(3) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence
activities or advertising. Fees for professional licenses necessary for employee job duties may be recorded to above-the-line accounts.
(c) Subdivision (1) Subject to paragraph (2), subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs: the costs of
appearing before governmental bodies, if these appearances are directly related to the electrical or gas corporation’s existing or proposed operations.
(1)(A)Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporation’s existing or proposed operations.
(B)For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporation’s existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:
(i)Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.
(ii)Rules or policies related to emissions of greenhouse gases or criteria air pollutants.
(iii)Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.
(2)The costs of the commission-approved energy efficiency
codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.
(2) For purposes of paragraph (1), costs of appearances before regulatory or other governmental bodies are directly related to the electrical or gas corporation’s existing or proposed operations if any of the following apply:
(A) The electrical or gas corporation is the applicant or respondent in the proceeding before the regulatory or other governmental body.
(B) The electrical or gas corporation’s appearance has been specifically requested by the regulatory or other governmental body.
(C) The electrical or gas corporation’s appearance directly relates to rules or regulations regarding the safe operation of the electrical or gas system.
(D) The electrical or gas corporation’s appearance is for Energy Commission-approved energy efficiency codes and programs or any other Energy Commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards if their participation has not otherwise been prohibited by the commission.
(d) (1) An electrical or
gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporation’s shareholders or ratepayers.
(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.
(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor
compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission. disclosed.
(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:
(A) A list of each employee job title.
(B) A job description of each listed employee job title sufficient to describe the employee’s responsibilities.
(C) The total annual compensation provided to each employee with a listed employee job title.
(D)The Uniform System of Accounts codes to which the compensation is recorded.
(D) The number of hours booked to an above-the-line account for each employee with a listed employee job title.
(E) The
percent of total annual compensation booked to an above-the-line account for each employee with a listed job title.
(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.
(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).
(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with
any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b).
(2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation.
(B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each
day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.
(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.
(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in into the Zero-Emission Equity Fund, which is hereby established in the State Treasury.
(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.
(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.