Rebecca Bowe

This one’s ugly

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news@sfbg.com

The most painful and divisive city budget season in many years was just getting under way as this issue went to press, with dueling City Hall rallies preceding the June 16 Board of Supervisors vote on an interim budget and the board’s Budget and Finance Committee slated to finally delve into the 2009-10 general fund budgets on June 17.

Both sides have adopted the rhetoric of a life-or-death struggle, with firefighters warning at a rally and in an advertising campaign that any cuts to their budget is akin to playing Russian Roulette, while city service providers say the deep public health cuts proposed by Mayor Gavin Newsom will also cost lives and carry dire long-term costs and consequences.

Despite Newsom’s pledges in January and again on June 1 to work closely with the Board of Supervisors on budget issues, that hasn’t happened. Instead, Newsom’s proposed budget would decimate the social services supported by board progressives, who responded by proposing an interim budget that would share that pain with police, fire, and sheriff’s budgets — which Newsom proposed to increase.

Rather than simply adopting the mayor’s proposed budget as the interim spending plan for the month of July, as the board traditionally has done, progressive supporters proposed an interim budget that would make up to $82 million in cuts to the three public safety agencies and use that money to prevent the more draconian cuts to social services.

“It’s the start of a discussion to figure out what that number should be. I don’t know where we’re going to end up,” Sup. David Campos, who sits on the budget committee, told us.

Board President David Chiu said Newsom did finally meet with him and Budget Committee chair John Avalos on June 15 to try to resolve the impasse. But he said, “We didn’t hear anything from the mayor that would change where we were last week.” They planned to meet again on June 19.

“What we proposed represents the magnitude of the challenge we face this year,” Chiu said of the interim budget proposal, seeming to indicate that supervisors are open to negotiation.

The real work begins the morning of June 17 when the Budget and Finance Committee dissects the budgets of 15 city departments, including the Mayor’s Office, of which Avalos told us, “I don’t think the mayor has made the same concessions as he’s had other departments make.”

The next day, another 13 city departments go under the committee’s microscope, including the public safety departments that were spared the mayor’s budget ax and even given small increases, and the budget of the Public Defenders Office, where Newsom proposes cutting 16 positions.

“This creates a severe imbalance in the criminal justice system,” Public Defender Jeff Adachi told us. “Why is he cutting public defender services while fully funding police, fully funding the sheriff’s department, and essentially creating a situation where poor people are going to get second-rate representation?”

That theme of rich vs. poor has pervaded the budget season debate, both overtly and in budget priorities that each side is supporting.

 

BUDGET JUSTICE

Hundreds of people whose lives would be affected by cuts marched on City Hall under the banner Budget Justice on June 10. Some of San Francisco’s most vulnerable citizens, including homeless people, immigrants, seniors, and public housing residents, turned out for the march, chanting and waving signs asking the mayor to “invest in us.”

Sups. John Avalos and Chris Daly delivered resounding speeches mirroring the anger in the crowd, and promised to fix the budget by reallocating money to protect the city’s safety net. Daly charged that even as services to the city’s vulnerable populations are being slashed, “the politically connected and the powerful get huge increases.”

Avalos took the podium just before heading into City Hall to lead the Budget and Finance Committee meeting and implored the hundreds of people gathered out front to make their voices heard. “Mayor Newsom, he told us, he said, ‘We have a near-perfect budget.’ Do we have a near-perfect budget?” Avalos asked, and then paused while the crowd cried out, “Nooo!!!!!”

During an interview discussing Newsom’s budget priorities, Avalos twice made references to The Shock Doctrine, using the Naomi Klein book about how crises are used as opportunities to unilaterally implement corporatist policies. “We have a budget deficit that is real, but it’s being used to do other things,” Avalos said. “I look at it as a way to remake San Francisco. It’s a Shock Doctrine effect.”

He referred to the privatization of government services (an aspect of every Newsom budget), promoting condo conversions and gentrification, defunding nonprofits that provides social services (groups that often side with progressives), and helping corporations raid the public treasury (Newsom proposed beefing up the Mayor’s Office of Economic and Workforce Development by a whopping 32 percent).

“It’s things that the most conservative parts of San Francisco have wanted for years, and now they have the conditions to make it happen,” Avalos said.

Much of that agenda involves slashing services to the homeless and other low-income San Francisco and de-funding the nonprofit network that provides services and jobs. “There’s an effort to say nonprofit jobs aren’t real jobs, but they are an important economic engine of the city,” Avalos told us. Those cuts were decried during the June 10 budget rally.

“What people don’t realize,” Office & Professional Employees International Union Local 3 representative Natalie Naylor said, “is that everything that’s being proposed to be cut from the city is creating no place for homeless people to go during the daytime. I don’t think Newsom’s constituents realize that we’re going to see more homeless people on the street than ever before.”

Pablo Rodriguez of the Coalition on Homelessness told the crowd that he was furious that the mayor would make such deep cuts to social services. “Stop riding on the back of the homeless, and the seniors and the children and all the community-based organizations,” Rodriguez said. “Why make the poor people pay for the rich people’s mistakes? The poor people didn’t make the mistakes.”

 

WHOM TO CUT?

The public safety unions were equally caustic in their arguments. An announcement for the Save Our Firehouses rally — which was heavily promoted by members of the Mayor’s Office and Newsom’s gubernatorial campaign team — claimed that “the Board of Supervisors voted to endanger the progress that we’ve made in public safety by laying off hundreds of police officers, closing up to 12 out of 42 fire stations and closing part of our jail.”

Actually, all sides have said the interim budget probably won’t lead to layoffs, station closures, or prisoner releases, but those could be a part of next year’s budget.

Tensions temporarily cooled a bit in the days that have followed, but the two sides still seemed far apart on their priorities, mayoral spin aside. Asked about the impasse, Newsom spokesperson Nate Ballard told the Guardian, “The mayor has already included over 90 percent of the supervisors’ priorities in the budget. But he’s against the supervisors’ efforts to gut public safety. He’s willing to work with people who have reasonable ideas to balance the budget. Balancing the budget with draconian cuts to police and fire is unreasonable.”

Campos disputed Ballard’s figure and logic. “I don’t know where that number comes from,” Campos said. “A lot of the things we wanted to protect, the mayor cut anyway.”

Campos said Newsom’s slick budget presentation glossed over painful cuts to essential services, cuts that activists and Budget Analyst Harvey Rose have been discovering over the last two weeks. “I felt the mayor has done a real good job of presenting things to make it look like it’s not as bad as it really is,” Campos said.

 

COMMITTEE WORK

Avalos expressed confidence that his committee will produce a document to the full board in July that reflects progressive priorities.

“We’re going to pass to the full board a budget that we have control over,” Avalos said, noting that a committee majority that also includes Sups. Campos and Ross Mirkarimi strongly favors progressive budget priorities.

He also praised the committee’s more conservative members, Sups. Bevan Dufty and Carmen Chu, as engaged participants in improving the mayor’s budget. “I think the tension on the committee is healthy.”

Ultimately, Avalos says, he knows the board members can alter Newsom’s budget priorities. But his goal is to go even further and develop a consensus budget that creatively spreads the pain.

“Ideally, I want a unanimous vote on the Board of Supervisors,” Avalos said.

In the current polarized budget climate, that’s an ambitious goal that may be out of reach. But there are some real benefits to attaining a unanimous board vote, including the ability to place revenue measures on the November ballot that can be passed by a simply majority vote (state law generally requires a two-third vote to increase taxes, but it makes provisions for fiscal emergencies, when a unanimous Board of Supervisors vote can waive the two-thirds rule).

