LAFCO and SFPUC discuss proposed MOU, differing budgets and scope including possible Hetch Hetchy review

Jeremy Pollock, LAFCO executive officer, presented an update on a proposed Memorandum of Understanding (MOU) with the San Francisco Public Utilities Commission (SFPUC) to reimburse LAFCO for work supporting SFPUC renewable-energy initiatives, including Clean Power SF. Pollock said the prior MOU dates to 2009 and has lapsed; the new proposal would fund studies, consultant work and staff time to advance city renewable-energy objectives.

Pollock outlined potential study topics suggested by staff and SFPUC, including battery storage deployment on city property, building decarbonization and codes, financing options such as revolving loan funds or municipal finance corporations, and exploratory work on offshore wind, green hydrogen and tidal power. He also described two structural choices: (1) focus only on Clean Power SF or (2) study Clean Power SF alongside Hetch Hetchy Power as part of the city's full power enterprise.

Pollock said there is a substantive difference between LAFCO's and SFPUC's budget proposals: the chair's initial proposal was roughly five years and $3,000,000; SFPUC proposed three years and $600,000. Pollock said the agencies have discussed scale, ramp-up timing and procurement lead times for outside consultants, and that initial MOU terms could be adjusted later as a work plan is developed.

On the reinvestment working group, policy analyst Khaled Samarah reported the group received a governance presentation on a potential public bank and that consultants HRNA and subcontractors are refining governance details. Because of delays, Supervisor Dean Preston intends to introduce an ordinance to extend the working group's sunset by six months; the consultants agreed to a no-cost extension to accommodate the revised schedule.

Commissioners debated whether LAFCO should include Hetch Hetchy Power in the scope or focus solely on Clean Power SF, and whether to adopt LAFCO's larger funding ask. Vice Chair Jackie Fielder supported LAFCO's larger proposal ("5 years and $3,000,000") and suggested study topics such as city-owned land for community solar, building decarbonization incentives and municipal finance mechanisms. Chair Chan asked staff and counsel to consider MOU clauses that allow revisiting terms after an initial period.

Commissioners agreed staff could prepare materials and that LAFCO could consider drafting a letter of support for the reinvestment working-group extension. Pollock said next steps include soliciting public input on scope, finalizing MOU terms and a work plan, and possibly issuing a request for qualifications for renewable-energy consultants.

Public comment: A caller asked that Pollock's presentation be posted on the LAFCO documents webpage, suggested including working-group meeting dates in the executive officer report, and urged careful legal review (including Prop. 218 and rate-setting issues) when considering rate-related proposals.