LAFCO approves amended MOU with SFPUC to study gas decommissioning, battery storage and green-bank options

The San Francisco Local Agency Formation Commission on a 4–0 vote approved amendments to a memorandum of understanding (MOU) with the San Francisco Public Utilities Commission and authorized the commission’s executive officer to execute the agreement, the body said at its special December meeting.

The MOU, presented by LAFCO Executive Officer Jeremy Pollock, sets a proposed term of three-and-a-half years and a not-to-exceed budget of $800,000 to carry out five study topics, according to Pollock’s presentation. Pollock recommended the updated text and described changes negotiated with SFPUC accounting and legal staff on invoicing, memos and signatory authority. "I feel we've got a well crafted MOU here that I can support and [am] excited to get to work on," Pollock said.

Why it matters: Commissioners and public commenters framed the MOU as a way to align LAFCO oversight and SFPUC planning on the city’s climate goals. The scope includes a study of decommissioning natural-gas infrastructure, battery storage, electric-vehicle charging, green-bank financing tied to federal Inflation Reduction Act opportunities, and a lower-priority survey of green-hydrogen usage. SFPUC staff said the PUC planned to consider the MOU at its January meeting.

SFPUC Deputy Assistant General Manager Mike Himes (Clean Power SF) joined Pollock in recommending the agreement. "The PUC staff joins executive officer Pollock in recommending the MOU for adoption," Himes said, noting community engagement and iterative draft exchanges shaped the scope.

Public comment broadly supported the studies. Caller Gabe Gosman urged a comprehensive decommissioning study to help meet San Francisco’s climate plan while addressing costs for lower-income residents; Eric Brooks of Californians for Energy Choice and Our City told the commission that green-bank financing and decommissioning must remain paired and cautioned against allowing green hydrogen to be used to preserve existing gas infrastructure.

The commission first voted to adopt the described amendments and then separately authorized the executive officer to execute the amended MOU, subject to technical edits and SFPUC approval. The clerk recorded four ayes (Vice Chair Jackie Fielder, Commissioner Gordon Marr, Commissioner Hope Williams and Chair Connie Chan).

What happens next: Executive Officer Jeremy Pollock was authorized to execute the agreement and will prepare semiannual memos summarizing fund use and project work, per the agreed invoicing/reporting changes. The SFPUC plans to bring the MOU to its commission in January for its consideration.