SFPUC bumps green infrastructure grant cap to $1.12m per acre amid inflation

SFPUC bumps green infrastructure grant cap to $1.12m per acre amid inflationThe San Francisco Public Utilities Commission has approved updates to its Green Infrastructure Grant Program, increasing the maximum payout per impervious acre managed and extending the General Manager’s delegated authority through June 2030 to sustain long-term stormwater capture targets.

The maximum grant award per impervious acre managed will increase from $1,035,000 to $1,120,000 to cover rising design and construction costs.

SFPUC aims to manage 1 billion gallons of stormwater annually by 2050 and is currently one-third of the way to its target.

The General Manager's delegated authority to enter into 20-year grant agreements will be extended for four years, bypassing the previous two-year renewal cycle.

The program, funded through the Wastewater Capital Plan, has awarded roughly $30 million of its $61.3 million allocation to 29 projects since 2019.

The San Francisco Public Utilities Commission (SFPUC) has unanimously approved modifications to its Green Infrastructure Grant Program, escalating the maximum funding threshold per acre to counter construction cost inflation. During a February 24 meeting, Willis Logsdon, a Senior Watershed Planner in the Wastewater Enterprise, detailed that the maximum cost per acre managed will rise from $1,035,000 to $1,120,000. This follows previous adjustments to keep pace with rising costs, including a bump from $930,000 per acre in early 2024. The $2.5 million maximum overall grant per project will remain in place, with design and administrative costs strictly capped at 30% of the total. The grant program is a core component of SFPUC's strategy to manage 1 billion gallons of stormwater annually by 2050, representing about 10% of the city's average annual rainfall. Logsdon confirmed the agency is currently one-third of the way to this target. Since its launch in 2019, the program has targeted large impervious areas—requiring a minimum drainage area of half an acre—awarding approximately $30 million to 29 projects, including public and private schools, parks, housing, and recently eligible public right-of-way projects. Under the program's constraints, funded projects must begin construction by June 2028. Nine projects have been completed, and another nine are currently in construction. Together, the active and completed projects will manage about 18 million gallons of stormwater each year. The program is funded through the Wastewater Capital Plan, which has a total allocation of $61.3 million. Recognizing the program's maturity, the commission endorsed extending the General Manager's delegated authority to enter into 20-year grant agreements for a minimum of four years, through June 2030. Previously, this authority was renewed on a two-year cycle. The General Manager is also now authorized to adjust the maximum grant award annually based on the San Francisco Annual Infrastructure Construction Cost Inflation Estimate. Addressing questions from Commissioner Thurlow about scaling the program, Logsdon indicated that while regulatory compliance for new developments drives the bulk of the 1-billion-gallon goal, the grant program aims to tap into new areas like commercial properties. To lower barriers for commercial participants, the modifications also authorize the General Manager to explore alternatives to strict deed restrictions, such as 20-year maintenance agreements. Kieran Farr, a ratepayer and Sierra Club representative, noted during public comment that existing deed restrictions have historically deterred commercial properties because lenders view them as impacting assessed property values.