748.3.
(a) For purposes of this section the following definitions apply:
(1) “Above-the-line
account” means an account that contains expenses that an electrical or
gas corporation recovers from ratepayers, including an account that
contains expenses that the electrical or gas corporation used to
calculate a revenue requirement request in its most recent general rate
case.
(2) (A) “Advertising”
has the same meaning as set forth in subdivision (a) of Section 796 and
public messages that tend primarily to build the public image of an
electrical or gas corporation.
(B) “Advertising” does not include either of the following:
(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.
(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.
(3) “Below-the-line
account” means an account that contains expenses that an electrical or
gas corporation does not recover from ratepayers.
(4) “Expense”
includes a payment to an external entity, a cost incurred by a parent
company or corporate affiliate and invoiced to an electrical or gas
corporation, and the salary paid to an employee of an electrical or gas
corporation.
(5) “Political influence activity” means any of the following:
(A) An activity for the purpose of directly or indirectly influencing either of the following:
(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.
(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.
(B) An
activity for the purpose of directly or indirectly influencing
elections or referenda, or appointments of public officials.
(C) An
activity for the purpose of directly or indirectly influencing the
approval, modification, or revocation of franchises of electrical or
gas corporations.
(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:
(i) Legislation, regulations, or ordinances.
(ii) Elections.
(iii) Referenda.
(iv) Rate setting of the electrical or gas corporation.
(E) An
activity for the purpose of directly or indirectly influencing the
decisions of federal, state, or local government officials.
(6) “Public
official” means a decisionmaker within an administrative agency or
legislative body at the local, state, or federal level, and the staff
that support the decisionmaker’s policy development.
(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:
(1) Record an expense associated with political influence activities or advertising to an above-the-line account.
(2) Record
to above-the-line accounts any salary, bonus, benefits, or other
consideration of any value for any employee, if any portion of that
salary, bonus, benefits, or other consideration of any value supports
political influence activities or advertising.
(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.
(4) 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.
(c) Subdivision
(b) does not prohibit an electrical or gas corporation from recovering
from ratepayers either of the following costs:
(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.
(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.
(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.
(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 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.
Riechel
Reports - Events
- City
of San Bruno CA