San Francisco Public Utilities Commission Regular Meeting – February 24, 2026

The San Francisco Public Utilities Commission (SFPUC) held a regular meeting on February 24, 2026. Commissioners approved all action items, including minutes, a consent calendar, an extension of authority for streamlined customer electric infrastructure, participation in the Willow Rock long-duration energy storage project, and updates to the Green Infrastructure Grant Program. The meeting opened with a land acknowledgment and roll call with a full quorum present.

Consent Calendar

• The consent calendar (Item 6) contained four items and was approved unanimously. Commissioner Stacy asked whether the Next Era Analytics contract (Item 6A) was related to the Willow Rock project (Item 8); Deputy Assistant General Manager Michael Himes clarified there is no relationship.

Public Comments & Testimony

• Item 9 – Green Infrastructure Grant Program: Kieran Farr, a Mission District resident and elected member of the Sierra Club San Francisco Group, spoke as a ratepayer. He expressed strong support for the program and its outreach, noting the Sierra Club had endorsed several projects. He highlighted two pieces of feedback: (1) the need for higher per-acre funding (addressed in the proposal) and (2) the importance of the proposed flexibility to evaluate alternatives to deed restrictions, which can hinder commercial property participation. He requested time for the Sierra Club to formally review future proposals.

Discussion Items

• Item 5A – Quarterly Audit and Performance Review Report: CFO Nancy Hom presented the second‑quarter report ending December 31, 2025. SFPUC had completed 14 audits, with nine in progress. The spotlight was a revenue lease audit of Mission Valley Rock LLC (a sand and gravel facility in Sunol, California). Total revenues over the three‑year audit period were $4.6 million; eight recommendations were made (including $18,000 in underpaid royalties), all implemented by end of Q2. Commissioner Leverone asked about public integrity audit recommendations; Audit Bureau Director Irella Blackwood noted they related to tone from the top, procurement practices, and the whistleblower program. Commissioner Jamdar inquired about an LBE compliance finding; CFO Hom explained the finding was for a citywide contract (Garfield swimming pool) not involving SFPUC.
• Item 7 – Authorization to Seek Board of Supervisors Approval to Extend Admin Code Section 99.5 for Streamlined Customer Installation of Electric Infrastructure: Catherine Spaulding (Deputy Assistant GM, Power Enterprise) presented. The proposed extension would allow SFPUC to contract with large load customers (e.g., Cordia’s steam loop decarbonization project) to construct electric facilities on their property as part of larger projects, then turn them over to the city. This would accelerate infrastructure delivery, capture private investment, and maintain all city equity, labor, and LBE requirements. Commissioners Leverone and Jamdar asked about cost allocation, risk, and budget inclusion; staff confirmed that costs follow SFPUC rules and that customers bear construction risk. Commissioner Thurlow clarified the expansion applies to customers without existing development agreements. Commissioner Stacy confirmed the same. The item passed unanimously.
• Item 8 – Adoption of CEQA Findings and Approval of Project Participation and Share Agreement and Buyer Liability Pass‑Through Agreement for Willow Rock Long‑Duration Storage Project: Michael Himes presented. Clean Power SF is required by the CPUC to procure 15.5 MW of long‑duration storage (≥8‑hour discharge). After the Goal Line project was terminated, CC Power (a joint powers agency) selected the Willow Rock project – a 500 MW/4,000 MWh advanced compressed‑air energy storage facility in Rosamond, CA. Clean Power SF’s share is 11.5 MW (23%) with a not‑to‑exceed cost of $75.9 million over 20 years (~$4 M/year), offset by energy market revenues. The technology uses compressed air stored in an underground water‑filled cavern with heat capture, dispatching electricity when needed. Commissioners Thurlow and Stacy asked about technology maturity (proven at a Canadian plant operated by the same developer, Hydrostore), contract structure (development assurance from developer if defaulted), and environmental review (CEC final decision in December 2025). The contract was structured through CC Power; SFPUC had time to seek approval. The item passed unanimously.
• Item 9 – Modifications to the Green Infrastructure Grant Program Guidelines: Willis Logston (Senior Watershed Planner) presented. The program, launched in 2019, has awarded ~$30 M to 29 projects (schools, parks, housing, etc.), managing ~18 M gallons of stormwater annually. To meet the 2050 goal of 1 billion gallons, staff proposed: increasing the maximum cost per impervious acre from $1,035,000 to $1,120,000 (adjusting for inflation); authorizing the GM to increase that cap annually using the San Francisco Annual Infrastructure Construction Cost Inflation Index; extending delegated authority for at least four years through June 2030; and allowing the GM to approve non‑material guideline changes. Commissioner Jamdar asked about the definition of green infrastructure (rain gardens, permeable pavement, rain harvesting). Commissioner Thurlow inquired how the program fits into the broader 1‑billion‑gallon goal; staff noted the stormwater management ordinance drives most compliance, while grants target large retrofits. President Arce mentioned strong Sierra Club support. Kieran Farr spoke in public comment. The item passed unanimously.

Key Outcomes

• Item 3 – Approval of Minutes: Five sets of minutes (January 12, 23, 29, February 5, and February 10, 2026) approved unanimously.
• Item 6 – Consent Calendar: Approved unanimously.
• Item 7 – Extension of Admin Code 99.5: Approved unanimously (motion by Commissioner Stacy, second by Commissioner Jamdar). Authorizes the General Manager to seek Board of Supervisors approval for the extension.
• Item 8 – Willow Rock Participation: Approved unanimously (motion by Commissioner Jamdar, second by Commissioner Thurlow). Adopts CEQA findings and approves the Project Participation and Share Agreement and Buyer Liability Pass‑Through Agreement with a total cost not to exceed $75.9 M for a 20‑year term. Authorizes the General Manager to seek Board of Supervisors approval if needed.
• Item 9 – Green Infrastructure Grant Program Modifications: Approved unanimously (motion by Commissioner Thurlow, second by Commissioner Stacy). Authorizes the General Manager to increase the maximum grant award per project and the maximum cost per acre, to approve non‑material changes, and to seek Board of Supervisors approval for a four‑year extension of delegated authority.
• Item 13 – Motion to Assert Attorney‑Client Privilege: Approved unanimously to assert privilege regarding closed session matters.
• Item 15 – Motion Not to Disclose Closed Session Discussion: Approved unanimously (motion by Commissioner Jamdar, second by Commissioner Thurlow).
• The commission recommended that the Board approve the action item referenced in Item 13 (closed session matter).