Public policy engagement

As a regulated energy provider, PG&E’s business is guided by public policy at the local, state, regional, and national levels. We participate in the political process on policy matters that are important to both PG&E and our stakeholders, as these policies play a significant role in how we deliver safe, reliable, affordable, and clean energy.

Our approach

PG&E advocates for public policies that help us to better meet the needs of our customers and coworkers, while adding value for our shareholders and furthering our efforts to serve the planet. 

Much of our public policy work, including engagement with elected officials and policy makers, is done in collaboration with trade organizations such as the Edison Electric Institute, the American Gas Association, the Interstate Natural Gas Association of America, the Nuclear Energy Institute, and the National Hydropower Association as well as other organizations such as the Natural Resources Defense Council, the Alliance to Save Energy and the Zero Emission Transportation Association. We also partner with the International Brotherhood of Electrical Workers (IBEW) and the International Federation of Professional and Technical Engineers (IFPTE) Local 20 and other labor organizations on national energy policy, and with the IBEW Local 1245, the California Coalition of Utility Employees, the California Council for Environmental and Economic Balance, and other electric or gas energy providers on state energy policy.

California climate and clean energy advocacy

We’ve set bold climate commitments, including a goal to achieve a net zero energy system by 2040, and have adopted Climate Policy Principles that guide us on the path to achieving our climate goals.

We’re also working to support California’s implementation of its goal to achieve economy-wide carbon neutrality by 2045. This includes actively participating in the California Air Resources Board’s (CARB) efforts to update the state’s Cap-and-Trade program¹ and Low Carbon Fuel Standard program to align with the state’s 2022 Scoping Plan, as well as competitively procuring renewable energy resources to comply with the CPUC’s rulemakings on the Renewables Portfolio Standard and Integrated Resource Planning.

We also remain focused on other measures such as adoption and implementation of the state’s Advanced Clean Fleets regulation to reduce transportation sector emissions from medium- and heavy-duty truck fleets, including our own. PG&E also supports California’s stringent tailpipe emissions standards, as well as efforts to advance EV adoption by providing state and federal tax incentives and support for charging infrastructure.

Guided by our Environmental and Social Justice Policy, PG&E also supports CARB’s Community Air Protection Program, which provides funds for select communities to develop community air monitoring plans, emissions reduction programs, or both to improve air quality in their community. 

1. California’s cap-and-trade program sets a declining cap on greenhouse gas emissions covering about 80% of California’s emissions, including most greenhouse gas emissions from PG&E’s electric and natural gas businesses. The program requires covered entities such as PG&E to hold compliance instruments (i.e., allowances and offsets) equal to their covered greenhouse gas emissions and establishes markets for such compliance instruments through which a price on carbon emerges.

Board governance

The Sustainability and Governance Committee of the PG&E Corporation Board of Directors maintains oversight of public policy matters. The Executive Vice President of Corporate Affairs and Chief Sustainability Officer of PG&E Corporation leads the development and implementation of PG&E’s public policy activities.

The Sustainability and Governance Committee reviews PG&E’s political contributions program. The PG&E Corporation and Pacific Gas and Electric Company Boards of Directors establish management approval limits for political contributions from PG&E to candidates, measures, initiatives, corporate political action committees, and certain other organizations that may engage in political activity. The Sustainability and Governance Committee also directs the preparation of an annual report detailing political contributions made by PG&E during the preceding year.

Political contributions

PG&E Corporation and its affiliates and subsidiaries are committed to fully complying with all applicable federal, state, local, and foreign political laws, and to maintaining the highest ethical standards in the way we conduct our business.

PG&E makes corporate political contributions to:

• Candidates for state and local office,
• Political action committees (PACs),
• Political parties and other organizations that engage in voter registration and similar activities that encourage citizen involvement in the political process, and
• Nonprofit organizations, including those formed under Sections 501(c)(4), 501(c)(6), and 527 of the Internal Revenue Code for purposes of supporting these organizations’ political activities.

Along with civic, charitable, and volunteer activities, coworkers can participate in PG&E’s political engagement. All eligible coworkers may make voluntary contributions to the following PACs: PG&E Corporation Employees EnergyPAC and We Power California - Pacific Gas and Electric Company Employee PAC. PAC contributions go directly to support candidates for elective office and political parties at the federal, state, and local levels, as well as other political action committees. By law, PG&E cannot use corporate funds to make contributions to federal candidates.

2023 milestones

Public policy issues at the state level

In 2023, the California legislature transitioned from setting ambitious climate goals in 2022 to considering how these goals will be met. Highlights of PG&E’s advocacy included: 

Affordability

• Capacity and Energization: The legislature enacted SB 410 into state law effective January 1, 2024. In response to service planning disruptions and capacity challenges, PG&E advocated for the bill, which requires developing timelines for customer energization and provides a funding mechanism for emerging building electrification and EV-related energization costs. The outcome garnered broad support from labor, business, and the environmental community.
  
