DEPARTMENT Infrastructure Division
AGENDA NO. 15
MEETING DATE February 11, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Daniela Brandao
Award Contract No. CS-1263, Standard Renewable Gas Interconnection
Summary of Proposed
Commission Action:
Award Contract No. CS-1263, Standard Renewable Gas Interconnection, to Pacific Gas and Electric Company, for an amount not to exceed $7,000,000, and with a duration of ten years, to obtain natural gas conveyance services , which require Pacific Gas & Electric Company to design, construct, install, and operate the facility required for pipeline injection of the renewable natural gas generated from the new digesters at the San Francisco Public Utilities Commission’s Southeast Treatment Plant.
Background: The San Francisco Public Utilities Commission’s (SFPUC) Wastewater Enterprise Biogas Utilization Project is a necessary facility for operation of the Biosolids Digester Facilities Project, and it requires the Interconnection Facility, which will be owned and operated by Pacific Gas & Electric Company (PG&E).
Currently under construction, the Biosolids Digester Facilities Project will replace the existing, outdated solids treatment facilities at the Southeast Treatment Plant and provide new digesters and treatment processes that will capture and treat odors more effectively, produce a higher quality biosolids product, and beneficially reuse the biosolids and biogas to enhance sustainability, reliability, and affordability.
The Biogas Utilization Project will provide beneficial use of the biogas generated in the new digesters by converting it to renewable natural gas (RNG) for pipeline injection. The biogas realizes its highest value as RNG because it can be injected into the utility pipeline as renewable fuel, which may garner environmental credits and other regulatory benefits.
The scope of the Biogas Utilization Project includes, but it is not limited to, designing, and constructing new facilities for biogas cleaning and separation (upgrading biogas to RNG), gas compressors and compressed gas lines for injection of the RNG into the existing PG&E gas pipeline, and a thermal oxidizer to treat tail gas before it is released into the atmosphere.
Agenda Title: CS-1263, Standard Renewable Gas Interconnection Commission Meeting Date: February 11, 2025
The Biogas Utilization Project also promotes current California state goals for in-state production and distribution of RNG as documented in Assembly Bill 1900 and Senate Bill 840. In addition, the generation of RNG is in line with the City’s sustainability policies as it displaces th e use of fossil fuels.
RNG currently offers value as renewable fuel for compressed natural gas vehicles, but it also provides an opportunity as a “bridge fuel” for in city natural gas uses that cannot shift to electric.
On February 9, 2021, by Resolution No. 21- 0024, this Commission approved an amendment to Contract No. WW-647R, Southeast Water Pollution Control Plant Biosolids Digester Facilities Construction Manager/General Contractor Agreement, with MWH Constructors/Webcor Builders Joint Venture, modifying the scope of work to remove the Energy Recovery Facility from the Biosolids Digester Facilities Project, conditioned on environmental review of an alternate biogas end- use being completed and approved by the San Francisco Planning Department , and this Commission’s approval of construction of the alternate biogas end-use.
On July 12, 2024, t he SFPUC advertised a Request for Qualifications and Proposals for Design- Build Services for Contract No. DB-138, Southeast Treatment Plant Biogas Utilization Project. Due to the unique complexities of the design and construction required for this Project, the SFPUC has selected a best value design- build project delivery method in accordance with San Francisco Administrative Code section 6.61 (c).
On October 22, 2024, by Resolution No. 24- 0223, this Commission awarded Contract No. DB -138, Southeast Treatment Plant Biogas Utilization Project, in the amount of $121,541,812 and with a duration of 1,020 consecutive calendar days, to the sole, qualified proposer, PC L Construction, Inc.
The SFPUC must now award this sole-source contract to PG&E in order to obtain the necessary conveyance of the RNG from the Biogas Utilization Project. The SFPUC cannot operate the
Biosolids Digester Facilities
Project without this service.
Scope of Contract: This contract sets forth the terms and conditions under which P G&E will accept renewable gas from SFPUC ’s Southeast Treatment Plant Biogas Utilization Facilities into the P G&E system at the i nterconnection point, which requires PG&E to design, construct, install, and operat e a PG&E- owned interconnection facility at its pipeline. The competitive solicitation requirement was waived for this contract because PG&E is the investor- owned gas-utility for this region and only PG&E can operate its own facilities .
Agenda Title: CS-1263, Standard Renewable Gas Interconnection Commission Meeting Date: February 11, 2025
Funding and Costs: Funding Source: Sewer System Improvement Program Project funded, Project No. CWWSIPDP01, Biosolids Digester Facilities Project.
Not-to-Exceed Amount: $7,000,000
Schedule: Estimated Notice-to-Proceed Date: March 2025
Estimated Final Completion Date : February 2035
Contract Duration: 10 years
Environmental
Review:
On March 8, 2018, by Motion No. M -20129, the San Francisco Planning Commission c ertified the Biosolids Digester Facilities Project Final Environmental Impact Report ( Final EIR) (Case No. 2015- 000644ENV), as required by the California Environmental Quality Act (CEQA).
On March 13, 2018, by Resolution No. 18-0042, this Commission approved the Biosolids Digester Facilities Project and adopted the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, as required by the CEQA .
On July 12, 2024, the San Francisco Planning Department issued an Addendum to the Final EIR (Modified Case No. 2015- 000644ENV-03) evaluating the biogas utilization system facilities. The work under Contract No. CS-1263, Standard Renewable Gas Interconnection, including the construction and operation of the PG&E Interconnection Facility where PG&E will accept renewable gas from the SFPUC Southeast Treatment Plant Biogas Utilization Facilities , is within the scope of the project authorized under the Final EIR and Addendum.
