Committee Forwards Ordinance Increasing Energy Procurement Thresholds and Allowing Arbitration with Investor-Owned Utilities

The Budget and Finance Committee on May 3 voted to forward to the full Board an ordinance that would amend the Administrative Code and Environment Code to modify waivers of certain contract requirements for electricity and related product transactions, authorize binding arbitration for contracts with investor-owned utilities, and increase the annual expenditure limit for energy procurements from $150,000,000 to $200,000,000.

Chair Connie Chan said the item had extensive discussion at the previous week's hearing and returned with substantive departmental amendments. A public commenter asked whether the item related to people "selling electricity on the street" and described the $150–$200 million figure as intrusive, but no technical opposition on the ordinance language was recorded in committee.

Vice Chair Rafael Mandelman moved to forward the ordinance to the full board with a positive recommendation. The roll-call vote recorded three ayes and the motion passed.

The ordinance now moves to the Board of Supervisors for consideration. The committee record shows the change would broaden administrative waiver authority for certain electricity procurements and raise the procurement spending threshold; additional details and the ordinance text will appear in the Board file.