Board adopts port cost-reimbursement agreement with PG&E after sharp questioning from Supervisor Ronan

The Board of Supervisors unanimously adopted on March 22 a resolution approving a cost-reimbursement agreement between the Port of San Francisco and Pacific Gas & Electric Company for management of residual petroleum hydrocarbons near the former Potrero Power Plant site and Pier 70.

Supervisor Ronan, who said she would vote in favor of the agreement ‘‘while holding my nose,’’ urged extra scrutiny for any matters involving PG&E because of the utility’s troubled compliance history. Ronan said the agreement as written gives PG&E influence over the port’s remediation decisions and requires shared-cost mediation in disputes, which she said could disadvantage the city. ‘‘Under this agreement, any remediation the port decides is necessary has to be okayed by PG&E,’’ Ronan said. She said she voted for the agreement because the California Regional Water Quality Control Board oversees remediation and the port needs reimbursement of up to $5 million under the contract.

Port and mayoral staff described the agreement as a means to secure reimbursement for port efforts needed to manage remaining petroleum contamination on port property. The resolution states that the agreement reinforces PG&E’s continuing responsibility for contamination left in place and provides a contractual mechanism for the utility to reimburse the port for costs incurred up to $5 million (or a 20-year term, whichever comes first).

Board action: The board took the item same house same call and adopted the resolution unanimously. Several supervisors thanked Ronan for insisting on higher scrutiny of PG&E items and noted that the Water Board would have regulatory oversight of remediation activities.

Ending: Supervisors said they expect extra oversight from the port commission and state regulators and signaled continued board attention to any future PG&E-related matters.