San Francisco Commission on the Environment approves department budget and backs $3.2 million general‑fund ask

SAN FRANCISCO — The San Francisco Commission on the Environment on Tuesday voted unanimously to approve the Department of the Environment’s draft operating budget for fiscal year 2022–23 and to back a separate general‑fund request that department leaders estimated at $3.2 million.

Director Deborah Raffel and fiscal manager Joe Salem presented the budget to commissioners, explaining the difference between the department’s operating budget and its Annual Appropriation Ordinance (AAO) submission and highlighting that a large multiyear energy grant is included in the AAO but not fully recognized in operating revenues for 2023. Salem reported an operating deficit of $436,000 for FY22–23 — roughly 2% of the operating budget — driven primarily by increased labor costs and changes in grant timing.

Raffel told the commission the $3.2 million estimate is intended as a net increase, not a replacement of existing funds, and would be spent over the coming year to create staffing and leadership capacity in three priority areas: decarbonizing buildings (about $2.4 million in the year‑one estimate), accelerating transportation electrification, and institutionalizing biodiversity and healthy ecosystems work. "We need a net gain of 3.2," Raffel said, describing the money as seed funding to build the department’s ability to pursue larger state and federal grants and to design equitable incentive programs.

Why it matters: Department leaders framed the request as enabling the agency to act as the “hub” coordinating climate action across city departments, build out data and dashboard capabilities to track progress, and create career‑track staff positions that are not dependent on short‑term grants. Commissioners and public commenters tied the ask to the recently updated Climate Action Plan and broader city efforts to secure additional revenue, including potential ballot measures.

Budget details and revenue context: Salem said the city is projecting a $108 million general‑fund surplus for FY22–23 and FY23–24, but the mayor’s office is not considering increases in ongoing general‑fund support at this time. The department’s AAO submission includes a large energy grant (about $14.5 million) that staff expect will yield roughly $6 million in operating recognition in 2023. On the revenue side, fees from the recently enacted construction and demolition (C&D) ordinance (City environmental code Chapter 14; Public Works Code §7.25) are expected to produce significant fee revenue to implement chapter 14 requirements; staff said the ordinance, effective Jan. 1, 2022, is intended to cut roughly 150,000 tons per year of C&D waste from landfilling and illegal dumping.

Commission questions and constraints: Commissioners asked whether C&D fees can be used for general department overhead (staff explained fees must be spent for Chapter 14 purposes, though indirect personnel costs are allowable), whether the $3.2 million is a precursor to a larger ballot measure, and what outcomes would be delivered in the first year. Raffel said the estimate is a conservative, justifiable first‑year investment to stabilize core staff, fund professional services to design equitable programs, and position the city to access matching funds for large federal grants.

Public comment and support: Dozens of callers representing community groups, climate coalitions, public‑health organizations and residents urged the commission to approve the budget and to push for more ambitious, dedicated climate revenue. Multiple speakers endorsed a separate campaign calling for 1% of the city budget for climate equity; callers urged that any new funding be additional to existing programs and targeted to vulnerable communities.

Follow‑up actions: After approving the budget, the commission voted to delegate to the commission president and staff the drafting of two sets of letters: one to the mayor’s office supporting the department’s budget request (including the general‑fund ask) and a set of outreach letters to selected departments encouraging them to highlight climate work in their budget submissions. The commission also agreed that the 1% for climate equity goal may be submitted as an aspirational minimum in the mayoral letter.

What’s next: Department staff will finalize the balanced budget submission to the mayor’s office (staff identified Feb. 22 as a key submission date), pursue grant opportunities and return to the commission with more detailed implementation plans and performance measures for any general‑fund investments.

Vote: The motion to approve the budget and related steps passed by a roll‑call vote with all commissioners recorded as voting aye.