Avalos has proposed placing sales tax and parcel tax measures on the fall ballot. Other proposals that have been discussed by a stakeholder committee assembled by Chiu include a measure to replace the payroll tax with a new gross receipts tax and general obligation bond measures to pay for things like park and road maintenance, which would allow those budget expenses to be applied elsewhere.

But Avalos said Newsom will need to step up and show some leadership if the measures are going to have any hope of being approved. “To get the two-thirds vote we need to win a revenue measure in this bad economy is going to be really hard,” Avalos said.

“The mayor is open to new revenue measures as long as they include significant reforms and are conceived and supported by a wide swath of the community including labor and business,” Ballard said.

Sup. Sean Elsbernd — one of the most conservative supervisors — has repeatedly said he won’t support new revenue measures unless they are accompanied by substantial budget reforms that will rein in ballooning expenditures in areas like city employee pensions.

“Pension reform. Health care reform. Spending reform. One of the above. A combination of the above,” Elsbernd told the Guardian when asked what he wants to see in a budget revenue deal.

Avalos says he’s mindful that not every progressive priority can be fully funded as the city wrestles with a budget deficit of almost $500 million, fully half the city’s discretionary budget. “It’s a crappy situation, and we can make it just a crummy situation.”

‘Budget Justice’ rally rocks City Hall

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By Rebecca Bowe

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Hundreds marched from Hallidie Plaza to San Francisco City Hall yesterday afternoon to protest Mayor Gavin Newsom’s proposed city budget, which contains deep cuts to address a looming $438 million general fund deficit.

Organized by a coalition called Budget Justice, which includes Coleman Advocates, the Coalition on Homelessness, SEIU and others, the rally and march brought out a wide cross-section of people whose lives would be directly affected by cuts to the city’s health and human services programs. Homeless people, veterans, the elderly, AIDS patients, organizations that aid victims of violence and sexual abuse, people in need of mental-health therapy or programs for recovery from substance abuse, and single room occupancy residents were all represented.

Sups. John Avalos and Chris Daly delivered rousing speeches and hurled scathing criticism at Newsom’s proposed budget. They called for sharing the pain more equitably, and a number of speakers advocated for progressive revenue measures that could help stave off the worst of the bloodshed.

Which kind of poison?

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rebeccab@sfbg.com

GREEN CITY The push from city leaders to shut down Mirant’s aging Potrero power plant advanced another step June 2 when the San Francisco supervisors approved an ordinance sponsored by Sophie Maxwell and Michela Alioto-Pier that urges closing the entire facility by the end of 2010 and directs the San Francisco Public Utilities Commission to update a plan charting the city’s energy future.

But the current city proposal for closing the Mirant plant appears to rely entirely on replacing that power with the output of other private fossil fuel plants — in someone else’s backyard.

The city is following the same script as Pacific Gas and Electric Co., which wants to upgrade and expand the lines bringing its own private power into the city — instead of San Francisco generating power of its own.

In fact, Mayor Gavin Newsom has introduced legislation to sell four city-owned combustion turbines that are currently collecting dust in storage in Houston. Obtained as part of a 2003 lawsuit settlement, the turbines were almost employed last year to build four small city-owned power plants to fully replace the Mirant facility — but that plan was ultimately shot down.

The California Independent System Operator (Cal-ISO), a federally regulated body that oversees grid reliability, currently requires Mirant’s dirty San Francisco facility to stay in service to provide in-city generation capacity in case of catastrophic power grid failure. But city officials now say a new underwater power cable from the East Bay could replace Mirant Unit 3, which spews fumes into the Bayview-Hunters Point neighborhood.

Last month, Newsom, Board of Supervisors President David Chiu, City Attorney Dennis Herrera, SF Public Utilities Commission General Manager Ed Harrington and Sups. Sophie Maxwell and Michela Alioto-Pier sent a letter to Cal-ISO making the case that with the installation of the TransBay Cable — which would link the city with generating facilities in Pittsburg — and other planned system upgrades, the entire Mirant facility could be retired by next year.

Maxwell’s ordinance references that letter, and urges PG&E to "develop expeditiously" its transmission-upgrade projects to pave the way for the plant’s closure. Cal-ISO spokesman Gregg Fishman says that so far, it hasn’t reviewed PG&E’s plans.

Joe Boss, a longtime member of the city’s power plant task force, says he has little confidence that Mirant can be shut down without being replaced with new in-city electricity generation. He told us he believes it’s a bad move to sell off the publicly owned combustion turbines.

The TransBay Cable is essentially a 10-inch thick extension cord that would connect a PG&E substation in Pittsburg with another PG&E substation in Potrero Hill. It’s being bankrolled by the Australian investment firm Babcock & Brown, which ran into serious financial trouble during the economic downturn, and its San Francisco branch was bought out last month. Currently under construction, the cable project is being built in tandem with the Pittsburg power company, a municipal utility that would retain ownership of the cable and converter stations. PG&E customers will ultimately pay for power transmitted over the line.

The way the theory goes, once the cable goes live next March, Potrero’s Unit 3 — a natural-gas fired generator that runs about 20 hours a day — could finally be shut down. "But the question is, is it just going to bring dirty power to SF?" asks Sierra Club Energy Board chair Aaron Israel.

Near the Pittsburg end of the cable, there are two gas-fired Mirant-owned power plants, operating since 1972 and 1964.

There are proposals for two new Mirant natural-gas fired power plants in that area as well, plus a 530 MW plant called Gateway owned by PG&E that became operational this year.

So the future looks like this: San Francisco gets rid of a pollution source, and shifts the problem to a poor community 40 miles away. And PG&E and Mirant retain their hegemony over the city’s electricity supplies.

"’Which poison would you like?’ is kind of where the debate is," says Greenaction for Environmental Health & Justice Executive Director Bradley Angel. "We’ve got to keep advocating for a dramatic increase in renewable energy, here and elsewhere," Angel says. But that’s not going to happen with PG&E and Mirant calling the shots.

Dirty diesel ban at Port of Oakland does not win approval

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By Rebecca Bowe

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Photo courtesy Coalition for Clean & Safe Ports

Around 100 environmental and social justice activists crammed into yesterday’s Oakland Port Commission meeting in support of a program that, among other things, would have banned polluting diesel trucks from the Port of Oakland.

New air-quality regulations that come into effect in January 2010 will require trucks to meet more stringent emissions standards, and the proposed measure would have barred noncompliant trucks from entering the port. Instead of approving the program, known as the Comprehensive Truck Management Plan, Commissioners voted to revisit it on June 16, the next scheduled meeting.

Port spokeswoman Marilyn Sandifur explained that the proposed ban emerged as the contentious aspect of the program, leading commissioners to determine that they needed more information before approving the whole package.

The struggle continues

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>rebeccab@sfbg.com


Video of May 26’s anti-Prop 8 rally. Video by Rebecca Bowe. For more videos from that day, click here.

An estimated 10,000 people turned out in San Francisco May 26 for a day of rallies and marches staged in reaction to the California Supreme Court’s decision to uphold Proposition 8, the voter-approved measure passed in November 2008 that outlawed same-sex marriage in California. Expressing anger and frustration with the news, same-sex couples and advocates for marriage equality nonetheless vowed to push ahead with a new fight to overturn Prop. 8 at the ballot.

"Today’s court decision means we have to go back to the ballot," Abdi Soltani, executive director of the Northern California chapter of the American Civil Liberties Union, told a crowd gathered outside San Francisco City Hall. "The issue is not whether we go back to the ballot. The key question for us to tackle now is what we have to do in order to win at the ballot. That’s the difficult work that is ahead for all of us."

It was an emotional day for same-sex couples. Protesters took to the streets in permitted and spontaneous marches, and 200 arrests were made after a sit-in was staged at Van Ness and Grove streets around midday.

