San Francisco bars new fossil‑fuel leases on city land, orders inspections and ‘just transition’ planning

The San Francisco Board of Supervisors voted unanimously to adopt an ordinance banning the city from entering into or extending leases that allow extraction of fossil fuels from city‑owned land and to require inspections and planning for future, constructive uses of any such properties.

Supervisor John Avalos, the ordinance sponsor, said the measure is intended to move city land out of fossil‑fuel production and toward renewable uses. Avalos described a “just transition” process that would inspect city properties, verify compliance with environmental laws by current lessees and evaluate uses such as solar arrays, recreation or habitat restoration while considering local job impacts. “For city property that is currently leased for fossil fuel production … the ordinance directs the director of real estate to create a just transition plan for the property,” Avalos said.

Why it matters: The ordinance targets city control of its land and revenue streams tied to extraction. Avalos said the city receives dwindling royalties from legacy leases — including proceeds that support the public library and Recreation and Park — and argued the city can both reduce fossil‑fuel production on its land and pursue renewable uses that can generate rent while aligning with the city’s climate goals.

What the ordinance requires and what proponents said: Avalos said the measure (1) bars the city from entering new leases or extending existing leases for extraction; (2) orders inspections of currently leased properties to evaluate environmental compliance; and (3) requires the real‑estate director to draft a just‑transition plan assessing constructive future uses focused on renewable power generation, recreation or habitat restoration with attention to job creation. Avalos cited a preliminary San Francisco Public Utilities Commission (PUC) feasibility review that identified PUC‑owned acreage in Kern and Fresno counties as suitable for solar projects. He told the board the city has about 484 acres of currently unused land on what he described as the Furman estate and said comparable solar projects in the area are “generating over $1,000 an acre in rent per year more than what the city is currently getting from the lease with Chevron,” a figure Avalos attributed to PUC analysis.

Avalos also framed the ordinance within climate science and international targets. He presented carbon‑budget figures during his remarks — for example, categories of fossil‑fuel reserves and numerical estimates — and attributed those numbers to climate‑science sources while arguing those figures justify local action to “keep it in the ground.” Those scientific numbers are reported here as Avalos presented them to the board.

Implementation and enforcement: Avalos and city staff said inspections would determine whether current lessees are complying with environmental laws; if not, the city could consider enforcement remedies, including lease termination. The ordinance directs the real‑estate director to prepare the just‑transition plan and to evaluate potential renewable‑energy projects; PUC staff told the board they had already done a preliminary feasibility study identifying portions of the properties as suited to solar development.

Vote and next steps: The council adopted the ordinance on a unanimous roll call. The board asked city staff (real estate, the PUC and related departments) to implement the inspection and prepare the just‑transition work called for in the ordinance, which will return to the relevant departments for execution and monitoring.

What was not decided: The ordinance does not itself terminate any specific lease immediately; it directs inspections and a planning process. It does not specify precise timelines for breaking or renegotiating individual contracts, and it does not include a dollar figure for replacement revenues to libraries or parks if lease income declines.

Voices: Avalos credited staff and outside advocates for research identifying city properties and cited work by community groups. He named Jeremy Pollock (his office) and Jed Holtzman of 350 Bay Area and acknowledged John Updike in the real‑estate division and PUC staff for input on feasibility for renewable projects.

Ending note: The ordinance sends a clear policy signal from San Francisco: the city will not expand fossil‑fuel extraction on its land and will require evaluations and planning to transition existing fossil‑fuel‑producing sites toward non‑extractive uses that the city says better align with climate objectives.