The San Francisco Commission on the Environment on Jan. 7 voted to approve a three‑year contract, not to exceed $2,143,600, with Alternative Energy Systems Consulting, Inc. to serve as the third‑party implementer for the Bay Area Regional Energy Network (BayREN) Business Program.

The vote followed a staff presentation detailing the firm’s role and the contract’s scope. Lowell Chiu, Energy Program Manager for the San Francisco Environment Department, said the BayREN Business program “pays incentives based on actual metered performance of the completed projects” and that AESC was selected through a competitive request for proposals. Chiu described AESC as “a firm based out of Oakland [with] over 30 years of experience in engineering and renewable energy systems” and said the company provides proprietary software to measure and verify energy savings.

The contract covers enrollment, training and management of contractors participating in the BayREN Business program, measurement and verification of energy savings, incentive recommendations based on measured savings, and general program consultation. Chiu said the contract is funded entirely by BayREN through the California Public Utilities Commission and includes an option to extend beyond the three‑year term.

Vice President Sullivan asked whether an option to extend would require additional commission approval if the extension included added funds; Chiu replied that the department would return to the commission if the extension increased the contract budget. After discussion, Sullivan moved to approve the resolution (filed 2025‑01‑COE); Commissioner Hunter seconded. 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.

The contract authorizes AESC to invoice the department after the department and BayREN complete required approvals; the department then pays the firm, which distributes incentives to program participants. Chiu described a reconciliation process: “The company that issues a payment keeps one journal. We keep one in department, and then we actually reconcile it at a year end, down to the penny,” he said, referring to coordination with BayREN and ABAG.

The commission heard no public comment on the item.

Looking ahead, staff said the department will monitor any needed budget increases and return for authorization if additional funds are required for the contract.