"It’s a sad day to be a Californian, as far as I’m concerned. I’m embarrassed," Castro District resident Hank Doonan, standing arm in arm with his partner Michael Talty, told the Guardian. Talty displayed his engagement ring. "We’re still getting married, and it doesn’t matter," he asserted with a note of defiance. "But we’re really sad today."

Molly McKay, media director for nationwide same-sex marriage advocacy group Marriage Equality USA, appeared at the San Francisco rally in a wedding dress. "I’m sorry we have to keep fighting the same battle," she told the Guardian later. "But I’m proud of all the people who turned out."

Video of Prop 8 protests

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By Rebecca Bowe

Yesterday’s evening rally in the wake of the California Supreme Court’s decision to uphold Prop 8 attracted thousands. Click below to view a multimedia slide show of the events.

Campaign for a constitutional convention picks up speed

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By Rebecca Bowe

“One way or the other, on May 20th Californians will have to begin discussing how to fix their broken state.” This line — referring of course to the aftermath of the special election — appeared in an article published by the Economist last Thursday titled “California: The Ungovernable State.” The piece spotlights Sacramento’s perpetual gridlock and explores the idea of calling a statewide constitutional convention as a means of addressing the legislature’s systemic problems.

The idea is gaining momentum. The Bay Area Council, the San Francisco-based business group that initially raised the idea, hit the ground running today with the launch of a Web site, RepairCalifornia.org, to promote a constitutional convention. It also announced plans to hold town-hall style meetings throughout the state to solicit voter input. The BAC submitted a request to the state legislature to place two measures on the November 2010 ballot calling for a constitutional convention, but it’s doubtful that they’ll receive the two-thirds majority vote needed for approval. Instead, they’ll probably have to go out and collect enough signatures to put it on the ballot independently.

The BAC isn’t the alone in promoting the idea — nor is it the only group to roll out a May 20 plan for fixing the state. As the Guardian has reported, a coalition of organizations is actively campaigning for a constitutional convention. Signing onto the effort for a constitutional convention are the Courage Campaign, the League of Women Voters, Common Cause, the William C. Velasquez Institute and others.

While Sen. Mark Leno told us in February he thought the idea should be approached with caution so as not to “open up an entire potential Pandora’s box,” the idea seems to be picking up steam in the wake of the governor’s failed budget measures, and with state finances in such disarray.

Rally this Sunday against torture and killings of gays in Iraq

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By Rebecca Bowe

Gays Without Borders S.F., the Rainbow World Fund, Sisters of Perpetual Indulgence and others will host a rally and fundraiser Sunday to speak out against torture and slayings of gays in Iraq.

Reports in the New York Times, The Los Angeles Times and elsewhere have described atrocities against gay men that occurred in Iraq’s Sadr City, where victims were fatally shot and found with the word “pervert” on notes attached to their bodies.

“This news has been under the radar for the past few years due to the overall confusion and killing in Iraq,” a press statement released by the rally organizers points out. “But the heinous torture and murder of gays in Iraq has escalated.”

The groups hope to attract international media attention to the abuses, and they plan to urge the U.S. State Department to investigate, denounce the killings, and support asylum. The goal of the fundraiser is to send $10,000 to organizations aiding Iraqi gays who are fleeing the most dangerous areas.

The rally and fundraiser — featuring speeches from S.F. Police Commission President Theresa Sparks, State Senator Mark Leno, Supervisors Bevan Dufty and Ross Mirkarimi, and others — will be held Sunday, May 17 from noon to 4 p.m. at Harvey Milk Plaza, near the intersection of Castro and Market streets. Speakers are scheduled for 12:30 to 1:30 p.m.

Donations may be made through the Rainbow World Fund. Those interested in volunteering at the rally should email MrSFL96@aol.com.

“Where’s Gavin?”

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By Rebecca Bowe

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In an article last month about how Berkeley Mayor Tom Bates has decided to trade in his car for a bus pass, the Chronicle reported an interesting transportation tidbit about San Francisco Mayor Gavin Newsom:

“[Newsom] rides Muni incognito, disguised in a baseball cap, and walks when he can, said his spokesman Nathan Ballard.”

In the wake of recent drama over the Muni budget, a group of anonymous city transit riders has apparently banded together to kick off a contest dubbed “Where’s Gavin?”

In a letter posted today by the N-Judah Chronicles, the contest organizers explain: “We don’t think that Gavin actually gets it on transit or gets on transit, contrary to the comment in the Chronicle that said he goes incognito. We’d like him to ride more, perhaps to get a feeling for what riders go through even on days when the budget hasn’t been cut.”

To wit, they promise to buy a Fast Pass for the first person to get a picture of Newsom riding incognito on Muni. (Cable cars don’t count.) They also say they’ll buy beer for any others who present a photo, subject to a “verification of authenticity.” Here’s a snippet from the contest Web site: “Only you, the riders of our beloved San Francisco Municipal Railway, can find Gavin going incognito. And to get you excited, check out the sidebar to see what prizes you could win! The deep and resounding question of our time is not ‘Where’s Waldo?’ It’s ‘Where’s Gavin?’”

Shooting past “sharrows”

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San Francisco’s bicycle advocates have been focused on winning approval for 56 near-term projects outlined in the city’s bike plan, which would increase the number of miles of bike lanes from 45 to 79, and quadruple the number of city streets bearing "sharrow" markings (see "Street fight," 2/4/09).

But bike-related projects farther out on the horizon could significantly raise the bar for a bikeable San Francisco. Here are a six long-range concepts that could make cycling in the city more safe, enjoyable, and accessible to people who might otherwise be driving solo.

BRIDGING THE GAP


Cyclists who commute between San Francisco and the East Bay have asked an obvious question for years: why must I spend money on BART fares or bridge tolls to get across the bay when I know I’m capable of biking there? When construction of the new east span of the Bay Bridge is finished, cyclists will finally get a bike path — but it will only get them from Oakland to Yerba Buena Island. Luckily, the idea of installing a complementary bike path along the west span to San Francisco is being entertained. It’s expensive (estimates place the cost at $200 million) and complicated (a 2001 feasibility study found there would need to be tracks on both sides of the bridge for balance). But in early April, the Bay Area Toll Authority agreed to spend $1.3 million on an 18-month study so the project could be shovel-ready when funding becomes available.

CAR-FREE MARKET STREET


Market Street is a popular thoroughfare for bicyclists even though much of its design creates tight-squeezes and conflicts with automobiles. For years there’s been talk of making it car-free, an idea once advocated by former Mayor Willie Brown. It was studied in 1997, but never received enough support to move forward, in part because area merchants worry their business would be hurt by restricting motorists. But the latest attempt to quell Market Street traffic may get more traction. Sup. Chris Daly, who also sits on the Metropolitan Transportation Commission, requested a comprehensive study on restricting Market Street traffic and a draft report is expected by early summer. Andy Thornley, program director at the San Francisco Bicycle Coalition, notes that the overarching idea is not to make Market Street exclusive to bikes and pedestrians, but to improve it as a whole. "A car-free Market Street may be the route," Thorney says, "but it’s not the reason."

COLOR ME BIKEABLE


Ask Dave Snyder, transportation policy director at the San Francisco Planning and Urban Research Association (SPUR), what constitutes an ideal bike lane, and he’ll say it has to be safe enough for parents to feel comfortable allowing their eight-year-old to ride a bike there. "That’s a very high standard," he says. "But it’s a correct standard." One approach for safeguarding bike lanes, adopted in New York City and elsewhere, is to color them in. Bike activists have been pushing the idea here, but the monkey wrench in the works is a sort of national bible of traffic symbols that lacks a standard for colored bike lanes. If the city rolls with a concept that’s outside the rulebook, the thinking goes, it could be a liability. But bike advocates hope to incorporate colored bike lines into the standard via a pilot program. In coming months, be on the lookout for more colorful city streets.