• Customer Affordability and Non-Traditional Funding: PG&E advocated for customer affordability by sponsoring legislation to provide state funding for public purpose programs and authorize securitization of vegetation management expenses. While these bills were not enacted, PG&E is continuing to pursue these issues in the legislature.
• Central Procurement Entity: PG&E advocated for AB 1373, designed to address long term gaps in renewable and zero carbon energy supply. If enacted, the bill will allow the CPUC and Department of Water Resources (DWR) to establish a limited central procurement function that leverages state funding for long lead time renewable and zero carbon energy resource contracts. Also, DWR can leverage existing utility expertise for solicitation, contract negotiation, and administration activities, subject to reimbursement. 
  

Decarbonization

• Zero Emission Vehicles and Zonal Electrification: PG&E worked with a broad coalition to secure the reauthorization of zero emission vehicle funding via AB 126 and educated the legislature on gas transition and zonal electrification concepts. We continue to engage in these concepts in the 2024 legislative session.

Worker safety

• Worker Safety Awareness: PG&E collaborated with IBEW to introduce legislation that would require the CPUC to launch an education campaign about utility worker safety. While the bill did not continue through the legislative process, we will continue to pursue this issue and other opportunities to ensure worker safety.

We also supported the California Energy Commission’s 2023 Integrated Energy Policy Report Update, which focused on equity, environmental justice, and improved inclusion of tribes in the state’s energy planning processes.

Public policy issues at the federal level

We support federal policies that promote smarter energy infrastructure, including making the power grid and natural gas delivery system more dynamic, resilient, and secure for all.

In 2023, the right federal policies—coupled with smart regulation—helped to accelerate this transformation by facilitating further investment to address the growing threat of extreme weather and wildfires, innovation and clean energy, infrastructure modernization, and expansion, and ensuring financial resources remained available to customers struggling to pay their utility bills.

PG&E engaged with federal agencies, trade organizations, and others to advocate for sound implementation of relevant Federal regulations, the Inflation Reduction Act (IRA), and the Infrastructure Investment and Jobs Act (IIJA):

• Federal Regulations: PG&E engaged in advocacy related to implementing several Federal regulations, including the Environmental Protection Agency’s (EPA) 111(d) power plant greenhouse gas emissions regulations, EPA’s Methane Rule, and the Federal Highway Administration’s vehicle emissions rules. Throughout these efforts, PG&E advocated for regulations that support efforts to reduce greenhouse gas emissions while ensuring appropriate compliance flexibility. 
• IRA: The legislation includes significant extensions and additions of tax incentives pertaining to clean energy, energy efficiency, clean transportation, and advanced manufacturing. PG&E worked with trade organizations and others to advocate for implementing these tax incentives in a manner that best supports the climate and clean energy portions of this new law to help hasten the clean energy transition and lower costs for our customers.
• IIJA: PG&E submitted concept papers and applications for numerous grant opportunities arising from the IIJA. Of note, PG&E was successful in being awarded credits valued at up to $1.1 billion from the U.S. Department of Energy’s Civil Nuclear Credit program. This award allows Diablo Canyon Power Plant to continue operation beyond the prior dates of decommission. Additionally, PG&E was a partner applicant to a successful $38 million grant award for Advanced Solutions for Wildfire Mitigation. PG&E expects to submit additional applications throughout 2024.

PG&E worked to deliver for our hometowns by supporting increased financial resources to protect struggling American families, while ensuring these funds were distributed expeditiously in California. The federal government continued substantial funding of the Low Income Home Energy Assistance Program (LIHEAP), an important American energy safety net.

Other areas of focus at the federal level include:

• Infrastructure Modernization, including creating the grid of the future in a reliable manner, while adapting to the increasing risks that climate change, wildfires, and cyber threats pose to our system.
• Diversity, Equity, Inclusion, and Belonging, which shapes our policy advocacy.
• Clean Energy and Carbon Reduction policies that meet ambitious environmental goals, while remaining affordable, adaptable, and compatible with existing local and state programs.
• Expansion of Public-Private Partnerships between key federal agencies and utility providers which aim to ensure that the nation’s energy system operates as safely and effectively as possible.

Political contributions

In 2023, PG&E-affiliated employee PACs (PG&E Corporation Employee EnergyPAC and Pacific Gas and Electric Company State and Local PAC) made contributions of $448,383 at the federal level. PG&E-affiliated employee PACs did not make any contributions at the state or local levels. PG&E contributed $2,971,100 to state and local political candidates, ballot measures, political parties, and other committees. Our annual political contributions are publicly reported on PG&E Corporation’s website.

PG&E also discloses its policies and procedures regarding its lobbying activities and trade association payments, including the portions of any annual trade association membership dues over $50,000, to the extent those dues are used for lobbying purposes.

Trade association dues, 2023¹

1. Represents the portion of membership dues to trade associations that was nondeductible under Section 162(e)(1) of the Internal Revenue Code. Includes trade associations that received annual membership dues over $50,000. The reported amount is based on information provided by the trade associations to PG&E Corporation and Pacific Gas and Electric Company.