days), Grantee must submit a Conditional Startup Report to SFPUC for review and approval documenting all water quality and treatment performance monitoring results, as well as project water savings. Grantee must use the template provided by the SFPUC.
 Grantee will not begin using treated process water for end uses specified in the Engineering Report until receiving SFPUC written approval to do so.

Step 8 – Ongoing Operation
 Grantee must begin to offset SFPUC water use within six months after the conclusion of the conditional startup period.
 For six months after conditional startup, Grantee must submit a monthly report to SFPUC documenting all water quality and treatment performance monitoring results, as well as project water savings.

Grantee must use the template provided by the SFPUC.
15 Last update: July 11,2023April 18, 2024
 After the first six months of operation, Grantee must submit an annual report to SFPUC unless special circumstances such as failure to meet the water quality standards warrant more frequent reporting, as determined by the SFPUC. The annual report must document all water quality and treatment performance monitoring results and project water savings. Grantee must use the template provided by the SFPUC.
 Grantee must keep reports of the water quality monitoring results onsite at all times and shall make the results available to the SFPUC upon request.
 If the system fails at any point to meet the water quality and treatment requirements from Tables 1 and 2 above, the treated water must be diverted to sewer. In the event of a diversion to sewer, Grantee must notify the SFPUC within 2 hours (phone: 415‐551‐4734, email: [email protected]).

Notification must include a description of the violation. Corrective actions must be taken to eliminate the issue and prevent reoccurrence before treated water can be used again. Grantee must also notify the SFPUC of the initiated or proposed corrective action and the schedule for coming into compliance with the water quality and treatment requirements from Tables 1 and 2 above.  Grantee must notify the SFPUC prior to any facility expansion, production increase, or process modification that is expected to result in a change in the character of the treated water.

Step 9 (Optional) – Pilot Batch of Beer
 Grantee producing pilot batches of beer using treated process water must ensure that treated process water used as a source water for beer complies with all water quality requirements in Tables 1 and 2 above.
 Grantee must submit Pilot Beer Report to the SFPUC prior to serving beer produced from treated process water using the template provided by the SFPUC.  Grantee must provide appropriate notification and signage to consumers about any beer produced from treated process water.

Signage Requirements for Brewery Process Water Treatment Systems  Project must comply with all signage requirements included in the California Plumbing Code. 
The Grantee must reference the SFPUC’s funding and support in all public outreach materials and signage related to the project. The SFPUC will work with Grantee to procure signage if needed.

Additional Eligibility Criteria for Brewery Process Water Treatment Systems  Project must comply with cross‐connection control and backflow protection in accordance with Article 12A of the San Francisco Health Code and the California Plumbing Code.

Recordkeeping Requirements
Grantee must maintain system records on premises and available for inspection by the SFPUC, including but not limited to current Operations and Maintenance Manual; water quality monitoring results delivered by the Certified Laboratory and evidence of chain of custody; log of all calibrations, maintenance, and major changes in operation; and a log of all system auto‐generated alarms, causes and corrective actions. Records shall be maintained for at least two years.

Grant Disbursement
 Grant funds will be provided to the Grantee in three disbursements for reimbursement of Eligible Expenses:
o Disbursement of up to 40% of the total grant will be made upon approval of the project’s Engineering Report. An approval letter from the SFPUC is required.Approval letter from SFPUC and documentation of California Environmental Quality Action (CEQA) determination are required.
16 Last update: July 11,2023April 18, 2024
o Disbursement of up to 50% of the total grant will be made upon completion of system construction, plus any remaining funds undisbursed from the First Disbursement. A System Construction Verification Letter is required.
o Disbursement of the final 10% of grant funds will be made upon approval of the project’s Conditional Startup Report, in which the Grantee demonstrates that the project is on track to meet the water savings estimated in their grant application. Documentation of anticipated water savings is required.

Return of Grant Funds
The purpose of the Onsite Water Reuse Grant Program is to provide grant funding to encourage and support retail water users to reduce SFPUC water supply usage by maximizing onsite alternate water sources to meet water demands. Therefore, in the event that the Grantee fails to meet the Grant Rules for Brewery Process Water Treatment Systems, the SFPUC may demand the immediate return of any previously disbursed grant funds that have been claimed or expended by the Grantee.

II. Grant Evaluation
Projects will be evaluated on the eligibility criteria and documentation requirements identified under Section I. Grant Guidelines, including:

 Grant Application ‐ Projects that meet all of the grant application eligibility criteria will be evaluated based on the estimated offset of SFPUC water supply usage.  Project Documentation ‐ Projects will also be evaluated on whether their estimated SFPUC water savings identified in the grant application is supported by the additional documentation developed and submitted to the SFPUC and/or SFDPH.

III. Grant Application

The Onsite Water Reuse Grant Program will be a two‐step solicitation, review and selection process for: (1) Grant Applications; and (2) Project Documentation. Projects that receive final approval from the SFPUC to proceed with their project will enter into a Grant Agreement for grant disbursement and implementation.

Applications can be sent by electronic mail to [email protected] or delivered to:

San Francisco Public Utilities Commission
Water Resources Division
Attn: Onsite Water Reuse Grant Program
525 Golden Gate Ave, 10th Floor
San Francisco, CA 94102

For questions about the Onsite Water Reuse Grant Program or if you require assistance in completing a grant application, please send electronic mail messages to the SFPUC grant team at [email protected] or contact the SFPUC Water Resources Division at (415) 551‐4734.

17 Last update: July 11,2023April 18, 2024

Non-potable Gr

Applicant Property Owner Information
Applicant Property Owner Name:  SFPUC Acct Number:

Contact Person:

Mailing Address:  Zip Code:

Day/Work Phone:  E‐Mail Address:

Project Information
Project Name:  Date:

SFPUC Account Holder Name and Account No(s).:

Estimated SFPUC Water Offset (cumulative gallons over 10‐Year Agreement)Estimated Annual Offset of SFPUC Water Supply Usage for 10 Years (check one):
 450,0003,600,000 gallons per year   18,000,000 gallons per year   324,000,000 gallons per year Grant Type (check one):    New Site (Voluntary Install of Onsite System)  Existing Site (Voluntary Install of Onsite System)
 Voluntary Connection to District‐scale System
  Above and Beyond Project
 Brewery Process Water Treatment System
Building Type (check one):    Commercial (non‐residential)     Multi‐Family Residential     Mixed‐Use Construction Type (check one):    New Construction      Major Alteration      Re‐Plumbing Only Site or Building Permit No. (if filed):

Project Address (location of treatment system):

Assessor’s Block & Lot No./ Parcel APN:

Proposed Onsite Alternate Water Sources:

Proposed End Uses (e.g. toilet flushing, irrigation, etc.):

Brief Project Description – may provide as separate attachment (for district‐scale projects, include a catalogue of all parcels to be served):

Project Funding
Onsite Water Reuse
Grant Application

18 Last update: July 11,2023April 18, 2024

1See definition for Baseline NPO Compliance.