THINK INSIDE THE BOX


A bike box is a colored bike zone just before an intersection designed to let cyclists get out in front of traffic at a red light so they can be more visible. SF has two low-profile bike boxes, Thornley notes, but plans are on the horizon to install more. When the city of Portland, Ore. installed them, it produced a video called "On the Move with Mr. Smooth" to promote the concept. Hosted by a greasy character in a neon green shirt, the video makes a big deal about how motorists get a great view when they stop behind the bike-box line. "The bike box," Portland’s slogan proclaims. "Get behind it."

A BLUE-GREEN WORLD


Blue for the water, green for the parks and open space, the Blue Greenway is envisioned as a 13-mile corridor along the southeastern waterfront that would connect a string of existing parks from the Giants’ stadium to Candlestick Point State Recreation Area. "We want to connect not only parks along the Blue Greenway, but connect people to the waterfront," explains Corrine Woods, who is working on the project through the Neighborhood Parks Council. The corridor will serve as the city’s southeastern portion of the San Francisco Bay Trail, a massive interconnected trail network planned by the Association of Bay Area Governments that is envisioned as a 400-mile recreational "ring around the Bay."

BACK ON TRACK


For now cyclists aren’t allowed to bring their bikes — not even the folding kind — on Muni trains or buses (although some buses have bike racks outside). But it’s something the Municipal Transportation Agency has on its radar as a possible policy change, according to spokesperson Judson True. "As we move forward and people become more aware of the benefits of public transit, our vehicles become more and more crowded," True notes. This may be a good problem to have, but it means the agency must work out a strategy to accommodate wheelchair-bound passengers, strollers, walkers, bikes, and other essentials that passengers bring on board. Once the bike-plan injunction is lifted, True says, he expects MTA to approve a pilot program for bikes on Muni. In order to discourage more people from driving, he says, "linking sustainable modes of transportation like biking and transit is key."

The quest to save the Bluepeter Building

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By Rebecca Bowe

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Photo courtesy Janet Carpinelli

The Bluepeter Building, a unique industrial warehouse constructed in 1940 along San Francisco’s central waterfront, has become the focus of a neighborhood campaign for historic preservation. Under the Mission Bay redevelopment plan, it’s slated for demolition — but some community members are hoping an alternative vision can be implemented.

Janet Carpinelli of the Dogpatch Neighborhood Association has a vision for rehabbing the Bluepeter Building and converting it to a fish market, casual food vending business, and community gathering space which she says could also be integrated into a maritime history tour along the city’s Central Waterfront. Owned by the Port of San Francisco, it’s been shuttered for more than a decade and hasn’t been very well maintained. Under the Mission Bay redevelopment plan, the building would be torn down and a park would be constructed on the lot instead.

“Just putting the park there is not as interesting,” Carpinelli says. “We shouldn’t just be knocking down the building.”

Local businesses underrepresented in city contract awards

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By Rebecca Bowe

At Monday’s Land Use and Economic Development Committee hearing, Human Rights Commission Executive Director Chris Iglesias reported on how many locally owned San Francisco businesses benefit from city-issued contracts. The Guardian spotlighted this issue recently.

Across the board, the data showed, most city contracts are awarded to outside firms. (One speaker referred to them as “the Halliburtons of the world.”) The number of prime contracts and subcontracts awarded to non-local businesses was disproportionately higher than those awarded to local businesses, minority-owned businesses, or women-owned businesses, the data showed. Between September of 2006 and December of 2008, Iglesias noted, 35 percent of all city contracts went to certified local business enterprises.

In terms of city departments, Public Works led the way by awarding some 48 percent of its contracts to local firms. The airport issued just 10 percent of its contracts to local businesses, the port contributed 22 percent, and the Public Utilities Commission awarded 34 percent. Citywide, just 9 percent of term-contract awards and 7 percent of blanket-purchase orders were made through local firms.

Board of Supervisors President David Chiu, who formerly served on the city’s Small Business Commission, was less than thrilled by the findings.

Why does the Potrero power plant operate with an expired water permit?

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By Rebecca Bowe

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On Dec. 31, 2008, Mirant’s wastewater-discharge permit expired — but the gas and diesel-fired power plant still runs an average of nearly 20 hours a day, according to figures released by the California Independent System Operator (Cal-ISO).

One unit at the facility uses a system called once-through cooling, which means it takes in huge quantities of water from the bay to cool the machinery, then dumps it all back at temperatures high enough to impact surrounding ecosystems. This process is regulated by a permit issued by the San Francisco Bay Regional Water Quality Control Board. A spreadsheet on the agency’s Web site shows that more than five months into 2009, a hearing to outline the terms of a new wastewater-discharge permit still hasn’t been scheduled. The water board is waiting on a state policy decision regarding once-through cooling before it acts, a note explains.

Mirant’s last gasp?

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rebeccab@sfbg.com

GREEN CITY A new multipronged effort to shut down San Francisco’s Mirant Potrero Power Plant is raising hopes that the end could be in sight for the controversial fossil-fuel-fired facility.

An ordinance proposed by Sup. Sophie Maxwell suggests that the entire facility — including the primary unit 3 and the smaller, diesel-fired units 4, 5, and 6 — could be shut off without having to create any new fossil fuel generation within city limits. The legislation would direct the San Francisco Public Utilities Commission to figure out how to bridge the in-city electric generation gap using energy efficiency, renewable power, and other alternatives.

Meanwhile, a lawsuit filed against Mirant by City Attorney Dennis Herrera targets Mirant’s failure to perform seismic upgrades. The effort wouldn’t close the plant directly, but could make it more burdensome for Mirant to do business here. Mirant did not return calls for comment.

"Mirant has been given a free pass for a while, and the city doesn’t want to give it to them any more," Deputy City Attorney Theresa Mueller told the Guardian. "Part of the reason they’ve gotten away with not doing it is because it was expected to close."

City efforts to replace the Mirant plant’s power with combustion turbines that San Francisco already owns were derailed last year after Mayor Gavin Newsom withdrew his support for the plan, instead backing an alternative pushed by Pacific Gas & Electric Co. that would have retrofitted the Mirant plant, a proposal that consultants said didn’t pencil out and that failed to win Board of Supervisors’ approval (see "Power possibilities," 11/5/08).

Despite various city efforts to shutter the plant going back nearly a decade, Mirant Potrero still runs an average of 20 hours per day, according to figures released by the California Independent System Operator (Cal-ISO). In 2007, the plant released 235 tons of harmful pollutants into the air, and 336,300 tons of carbon dioxide.

For now, Cal-ISO requires Mirant to continue running to guarantee that the lights would stay on in the city even if major transmission lines fail. But with the installation of the Trans Bay Cable — a high-voltage power cord that will send 400 MW of electricity under the bay from Pittsburgh in 2010 — Mirant’s largest unit will be unnecessary.

"We assume that the Trans Bay Cable will be in service sometime in mid 2010. We can then drop Potrero [unit 3]" from the reliability contract, says Cal-ISO spokesman Gregg Fishman. The dirtier, diesel-powered units 4, 5, and 6 would still be required, he says.

Not everyone accepts this as the final word on the matter. Maxwell’s legislation calls for the SFPUC "to take all feasible steps to close the entire Potrero power plant as soon as possible." That ordinance, expected to go before the Land Use Committee on May 11, would direct the SFPUC to update a plan for the city’s energy mix, called the Electricity Resource Plan, to reflect a goal of zero reliance on in-city fossil-fuel generation.

