Committee forwards PG&E cost‑reimbursement agreement for Pier 70 remediation with caution, requests added scrutiny

The Budget & Finance Committee on March 16 forwarded, with no recommendation, a cost‑reimbursement agreement between the Port of San Francisco and Pacific Gas & Electric Co. that would allow the Port and authorized agents to seek reimbursement from PG&E for costs to manage residual petroleum hydrocarbons and contaminated sediment left near the former Potrero Power Plant and Pier 70 shoreline. The term is 20 years or until reimbursed $5,000,000, whichever comes first.

Port staff said the contaminated sediments and shorelines were remediated in phases but that contamination remains in some nearshore sediments. The proposed agreement requires pre‑authorization with the developer (PG&E) and coordination about risk‑management measures; it does not release PG&E from other claims. Port staff emphasized PG&E’s financial responsibility and said disputes would be subject to mediation; the agreement notes parties would jointly select a mediator and split mediation costs if incurred.

Supervisors pressed whether pre‑authorization and mediation provisions could limit the Port’s leverage; Port staff replied the Regional Water Quality Control Board has final authority to approve remediation designs and that pre‑authorization helps ensure planning and regulatory coordination. Chair Hillary Ronan explicitly required extra scrutiny for any future city agreements involving PG&E and asked that BLA staff automatically review such transactions.

What’s next: The committee moved the item to the full Board with no recommendation to signal caution; the Port and PG&E may negotiate further language while the full Board considers the agreement.