Estimated Water Use and Savings
What is the annual total water use (gallons) for this project? What is the SFPUC Water Offset (in gallons per year) from the project? Will the project be constructed, operational, and offsetting SFPUC water use within two years of the dated Grant Agreement? Will the SFPUC water offset be achieved within six months of receiving a SFDPH Start‐Up Permit? If no, please provide brief explanation:

YES   NO   N/A
For Brewery Process Water Treatment System, will the SFPUC water offset be achieved within six months of the conclusion of the conditional startup period? YES   NO   N/A
Is the project located in a designated recycled water use area per the San Francisco Recycled Water Ordinance?
YES    NO   N/A
Does this site have a dedicated recycled water meter to track recycled water use?      YES    NO   N/A Has this project already obtained a plumbing permit from SFDBI?   YES    NO Has an application been filed to obtain a Permit to Operate from SFDPH?   YES    NO   N/A

1 Attach documentation showing basis for energy offset estimate.

Total Grant Funds Requested from SFPUC’s Onsite Water Reuse Grant Program:  $ Is your organization or any other entity other than the SFPUC providing funding for this project?    YES    NO  If yes, how much?  $
Total Project Cost:  $
Estimated Water Use for Above and Beyond Projects Only (in gallons per year) What is the annual total non‐potable demand for the project’s required non‐ potable uses?
What is the annual total supply fromthe project’s required alternate water sources?
What is the annual total volume of the project’s Baseline NPO Compliance? 1 What is the annual total volume of SFPUC Water Offset estimated for the project?
What is the annual total volume of SFPUC Water Offset above and beyond Baseline NPO Compliance?
Project Wastewater Heat Recovery Potential
Description of wastewater heat recovery
configuration

Estimated daily energy offset of heat recovery
system (kWh/day)1
19 Last update: July 11,2023April 18, 2024

Required Supplemental Information
Please attach a detailed description of the proposed activity, including the following:

 Project Description.  Description of the proposed project including the type of onsite water sources available for collection, treatment, and storage and description of the project’s end uses.

 Water Use Calculator. Attach documentation of the SFPUC Water Use Calculator results estimating the building’s/district’s annual water use and non‐potable demands, available onsite alternate water sources, and the estimated SFPUC water offset from the project.

 Work Plan and Project Schedule. List specific tasks you will undertake to complete the project. You may use additional sheets as necessary. Next to each activity, identify who will be responsible for carrying out the activity. Estimate the date the activity will be completed (month and year). Attach additional information as needed.

 Project Budget. If you have more line items than the grid below provides for, use another sheet of paper (or add rows if you are using MS Word). Include a budget corresponding with the work plan tasks and list all staff, vendors, and/or contractors assigned by task. Additionally, include budget items that you are paying for as part of this project.

 Prevailing Wage. Check this box if you acknowledge you understand and will comply with state prevailing wage requirements and San Francisco Administrative Code Chapter 21C as applicable.

 Permits/Permission. List the permits (i.e. building, plumbing, electrical, SFDPH Start‐up Permit, CEQA compliance, etc.) that must be secured (along with the approving entity) for the proposed activity.

Attach proof of project approval or permission.

Type of Approval (Permit) Required                 Approving Agency / Approval Date _______________________________  __________________________________________ _______________________________  __________________________________________ _______________________________  __________________________________________ _______________________________   __________________________________________

Hold Harmless and Indemnification Agreement
I am authorized to sign on behalf of the applicantProperty Owner. The information enclosed accurately represents the goals, scope, budget and details of the proposed activity.  I agree that any funds received as a result of the application will be used only for purposes set forth herein. I certify that I have read, understand and agree to the terms and conditions of this grant program. I expressly agree that the SFPUC may inspect all qualifying system installations and that the SFPUC does not warrant any system or installation to be free of defects, the quality of the workmanship, or the suitability of the system for the alternate water source. I agree to defend, indemnify and hold harmless the SFPUC, their directors, officers, and employees, against all loss, damage, expense, claims, suits and liability, including attorney’s fees in any way connected with the project described in this application.

Signature: ___________________________________________________ Date: _______________

20 Last update: July 11,2023April 18, 2024
Name (print): ____________________________________________________________________

21 Last update: July 11,2023April 18, 2024

Project Work Plan and Schedule
Task Number and Description
Responsible Person/Group
(Note if work will be performed by in‐house
staff or through a consultant/contractor)
Estimated
Start Date
Estimated
Completion Date

22 Last update: July 11,2023April 18, 2024
Project Budget
Task Number and Description  Amount Requested
from SFPUC
Amount Provided
by Applicant (if any)
Specify Staff or
Consultant/Contractor  Total Budget

Total Amount Requested:  $   Total Budget:    $

Please note that the total budget you include in this grant application is final. Scope changes or cost overruns shall be covered by the Grantee.  Grant disbursements will be made on a reimbursable basis. If you have a need for any portion of the funds to be provided up‐ front, please include a proposed payment schedule and explanation for your request. Your request will be reviewed as part of your application.