The original plan, issued in 2002, was also designed to eliminate the Potrero plant. This time around, key assumptions have changed. Last year, as Newsom and some members of the Board of Supervisors battled over the Mirant-related projects, PG&E sponsored a study indicating that the city might not need new local power generation.

Maxwell’s new proposal, citing information from the PG&E assessment, now suggests that after the installation of the Trans Bay Cable and other transmission upgrades, the electricity gap for in-city generation will be much smaller than previously assumed. This gap, which Joshua Arce from the Brightline Defense Project likes to refer to as the "magic number," has apparently shrunk to 33 MW in 2012, as opposed to 150 MW. But Arce said, "We want the magic number to be zero."

Barbara Hale, assistant manager for power at the SFPUC, confirmed that the city agency was preparing to update the plan and noted that it would likely contract with a Colorado-based firm, Rocky Mountain Institute, to do it. "We are hoping we can meet San Francisco’s electricity needs in a way that does not involve fossil fuel generation in San Francisco," Hale told the Guardian.

Encouraged by the recent activity, environmental justice groups are organizing for what they hope will be the last push to shut down the Potrero plant. Tony Kelly, president of the Potrero Boosters and an activist on power plant issues, is optimistic. "There really is an end in sight to that power plant," he says.

Some eyebrows have been raised over the implications of the Trans Bay Cable, which by most accounts will be plugged into a fossil fuel-powered facility in Pittsburgh. "We really are going to be highlighting that San Francisco needs to take responsibility … so that we don’t have clean air on the backs of poor people and people of color in the East Bay," says Bradley Angel, executive director of Greenaction for Health and Environmental Justice.

Nor is everyone feeling optimistic that the closure of the plant is near. Joe Boss, a member of the city’s Power Plant Task Force for about nine years, says he still doesn’t expect Cal-ISO to budge, and believes the city will have to live with the Potrero plant for years to come.

Fishman, from Cal-ISO, said that as things stand, units 4,5, and 6 will "almost certainly" still be required. Almost. "Between now and when the Trans Bay Cable is in service, we can conduct … studies on transmission projects that are officially presented to us," he added. "Based on the hard data that comes from those studies, we may reevaluate the need for local generation."

Recurrent Energy project passed on 7-4 vote

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By Rebecca Bowe

The Board of Supervisors voted 7 to 4 this afternoon to approve a 25-year power purchase agreement with Recurrent Energy, a private firm that plans to construct a 5-megawatt photovoltaic array at the Sunset Reservoir. Supervisors John Avalos, David Campos, Chris Daly and Ross Mirkarimi voted against the agreement, voicing concerns that the city would be locked into a bad financial deal for years to come and asserting that the city could strike a better deal with Recurrent. Part of the problem, Mirkarimi noted, is that the city would be locked into paying a fixed price for solar energy even if the going rate drops significantly in coming years.

The Guardian has weighed in on the project at several junctures. While everyone at the table believes that the end goal is laudable – adding 5 megawatts of clean energy to the city’s renewable portfolio – Supervisors Mirkarimi and Campos have expressed opposition to contract terms that they say would ultimately sell San Francisco ratepayers short. At a joint meeting between LAFCo and the SFPUC on April 24, Mirkarimi also worried that the Recurrent Energy project could undercut the efforts of San Francisco’s fledgling Community Choice Aggregation initiative.

The power purchase agreement was originally put forth by Mayor Gavin Newsom and Supervisor Carmen Chu. Chu advocated strongly for it during today’s meeting, saying she believed it was a good deal and noting that it would create 71 jobs.

Daly weighed in heavily against it, calling the deal a politicized “rush job.” The result, in his opinion, is that “we get electricity that is green, but it is too expensive to give anyone else the opportunity to do it too. … Going green doesn’t mean going green stupid. If it seems like gymnastics for a deal, there is a better way.”

What’s all the fuss about Articles 10 & 11?

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By Rebecca Bowe

The San Francisco Building & Construction Trades Council is planning a “Rally for Jobs” on May 5 at Civic Center Plaza to oppose “a measure on historic preservation that would kill much of our work,” according to an announcement on the council’s Web site. “Work is hard to find now. Don’t let it go away forever,” the announcement declares. At issue is the rewrite of Articles 10 and 11 of the city’s planning code, which deal with historic preservation and are integrally linked with the newly created Historic Preservation Commission.

There’s no question that the effects of an unstable economy and the downward slide of the housing market have led to a shortage in construction jobs, and it’s clear that the workers in this industry are hurting. At the Democratic party luncheon picket last week, I spoke with a number of masons, electricians and others who were struggling to make ends meet while they were out of work. Some 400 workers in the bricklayers union alone have lost their jobs, one union member told me, and times are tough.

But is the Historic Preservation Commission to blame? Would the pending revisions of Articles 10 and 11 really be the last nail in the coffin for development in San Francisco, obliterating the last remaining construction jobs in the city? I called the city Planning Department to find out what this rewrite will mean for the city and was directed to Tara Sullivan, who works in legislative affairs and has been deeply involved in the process. “There’s some speculation that this will halt development around the city,” Sullivan told me. “But it’s not an anti-development tool at all. And it’s not citywide.”

Historic proportions

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news@sfbg.com

GREEN CITY "110 The Embarcadero" is the stately address of a building that doesn’t exist yet. But the battle that continues to be waged over this proposed development, along with skirmishes that are brewing over other proposed buildings nearby, speaks volumes about a complicated tug-of-war that is emerging over a prominent slice of the city’s northern waterfront.

Preservationists are concerned about saving a union hall on Steuart Street that housed the International Longshoremen’s Association during the strike of 1934, which would be razed to build 110 The Embarcadero. That’s one of a number of historic properties critics say could face the wrecking ball as new building plans are drafted. Other proposals, among them 8 Washington and 555 Washington, have neighborhood activists anxious about long skyscraper shadows that could be cast on public parks, the development pressure that would result from allowing skyscrapers to exceed height limits, and views of the bay that would be enhanced from inside luxury high rises but blocked to others.

On the other side of the coin, building-trades union members increasingly desperate for work are fervently advocating for new construction projects that would open the spigot on jobs. And the Port of San Francisco hopes development money will help cover its huge infrastructure backlog.

Meanwhile a report released in early April by the Bay Conservation and Development Commission noted that the waterfront stretch from Pier 35 to the Bay Bridge is one of the most vulnerable to sea-level rise. As plans for this part of the Embarcadero are hashed out in public hearings and architects’ sketches, a new reality must be factored into the mix: some of that land could soon be underwater.

MISSING HISTORY


110 The Embarcadero initially won praise for its goal of attaining the highest certification level for nationwide green-building standards. Sponsored by Hines Interests, it was a shining example of ecodesign that even featured living vines climbing the sides. Even though it would shoot 40 percent above the allowable height limit of 84 feet, the San Francisco Planning Commission gave it a green light.

Enthusiasm waned, however, when historic preservationists pointed out that the building slated for demolition — 113 Steuart St. — was an ILA labor hall during the famous maritime strike of 1934, which erupted into violence after two union members were gunned down by police and led to a four-day general strike that paralyzed the city. "Harry Bridges rose to fame in this building," says architectural historian Bradley Weidmeier, referring to the famous labor leader. "Labor historians from around the country are going to be blocking this."

Hines hired a leading historic architecture firm, Page & Turnbull, to conduct a historic assessment of that building as part of the planning process. Yet the initial report neglected to mention anything about the building being at the center of a profound moment in San Francisco’s labor history.

