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Smart Voter
San Francisco County, CA November 4, 2008 Election
Proposition H
Setting Clean Energy Deadlines; Studying Options for Providing Energy; Changing Revenue Bond Authority to Pay for Public Utility Facilities
City of San Francisco

Charter Amendment - Majority Approval Required

Fail: 133,214 / 38.62% Yes votes ...... 211,681 / 61.38% No votes

See Also: Index of all Propositions

Results as of Jan 24 10:41am, 100.0% of Precincts Reporting (580/580)
Information shown below: Fiscal Impact | Yes/No Meaning | Arguments |

Shall the City: evaluate making the City the primary provider of electric power in San Francisco; consider options to provide energy to San Francisco residents, businesses and City departments; mandate deadlines for the City to meet its energy needs through clean and renewable energy sources; establish a new Office of the Independent Ratepayer Advocate to make recommendations about utility rates to the City's Public Utilities Commission; and allow the Board of Supervisors to approve the issuance of revenue bonds to pay for any public utility facilities without voter approval?

Fiscal Impact from City Controller:
Should the proposed Charter amendment be adopted, in my opinion, there could be costs and benefits to the City and County. The costs and benefits would vary widely depending on how the Public Utilities Commission (PUC) implements the amendment.

There will be estimated early costs of between $825,000 and $1.75 million for a comprehensive clean and renewable energy study which includes a workforce development component as specified by the amendment. The study would be funded through the rates and charges to current PUC energy customers.

The proposal requires studies of the costs and benefits of various approaches before a decision is made to pursue a particular energy strategy. The most significant cost or savings related to this or any similar power proposal would occur if the PUC, after reviewing the required studies, proposes to buy or build power generation and/or distribution facilities. There are several possible methods for costing the purchase or construction of power facilities and estimates range widely. Under any method, the amounts are certainly substantial--likely in the billions of dollars. The PUC would have the authority to issue revenue bonds to fund the costs of buying or building power facilities. Revenue bonds are paid for through the rates and charges to customers of the utility that issues them.

Other savings or costs to be considered would come from the avoidance of profits, or from the loss of taxes paid by private power companies that would not be incurred by a publicly-owned entity, and the relative value of labor contracts and other efficiencies that might favor public or private power providers. Specific savings or costs cannot be determined at this time for other proposed objectives under the amendment such as generating renewable energy and reducing greenhouse gas production.

Meaning of Voting Yes/No
A YES vote on this measure means:
If you vote "yes," you want to change the Charter to require the City to:
  • evaluate making the City the primary provider of electric power in San Francisco, including a comprehensive study of options for providing clean, secure, cost-effective electricity;
  • consider options to provide energy to San Francisco residents, businesses and City departments;
  • meet certain deadlines for serving energy needs through clean power sources;
  • establish a new Office of the Independent Ratepayer Advocate to make recommendations about utility rates to the City's PUC; and
  • allow the Board of Supervisors to approve the issuance of revenue bonds to pay for any public utility facilities without voter approval.

A NO vote on this measure means:
If you vote "no," you do not want to make these changes to the Charter.

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Arguments For Proposition H Arguments Against Proposition H
Yes on Prop H - The San Francisco Clean Energy Act

Prop H will make San Francisco a world leader in the fight against global warming. It mandates that the city switch to 100% clean, renewable and sustainable electricity.

And it won't raise taxes or cost the city a penny.

Prop H requires the city to use electricity generated from renewable sources such as solar and wind. The standards:

  • 51% clean electricity by 2017
  • 75% by 2030
  • 100% by 2040

That's far beyond what the State of California requires of private companies like PG&E + and far beyond what they can deliver. PG&E is supposed to produce 20% renewable electricity by 2010-- they won't/ can't even meet that modest goal.

Prop H requires a study to determine the best way to achieve the clean energy mandate. The city could decide to issue cost-neutral revenue bonds creating jobs to build renewable energy facilities to deliver sun and wind energy at lower rates than we currently pay to PG&E --all without raising taxes. If the study shows that the city should expand its energy business to all of San Francisco without risk to our credit or bond rating +the City would be free to pursue that option.

To protect consumers and make sure our electricity bills stay affordable, Prop H creates a truly independent Ratepayer Advocate.

Prop H will boost the green energy industry in San Francisco. It mandates green jobs training that will ensure good union jobs for local residents.

Publicly owned utilities all over California are leading the way toward renewable energy and selling electricity at lower prices than what San Francisco pays to PG&E.

Vote YES on Proposition H!