23 Appendix A: Maximum Contaminant Levels

Table A1. Maximum contaminant levels for inorganic constituents (Title 22, Chapter 15, Article 4) Constituent MCL (mg/L)
Aluminum 1
Antimony 0.006
Arsenic 0.010
Asbestos 7 MFL 1
Barium 1
Beryllium 0.004
Cadmium 0.005
Chromium, Total 0.05
Cyanide 0.15
Fluoride 2
Mercury (inorganic) 0.002
Nickel 0.1
Nitrate (as nitrogen, N) 10 as N
Nitrite (as N) 1 as N
Nitrate + Nitrite (as N) 10 as N
Perchlorate 0.006
Selenium 0.05
Thallium 0.002
Copper2 1.3
Lead2 0.015
1 MFL = million fibers per liter; for fibers >10 microns long 2 Values for lead and copper are not actually MCLs; these are referred to as ‘action levels’ under the Lead and Copper Rule

Table A2. Maximum contaminant levels for radionuclide (Title 22, Chapter 15, Article 5) Constituent MCL (pCi/L)
Gross alpha particle activity 15
Gross beta particle activity 4 mrem/yr
Radium-226 + Radium-228 5
Strontium-90 8
Tritium 20,000
Uranium 20

Table A3. Maximum contaminant levels for organic chemicals (Title 22, Chapter 15, Article 5.5) Constituent MCL
(mg/L)
Volatile Organic Chemicals (VOCs)
Benzene 0.001
Carbon tetrachloride 0.0005
1,2-Dichlorobenzene 0.6
1,4-Dichlorobenzene (p-DCB) 0.005
1,1-Dichloroethane (1,1-DCA) 0.005
1,2-Dichloroethane (1,2-DCA) 0.0005

24 1,1-Dichloroethylene (1,1-DCE) 0.006
cis-1,2-Dichloroethylene 0.006
trans-1,2-Dichloroethylene 0.01
Dichloromethane (Methylene chloride) 0.005
1,2-Dichloropropane 0.005
1,3-Dichloropropene 0.0005
Ethylbenzene 0.3
Methyl tertiary butyl ether (MTBE) 0.013
Monochlorobenzene 0.07
Styrene 0.1
1,1,2,2-Tetrachloroethane 0.001
Tetrachloroethylene (PCE) 0.005
Toluene 0.15
1,2,4-Trichlorobenzene 0.005
1,1,1-Trichloroethane (1,1,1-TCA) 0.2
1,1,2-Trichloroethane (1,1,2-TCA) 0.005
Trichloroethylene (TCE) 0.005
Trichlorofluoromethane (Freon 11) 0.15
1,1,2-Trichloro-1,2,2-Trifluoroethane (Freon 113) 1.2
Vinyl chloride 0.0005
Xylenes 1.75
Non-Volatile Synthetic Organic Chemicals (SOCs)
Alachlor 0.002
Atrazine 0.001
Bentazon 0.018
Benzo(a)pyrene 0.0002
Carbofuran 0.018
Chlordane 0.0001
Dalapon 0.2
1,2-Dibromo-3-chloropropane (DBCP) 0.0002
2,4-Dichlorophenoxyacetic acid (2,4-D) 0.07
Di(2-ethylhexyl)adipate 0.4
Di(2-ethylhexyl)phthalate (DEHP) 0.004
Dinoseb 0.007
Diquat 0.02
Endothal 0.1
Endrin 0.002
Ethylene dibromide (EDB) 0.00005
Glyphosate 0.7
Heptachlor 0.00001
Heptachlor epoxide 0.00001
Hexachlorobenzene 0.001
Hexachlorocyclopentadiene 0.05
Lindane 0.0002
Methoxychlor 0.03
Molinate 0.02
Oxamyl 0.05
Pentachlorophenol 0.001

25 Picloram 0.5
Polychlorinated biphenyls (PCBs) 0.0005
Simazine 0.004
2,4,5-TP (Silvex) 0.05
2,3,7,8-TCDD (dioxin) 3x10-8
Thiobencarb 0.07
Toxaphene 0.003

Table A4. Maximum contaminant levels for disinfection by‐products (Title 22, Chapter 15.5, Article 2).

Constituent MCL
(mg/L)
Total Trihalomethanes 0.080
Bromodichloromethane --
Bromoform --
Chloroform --
Dibromochloromethane --
Haloacetic Acids (five) (HAA5) 0.060
Monochloroacetic Acid --
Dichloroacetic Adic --
Trichloroacetic Acid --
Monobromoacetic Acid --
Dibromoacetic Acid --
Bromate 0.010
Chlorite 1.0

Table A5. Secondary maximum contaminant levels (Title 22, Chapter 15, Article 16).

Constituent sMCL (mg/L)
Aluminum 0.2
Color 15 units
Copper 1.0
Foaming Agents (MBAS) 0.5
Iron 0.3
Manganese 0.05
Methyl-tert-butyl ether (MTBE) 0.005
Odor—threshold 3 units
Silver 0.1
Thiobencarb 0.001
Turbidity 5
Zinc 5.0

Table A6. Secondary maximum contaminant levels for constituents with ranges.  All units are mg/L unless otherwise noted (Title 22, Chapter 15, Article 16).

Constituent Recommended Upper Short-term
Total dissolved solids 500 1,000 1,500
Specific conductance (μS/cm) 900 1,600 2,200
Chloride 250 500 600
Sulfate 250 500 600

ARTICLE 12C:

ALTERNATE WATER SOURCES FOR NON-POTABLE

APPLICATIONS
Sec. 12C.1. Purpose and Findings.

Sec. 12C.2. Definitions.

Sec. 12C.3. Applicability.

Sec. 12C.4. Development Project Requirements.

Sec. 12C.5. Regulation of Alternate Water Sources.

Sec. 12C.6. Project Applicant and/or Permittee Design and Construction Requirements.

Sec. 12C.7. Fees.

Sec. 12C.8. Operating Requirements.

Sec. 12C.9. Non-potable Water Use Audits.

Sec. 12C.10. Sale or Transfer.

Sec. 12C.11. Inspection.

Sec. 12C.12. Violation and Penalties.

Sec. 12C.13. Revocation and Suspension of Permit.

Editor's Note:

The sections of this Article are numbered out of sequence with the other articles of this Code.

SEC. 12C.1. PURPOSE AND FINDINGS.