Former Board of Supervisors president Aaron Peskin, an opponent of the project, says the gaps in information weren’t hard to miss. "The fact that it was ground zero for bloody Thursday, that it was ground zero for the general strike … that people were shot in front of there, that their bodies lay inside. You want to know how we found that out? We got it online," Peskin said.

Page & Turnbull later submitted an addendum, including historic photos depicting people crowding into the two-story building to pay respects to the slain union members. The firm acknowledged its historic significance this time, but asserted that the now-empty building had undergone too many retrofits to comply with historic landmark requirements.

This, too, was challenged by project opponents. "You can look at pictures of dead people laying there on the sidewalk with that building in the background, and look at it today, and godammit, it’s pretty much the same building," Peskin says.

The Board of Supervisors in mid-March approved an appeal of the project and instructed city planners to prepare an environmental impact report. Ralph Schoenman, a preservation advocate who says he met with board members about the project, told us that "members of the board were plainly shocked by finding out that the historic report was so flawed and untrue."

That feeling may have lingered for some at the April 21 bard meeting when Supervisors voted 7-4 to reject Mayor Gavin Newsom’s nomination of Ruth Todd, a Page & Turnbull principal, to the city’s Historic Preservation Commission.

WHOSE WATERFRONT?


Though the project has been stalled, the issues it stirred are gaining momentum. The picture of what this stretch of the Embarcadero could look like is shaping up to be quite different from developers’ gauzy artistic renderings. Sue Hestor, a land-use lawyer, is a driving force behind a community-led meeting scheduled for June 24 at the headquarters of International Longshore and Warehouse Union Local 34 (the successor to ILA) to initiate a new approach to development along the western edge of the Embarcadero.

"Threatened demolition of the 1934 Waterfront Strike headquarters at 113 Steuart has pulled us together," Hestor wrote in a widely disseminated e-mail. "The community will proactively start defining changes we want. No more waiting for a developer proposal, then meekly responding. The community gets to define how the city should look … along the northeast waterfront. When you start at the Embarcadero it is possible to weave in so many areas, so many neighborhoods, so much of our political and immigrant and labor history."

ILWU members are joining with preservationists in the effort to preserve 113 Steuart. "We are at a historic moment when working people are under unprecedented attack," a team of six Local 34 leaders wrote in a recent statement opposing the demolition. "That living history is a prologue to our struggles of the future."

Not all labor unions agree. At a picket staged by San Francisco’s Building and Construction Trades Council outside a Democratic Party luncheon April 21, protesters carried a few flew signs reading "How can we feed our kids with history?" The signs referenced the city’s Historic Preservation Commission, but the same question might be asked of 110 The Embarcadero, which was favored by building-trade workers.

Neighborhood groups are also worried because the construction of the two proposed 84-foot condominium towers at 8 Washington could cause the adjacent Golden Gateway Tennis and Swim Club to lose half its facility. "Six hundred to 700 kids come every summer to learn to swim and to play tennis," Club director Lee Radner says. "To us, it’s just a matter of the developer not considering the moral issues of the neighborhood club that has given so much to the community." Friends of Golden Gateway (FOGG), which formed to preserve the club in the face of development, has hired Hestor as its attorney.

Because the development would be partially built on a surface parking lot controlled by the Port Commission, a parcel held to be in the public trust under state law, developers proposed a land-swap to get around provisions prohibiting residential uses in those parcels. Renee Dunn, a spokesperson for the Port Commission, noted that the Port’s annual revenues total $65 million, while the amount that would be needed for repairs and maintenance of its century-old infrastructure is almost $2 billion. In general, "Public-private developments provide the dollars needed to make improvements," she told us.

In the wake of concerns about 8 Washington, Board of Supervisors President David Chiu sent a letter to the Port Commission requesting an update to the waterfront plan for that area. "Concerns are currently being raised regarding the proposed development … and the future development of seawall lots along the northern waterfront, and I share many of these concerns," Chiu wrote. In response, the Port agreed to conduct a six-to-eight month focus study for those seawall lots.

Meanwhile, a quietly growing problem may mean that plans for this stretch of the Embarcadero will get more complicated. A report released in early April by the Bay Conservation and Development Commission predicts a 16-inch rise in the level of the San Francisco Bay by 2050, and a 55-inch rise by 2100, based on data from the Intergovernmental Panel on Climate Change. Along San Francisco’s waterfront, the most vulnerable area will be from Pier 35 to the Bay Bridge, the report found. "Sea-level rise has been linear, and it’s continuing, and we expect that based on what we know about climate change, it will accelerate," notes Joe LaClair of BCDC. In the event of storm surges, he adds, "we will have to find a way to protect the financial district from inundation."

As local governments begin to get up to speed on mitigating the effects of climate change, new questions — beyond developers’ plans vs. neighborhood input — will have to come into play. One that BCDC plans to tackle in coming months, LaClair notes, is: "What does resilient shoreline development look like?" It’s a good one to start asking now.

Blocking California’s sunshine: Proposed legislation would limit access to public information

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By Rebecca Bowe

cloudy sky.jpg

The California Public Records Act guarantees the right to be able to request government documents that are part of the public record. But proposed legislation heard today by the Assembly Judiciary Committee would restrict access in certain cases. The bill, titled AB 520 and introduced by Assemblywoman Wilmer Amina Carter (D-Rialto), would authorize a superior court to limit the scope of requests a member of the public can make if the court determines that the requestor is seeking information for an “improper purpose.” The text of the bill leaves the definition of “improper” open-ended, specifying only that it is “including, but not limited to, the harassment of a public agency or its employees.”

The bill is still in the early stages, but sunshine advocates are watching closely and weighing in. Californians Aware (CalAware), the California Newspaper Publishers Association (CNPA), and the Freedom of Information Committee of the Society of Professional Journalists Northern California Chapter have all come out against it. Letters of opposition pointed out that even without this new restriction in place, government agencies are often slow to release public records. “Every audit performed by Californians Aware, the California First Amendment Coalition, or CNPA member newspapers such as the Contra Costa Times or Stockton Record, has shown abysmal compliance with the law,” CNPA noted in a letter to Assemblywoman Carter.

Others characterized the proposed rule as an erosion of the principles of open government that are embodied in the state constitution. “The ultimate principle arguing against AB 520 is that like the right of speech itself … the right to obtain information found in public records is so fundamental to informed democracy that certain expressions of that right, while they may be deplored as an excess of license, must be tolerated as a cost of liberty,” CalAware’s opposition letter reads.

In the context of a new presidential administration that has professed a commitment to government transparency, and even delivered on it, AB 520 looks like a giant step backward.

Homeless rally against budget cuts at City Hall

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housing sign city hall 4 22.JPG

By Rebecca Bowe

Proposed cuts to homeless-services programs drew a crowd of around 200 homeless people and service workers to the steps of San Francisco City Hall this afternoon. The Coalition on Homelessness, the Mission Neighborhood Resource Center, Tenderloin Health, the SRO Collaborative and other organizations set up an outdoor drop-in center and handed out bagged lunches to rally participants. A line of tents that had been set up on the lawn was labeled as the city’s homelessness plan.

“These are not times to cut any services,” said Laura Guzman, director of the Mission Neighborhood Resource Center, which assists homeless people by providing case management, housing or shelter placement, and other needs. Her organization has seen some 1,500 additional visits per month since the recession hit, Guzman noted, and that they’re constantly at full capacity.

“There’s just not enough bed space to go around,” noted Mission Neighborhood Resource Center staffer Cyn Bivens.

Don’t drill here

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rebeccab@sfbg.com

GREEN CITY When U.S. Secretary of the Interior Ken Salazar looked out at a sea of faces during a San Francisco public hearing April 16, a band of activists dressed as polar bears, sea turtles, and other marine creatures stood out from the rest. Their message, also articulated by a host of federal and state-elected officials, was unequivocally clear: no new oil and gas drilling off the California coast.

