Port briefed on $1.6M Pier 1 energy-efficiency and 200 kW solar pilot financed through Green Finance SF (PACE)

Port staff presented an informational briefing on energy-efficiency upgrades and a rooftop solar installation at Pier 1 sponsored by Prologis (AMB Pier 1 LLC). Jay Edwards (Senior Property Manager) said the $1,600,000 project includes lighting retrofits, HVAC re-commissioning and a 200 kW rooftop solar array that will serve building occupants.

Financing structure and fiscal details

The project sponsor proposes financing through Green Finance SF, a PACE property-assessed clean-energy program. The City would issue a $1,400,000 bond and the port must opt into the special-tax assessment for the parcel; Edwards said the port's pro rata share is approximately 35% of the assessment, which was estimated at about $100,000 annually. Project energy savings were modeled at roughly $100,000 in the first year, with cumulative savings (after assessment reimbursement) projected over a 20-year term.

Why it matters: Staff characterized the Pier 1 effort as the city's first commercial PACE project using fully private capital and a demonstration of a public–private approach to reduce operating costs and install renewable energy on port property.

Partnerships and assurances

Jay Edwards said the project sponsor (Prologis) and its contractor (Johnson Controls) have modelled energy savings and agreed to cover cost overruns and vacancy risk through contractual commitments. Rich Chen of the Department of the Environment described Green Finance SF as a PACE program that solves upfront cost barriers to retrofits and called the project an important demonstration for the city.

Commissioners expressed support for the pilot; no formal action was required or recorded for this informational item.