The Board of Supervisors finds that:
(a) All California water users are responsible for making effective use of the available water resources. (b) The development of alternate water source systems will assist in meeting future water requirements of the City and lessen the impacts of new developments on the City's sewer system. (c) Establishing a regulatory structure that provides administrative efficiency and a streamlined project approval process will assist developers who opt to design, install, operate, and maintain alternate water source systems.
(d) Adoption of Article 12C by the Board of Supervisors and adoption of rules and regulations by the Department of Public Health will help achieve the City's goals for water supply use and preservation by:
(1) Promoting the values and benefits of non-potable water use while recognizing the need to invest water and other resources as efficiently as possible;
(2) Encouraging the use of non-potable water for non-potable applications; and (3) Replacing potable water use for toilet and urinal flushing and irrigation to the maximum extent possible with alternative water sources.
4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 1/14 (e) It shall be City policy that within five years of the effective date of Ordinance No. 109-15,1 adding this subsection (e) to Article 12C, the City shall use only non-potable water for the purpose of irrigating and cleaning parks, streets, and other public spaces. Within two years of the effective date of that ordinance, the City Administrator, in consultation as appropriate with other City departments, boards, and commissions, including, among others, the Recreation and Park Department, Department of Public Works, Port of San Francisco, San Francisco International Airport, Division of Real Estate, and Capital Planning Committee, shall study what will be required to accomplish this policy, including associated costs, and report the results of the study to the Mayor and Board of Supervisors. Upon receiving this study, the Board of Supervisors intends to evaluate any changes to the law and Capital Plan needed to implement this policy. (f) The General Manager of the San Francisco Public Utilities Commission shall submit a report to the Board of Supervisors by December 31, 2021, evaluating the challenges of, and opportunities for requiring the construction, operation and maintenance of Non-potable District Systems at District Development Projects. The report shall also identify the opportunities for the expansion of water heating systems including, but not limited to thermal solar hot water preheating systems, graywater preheating systems, wastewater heat recovery systems, and geo-thermal hot water preheating systems.
(g) In order to further determine opportunities to maximize and expand the use of nonpotable sources of water, the General Manager of the San Francisco Public Utilities Commission shall submit to the Board of Supervisors by June 1, 2022, a report evaluating opportunities to develop a recycled water and purified water supply for San Francisco.
(h) The General Manager of the San Francisco Public Utilities Commission shall submit a report to the Board of Supervisors by December 31, 2022, identifying the opportunities for biogas utilization and energy recovery from the San Francisco Public Utilities Commission’s Biosolids Digester Facilities Project. (Added as Sec. 850 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021)

CODIFICATION NOTE

1. Blank in Ord. 109-15 . Ordinance number inserted by the codifier.

SEC. 12C.2. DEFINITIONS.

The terms used in this Article 12C have the meaning set forth below:
100% Affordable Housing Project: a building where 100% of the residential units (not including a manager’s unit) have (1) a maximum affordable purchase price or affordable rent set at 120% of the unadjusted area median family income as determined by the Mayor’s Office of Housing and Community Development on an annual basis and derived from the HUD Metro Fair Market Rent Area that contains San Francisco; (2) a rent that does not exceed 30% of the applicable household income limit for a rental unit, or a purchase price with an annual housing cost that does not exceed 33% of the applicable income limit for an owner-occupied unit, as may be adjusted for household size and bedroom count; and (3) a recorded regulatory agreement, consistent with any applicable federal, state, or City government regulatory requirements, to assure that the residential units are sold or rented in accordance with the above criteria for the life of the project or a minimum of 55 years, whichever is shorter.
100% Permanent Supportive Housing Project: a new building where 100% of the residential units (not including a manager’s unit) are (1) owned by a nonprofit charitable organization or qualified related legal entity, (2) used for permanent supportive housing to formerly homeless households subject to a recorded declaration of restriction, and (3) funded through a subsidy agreement with the Department of Homelessness and Supportive Housing.

Alternate Water Source: a source of Non-potable water that includes Graywater, on-site treated Non-potable water, Rainwater, Stormwater, Foundation Drainage, Blackwater, and any other source approved by the Director. 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 2/14 Alternate Water Source System: The system of facilities necessary for providing Non-potable Water for use in a Development Project, including but not limited to all collection, treatment, storage, and distribution facilities. Non-potable Water System shall have the same meaning.

Blackwater: wastewater containing bodily or other biological wastes, as from toilets, dishwashers, kitchen sinks, and utility sinks.

City: the City and County of San Francisco.

Commercial Building: a building with a commercial use as defined in Planning Code Section 102, amended from time to time.

Condensate: water vapor collected from air conditioning systems.

Development Project: Construction of a new building or buildings. Development Projects are Large Development Projects and Small Development Projects. Development Project does not include rehabilitation of buildings constructed prior to August 1, 2015. Development Project does not include (1) any 100% Affordable Housing Project, 100% Permanent Supportive Housing Project, or housing project funded or constructed pursuant to the HOPE SF Program sponsored and developed by the San Francisco Housing Authority and either the Mayor’s Office of Housing and Community Development or the Office of Community Investment and Infrastructure; (2) Hospital Buildings, Health Service Buildings, and Institutional Healthcare Use Buildings; (3) Industrial Use Buildings; (4) Production, Distribution, and Repair Use Buildings; (5) construction of a new building that will receive water service from the San Francisco Public Utilities Commission through no larger than a 5/8" domestic water meter or a 5/8" recycled water domestic meter, as determined in accordance with the San Francisco Public Utilities Commission’s rules for water service; (6) for District projects located within the boundaries of the Reclaimed Water Use Map, construction of new buildings subject to a disposition and development agreement or similar contractual agreement approved before November 1, 2015, that includes in its applicable infrastructure plan the construction and operations of water treatment facilities within the project boundaries that would provide recycled water to the project; (7) for District projects located within the boundaries of the Reclaimed Water Use Map, construction of new buildings subject to a development agreement or similar contractual agreement, within a development phase or subphase, a street improvement plan, or a tentative map or vesting tentative map approved before November 1, 2015; or (8) for District projects located outside the boundaries of the Reclaimed Water Use Map, construction of new buildings subject to a development agreement or similar contractual agreement, within a development phase or subphase, a street improvement plan, or a tentative map or vesting tentative map approved before November 1, 2017.

Director: the Director of Health or any individual designated by the Director to act on the Director’s behalf.

District Development Project: a Large Development Project consisting of two or more buildings.

District System: An Alternate Water Source System serving a District Development Project.