Sierra Club
San Francisco Democratic Party
Assemblymember Mark Leno
Aaron Peskin, President, Board of Supervisors
Supervisors Maxwell, Dufty and Mirkarimi
Susan Leal, Former SFPUC General Manager

Rebuttal to Arguments For
If Proposition H passes, the Board of Supervisors would have the power to issue Billions in revenue bonds to take over utilities
- Without a Vote of the People.

They claim "no cost to the taxpayers." But, the Controller's report shows this plan could cost "Billions." A takeover of just the electric utility will cost taxpayers approximately $20 million in lost taxes and fees; even the study they seek could cost more than $1 million.

They claim they will issue "cost-neutral" bonds. These bonds would be issued without voter approval and must be repaid by you. Hundreds or thousands of dollars more per year from your checkbook is not "cost neutral."

Proposition H promises "renewable power." But, the proponents have exempted themselves from enforceable state renewable standards. Under the proponent's own deceptive definition, the dirty fossil fuel burning power plants of Potrero Hill could qualify as "renewable." They define renewable only as not "nuclear" power.

The proponents say public power is cleaner. But some of the dirtiest power in California comes from the coal plants of Los Angeles' public system and other dirty public systems.

Our city should focus on cleaning the environment, decreasing the homicide rate, filling potholes and improving services - not buying and running a multi billion dollar utility.

Visit http://www.StopTheBlankCheck.com to learn more about the deceptive falsehoods in the proponent's argument and to read the facts for yourself.

Vote no on H — No Blank Check.

Supervisor Michela Alioto-Pier

PROPOSITION H TAKES AWAY YOUR RIGHT TO VOTE ON BILLIONS IN NEW BONDS.

This measure gives the Board of Supervisors and the San Francisco Public Utilities Commission the right to issue bonds in any amount without a vote of the people.

Just look at the actual language of the measure starting at Section 9.107 which states that "...no voter approval shall be required with respect to revenue bonds..." [issued to finance the takeover of utility facilities].

That means politicians and unelected commissioners will have the power to borrow billions to take over utilities and force you to pay the cost. If this measure passes, voters will not have another chance to vote on revenue bonds that could total many billions of dollars.

That is simply too much power to give to any group of elected and appointed officials.

The proponents hide this tremendous new power under a cloak of "green" rhetoric. But the core provision allows the Board and the SFPUC to take over utilities and make you pay for it with higher rates - without your approval.

Initial estimates show a public power takeover will cost at least $4 billion. In these tough economic times, the last thing San Franciscans need is to pay hundreds of dollars more each year to fund a power system takeover or any other utility takeover. And the "Green" rhetoric is hollow. In fact, a city-owned utility would be EXEMPT from enforceable state regulations mandating renewable energy.

Look beyond the promises and see what's really there: taking away your right to vote on billions in bonds and massive rate increases to fund this new borrowing.

Please join us in voting No on Proposition H.

Supervisor Michela Alioto-Pier*
Supervisor Sean Elsbernd
Supervisor Carmen Chu*
US Senator Dianne Feinstein
Mayor Gavin Newsom

  • For identification purposes only; author is signing as an individual and not on behalf of an organization.

Rebuttal to Arguments Against
Opponents want to scare you about Proposition H. The facts: San Francisco already pays billions and billions of dollars to an unaccountable, unelected corporation each year - called PG&E.

PG&E is actually going BACKWARDS in its use of renewable energy. With only 1% solar and 2% wind, they will never make the 20% renewables required by 2010. We can and must do better, now.

Publicly-run utilities like the Sacramento Municipal Utility District achieve much, much more -because they are accountable to residents, consumers and voters.

Proposition H will have accountability we will never get from PG&E - any revenue bonds issued must be approved by the Board, the Mayor, and satisfy requirements imposed by the Controller.

When did PG&E ask you - or anyone else - before they invested in dirty power like nuclear, coal, or liquefied natural gas? Where was the oversight when PG&E made the deal with Enron that ratepayers ultimately bailed out with $18 billion?

As our nation debates its energy future - with Republicans urging more offshore drilling and dependence on foreign oil -- San Francisco will lead the country by passing Proposition H.

Don't let PG&E hold us back with their scare tactics and misleading campaign. Join the broad coalition of San Franciscans who know we can and must do better.

Switch ON the clean energy. Vote YES on H.

Sierra Club
San Francisco Democratic Party
Assemblymember Mark Leno
Assemblymember Fiona Ma
Supervisor Bevan Dufty
Supervisor Ross Mirkarimi
Susan Leal, former SFPUC General Manager, former San Francisco Treasurer


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Created: January 24, 2009 10:41 PST
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