LAFCO outlines MOU with SFPUC to fund studies on decarbonization and financing; commissioners press for financing analysis and coordination

The Local Agency Formation Commission discussed a proposed memorandum of understanding with the San Francisco Public Utilities Commission to formalize a multi‑year program of studies on Clean Power SF and related interagency issues.

Jeremy Pollack, LAFCO executive officer, said the prior MOU dated to 2009 and had been extended without substantive changes until it expired in 2020. Pollack described the MOU as a vehicle to commission discrete studies — for example on building decarbonization, planning and building‑code interactions, interagency funding options and strategies to support local renewable procurement — and said the specific work plan would be refined through an RFQ and consultant selection.

Pollack said LAFCO initially proposed an ambitious five‑year, $3,000,000 program; SFPUC has proposed a more narrowly scoped three‑year, $600,000 proposal. "I think the initial proposal from LAFCO was an ambitious 5 year, dollars 3,000,000 program," Pollack said, adding that a shorter, smaller program would need to be targeted and could fund one major study plus smaller efforts.

Vice Chair Fielder and others urged a financing study to examine options such as bond financing, revenue bonds, multi‑municipal finance corporations (MFCs) and how to capture federal incentives under the Inflation Reduction Act. Commissioner Marr asked that LAFCO coordinate the work with the Department of the Environment and noted the large projected costs of full building electrification cited in discussion (a commissioner referenced a range of $3.5 billion to $5.9 billion to electrify about 240,000 residential units). Pollack said he will coordinate with agency staff and refine the MOU term and funding in follow‑up discussions.

Khaled Samurais, policy analyst for the Reinvestment Working Group, updated commissioners on focus groups and consultant work to develop a business plan and governance options for a potential public bank or non‑depository municipal financial corporation; HR&A and subcontractors are evaluating potential lending products and governance structures and will solicit FDIC feedback on governance once the proposal is ready.

Public commenters urged LAFCO to broaden planning beyond behind‑the‑meter options (for example, evaluating in‑front‑of‑meter storage) and to post written executive‑officer materials to the agenda.

Next steps: LAFCO and SFPUC will finalize MOU terms (scope, term and funding), LAFCO will issue an RFQ for consultants and Pollack will report back as the draft MOU and work plan are refined.