On Jan. 7 the San Francisco Commission on the Environment authorized the department to enter into three as‑needed professional services contracts — with AECOM, Arup and Frontier Energy — and approved a combined budget of $9,000,000 covering professional services and participant incentives over a five‑year term.

Lowell Chiu, Energy Program Manager, told commissioners the procurement resulted from a July request for proposals that closed in September and produced 10 responses; an evaluation panel recommended AECOM, Arup and Frontier Energy. Chiu said each contract is a professional services P600 agreement with a five‑year term and an option to extend.

Chiu described the funding breakdown: $3,000,000 is allocated to professional services (each contract capped at $1,000,000); $6,000,000 is an incentives pool to be passed through to program participants in BayREN Business, BayREN refrigeration and a San Francisco Climate Equity Hub heat‑pump hot water program. He explained that the contractor selected during negotiations will administer incentive payments and that the department will approve incentive‑eligible projects before payment.

Commissioners asked about oversight and timelines. Vice President Sullivan asked who ultimately approves whether a participant receives payment; Chiu explained the department approves project lists, performs field inspections and quality assurance, and directs the implementer to invoice and distribute funds. Chiu said the department and the firm reconcile payment journals annually.

Vice President Sullivan moved to approve the resolution (filed 2025‑02‑COE); the motion was seconded by Commissioner Wen. The roll call recorded Ayes from President Wong, Vice President Sullivan, Commissioner Ahn, Commissioner Hunter and Commissioner Yuan; Commissioners Bermejo and Tompkins were excused. The motion passed.

Chiu said the department had no speakers from the public on the item. The commission heard several follow‑up budget and process questions from commissioners during the broader budget presentation that followed, including whether incentive disbursement would be capped annually (Chiu said incentives are not capped annually and payment timelines are established in the program manual).