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March 14, 2003


Ammiano's Draft Legislation: Solar Pilot Program

Attached please find a final draft of legislation establishing a San
Francisco Residential and Commercial Solar Pilot Program. Supervisor
Ammiano intends to introduce this proposed measure before Earth Day for
Board of Supervisors consideration. Please share this proposed legislation
with others who may be interested.

The goals of the proposed program are to:

1.    Make solar more cost-effective for City residents by (1) utilizing
City bulk purchasing and standard system specifications to obtain wholesale
pricing; (2) bundling energy conservation improvements with solar
installations to reduce load requirements and total cost of energy; (3)
reducing solar permit fees charged by the City; (4) providing financing at
rates that are cheaper than that available to most home and business
owners; and (5) aggressively pursuing available state subsidies.

2.    Provide one-stop shopping for solar through a competitively bid
contract that provides turnkey installation, energy-auditing, and
retrofitting, and assistance with permitting and seeking subsidies.

3.    Develop City experience in delivering solar, including, but not
limited to, working out the details of the contracting process, increasing
the pool of trained local solar installers, and improving City permitting
and inspection processes.

4.    Promote solar as a critical component to reducing the City's reliance
on fossil fuels.

We are extremely excited about this program. We would appreciate your
review and comment on the attached proposal and, if appropriate, your
endorsement of the measure. Please contact me at (415) 554-5145 by March
28, 2003 with your comments and suggestions. Thank you for your

Brad Benson
Legislative Assistant
Office of Supervisor Tom Ammiano
(415) 554-5145

[Residential and Commercial Solar Pilot Program  FINAL DRAFT FOR COMMENT]

Ordinance requiring the Public Utilities Commission and the Department of the Environment in consultation with other City departments to implement a solar pilot program for the residential and commercial sectors.

        Note:   Additions are single-underline italics Times New Roman;
deletions arestrikethroughitalics Times New Roman.
                Board amendment additions are double underlined. 
                Board amendment deletions are strikethrough normal

Be it ordained by the People of the City and County of San Francisco:

Section 1.  FINDINGS.   The Board of Supervisors of the City and County of San Francisco hereby finds and declares as follows:
A.      The Board of Supervisors received approval from the voters to issue revenue bonds in a principal amount not to exceed $100 million to finance the acquisition, construction, rehabilitation, installation and/or improvement of solar energy facilities and equipment, energy conservation facilities and equipment and/or renewable energy facilities and equipment, in the November 6, 2001 General Municipal Election.
B.      The voters approved a Charter amendment in the same General Municipal Election authorizing the Board of Supervisors to provide for the issuance of revenue bonds, without further voter approval, for the purpose of financing or refinancing the acquisition, construction, installation, equipping, improvement or rehabilitation of equipment or facilities for renewable energy and energy conservation.
C.      Solar energy facilities and equipment, energy conservation facilities and equipment and/or renewable energy facilities and equipment provide viable means to produce safe energy resources for the citizens of San Francisco and various agencies, departments and enterprises of the City.
D.      Solar energy technology allows electricity to be generated at the source where it is consumed and consequently provides increased energy independence and diminishes the vulnerability of San Francisco to rolling blackouts or other failures of the electric grid.
E.      Solar energy offers a silent and reliable source of energy and produces energy during times of peak demand without polluting the environment.
F.      Solar energy helps to protect the City from price volatility in energy markets and provides for diversity in sources and fuels used to provide electricity.
G.      Bonds authorized by voters at the November, 2001 General Municipal Election cannot be issued until such time as the Hetch Hetchy enterprise of the San Francisco Public Utilities Commission is rated by independent bond rating agencies.The process for receiving such a bond rating, including development of a long-range business plan for Hetch Hetchy and detailed plans for use of bond proceeds, is expected to take 18 months or longer.
H.      In order to implement the intent of the voters, the City must hone marketing strategies and overcome potential hurdles to installation of solar facilities (e.g., negotiating grid interconnection and streamlining the permitting process through the Planning Department and the Department of Building Inspection).
I.      While the City is gaining substantial experience in contracting and planning for solar installations on City-owned property, City assistance regarding solar installations for residential and commercial property is currently limited to technical assistance.
J.      Institution of a residential and commercial solar pilot program is the best manner in which the City can develop additional expertise in solar contracting, marketing and permitting while expanding customer service to the residential and commercial sectors.

