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Public utilities

San Francisco's Comments on Priority Neighborhood Decarbonization Zones for Gas System Planning

Strategic Insights

— 1 min read

The City and County of San Francisco has submitted comments on the Public Utilities Commission's (PUC) proposed rulemaking to establish policies and rules for safe and reliable gas systems in California. The city's comments were made in response to the June 5, 2025, Administrative Law Judges' Ruling on Designating Priority Neighborhood Decarbonization Zones. San Francisco's goal is to achieve net-zero emissions by 2040, and it has implemented several successful decarbonization programs to support this goal.

Key Takeaways:

  • San Francisco supports preliminarily designating all census tracts with foreseeable pipeline replacement projects as Priority Neighborhood Decarbonization Zones (PNZs) to comply with the January 1, 2026, statutory deadline.
  • The city believes that more information is needed to evaluate the criteria for designating PNZs, including the presence of disadvantaged or low-income communities, environmental and social justice communities, availability of supportive local government or community partners, and concentration of gas distribution line replacement projects.
  • San Francisco agrees with the Gas IOUs' recommendations to keep the designation of PNZs broad for now, until the Commission has sufficient data to justify further restricting potential pilot locations.
  • The city supports the use of local equity metrics in addition to CalEnviroScreen DACs and CPUC-defined ESJ communities, when designating PNZs or assessing specific project proposals.
  • Local governments and organizations should be allowed to submit recommendations for PNZs and have meaningful opportunities to inform PNZ designations and pilot criteria.
  • The Commission should establish pathways for local governments and organizations to inform the establishment of PNZs and future pilot projects.

Statistics:

  • By 2040, San Francisco aims to achieve net-zero emissions.
  • 14 at https://www.sfenvironment.org/media/14441: San Francisco's Climate Equity Hub has been successful in implementing numerous decarbonization programs.
  • SB 1221 requires gas corporations to coordinate and collaborate with local governments and load-serving entities (among other entities) affected by the pilots.
  • PG&E acknowledges the importance of engaging local governments and organizations throughout the process of designating PNZs, developing the program structure, and implementing the pilot projects.

Sources:

  • San Francisco's Climate Action Plan 2021, p. 14 at https://www.sfenvironment.org/media/14441.
  • San Francisco's Climate Equity Hub, https://www.sfenvironment.org/campaigns/welcome-climate-equity-hub.
  • CleanPowerSF's Water Heater Upgrade Program, https://www.cleanpowersf.org/waterheater.
  • PUC Section 662(a).
  • PG&E Comments, p. 2-4.
  • Sempra Utilities Comments, p. 2-3.
  • Southwest Gas Comments, p. 2.

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