PUC approves $7.7 million federal block grant plan for energy efficiency, workforce and loan pilot

The San Francisco Public Utilities Commission voted to apply for $7.7 million in Energy Efficiency and Conservation Block Grant formula funding on Tuesday, a first step to direct federal stimulus dollars to local energy and workforce projects.

Laura Spangen, assistant general manager for external affairs, explained that the $7.7 million is the city’s formula allocation under the ARRA program and described how the city’s interagency work group—which includes staff from the mayor’s office and the Department of the Environment—proposes splitting the funds. ‘‘Half of the money will support energy efficiency projects in city‑owned buildings; the other half will be administered for residential and commercial programs by the Department of the Environment,’’ Spangen said.

Wade Crowfoot, representing the mayor’s office, outlined four criteria guiding proposals for the funds: focus on energy efficiency and conservation, create positions that can be filled by workforce program graduates, build on existing programs and develop market‑sustaining activities. Cal Broomhead of the Department of the Environment described two community programs staff plan to include in the application: a multifamily boiler upgrade effort (targeting larger boiler retrofits) and a community resilience outreach and home‑assessment program that would perform in‑home audits and provide incentives for first‑phase improvements.

City officials also described potential use of up to 20 percent of the block grant as seed capital for a clean energy loan program—mechanisms that would place loans on property tax bills to repay over time—subject to federal limits. Staff told commissioners some competitive stimulus funding will also be sought for larger capital projects.

Guillermo Rodriguez of CityBuild described workforce coordination: recruiting and training residents so they can be referred for entry‑level weatherization and audit jobs; CityBuild will work with the PUC and other departments to align training and contracting.

Joshua (Bright Line Defense Project), speaking during public comment, urged the commission to ensure local hiring targets for disadvantaged communities (he cited a 50 percent local hire and minimum 30 percent disadvantaged hiring target used on other projects) and to maintain focus on entry‑level opportunities.

Commissioners asked staff to include clear program targets in the application—how many homes will be assessed, how many retrofits are expected, expected jobs—and staff said a draft 'cheat sheet' with those numbers will be included in the application packet. The commission voted to proceed with the application; staff said the application deadline is June 25 and they plan to submit earlier.