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SFPUC advances phased stormwater charge planning and updates capacity/excess‑use charges for nonpotable systems
Summary
Commissioners heard staff—s plan to phase in a stormwater charge over multiple rate cycles, add currently unbilled parcels to the billing base with grant mitigation, and approved administrative changes to capacity charges and a 300% excess‑use charge tied to the city—s nonpotable ordinance (Article 12C).
San Francisco—s Public Utilities Commission on Wednesday advanced a multi‑year approach to a stormwater charge and approved administrative changes to capacity and excess‑use billing intended to align utility fees with the city—s nonpotable water ordinance.
Eric Sandler, the commission—s chief financial officer, described a staff recommendation to phase in a stormwater charge that would eventually be a fixed fee tied to impermeable surface area. Staff proposed a two‑step approach in the next rate package: (1) add customers who currently do not receive water bills — such as vacant lots and parking lots, roughly 2,000 parcels — and introduce bill language showing the portion of existing charges attributable to stormwater; and (2) after an education and grant phase (the "carrot"), implement a broad charge (the "stick") phased in over about a 10‑year period.
Sandler said staff plans to deploy a robust grant program to help customers most affected by the change, and to advertise mitigation options widely. "We would propose to be deploying...the grants program as part of the next biennial budget and rate package," he said. Commissioners asked about the grant eligibility criteria and timing; staff said details are still being developed and that the goal is to give affected customers several years to mitigate impacts before a full charge would apply.
The commission also considered two linked regulatory actions related to on‑site nonpotable reuse. Steve Ritchie presented items to: (Item 10) revise administrative procedures so capacity charges reflect actual demand placed on the PUC system for buildings that install on‑site nonpotable systems under Health Code Article 12C; and (Item 11) adopt a water‑use allocation and an excess‑use charge for accounts that comply with Article 12C. Under the proposed program, accounts would receive a monthly potable allocation and units used in excess of that allocation would be billed at 300% of the applicable water and sewer rates, with a 90‑day repair grace period. Commissioners approved both items.
Commissioners emphasized the need to link the stormwater charge and capacity‑charge discussions, particularly to clarify implications for new development, redevelopment and existing properties. Several commissioners also urged staff to present clearer phasing options and district‑level enrollment data when the rate package returns to the commission.
No final decisions on the stormwater charge design or grant criteria were made at the meeting; staff will return with detailed options, implementation costs and proposed mitigation criteria for the next rate package.