First Certificate of Occupancy: either a temporary certificate of occupancy or a Certificate of Final Completion and Occupancy as defined in San Francisco Building Code Section 109A, whichever is issued first.

Foundation Drainage: nuisance groundwater that is extracted to maintain a building's or facility's structural integrity and would otherwise be discharged to the City's sewer system. Foundation Drainage does not include non-potable groundwater extracted for a beneficial use that is subject to City groundwater well regulations.

General Manager: the General Manager of the San Francisco Public Utilities Commission, or any individual designated by the General Manager to act on his or her behalf.

Graywater: untreated wastewater that has not been contaminated by any toilet discharge, has not been affected by infectious, contaminated, or unhealthy bodily wastes, and does not present a threat from contamination by unhealthful processing, manufacturing, or operating wastes. Graywater includes, but is not limited to, wastewater from bathtubs, showers, bathroom sinks, lavatories, clothes washing machines, and laundry tubs, but does not include wastewater from toilets, kitchen sinks, utility sinks, or dishwashers. 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 3/14 Gross Floor Area: The floor area of a Development Project as defined in Planning Code Section 102, as amended from time to time.

Health Service Building: A building with a health service use as defined in Planning Code Section 102, as amended from time to time.

Hospital Building: A building with a hospital use as defined in Planning Code Section 102, as amended from time to time.

Industrial Use Building: A building with an industrial use as defined in Planning Code Section 102, as amended from time to time.

Institutional Healthcare Use Building: A building with an institutional healthcare Use as defined in Planning Code Section 102, as amended from time to time.

Large Development Project:
(a) Prior to January 1, 2022, a Large Development Project is the construction of a single building, or construction of multiple buildings on one or more parcels in accordance with a phased plan or approval, with a total Gross Floor Area for the single building or the multiple buildings of 250,000 square feet or more:
(1) located within the boundaries of the Reclaimed Water Use Map designated in accordance with Sections 1203 and 1209 of the Public Works Code and subject to a site permit or building permit that is final and effective after November 1, 2015; or
(2) located outside the boundaries of the Reclaimed Water Use Map designated in accordance with Sections 1203 and 1209 of the Public Works Code and subject to a site permit or building permit that is final and effective after November 1, 2016.
(b) On or after January 1, 2022, a Large Development Project is the construction of a single building, or construction of multiple buildings on one or more parcels in accordance with a phased plan or approval, with a total Gross Floor Area for the single building or the multiple buildings of 100,000 square feet or more. (c) Large Development Projects include, to the extent allowed by law, buildings constructed and operated by any local, state, or federal government entity, including the City.

Large Development Project Applicant: The person or entity applying for authorization to construct and operate a Large Development Project.

Mixed-Use Residential Building: A building with both a residential use and a commercial use as defined in Planning Code Section 102.

Multi-Family Residential Building: A building that contains three or more dwelling units.

Non-potable Water: water collected from Alternate Water Sources.

Non-potable Water Engineering Report: Report submitted by the Project Applicant to the Director describing the Alternate Water Source System in accordance with the rules and regulations adopted by the Department of Health.

Nonpotable Water System: The same meaning as Alternate Water Source System.

Non-Residential Building: A building with a non-residential use as defined in Planning Code Section 102.

Permittee: The Project Applicant, or any subsequent owner, assignee, successor in interest or any other transferee subject to this Article 12C, including, but not limited to, operations and maintenance of an Alternative Water Source System. Permittee includes, but is not limited to, the owner of the common areas within a District Development Project and any homeowners association or similar entity that maintains the common areas within a District Development Project. Permittee does not include the Project Applicant, subsequent owners, assignees, successors in interests, transferees, owners of a common area, homeowners associations, or any other person or 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 4/14 entity associated with a Development Project serviced by an Alternative District System dedicated to the City in accordance with Section 12C.4(h) of this Article 12C.

Production, Distribution, Repair Use Building: A building with production, distribution, repair Use as defined in Planning Code Section 102.

Project Applicant: the person or entity applying for authorization to install and use an Alternate Water Source System.

Rainwater: precipitation collected from roof surfaces or other manmade, aboveground collection surfaces.

Small Development Project:
(a) Prior to January 1, 2022, a Small Development Project is the construction of a single building, or construction of multiple buildings on one or more parcels in accordance with a phased plan or approval, with a total Gross Floor Area for the single building or the multiple buildings of 40,000 square feet or more, but less than 250,000 square feet.
(b) On or after January 1, 2022, a Small Development Project is the construction of a single building, or construction of multiple buildings on one or more parcels in accordance with a phased plan or approval, with a total Gross Floor Area for the single building or the multiple buildings of 40,000 square feet or more, but less than 100,000 square feet.
(c) Small Development Projects include, to the extent allowed by law, buildings constructed and operated by any local, state, or federal government entity, including the City.

Small Development Project Applicant: The person or entity applying for authorization to construct and operate a Small Development Project.

Small Residential Building: A building that contains no more than two dwelling units.

Stormwater: Precipitation collected from at-grade or below-grade surfaces.

Water Budget: The calculation of the potential volume of onsite Alternate Water Source supplies and demands of a Development Project and any other building subject to this Article 12C.

Water Budget Calculator: The water use calculation tool approved by the General Manager that provides for the assessment of a proposed onsite water system, Alternate Water Sources, and the end uses of the Alternate Water Source.

Water Budget Documentation: An in- depth assessment of the Project Applicant’s non-potable water use, including survey information, water meter readings, water service billing information, Alternate Water Source schematic drawings, or any other information deemed necessary by the General Manager. For proposed District Systems, Water Budget Documentation shall include implementation information that, at a minimum, shall address potential infrastructure and public right of way conflicts, demonstrate compliance with all applicable requirements, and establish the capabilities of the Development Project Applicant to effectively operate the District System.
(Added as Sec. 851 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 246- 16, File No. 161069, App. 12/16/2016, Eff. 1/15/2017; Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.3. APPLICABILITY
(a) This Article 12C shall apply to the installation and operation of the Alternate Water Source Systems at Large Development Projects, and to the voluntary installation and operation of the Alternate Water Source Systems at sites containing Multi-Family Residential Building and Non-Residential buildings. This Article does not apply to:
4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 5/14 (1) Systems at Small Residential Buildings.
(2) Graywater systems where Graywater is collected solely for subsurface irrigation and does not require disinfection, as determined by the Director.
(3) Rainwater systems where Rainwater is collected solely for subsurface irrigation, drip irrigation, or non- sprinkled surface applications and does not require disinfection, as determined by the Director. (b) Nothing in the ordinance in Board File No. 201536 1 amending this Article 12C is intended to impair or limit any contract right that exists as of the effective date of said ordinance. In connection with the application of Article 12C as it relates to development agreements or similar development contracts, or approved development plans administered by the Office of Community Investment and Infrastructure, the General Manager shall consult with the City Attorney to determine whether the application of this Article 12C to a specific Development Project will violate the terms of contracts that the City entered into before the aforementioned effective date.
(Added as Sec. 852 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021)