Waving a thick document in the air, Salazar explained that he’d inherited a five-year plan from the Bush administration to award new leases for oil and gas drilling in the federally controlled outer continental shelf, which comprises some 1.7 billion underwater acres off the Atlantic and Pacific coasts, the Gulf of Mexico, and Alaska.

Rather than move the policy as planned, Salazar extended public comment for six months, met with stakeholders in each region, and placed greater emphasis on developing offshore renewable energy. The San Francisco public hearing was the last in a series of four that Salazar attended.

"One of the significant issues that is so important to President Obama is that we move forward with a new energy frontier," Salazar said. He advocated embracing offshore wind and other renewable alternatives as part of a "comprehensive energy plan going forward." Yet Salazar also indicated that future plans for the nation’s energy mix were "not to the exclusion of oil and gas," and mentioned that opportunities for "clean coal" technology should also be considered.

Under the five-year plan, three new leases are proposed off California’s coast — two in the south, and one in the Point Arena Basin, an underwater swath near Fort Bragg. Elected officials unanimously opposed any new offshore petroleum development. "Our state clearly is saying to you today, no," declared Sen. Barbara Boxer, chair of the Senate Environment and Public Works Committee. "Instead of putting our California coast and economy in jeopardy, we need to look at … green technology which will bring us new jobs."

Lt. Gov. John Garamendi sounded a similar note, saying the billions that would be invested in offshore oil could be put toward advancing clean energy. Rep. Lynn Woolsey (D-Petaluma) highlighted the risk of oil spills around the Point Arena Basin. "It could be turned from a wellspring of life into a death plume," she said. "This shimmering band of coast must be protected."

While nearly every testimony blasted new offshore oil development, the conversation brightened when Salazar asked for comments on renewable energy. According to estimates by the National Renewable Energy Laboratory, offshore wind in shallow areas could provide some 20 percent of the electricity needs of coastal states nationwide. Wave energy, while still under study, might one day generate enough electricity to power some 197 million homes per year, according to Department of the Interior estimates.

Most of the oil that could be extracted from the outer continental shelf would come from the Gulf of Mexico and Alaska, with some 10 billion barrels potentially available off the Pacific coast. Joe Sporano of the Western States Petroleum Association said offshore drilling could create jobs and limit dependence on foreign oil. Yet Boxer pointed out that, based on Energy Information Administration figures, drilling for oil across all areas would yield just 1 percent of the nation’s total oil consumption by 2030 — and it’s not believed to make a real difference in gas prices.

Richard Charter, government relations consultant with Defenders of Wildlife, seemed confident that California’s coast would be protected. "You have a new interior secretary for an administration that received California electoral votes … in a state that is pretty much single-minded in its position in terms of saving the coast," he said.

Charter’s optimism was helped by a recent federal appeals court ruling against the previous administration’s plan to award new offshore-drilling leases in the Arctic.

So now, "whatever Secretary Salazar does will have his own stamp on it," Charter said. "In each of these hearings, it’s become apparent that the Obama administration may be coming around to a new approach."

Public comment for the offshore leasing plan ends in late September. Salazar told reporters that he expects a decision by the end of the year.

San Franciscans say ‘hell no’ to new offshore oil leases

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By Rebecca Bowe

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Photo by Christopher Chin / COARE

U.S. Secretary of the Interior Ken Salazar was welcomed to San Francisco last Thursday by a host of activists dressed as marine creatures, including a few diehards in head-to-toe polar bear costumes who were probably becoming endangered species themselves by standing out in the sun. At a public hearing called to solicit comments about a federal plan for new offshore-oil development, environmentalists and elected officials demanded that the new interior secretary reject new leases for oil drilling off the California coast.

Sen. Barbara Boxer called new offshore oil drilling “an environmental and economic disaster for California” and called for investment in green alternatives instead. Her statements were echoed by a host of congressional representatives, Lt. Gov. John Garamendi, and speakers from organizations such as the Sierra Club, the Center for Biological Diversity and others.

The five-year leasing program was a parting gift from the Bush administration. Salazar put it on hold so that he could hear from stakeholders in coastal regions. He’s also shifted the focus from oil and gas exploration to possibilities for developing offshore renewable energy including wind, wave, and tidal power. But he noted that oil and gas development would remain on the table.

Look for the full story in the Guardian on Wednesday. In the meantime, the proposed plan can be found here. The Department of the Interior will accept public comments until September 21.

Energy deficiency

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More in this issue:

>>Fed money for green jobs?

>>Green living resource guide

rebeccab@sfbg.com

As the window of opportunity for averting the worst-case global warming scenarios narrows, wise use of energy seems increasingly urgent. So millions of dollars in state and federal funding and significant contributions from utility customers are devoted each year to improving energy efficiency in California.

It’s a crucial program designed to reduce consumption and planet-damaging emissions and eliminate the need for new fossil-fuel burning power plants. Yet the state’s energy-efficiency programs are often run by investor-owned utility companies, such as Pacific Gas & Electric, that have been missing efficiency targets yet demanding ever more public money anyway.

Critics say the programs would yield more energy savings on the dollar if local governments or nonprofits were in charge. The utilities have not only fought to maintain control of these programs, they’re now seeking even more taxpayer money by trying to claim federal economic stimulus funds.

Meanwhile, the San Francisco Public Utilities Commission is engaged in a long, slow process of rolling out an ambitious community choice aggregation (CCA) program, Clean Power SF, which would utilize 50 percent renewable energy and promote green technologies in the city.

While state law guarantees that energy-efficiency funding generated by San Franciscans could be funneled into Clean Power SF, it isn’t likely to happen without a fight from the state’s most powerful utility.

AN ‘A’ FOR EFFORT


Although PG&E and other utilities are entrusted with millions in ratepayers’ money to promote energy efficiency, independent analysis demonstrates that they’ve had limited success. But last December, they garnered rich rewards anyway, at ratepayers’ expense.

In 2007, the California Public Utilities Commission adopted a system to encourage utilities to strive for high energy efficiency standards. Utilities could receive hearty payouts for achieving a certain threshold of energy savings, the commission decided. Conversely, if the companies failed miserably, they’d be slapped with penalty fees. Rather than take the utilities’ word for it, the CPUC directed its Energy Division to inspect the companies’ energy efficiency program performance and report on it each year.

About a third of the funding for these programs is amassed with a mandatory fee on every ratepayer’s monthly energy bill, called the Public Goods Charge. This is combined with a second pot of ratepayer money and collected by utilities to fund initiatives such as rebates, light-bulb discounts, energy retrofits, and consumer-education drives. The program budget for all the utilities from 2006 through 2008 was around $2 billion. For the 2009 to 2011 program, the utilities are collectively seeking closer to $4 billion.

Last December, based on the utilities’ own claims that they’d hit the targets for the 2006 — 2007 program, the CPUC handed over nearly $82 million in incentive payments — with some $41 million going to PG&E. The commission accepted the utilities’ claims because the Energy Division’s verification report was behind schedule, and the utilities argued that this delay would postpone their payments and thus undermine the whole incentive.

At the same time, the commission noted, "We have profound concerns that accepting the [utilities’] proposal … would subject ratepayers to significant risk of overpayment." In an attempt to strike a balance, the CPUC voted to award $82 million rather than the $152.7 million that the utilities claimed they were owed.

But the independent report, which was finally released two months later, concluded that PG&E and two other utilities shouldn’t have been entitled to any incentive payments at all. Based on this analysis, they’d missed the targets.

