1618(cc) Rulemaking for Renewable Energy Requirements

Background

Pursuant to Police Code, Article 16, Section 1618(cc), Every Cannabis Business shall ensure that the electrical power used for Commercial Cannabis Activities shall be procured from or produced by Greenhouse Gas Free and/or renewable sources, consistent with Renewable Energy Requirements to be adopted by the Director, in consultation with the Director of the Department of the Environment. In adopting Renewable Energy Requirements, the Director shall establish minimum renewable energy requirements that are consistent with the amount of renewable energy contained in CleanPowerSF's Green Service or are consistent with the zero Greenhouse Gas profile of a hydroelectric power supply. A Cannabis Business shall also provide to the Director and the Department of the Environment an annual report documenting the amount and source of energy consumed by the Business in the prior 12 months.

The following Renewable Energy Requirements and Implementation Rules are being proposed:

Definitions

The “Power Content Label” is used annually by Utilities and Community Choice Aggregators to demonstrate compliance with California’s Renewable Portfolio standard to the California Energy Commission.  http://www.energy.ca.gov/pcl/power_content_label.html#annual

The “Data Quality Checker” is a part of the ENERGY STAR portfolio manager, and serves an electronic tool designed to check for errors. 

Rules:

  1. Commercial Cannabis Businesses are required to ensure that the electrical power used for Commercial Cannabis activities are procured from sources that meet the City’s minimum requirements for renewable energy.
  2. This requirement may be met through one or any combination of the following:
    1. Participation in the San Francisco Public Utilities Commission (SFPUC) CleanPowerSF’s “Super Green” Service, or procurement from electricity suppliers that provide at least equivalent renewable energy, as determined by the Power Content Label reported to the California Energy Commission for the most recent available year;
    2. Participation in the SFPUC’s Hetch Hetchy hydroelectric power supply;
    3. Onsite renewable energy generation;
  3. To comply with the requirements outlined in Article 16, San Francisco Commercial Cannabis Businesses shall annually submit an Annual Benchmark Summary to the Department of Environment using the US Environmental Protection Agency’s ENERGY STAR Portfolio Manager.
    1. Collect and enter energy usage data in the ENERGY STAR Portfolio Manager on a monthly basis, and
    2. Verify information by running the Portfolio Manager ‘Data Quality Checker’ or an equivalent approved by the Director of the Environment, and
    3. Report the facility’s energy use through ENERGY STAR Portfolio Manager utilizing a reporting hyperlink provided by the Department on the Environment.
  4. No later than March 1, annually, Commercial Cannabis Businesses are required to submit to the Department of Environment
    1. An Annual Statement of Sources of Electricity, which shall include, but may not be limited to:
      1. identification of the electricity provider,
      2. type of product procured, and
      3. a description of onsite renewable energy generation
  5. An Annual Energy Benchmark Summary
    1. This report must be generated and submitted through ENERGY STAR Portfolio Manager utilizing a reporting hyperlink provided by the Department of the Environment.

Waiver Request

  1. The Director, in consultation with the Director of the Department of Environment, may waive such penalties on a case by case basis if the Commercial Cannabis Business demonstrates to the Director’s satisfaction that compliance with this rule is not possible. 
    1. A Commercial Cannabis Business wishing to request a waiver is responsible for filing in writing a request to the Office of Cannabis and this request shall include the reason for which the business is unable to meet the requirements set forth in this rule.
    2. The Office of Cannabis, in consultation with the Department on the Environment, shall review the Commercial Cannabis Business’ request for a waiver and notify the Commercial Cannabis Business if the waiver is approved or denied.

Compliance with Permit Conditions

  1. Failure to annually demonstrate that the Commercial Cannabis Business is procuring the appropriate levels of renewable electricity, or to annually report total energy use as described above, is a violation of a permit condition as set forth in Police Code Sections 1612, 1615, and 1617, and other applicable laws.

 

Sharing your comments with the Office of Cannabis
Any person may submit written comments or arguments relevant to the proposed rules during the comment period. If you have questions or want to submit written comments or arguments, email officeofcannabis@sfgov.org.

In addition to submitting by email, written comments may be submitted by U.S. mail or in person to:

Office of Cannabis
San Francisco City Hall
1 Dr. Carlton B. Goodlett Pl. Room 018
San Francisco
CA 94102-4685

Office hours
1:00 - 5:00pm
Monday to Friday