CODIFICATION NOTE

1. So in Ord. 155-21.

SEC. 12C.4. DEVELOPMENT PROJECT REQUIREMENTS.
(a) Large Development Projects shall be constructed, operated, and maintained in compliance with the following:
(1) For Large Development Projects and District Development Projects that submit an application for a site permit on or prior to January 1, 2022, an Alternate Water Source System shall be constructed, operated, and maintained. All toilet and urinal flushing and irrigation demands shall be met through the collection and reuse of available onsite Rainwater, Graywater, and Foundation Drainage, to the extent required by application of the Water Budget Documentation developed for each Development Project. (2) For Large Development Projects and District Development Projects consisting solely of Commercial Buildings that submit an application for a site permit after January 1, 2022, an Alternate Water Source System shall be constructed, operated, and maintained. Toilet and urinal flushing demands and drain trap priming are required non-potable uses. The collection and reuse of Blackwater and Condensate (required Alternate Water Sources) shall be used for required non-potable uses to the extent required by application of the Water Budget Documentation.
(3) For Large Development Projects and District Development Projects consisting solely of Multi-Family Residential Buildings or Mixed-Use Residential Buildings that submit an application for a site permit after January 1, 2022, an Alternate Water Source System shall be constructed, operated, and maintained. Toilet and urinal flushing, clothes washing, drain trap priming, and irrigation demands are required non-potable uses. The collection and reuse of Graywater and Condensate (required Alternate Water Sources) shall be used for required non-potable uses to the extent required by application of the Water Budget Documentation. (4) For District Development Projects that consist of any combination of Commercial, Residential and Mixed-Use Residential Buildings, and that install a District System, toilet and urinal flushing, clothes washing, drain trap priming, and irrigation demands are required non-potable uses. The collection and reuse of Graywater and Condensate (required Alternate Water Sources) shall be used for required non-potable uses to the extent required by application of the Water Budget Documentation. (5) For District Development Projects that consist of any combination of Commercial, Residential and Mixed-Use Residential Buildings, and that install building-by-building Alternate Water Source Systems, the 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 6/14 required non-potable uses and required Alternate Water Sources shall be the uses and sources for each category of building type describe in subsections (a)(2) and (a)(3) of this section. (b) A Large Development Project Applicant shall use the Water Budget Calculator as follows:
(1) For Large Development Projects that submit an application for a site permit on or prior to January 1, 2022, a Large Development Project Applicant shall use the Water Budget Calculator, as provided by the General Manager’s rules, to prepare a Water Budget assessing the amount of Rainwater, Graywater, and Foundation Drainage produced on site, and the planned toilet and urinal flushing and irrigation demands. (2) For Large Development Projects that submit an application for a site permit after January 1, 2022, a Large Development Project Applicant shall use the Water Budget Calculator, as provided by the General Manager’s rules, to prepare a Water Budget assessing the amount of Alternate Water produced on site by the required Alternate Water Sources, and the amount of Alternate Water needed to supply the required non-potable uses.
(c) (3)1
(1) For Large Development Projects that submit an application for a site permit on or prior to January 1, 2022, if, based on the Water Budget Documentation, the available supply from onsite sources exceeds the demands for toilet and urinal flushing and irrigation, 100% of those demands shall be met by using the available onsite sources. If, based on the Water Budget Documentation, the available supply from onsite sources is less than the demands for toilet and urinal flushing and irrigation, 100% of the available onsite supply shall be used to meet the demands for toilet and urinal flushing and irrigation. Available Blackwater or Stormwater supplies may be used instead of, or in addition to Rainwater, Graywater, and Foundation Drainage to meet the available onsite supply requirements calculated in accordance with the Water Budget Documentation requirements of this section 12C.4(c)(1).
(2)(1 For Large Development Projects that submit an application for a site permit after January 1, 2022, if, based on the Water Budget Documentation, the available supply from required Alternate Water Sources exceeds the demand from required non-potable uses, 100% of that demand shall be met by using the required Alternate Water Sources. If, based on the Water Budget Documentation, the available supply from required Alternate Water Sources is less than the demand from required non-potable uses, 100% of the available supply from required Alternate Water Sources shall be used to meet the demand from required non-potable uses. (bd)1 Small Development Project Applicants shall be as follows:
(1) For Small Development Projects that submit an application for a site permit on or prior to January 1, 2022, Small Development Project Applicants shall use the Water Budget Calculator, as provided by the General Manager’s rules, to prepare a Water Budget assessing the amount of Rainwater, Graywater and Foundation Drainage produced on site, and the planned toilet and urinal flushing and irrigation demands. (2) For Small Development Projects that submit an application for a site permit after January 1, 2022, Small Development Project Applicants shall use the Water Budget Calculator, as provided by the General Manager’s rules, to prepare a Water Budget assessing the supply from Alternate Water Sources available on site, and the demand from non-potable uses on site.
(e) Large Development Projects and District Development Projects shall be subject to excess use charges for exceeding potable water allocations determined in accordance with rules adopted by the General Manager. If a Large Development Project or District Development Project exceeds its allocation of potable water, the Permittee for the Large Development Project or District Development Project shall be subject to excess use charges on each unit of potable water exceeding the allocation at 300% (or 3x) the applicable water and wastewater rates.
(f) Large Development Projects and District Development Projects shall not provide Non-potable Water to water users or for purposes located outside the boundaries of the Large Development Project or District Development Project, except (1) as permitted in the sole discretion of the General Manager, or (2) when the 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 7/14 water users or other purposes are located on property contiguous to, or across a public right of way from the boundaries of the Large Development Project or District Development Project, and the total amount of Non- potable Water produced by the Alternate Water Source System will not exceed 125% of the Large Development Project’s or District Development Project’s required non-potable demands as determined by the approved Water Budget Documentation.
(g) Additional Requirements for District Systems. All District Systems shall conform to the following requirements.: 1
(1) In addition to preparation of the Water Budget, Project Applicants for District Systems shall submit implementation plans to the General Manager for review and approval, in accordance with guidelines and rules established by the General Manager.
(2) District Systems shall be constructed in accordance with all applicable City utility standards and specifications.
(3) Individual buildings within a District Development Project shall not be required to demonstrate compliance as long as the individual 1 are provided service by an approved District System. (h) The General Manager may approve Alternate District Systems that will achieve compliance with the purposes and objectives of this Article 12C, in accordance with guidelines and rules established by the General Manager. Alternative District Systems may include, but are not limited to, the dedication to the City, without cost to the City, of a District System’s treatment and/or conveyance system that is constructed in accordance with all applicable utility standards and specifications.
(i) City departments shall not issue an encroachment permit, a site permit, or a plumbing permit for a Large Development Project or a Small Development Project, or approve a Non-potable Water Engineering Report, prior to the General Manager’s determination that the Water Budget Documentation has been prepared in accordance with the General Manager’s rules for Water Budget calculations. (j) Subdivision Approvals.
(1) Parcel Map or Tentative Subdivision Map Conditions. The Director of Public Works shall not approve a tentative subdivision map or a parcel map for any property unless a condition is imposed requiring compliance with this Article 12C to serve the potential uses of the property covered by the parcel map or tentative subdivision map, as specified in the provisions of this Article. (2) Subdivision Regulations. The Director of Public Works shall adopt regulations consistent with, and in furtherance of this Article 12C .
(3) Final Maps. The Director of Public Works shall not endorse and file a final map for property within the boundaries of the City without first determining that:
(A) The subdivider has complied with the conditions imposed on the tentative subdivision map or parcel map, pursuant to this Article 12C; and
(B) For any such conditions not fully satisfied prior to the recordation of the final map, the subdivider has signed a certificate of agreement and/or improvement agreement, to ensure compliance with such conditions. (4) This subsection (j) shall not apply to tentative subdivision maps or parcel maps submitted solely for the purposes of condominium conversion, as defined in Subdivision Code Section 1308(d). (g)1 In the event that a privately owned Alternate Water Supply System approved by the General Manager is subsequently determined by the California Public Utilities Commission to be subject to that agency’s jurisdiction and regulation, the San Francisco Public Utilities Commission may, with the consent of the affected owner, acquire and operate the facilities.
(Added by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 246-16, File No. 161069, App. 12/16/2016, Eff. 1/15/2017; Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 8/14

