The San Francisco City Council convened on May 30, 2025, to discuss critical updates regarding capital planning, focusing on zero-emission vehicles (ZEVs), upgrades to the Tunnel Avenue facility, trash processing, and the Pier 96 Materials Recovery Facility (MRF).

The meeting began with a report on the status of ZEVs. It was noted that California's request for a waiver regarding emissions regulations has been rescinded, and there are indications that federal legislation may further restrict California's authority in this area. This development could delay the implementation of ZEVs, which are projected to incur an additional cost of approximately $400 million compared to traditional internal combustion engine vehicles. The council emphasized a strategy focused on low-cost compliance through light and medium-duty electric vehicles, while deferring heavy-duty vehicle investments due to higher technology risks.

Next, the council addressed the proposed upgrades to the Tunnel Avenue facility. An engineering study is currently underway to evaluate the costs associated with improving the truck yard and maintenance areas. The recommendation was made to approve initial study costs but to postpone funding for actual improvements during the current rate cycle.

The discussion then shifted to trash processing, where the council recommended allocating $400,000 through the current rate order for further due diligence on technology and procurement decisions. This funding aims to ensure that the city makes informed choices regarding trash processing technologies.

Lastly, updates on the Pier 96 MRF, operated by Recology, highlighted ongoing seismic and structural assessments. These studies will determine the costs associated with necessary repairs and potential upgrades to the facility. No funding was allocated in the current rate order for these improvements, as the assessments are still in progress.

In summary, the council's discussions revealed a cautious approach to capital planning, with a focus on minimizing immediate financial impacts while addressing significant future costs related to ZEVs, facility upgrades, and waste processing technologies. The outcomes of ongoing studies will be crucial in shaping future decisions and funding allocations.