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(a) Low Carbon Fuel Standard Credits Sales.
(1) The San Francisco Municipal Transportation Agency (“SFMTA”) uses greenhouse gas-free electric energy provided by the San Francisco Public Utilities Commission (“SFPUC”) to operate its electric public transit fleet, consisting of electric trolley buses, cable cars, light rail vehicles, and, in the future, battery-powered electric buses.
(2) In Assembly Bill 32, entitled the Global Warming Solutions Act of 2006, the Legislature required California to reduce its greenhouse gas emissions to 1990 levels by 2020. In 2009, at the direction of then-Governor Schwarzenegger, the California Air Resources Board adopted Low Carbon Fuel Standard (“LCFS”) regulations to partially implement Assembly Bill 32 (“LCFS Regulations”). Under the LCFS Regulations, transportation providers that use fuels with a carbon intensity (or greenhouse gas emissions) lower than the State target generate LCFS credits that can be sold.
(3) The SFMTA accumulates credits that can be sold to fuel producers, because the SFMTA operates its electric public transit fleet with a carbon intensity (or greenhouse gas emissions) below the State target. As of 2019, the SFPUC has agreed to take responsibility for the sales of those credits. It is possible that other agencies of the City and County of San Francisco might also accumulate LCFS credits and that the SFPUC might assume responsibility for the sales of those LCFS credits.
(b) Establishment of Fund. The Low Carbon Fuel Standard Credits Sales Fund is established as a category eight fund to receive, and account for the expenditure of, proceeds from the sale of Low Carbon Fuel Standard credits by the SFPUC.
(c) Use of Fund.
(1) Money in the Low Carbon Fuel Standard Credits Sales Fund shall be used first to reimburse the SFPUC and the SFMTA for any expenses they incur to sell Low Carbon Fuel Standard credits. After expenses, the SFPUC and the SFMTA will share equally in the net revenues from such sales. The SFPUC will use its share of the net revenues to support general operations that reduce the City and County of San Francisco’s carbon footprint and/or advance its sustainability goals. The SFMTA intends to use its share to advance the SFMTA’s sustainability and climate action initiatives and goals.
(2) In the event that any other City agencies accumulate LCFS credits, and that the SFPUC takes responsibility for the sale of those LCSF1 credits, funds from those sales may also be received in the Low Carbon Fuel Standard Credits Sales Fund for distribution by the SFPUC to those other City agencies. In that event, the SFPUC and those other agencies will determine how to share the proceeds.
(d) Administration of Fund. The SFPUC will administer the Low Carbon Fuel Standard Credits Sales Fund. The General Manager of the SFPUC shall submit an annual written report to the Board of Supervisors and the Controller: (1) specifying the number of Low Carbon Fuel Standard Credits sold during the previous fiscal year, the price received for each credit, and the total amount of the sales; and (2) describing the expenditures made from the Low Carbon Fuel Standard Credits Sales Fund during the previous fiscal year.
(Added by Ord. 199-19, File No. 190656, App. 8/9/2019, Eff. 9/9/2019)