CODIFICATION NOTE

1. So in Ord. 155-21.

SEC. 12C.5. REGULATION OF ALTERNATE WATER SOURCES.
(a) Any person or entity who installs and operates an Alternate Water Source system shall comply with this Article 12C, the rules and regulations adopted by the Department of Public Health, and all applicable City, state, and federal laws.
(b) The Director shall issue rules and regulations regarding the operation of Alternate Water Source systems necessary to effectuate the purposes of this Article 12C and to protect public health and safety. These regulations shall address, at a minimum:
(1) Water quality criteria;
(2) Monitoring and reporting content and frequencies; and (3) Operation and maintenance requirements.
(c) The Director shall review applications for Alternative Water Sources systems and may issue or deny such applications, in accordance with applicable laws and regulations. (d) The Department of Building Inspection shall review plans and issue or deny plumbing permits for the construction, installation, or modification of Alternate Water Source systems, in accordance with applicable laws and regulations.
(Added as Sec. 853 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.6. PROJECT APPLICANT AND/OR PERMITTEE DESIGN AND CONSTRUCTION REQUIREMENTS.
(a) Prior to initiating installation of any Alternate Water Source project, Project Applicants shall submit to the Director an application for permits to operate Alternate Water Source systems. Such applications shall comply with the requirements of this Article 12C and any regulations the Director has issued. Project Applicants shall pay a non-refundable permit application fee to cover the costs of investigation and processing the application and issuing the permit. Each project application submitted to the Director shall include a Non-potable Water Engineering Report that provides project information the Director determines to be necessary for complete review of the proposed project. City departments may not approve or issue permits for any site installing an Alternate Water Source system unless and until the Director has approved the Non-potable Water Engineering Report.

The Non-potable Water Engineering Report for District systems must include information on the permanent legal agreements between property owners, and provide documentation that each party is a willing and responsible participant in the District Non-potable Water use. (b) System Design. All buildings using Non-potable Water from Alternate Water Source systems shall include:
(1) A flow meter on the non-potable distribution system to account for Non-potable Water use; (2) A flow meter on the potable make-up water pipeline to the Alternate Water Source System; (3) A reduced pressure backflow assembly (RP) within 25 feet of the downstream side of the point of connection or meter to protect the City’s public water and/or recycled water system; 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 9/14 (4) Signage that state law and the Department of Public Health’s rules and regulations require; (5) Cross connection control in accordance with California Code of Regulations Titles 17 and 22 and the San Francisco Public Utilities Commission’s Cross Connection Control Program; and (6) Any other requirements the Director determines are necessary to protect public health. (c) Plumbing Permit. A Project Applicant shall obtain from the Department of Building Inspection an appropriate plumbing permit and any other building or installation permit required to construct, install, alter, an Alternate Water Source system. Each parcel within a District shall obtain appropriate plumbing and any other building or installation permits required.
(d) Encroachment Permit. A Project Applicant shall obtain from the Department of Public Works appropriate authorization for placement of any pipelines or other portions of an Alternate Water Source system within the public right-of-way.
(e) Construction Certification Letter. Project Applicants shall certify to the Director that Alternate Water Source system construction is complete and consistent with the approved Non-potable Water Engineering Report in accordance with the provisions of this Article 12C and any implementing rules and regulations. City departments may not approve or issue a First Certificate of Occupancy or approval for any Alternate Water Source system until the Director has reviewed and verified the Construction Certification Letter. (Added as Sec. 854 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155- 21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021)
SEC. 12C.7. FEES.
(a) The non-refundable application fees for alternative source water system permits are:

(1) Rainwater, Stormwater, Foundation Drainage $2,616.28 (2) Graywater $8,142.66
(3) Blackwater $13,958.84
(4) Transfer of any permit $226
(5) District Scale, the applicable amount above, plus
$226 per hour for plan
review and/or on-site
inspection.
(b) The fees set forth in this Section 12C.7 may be adjusted each year, without further action by the Board of Supervisors.