The move drew criticism from groups like The Utilities Reform Network (TURN), Women’s Energy Matters, and the California Public Utilities Commission’s Division of Ratepayer Advocates, which charged that investor-owned utilities are more concerned about the payouts they receive for running these programs than maximizing energy savings.

"They didn’t seem troubled by the fact that they hadn’t met the goals. They were only troubled by the fact that they weren’t going to get the financial reward," said Mindy Spatt, communications director for the Utility Reform Network (TURN). "I suppose there’s a message in there about just how seriously they take energy efficiency."

Loretta Lynch, a former CPUC commissioner, told the Guardian that she’d been watching the proceedings closely. "They had already promised Wall Street they were going to get this money, and so they had to meet Wall Street’s expectations regardless of whether or not they met the technical requirements of the program," Lynch said.

The CPUC’s Division of Ratepayer Advocates opposed the decision to award the incentive money. "[The utilities] are being rewarded for something they say they’ve done, but that independent analysis shows they just didn’t do," DRA Regulatory Analyst Thomas Roberts told the Guardian. "It’s like rewarding a student for getting a D."

Part of the problem is that PG&E’s program relied heavily on giving away compact-fluorescent light bulbs, and then the utility inflated estimates for how much energy savings they would provide and how long they would last. In other words, CFLs are a good first step to energy conservation, but not enough to make the greatest strides in reducing demand.

Roberts also said PG&E often delivered the bulbs to what he called "free riders," or people who would’ve made the switch on their own. TURN once discovered a box of light bulbs posted on eBay by some crafty entrepreneurs who had purchased them at a discount, courtesy of PG&E. At that point, the bulbs could have wound up anywhere in the country, Spatt points out, instead of reducing electricity demand in California.

"There is no clear connection that we are not building new power plants due to energy efficiency programs," said Cheryl Cox, senior policy analyst and project manager for energy efficiency at the CPUC’s Division of Ratepayer Advocates. "And we do not appear to be on track to achieve long-term, persistent energy savings. Given the dependence of energy efficiency portfolios on short-term savings like lighting, it appears that the utilities would have to spend additional dollars to play catch-up — yet they persist on proposing the same old, non-progressive, CFL programs."

WHO’S IN CHARGE OF YOUR SURCHARGE?


For some, the incentive payouts provided new fuel for a longstanding argument that utilities shouldn’t be in charge of administering state-mandated energy efficiency programs in the first place. Barbara George, executive director of Women’s Energy Matters, points out that states with financially disinterested third parties managing energy efficiency measures tend to be more careful with the money they’re granted, resulting in more energy savings per dollar.

She points to a report completed by analyst Richard Estevez, which ranked 37 statewide energy efficiency programs by cost-effectiveness. "Non-utility implemented programs make up 18 out of the top 20 rankings; utility-implemented programs make up 15 out of the 17 poorest rankings," that report concludes.

Under the current system, "PG&E makes a profit on every dollar," says Lynch. "In addition, all of PG&E’s costs are covered. Then, of course, all the subcontractors’ costs are covered too, so it gets down to only 50 or 60 cents of every dollar that is actually going into programs. The rest of the money is going into PG&E’s profit, PG&E’s overhead, and the subcontractors’ overhead. Not surprisingly, if you’re a nonprofit or a government, you’re doing that service directly at no profit and lower administrative costs."

Paul Fenn, a consultant to Clean Power SF, sounds a similar note. In his view, PG&E "doesn’t want to reduce energy consumption. Why? Because every year, they go to their shareholders and they predict next year’s load growth. That’s their business. They burn gas, and they sell power. They’re a gas and electric company. The idea that a gas and electric company could be adequately incented to reduce their sales is naïve."

Fenn is the founder of Local Power, Inc. and the author of Assembly Bill 117 — a state bill passed in 2002 under the sponsorship of then-Assembly Member Carole Migden that allows municipalities to set up community choice aggregation programs. Local Power has been a key player in San Francisco’s own embryonic CCA.

AB 117 also gave cities the option to gain control of Public Goods Charge funds generated by their own ratepayers. In SF, that would mean funneling roughly $18 million annually into Clean Power SF’s energy efficiency budget.

Sup. Ross Mirkarimi, who chairs a committee overseeing the CCA implementation, told the Guardian he supports the idea. But he warned that the city probably wouldn’t be able to wrest the funding away from PG&E without a fight. "It’s completely appropriate for city government to be in charge of those funds," he says. "PG&E shouldn’t be in the driver’s seat with all that money anyway."

San Francisco is already hailed as a green city, but Clean Power SF, which has renewable energy as its centerpiece, would set a new standard for what cities can do to address climate change. The plan calls for 50 percent renewable energy, compared with PG&E’s energy mix of 11 to 12 percent renewable power. The SFPUC is slated to present CCA program plans to the state next year.

SFPUC’s Michael Campbell, the CCA program director, rejects the idea of going after Public Goods Charge funds just yet. "It’s premature to do that now," Campbell says. "About one-third of the energy efficiency dollars that PG&E collects … come from Public Goods Charge, and the other two-thirds are charges associated with procurement portions of customers’ bills. If a CCA were formed … to have an equal amount of dollars, we would need to have additional charges to CCA customers that would be associated with the energy portion of their bill."

Yet Fenn said applying to administer those funds is long overdue. Not knowing whether that $18 million is in place every year could derail the CCA bidding process, Fenn argues, since it would be difficult for prospective power suppliers to draft a plan if they lack clarity on the program budget.

The other problem, Fenn said, is that without the energy-efficiency funds, it would be harder for the city’s CCA to get its rates down low enough to compete with PG&E. Given the CCA is required to beat PG&E rates, it could make or break the success of the project.

"Energy efficiency is the cheapest resource," Fenn said. "It helps the economic feasibility of the portfolio by creating surplus revenue. If you’re just doing green supply, and not green load reduction, it’s going to be really hard not to pay more than PG&E."

BROUGHT TO YOU BY PG&E


While Clean Power SF lags, energy efficiency programs are percoutf8g throughout the city — usually touted by Mayor Gavin Newsom and funded through public-private partnerships with PG&E.

In a recent post on TriplePundit.com, Newsom announced the creation of an Existing Buildings Efficiency Task Force — composed of landlords, developers, PG&E, and other downtown interests — tasked with greening buildings and creating green jobs.

"The Task Force builds upon a great deal of work we’re doing already — taking full advantage of the $7 [million] to $11 million provided in energy efficiency block grants by the federal stimulus, leveraging our ongoing … partnership with PG&E, and working with private partners to create a San Francisco Clean Energy Fund," Newsom wrote.

A recent initiative to install energy efficient streetlights in the Tenderloin is the result of another PG&E partnership. While there’s no doubt that these programs will have positive results, they also serve to further entrench PG&E into citywide green initiatives, which render it more difficult for Clean Power SF to gain footing further down the road.

With federal stimulus money flowing into state coffers, the utilities are back at the table, recommending to the CPUC that some of the federal funding go into their existing energy-efficiency programs. "We believe that the Recovery Act or ARRA funds should work in conjunction with [investor-owned utility] programs to minimize potential customer confusion and leverage the success we have had with the programs," Marc Gaines, a representative for the state’s four investor-owned utilities, said during a recent All-Party CPUC meeting to discuss the stimulus funds. "Rather than competing with the programs, we would like to use ARRA funding to supplement existing energy efficiency [and other] programs."

Not so fast, countered George, who stood up to speak during the meeting. "We have to worry about if these funds are commingled with current programs, are the utilities going to rake off profits?" she wondered. "These funds need to be used for authorized purposes, and not for fraud, waste, error, and abuse. The energy efficiency programs have been used to fight public power and community choice efforts. The competition is brutal when it comes to the utilities."