Not later than August 1, 2003, the Public Utilities Commission and the Department of the Environment, in consultation with the City Attorney, the Mayor’s Office of Public Finance, the Department of Building Inspection and the Planning Department, shall provide the Board of Supervisors with a plan and budget for implementing a solar pilot program serving 100 residential and commercial properties in San Francisco, including, but not limited to, the following:
(a)     An executed inter-departmental memorandum of understanding delineating the roles, responsibilities and respective budgets of each department to deliver the program;    (b)     A marketing plan to enlist program participants utiltizing City resources that may include the City’s website, public service announcements on buses and in bus shelters, signs at libraries and recreation centers, utility bills, tax notices, voter handbook mailings, Citywatch, etc.;
(c)     Financing options for residential and commercial building owners, including self-financing, financing arranged by or through the City and backed by lease payments from property owners, and assistance applying for state and federal sudsidies and/or tax credits;
(d)     Proposed changes to the San Francisco Building and Planning codes and Department of Building Inspection and Planning Department procedures necessary to expedite permitting, reduce permit fees, and protect access to sunlight for solar investments;
(e)     A proposed methodology for screening and prioritizing pilot program applicants;
(f)     A list of interested residential and commercial building owners obtained by implementing the marketing plan;
(g)     A database for program applicants including those not selected for the pilot program;
(h)     Proposals for negotiating and executing grid inter-connection agreements with PG&E where necessary;
(i)     A proposed apprenticeship training program for solar installers and maintenance personnel, developed in consultation with City College and affected unions, including but not limited to, IBEW Local #6, IBEW Local #1245 and the San Francisco Building Trades Council; and
        (j)     Proposed criteria for evaluating the success of the residential and commercial solar pilot program.

Not later than September 1, 2003, the Public Utilities Commission and the Department of the Environment shall provide the Board of Supervisors with an implementation plan and proposed Request for Proposals for use by respondents in submitting proposals to implement a residential and commercial pilot solar program serving at least 100 residential andcommercial buildings. The RFP should request, at a minimum, the following from respondents:
(a)     A range of photovoltaic technology options and a range of additional conservation and energy-efficiency improvements to reduce on-site electric loads  for residential and commercial properties hosting solar photovoltaic installations;
(b)     Standard system designs for the following:

(1)     Installations for existing residential homes;
(2)     Installations for existing apartment buildings, including proposals for how to manage metering for separately metered apartments;
(3)     Installations for existing commercial and industrial buildings; and,

(c)     Information related to system warranties and insurance requirements;
(d)     Proposals for contract monitoring by the City, remote system monitoring by the City, maintenance contracts, and schedules for implementation;
(e)     Financing proposals including, but not limited to, self-financing by building owners and City financing repaid by monthly lease payments (including procedures to collect delinquent payments);
(f)     Proposals for how the City can best assist with marketing of the program;
(g)     A methodology for analyzing solar exposure, peak shaving potential, and energy-efficiency savings potential at candidate sites;
(h)     Technical assistance for such applicants who wish to proceed with solar installations and energy conservation improvements on their own; and
(i)     Any other requirements that the Public Utilities Commission and the Department of the Environment deem necessary.
Not later than twelve months after launching the program, the Public Utilities Commission and the Department of the Environment shall present to the Board of Supervisors necessary to implement subsequent phases of San Francisco’s solar program:
        (a)     A plan to pursue bond agency ratings for the Hetch Hetchy enterprise of the Public Utilities Commission;
        (b)     Calculations and documentation of the energy subsidies provided to General Fund departments and other City agencies;
(c)     Recommendations to the Board of Supervisors for establishing energy rates that will lead to higher bond ratings;
(d)     A plan to develop bond pro formas, developed in conjunction with the Mayor’s Office of Public Finance, necessary to issue bonds to finance future solar program expansion.

DENNIS J. HERRERA, City Attorney

        Deputy City Attorney