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525 Golden Gate Ave.
San Francisco, CA 94102
T (415) 551.4720
TTY (415) 554.3488
[email protected]
DATE: March 13, 2026
TO: Clerk of the Board of Supervisors
Office of the Controller
THROUGH: Dennis Herrera, General Manager
Barbara Hale, Assistant General Manager, Power
FROM: Michael Clark, Finance and Administration Manager, Power
SUBJECT: Annual Report on the Low Carbon Fuel Standard Credit Sales Fund Pursuant to Administrative Code Section 10.100-92
The following annual report has been prepared for the Board of Supervisors (Board) in accordance with Section 10.100-92 of the Administrative Code.
In Ordinance No. 199-19, the Board established the Low Carbon Fuel Standard Credits Sales Fund (Fund #25455) and authorized the General Manager of the San Francisco Public Utilities Commission (SFPUC) to enter into one or more agreements to sell Low Carbon Fuel Standard credits. The Board also required the SFPUC to “submit an annual written report to the Board of Supervisors and the Controller: (1) specifying the number of Low Carbon Fuel Standard credits sold during the previous fiscal year, the price received for each credit, and the total amount of the sales; and (2) describing the expenditures made from the Low Carbon Fuel Standard Credits Sales Fund during the previous fiscal year.”
This report meets the reporting requirements established by Section 10.100- 92 of the Administrative Code for Fiscal Year 2025 . Should you have any questions, please contact Barbara Hale, SFPUC Assistant General Manager , Power, at [email protected] and 415-613-6341.
I. The City’s Low Carbon Fuel Standard Credits
In Assembly Bill 32,
1 entitled The Global Warming Solutions Act of 2006, the Legislature required California to reduce its greenhouse gas emissions to 1990 levels by 2020.
To achieve this goal, the California Air Resources Board adopted measures and programs to reduce greenhouse gas emissions from all sectors of the
1 Statutes 2006, Ch. 488.
Acting for B. Hale
California economy. In 2009, at the direction of then Governor Schwarzenegger, the California Air Resources Board adopted Low Carbon Fuel Standard regulations to reduce the greenhouse gas intensity 2 of transportation fuels by 20% by 2030. The regulations set benchmarks for greenhouse gas emissions for each type of transportation fuel that are increasingly reduced over time. Transportation providers that use fuels with a carbon intensity (or greenhouse gas emissions) lower than the benchmark established by the California Air Resources Board generate Low Carbon Fuel Standard credits that can then be sold.
The San Francisco Municipal Transportation Agency (SFMTA) uses greenhouse gas -free electric energy provided by SFPUC’s Hetch Hetchy Power to operate its electric public transit fleet (electric trolley buses, cable cars, historic streetcars, and light rail vehicles). Because this fleet operates with a carbon intensity significantly below the Low Carbon Fuel Standard target, the SFMTA accumulates credits that can be sold.
In October 2017, the SFPUC and SFMTA entered into a Memorandum of Understanding approved by the SFPUC in Resolution 17- 0199 that specifies the SFPUC execute the sale of SFMTA’s Low Carbon Fuel Standard credits.
The Memorandum of Understanding also states that SFPUC and SFMTA share equally the net revenues from these sales, and their use of the revenues support general operations that reduce San Francisco’s carbon footprint and/or advance the City’s sustainability goals.
Starting January 2022, the Port of San Francisco enrolled in the Hetch Hetchy Power Premium program, which provides 100% renewable energy that meets California’s Renewable Portfolio Standard requirements. Through this program, the Port began earning Low Carbon Fuel Standard credits for its provision of shoreside power to docked ships. According to the terms of the program, the port receives 100% of the revenues from Low Carbon Fuel Standard credit sales and pays a service fee to SFPUC for performing the credit sale.
Similarly, starting June 2023, San Francisco International Airport enrolled in the Hetch Hetchy Power Premium p rogram and began earning Low Carbon Fuel Standard credits for its provision of electric vehicle chargers and AirTrain (a people mover for transport within the airport campus) . The airport receives 100% of the revenues from Low Carbon Fuel Standard credit sales and pays a service fee to SFPUC for performing the credit sale.
II. FY25 Low Carbon Fuel Standard Credit Sales
For Fiscal Year 2025, the number of Low Carbon Fuel Standard credits sold, price received for each credit, and total amount of the sales are set forth in the table below. There was a total of one transaction in the fiscal year with revenue of $1,668,345.