The Final EIR, CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, Resolution No. 18-0042, and the Addendum to the Final EIR can be found here: https://sfpuc.sharefile.com/public/share/web -
sfecf636476cd4457a01d3378fc2305dd
Local Business
Enterprise Utilization
and Non-
Discrimination i n
Contracting:
The Contract Monitoring Division waived the Local Business Enterprise (LBE) subcontracting requirement for this contract .
Agenda Title: CS-1263, Standard Renewable Gas Interconnection Commission Meeting Date: February 11, 2025
Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is in the process of constructing a new facility to convert biogas generated from the Biosolids Digester Facilities Project at the Southeast Treatment Plant into renewable natural gas (RNG) (Biogas Utilization Project); and
WHEREAS, The proposed Biogas Utilization Project promotes current California state goals for in-state production and distribution of renewable natural gas as documented in Assembly Bill 1900 and Senate Bill 840, and this aligns with the City’s sustainability policies as it displaces the use of fossil fuels while offering value as renewable fuel for compressed natural gas vehicles, and also providing an opportunity as a “bridge fuel” for in city- natural gas uses that cannot shift to electric ; and
WHEREAS, On October 22, 2024, by Resolution No. 24-0223, this Commission awarded Contract No. DB -138, Southeast Treatment Plant Biogas Utilization Project, in the amount of $121,541,812 and with a duration of 1,020 consecutive calendar days, to the sole, qualified proposer, PCL Construction, Inc.; and
WHEREAS, This proposed contract with Pacific Gas & Electric Company (PG&E) is necessary for PG&E to provide RN G conveyance services, which requires PG&E to design, construct, install, and operate PG&E -owned facilities required for pipeline injection of the RNG generated from the new digesters at the Southeast Treatment Plant; and
WHEREAS, The competitive solicita tion requirement was waived for this contract, making it a sole source, because PG&E is the investor -owned gas-utility for this region and only PG&E can provide pipeline-conveyance of the RNG and operate its own facilities at the pipeline interconnection point; and
WHEREAS, Contract No. CS-1263, Standard Renewable Gas Interconnection , sets forth the terms and conditions under which PG&E will accept renewable gas from SFPUC’s Southeast Treatment Plant Biogas Utilization Facilities into the PG&E system at the interconnection point, which requires the design, construction, installation, and operation of the P G&E facilities ; and
WHEREAS, The contract duration is ten years, and the contract amount is $7,000,000; and
WHEREAS, CMD waived the Local Business Enterprise (LBE) subcontracting requirement for this contract; and
WHEREAS, On March 8, 2018, by Motion No. M -20129, the San Francisco Planning Commission c ertified the Final Environmental Impact Report ( Final EIR) for the Biosolids Digester Facilities Project (Case No. 2015- 000644ENV), as required by the California Environmental Quality Act (CEQA); and
WHEREAS, On March 13, 2018, by Resolution No. 18- 0042, this Commission approved the Biosolids Digester Facilities Project and adopted the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, as required
by the CEQA; and
WHEREAS, On July 12, 2024, the San Francisco Planning Department issued an Addendum to the Final EIR (Modified Case No. 2015- 000644ENV-03) evaluating the biogas utilization system facilities; and the work under Sole Source Contract No. CS-1263, including the construction and operation of the Pacific Gas & Electric Company Interconnection Facility where the Pacific Gas & Electric Company will accept renewable gas from the SFPUC Southeast Treatment Plant Biogas Utilization Facilities , is within the scope of the project authorized under the Final EIR and the Addendum to the Final EIR; and
WHEREAS, The San Francisco Planning Department is the custodian of records, located in File No. 2015-000644ENV and Modified Case No. 2015-000644ENV-03, at 49 South Van Ness Avenue, Suite 1400, San Francisco, California 94103, which have been made available for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, Staff has made the Project files, including the Final EIR, Resolution No. 18- 0042, the CEQA Findings, including the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program , and the Addendum to the Final EIR available for review by this Commission and the public, and those files are part of the record before this Commission; and
WHEREAS, This Commission has reviewed and considered the information contained in the Final EIR, Resolution No. 18-0042, the CEQA Findings, including the Statement of Overriding Considerations and the Mitigati on Monitoring and Reporting Program, and the Addendum to the Final EIR, and all written and oral information provided by the San Francisco Planning Department, the public, relevant public agencies, SFPUC and other experts and the administrative files for t he Project; and
WHEREAS, This Commission has reviewed and considered the Final EIR and the Addendum to the Final EIR and the record as a whole, and finds that the Final EIR and Addendum are adequate for its use as the decision –making body for the Project and incorporates the CEQA Findings, including the Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program, and Resolution No. 18- 0042 by this reference thereto as though set forth in this Resolution; and
WHEREAS, This Commission finds that since the Final EIR and the Addendum to the Final EIR were finalized, there have been no substantial Project changes and no substantial changes in Project circumstances that would require major revisions to them due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in them; and
WHEREAS, Funds are available from Project No. CWWSIPDP01, Biosolids Digester Facilities Project; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the Final EIR and the Addendum to the Final EIR and the record as a whole, and finds that the Final EIR and Addendum to the Final EIR are adequate for its use as the decision –making body for the Project and that no subsequent or supplemental environmental review is required, and incorporates the CEQA
findings contained in Resolution No. 18-0042 by this reference thereto as though set forth in this Resolution; and, be it
FURTHER RESOLVED, This Commission further finds that since the Final EIR and the Addendum to the Final EIR were finalized, there have been no substantial project changes and no substantial changes in project circumstances that would require major revisions to them due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in them; and be it
FURTHER RESOLVED, This Commission hereby awards Contract No. CS -1263, for Standard Renewable Gas Interconnection Agreement, in the amount of $7,000,000, and with a duration of ten years, to Pacific Gas and Electric Company.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission