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Committee amends PUC P3 ordinance to remove contract‑delegation language before forwarding

San Francisco Board of Supervisors Budget and Finance Committee · February 15, 2023
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Summary

SFPUC presented a proposed P3 procurement exemption for a biogas‑to‑renewable‑natural‑gas project at the Southeast Treatment Plant; the committee removed language delegating Board contract‑approval authority and forwarded the amended ordinance to the full board.

The committee reviewed a proposed ordinance to allow the San Francisco Public Utilities Commission to use a public‑private partnership (P3) delivery model for a biogas utilization project at the Southeast Treatment Plant.

Steven Robinson, assistant general manager for infrastructure at SFPUC, explained the project would upgrade digester biogas to renewable natural gas and inject it into an existing PG&E pipeline. Project manager Daniela Bridal said the P3 structure would assign design, construction, financing, operation and maintenance responsibilities to a private partner while PUC would retain ownership of the interconnection and air‑permit obligations. "The P3 ordinance basically would allow the PUC to deliver all the services under one contract," Bridal said, explaining the administrative‑code exemptions requested (chapters 6, 14b, 21 and section 23.3).

Public commenters and one speaker representing legal/oversight interests urged caution about a proposed delegation of contract‑approval authority under Charter Section 9.118. David Pilpel urged striking the delegation and called for more BLA background on policy implications; other commenters asked for Contract Monitoring Division staff to be present for procurement questions.

Chair Chan moved to amend the ordinance to remove the delegation of the Board's contract‑approval authority. The committee approved the amendment and then voted to forward the amended ordinance to the full board with a positive recommendation; SFPUC will return for contract‑award approval at a later date, the PUC said.

PUC representatives said the facility must be operational by fall 2026 to accept gas from the new digesters and that the board would later see the contract award, not the delegation of authority.