2 The Low Carbon Fuel Standard regulations use the term “carbon intensity” instead of greenhouse gas intensity.
Quantity
(Calendar Year)
Credits
Sold
Average Price
Received Amount Contract
Date
Quantity 1 (2025) 31,778 $52.50 $1,668,345.00 4/27/2025 Total 31,778 $1,668,345.00
Per the respective agreements with each agency, SFPUC transferred $626,902.50 to SFMTA , $ 238,402.50 to the Port of San Francisco, and $176,137.50 to San Francisco International Airport. The remaining $626,902.50 was retained by the SFPUC for Hetch Hetchy Power.
III. FY25 Low Carbon Fuel Standard Expenditures
San Francisco Public Utilities Commission (SFPUC)
SFPUC spent $1,279,999 from Low Carbon Fuel Standard Sales fund in Fiscal Year 202 5, as detailed in the table below. This included expenditures of appropriations from prior fiscal years. SFPUC will continue to expend Low Carbon Fuel Standard proceeds for these and similar projects in future fiscal years.
Program/Project FY25
Expenditures
Retail Customer Programs
Promotes emission reductions and decarbonization through electrification, energy efficiency, and improved utilization of SFPUC’s Hetch Hetchy electricity within customer facilities and buildings.
$778,485
Electric Vehicles in New Construction Program
Provides incentives for installing electric vehicle charging infrastructure in new buildings for Hetch Hetchy customers. $130,831
Small Renewables Projects
Funds municipal distributed energy resource projects, such as solar installations.
$83,695
Police Academy Solar Carport Project
Supports a 150-kilowatt solar carport and battery storage system at the San Francisco Police Academy.
$77,373
Utility Field Services Project Support
Funds the maintenance and repair of existing solar electric assets in SFPUC Power Enterprise’s portfolio.
$66,355
Northpoint Solar Refurbishment Project
Includes the replacement of existing solar modules and
inverters at the end of their life cycle.
$52,656
Program/Project FY25
Expenditures
GoSolarSF Program
Supports the local solar industry and environmental goals with incentives for rooftop solar throughout San Francisco; addresses social and equity goals with a workforce
program and low-income and non-profit incentives.
$27,800
Moscone West Solar Electric Project
Supports an 800-kilowatt rooftop solar photovoltaic
generation system owned and operated by the SFPUC.
$22,779
E-Mobility Program
Provides point-of-sale incentives to help eligible low-income customers purchase electric bicycles.
$19,920
Davies Symphony Hall Solar Repower
Includes end of service life replacement for solar inverters and array wiring to maintain solar electric generation. $18,321
Moscone Solar Refurbishment Project
Replaces solar array wiring that is at the end of its service life to improve system performance.
$7,417
Multifamily Electrification Program
Provides affordable housing developments with
electrification audits and roadmaps to replace existing gas- fired equipment with all electric alternatives.
-$7,0163
Total $1,279,999
Transportation Providers
Each year, the transportation providers that generate Low Carbon Fuel Standard credits report on their use of revenue from the sale of credits.
1. SFMTA
SFMTA operates the nation’s largest fleet of electrically-operated trolley buses as well as the nation’s 3rd busiest light-rail vehicle fleet. Together with the SFMTA’s hybrid electric bus fleet, SFMTA provides low/no emission public transportation options for approximately 700,000 daily riders. All LCFS proceeds go towards supporting LCFS program goals and advancing San Francisco’s ambitious climate action goals for the
3 Negative expenditures in the Multifamily Electrification Program are due to the reversal of excess accruals that were shown as expenditures in Fiscal Year 2024.
transportation sector: (1) shift 80 percent of all trips to sustainable modes by 2030 and (2) eliminate citywide GHG emissions by 2050. A number of initiatives across a suite of strategy areas help to progress these goals and SFMTA’s efforts to expand and/or improve access to electrified public transportation and alternative modes of travel like walking and biking. Examples include supporting replacement of our hybrid bus fleet with all-electric vehicles and investments in our electric- operated right of way infrastructure like Central Subway. Central Subway entered into revenue service January 7, 2023. Additionally, the SFMTA's Bus Rapid Transit corridor began revenue service on April 1, 2022.
2. Port of San Francisco
There were no projects funded by electricity credits proceeds in 2022, 2023, or 2024. The funding has not been spent and remains available.
3. San Francisco International Airport
LCFS electricity credit proceed funds were not used in 2024 due to other funds already encumbered for EV charging projects under active contracts.