Not later than April 1, the Director shall report to the Controller the revenues generated by the fees for the prior fiscal year and the prior fiscal year’s costs of operation, as well as any other information that the Controller determines appropriate to the performance of the duties set forth in this Section 12C.7.

Not later than May 15, the Controller shall determine whether the current fees produce, or are projected to produce, revenues sufficient to support the costs of providing the services for which the fees are assessed and that the fees will not produce revenue that significantly exceed more than the costs of providing the services for which the fees are assessed.

The Controller shall if necessary, adjust the fees upward or downward for the upcoming fiscal year as appropriate to ensure that the pro- gram recovers the costs of operation without producing revenue which is significantly more than such costs. The adjusted rates shall become operative on July 1. 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 10/14 (c) Every permit holder shall also pay an annual license fee as provided in the Business and Tax Regulations Code Section 249.24.
(Added as Sec. 855 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155- 21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021)
SEC. 12C.8. OPERATING REQUIREMENTS.

When the Director determines the Project Applicant has satisfied all the requirements of this Article 12C, the Director may issue an operations permit for an Alternative Water Source system. Permittees shall timely submit all water quality monitoring information required by the provisions of this Article and the Department of Public Health’s rules and regulations. Permittees shall conduct ongoing backflow prevention and cross connection testing in accordance with this Article, the rules and regulations of the Department of Public Health, and all applicable City, state, and federal laws.
(Added as Sec. 856 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.9. NON-POTABLE WATER USE AUDITS.

When required by the General Manager, the Permittee shall conduct a Non-potable Water use audit describing the extent of Non-potable Water use in accordance with requirements provided by the General Manager. (Added as Sec. 857 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.10. SALE OR TRANSFER.

Permittees shall notify the Director of any intent to sell or transfer the building or facility containing an Alternate Water Source system within 30 days following the sale or transfer of property, in accordance with regulations adopted by the Director.
(Added as Sec. 858 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 246-16, File No. 161069, App. 12/16/2016, Eff. 1/15/2017) SEC. 12C.11. INSPECTION.

The Director may inspect any Alternate Water Source system subject to the requirements of this Article 12C to determine compliance with the provisions of this Article and applicable regulations. (Added as Sec. 859 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.12. VIOLATION AND PENALTIES.

Administrative penalties shall be assessed and collected by the Department of Public Health as set forth in this Section 12C.12.
(a) Any Permittee, or other person otherwise subject to the requirements of this Article 12C, who violates any provision of this Article or any applicable rule or regulation shall be subject to an administrative penalty imposed 4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 11/14 by order of the Director, not to exceed $1,000. Each day or portion thereof that a violation exists constitutes a separate and distinct violation for which an administrative penalty may be imposed. In assessing the amount of the administrative penalty, the Director may consider any one or more of the following: the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, and the willfulness of the violator’s misconduct. (b) If the Director determines that any Permittee, or other person otherwise subject to the requirements of this Article 12C, is in violation of any provision of this Article or any applicable rule or regulation, the Director shall issue a Notice of Violation to the person. The Notice of Violation shall contain the following information: a description of circumstances or condition constituting the violation; the date by which the person must correct the violation; the amount of the administrative penalty that the Director will impose daily until such time as the person has demonstrated to the satisfaction of the Director that the violation has been corrected; and the right to seek administrative review of the Notice of Violation by filing an appeal within 30 days of the date that the Notice of Violation is served to challenge the Director’s determination and/or the proposed administrative penalty.
(c) If no request for administrative review is timely made, the right to request a hearing shall be waived, and the Director’s determination shall become final. The failure to timely request a hearing shall constitute a failure to exhaust administrative remedies and shall preclude judicial review of the validity of the enforcement action.

The Director shall issue an order imposing the administrative penalties, which shall be due and payable within 15 days of the date of the order.
(d) Administrative penalties assessed by the Director shall be paid to the Treasurer of the City and County of San Francisco and credited to the Public Health Environmental Health Code Compliance Fund, authorized by Administrative Code Section 10.100-193.
(Added as Sec. 860 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 12C.13. REVOCATION AND SUSPENSION OF PERMIT.

The Director may order a Permittee to cease operation of an Alternate Water Source system, or may revoke or suspend the permit to operate if the Director determines that:
(a) The Permittee or its managers, operators or any employees has violated any provision of this Article 12C or any regulation issued pursuant to this Article;
(b) The Alternate Water Source system is being operated or maintained in a manner threatening the public health or health of patrons and/or residents; or
(c) The Permittee has refused to allow any duly authorized City official to inspect the premises or the operations of the Alternate Water Source system.
(Added as Sec. 861 by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015; amended by Ord. 155-21, File No. 210536, App. 10/8/2021, Eff. 11/8/2021) SEC. 850. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.1 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 12/14 SEC. 851. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated as Sec. 12C.2 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015) SEC. 852. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.3 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 853. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.5 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 854. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated as Sec. 12C.6 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015) SEC. 855. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; amended by Ord. 208-13 , File No. 130765, App. 10/11/2013, Eff. 11/10/2013; redesignated as Sec. 12C.7 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015) SEC. 856. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.8 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 857. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.9 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 858. [REDESIGNATED.]
4/29/24, 9:19 AM export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ https://export.amlegal.com/api/export-requests/4c3038ff-e723-4013-ba93-100789e59948/download/ 13/14 (Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.10 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 859. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.11 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 860. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.12 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
SEC. 861. [REDESIGNATED.]
(Added by Ord. 195-12, File No. 120717, App. 9/17/2012, Eff. 10/17/2012; redesignated as Sec. 12C.13 and amended by Ord. 109-15 , File No. 150350, App. 7/2/2015, Eff. 8/1/2015)
ARTICLE 13:
[RESERVED]

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