Resolution retroactively authorizing the Department of the Environment (“Environment Department”) to accept and expend a grant award from TECH Clean California in the amount of $299,091 for the period beginning on or about January 20, 2026, through March 31, 2027, to provide heat pump water heaters as part of renovation and repair projects through Low-Income Investment Fund’s Child Care Facilities Fund and to expand the reach of electrification training to organizations and contractors working in housing rehabilitation programs; and authorizing the Director of the Environment Department to execute the grant agreement and enter into amendments or modifications to the grant agreement that are necessary to effectuate the purpose of the grant agreement and/or this Resolution.

This resolution retroactively authorizes the San Francisco Environment Department to accept and expend a $299,091 grant from TECH Clean California. The grant period is from January 20, 2026, through March 31, 2027, with all fieldwork required to be completed by December 31, 2026. Retroactive approval is sought due to the immediate need to begin work to meet the strict grant timeline.

Program Details:

• Heat Pump Water Heaters (HPWH): The grant will fund HPWH installations in up to 30 family childcare provider facilities in San Francisco, partnering with the Low-Income Investment Fund (LIIF) through its Child Care Facilities Fund. These facilities are residential-based and often serve low-income and disadvantaged communities.
• Contractor Training & Workforce Development: The program includes $30,000 in stipends to incentivize new and veteran contractors to complete HPWH training and participate in mentorships, expanding the reach of electrification training to organizations and contractors in housing rehabilitation programs.
• Funding Allocation: The $299,091 grant includes $157,500 for labor, equipment, electrical work, and permitting fees for installations, $111,591 for Environment Department staff management, and $30,000 for contractor stipends. An additional $157,500 in leveraged funding from the Department of Energy and BayREN will also support the project.

Impact: The initiative aims to improve indoor air quality for children and families, reduce energy bills, prepare contractors for new electrification regulations, and establish a scalable model for integrating clean energy upgrades into existing rehabilitation programs, with an estimated 75% of resources directed to underserved communities.