SFPUC updates LAFCO on Clean Power SF programs, e-bike incentive and direct-pay options

Mike Himes, deputy assistant general manager responsible for Clean Power SF at the San Francisco Public Utilities Commission, updated the Local Agency Formation Commission on March 15 about customer enrollment, new customer programs and federal financing opportunities.

Himes said Clean Power SF continues to serve customers steadily and that Super Green, a 100% renewable product, now represents more than 13% of Clean Power SF's annual retail sales. He described Electrify My Ride, an e-bike incentive program that began accepting applications Feb. 5 and provides a $1,000 point-of-sale discount at participating bike shops for customers who are enrolled in energy-assistance programs and who live in equity-priority communities. "About 80 coupons have already been redeemed," Himes said, and the program's materials are translated into Spanish, Chinese and Filipino to broaden access.

Himes also introduced Hetch Hetchy Power's new all-electric multifamily program, currently available to affordable multifamily buildings served by Hetch Hetchy Power. The program includes a building site assessment, development of electrification strategies tailored to each building and assistance identifying incentive and financing opportunities for owners making the transition away from natural gas appliances.

On financing, Himes described how the Inflation Reduction Act's direct-pay provision can make federal tax credits available as cash payments to tax-exempt entities. He said SFPUC finance and legal teams are evaluating the provision for utility-scale renewables and have identified 2023 rooftop solar installations owned by Hetch Hetchy Power as early candidates for direct-pay filings now that Treasury issued final regulations. "Direct pay is a new provision established by the Inflation Reduction Act that makes federal tax credits for qualifying energy projects available to tax-exempt entities through a cash payment," he said.

Commissioners asked follow-up questions on costs and storage duration for residential battery systems; Himes provided ballpark figures for commonly cited systems and said the battery energy storage study will refine cost and performance numbers and is expected to be completed in time for presentation at the May meeting.

The presentation was an information item; there was no vote. The commission heard no public comment on the item.

The SFPUC presentation and LAFCO's related studies are part of an MOU between LAFCO and the SFPUC that also funds a green-bank financing study and a battery energy storage study. LAFCO staff said they will continue oversight and report back to the commission as the studies proceed.