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 PG&E, our customers, and other 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 customers and coworkers, while adding value for 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 in 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 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 measures 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 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 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.

2024 milestones

Public policy issues at the state level

For the 2024 legislative session, the state legislature and Governor’s administration maintained many priorities from the prior year, along with a renewed focus on inflation and affordability. Highlights included: 

Affordability

• Climate Bond: The Governor placed a climate bond on the November 2024 ballot (Proposition 4) to address the growing need for major state climate investment. This bond could create new funding opportunities for PG&E and organizations in our hometowns.
• Affordability Package: The Governor called for a legislative package addressing utility customer affordability before the end of the 2023-2024 cycle. Two bills were signed into law:
  • AB 3264 (Petrie-Norris), which requires the CPUC to study and report on energy cost drivers.
  • SB 1420 (Caballero), which aims to streamline permitting for hydrogen generation, production, and usage in California.

Decarbonization

• Zonal Electrification: SB 1221 (Min) was signed into law and will provide a path for gas utilities to pilot neighborhood electrification projects and for the CPUC to relieve them of their obligation to serve gas to these piloted customers. We continue to work with partners on natural gas transition and zonal electrification opportunities and anticipate there will be ongoing discussions about these concepts in the 2025-2026 legislative session. 

Worker safety

• Worker Safety Awareness: PG&E once again collaborated with IBEW to support 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 2024 Integrated Energy Policy Report Update.

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 2024, federal policies—coupled with regulation—helped to facilitate further investment to address the growing threat of extreme weather and wildfires, innovation and energy development, 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 implementation of relevant Federal regulations, the Inflation Reduction Act (IRA), and the Infrastructure Investment and Jobs Act (IIJA):

• 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 EPA’s vehicle emissions rules. Additionally, PG&E advocated on behalf of California’s request for a waiver to implement and enforce its Advanced Clean Cars II regulations for light duty vehicles, which was granted in December. Throughout these efforts, PG&E advocated for regulations that support efforts to reduce greenhouse gas emissions while ensuring appropriate compliance flexibility. 
• PG&E worked with trade organizations and others to advocate for implementing the IRA tax incentives in a manner that best supports the climate and clean energy portions of this law to help hasten energy development and lower costs for customers. PG&E also submitted concept papers and applications for numerous grant opportunities arising from the IIJA.

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 energy safety net.

Political contributions

In 2024, PG&E-affiliated employee PACs (PG&E Corporation Employee EnergyPAC and We Power California – Pacific Gas and Electric Company Employees PAC) made contributions of $395,617 at the federal level and $6,400 at the state and local levels. PG&E contributed $5,240,844 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.

Political contributions, 2024

PG&E also discloses our policies and procedures regarding our 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, 2024¹ 

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.