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Supervisors advance $7.7M ARRA energy package and recommend PG&E-administered efficiency contract
Summary
The committee moved Items 4, 8 and 9 forward recommending acceptance of roughly $7.7 million in federal ARRA funds for municipal retrofits and related programs and forwarding a proposed $11.5 million PG&E-administered contract to the full Board, while supervisors pressed staff on local hiring limits and workforce benefits.
San Francisco—s Budget & Finance Committee moved forward a package that would bring roughly $7.7 million in federal stimulus money to city energy-efficiency projects and forwarded a proposed Pacific Gas & Electric-administered energy efficiency contract to the full Board of Supervisors.
Cal Broomhead of the Department of the Environment told the committee the city had been awarded approximately $7.7 million in Energy Efficiency Conservation Block Grant funds through the U.S. Department of Energy, split between SFPUC municipal retrofits and SF Environment programs. "The SFPUC municipal building energy efficiency retrofit program is $3,100,000," he said, and listed targeted city facilities that include Southeast Health Center, Ocean Park Health Center, the Women's Reentry Center and the Chinatown Health Center. PUC staff described a proposed contract with Pacific Gas & Electric of $11,500,000 over three years, with a discretionary extension clause of $3,000,000.
Why it matters: the combined measures would fund direct retrofit work in city facilities, targeted residential boiler replacements and small-business energy audits, while also aiming to create local jobs in installation and related trades. City staff emphasized audit and verification procedures intended to measure the energy savings and financial payback of projects.
Committee concerns and constraints: Supervisors questioned whether the funds would generate hiring in the neighborhoods where the work would occur. Staff said they are coordinating with CityBuild and include first-source hiring interview provisions in contracts but warned that ARRA language appears to prohibit imposing local hiring requirements using the stimulus dollars. Cal Broomhead said staff are consulting the city attorney to identify permissible approaches and potential incentives to steer hiring toward local trainees.
Numbers and safeguards: staff said municipal retrofits are expected to yield dozens of direct jobs (the municipal program was described as creating around 34 jobs) and that the PUC-run program has measured past performance: the PUC—s small-business and multifamily program reported serving roughly 10,000 customers and achieving about 10.2 megawatts of savings since its start, with third-party audits to verify claimed reductions.
Next steps: The committee forwarded Items 8 and 9 (personnel and the PG&E contract resolution) and moved Item 4 forward with recommendation to the full Board. The Board will consider final approval and any contract terms or additional appropriations at a future meeting.
