Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Pacific Gas and Electric (PG&E) appears to engage on US climate policy with a mix of negative and positive positions, with an advocacy presence at the federal level and in California. The company demonstrates positive top-line messaging and has advocated for federal GHG emissions regulations, however it continues to advocate for measures to prolong the role of fossil gas. The company is a board member of the American Gas Association and California Chamber of Commerce, both of which actively oppose climate policies in the US.
Top-line Messaging on Climate Policy: PG&E has positive top-line messaging on climate policy. The company advocated for achieving a climate neutral economy by 2050 in its Climate Strategy Report released in June 2022. PG&E has consistently supported the Paris Agreement and released a January 2021 statement that celebrated the Biden Administration re-joining the agreement.
Engagement with Climate-Related Policy: PG&E appears to engage on a broad array of climate policies with mostly positive positions. At the federal level, the company signed a February 2022 joint letter that advocated to Congressional leadership to pass the clean energy tax credits in the Build Back Better Act. PG&E also actively supported federal energy efficiency measures: the company signed April 2023 joint comments and October 2022 joint comments in support of the Department of Energy’s proposals to raise the ambition of energy conservation standards for gas stoves and furnaces, respectively. Previously, PG&E signed a January 2022 joint merits brief to the Supreme Court that advocated for the court to uphold the Environmental Protection Agency (EPA)'s authority to regulate GHG emissions from power plants.
In California, PG&E submitted a joint proposal to the California Public Utilities Commission (CPUC) in March 2021 that appeared to advocate for weaker rooftop solar subsidies in the state’s Net Energy Metering Program. The company continued to advocate for the rollback, including in August 2022 and February 2022 Clean Energy for All Coalition letters. Following a final vote by the CPUC in December 2022, the updated NEM program took effect in April 2023, significantly reducing net metering credits for new rooftop solar customers.
Positioning on Energy Transition: PG&E appears to take a mix of positive and negative positions on the energy transition, and has advocated for measures to prolong the role of fossil gas. At the federal level, PG&E signed a May 2022 joint letter to the US House Committee on Appropriations that advocated for increased research and development funding toward fossil gas. In August 2023 comments with the Energy Strategy Coalition, the company pushed back on the ambition of the EPA’s proposed power plant rules and seemed to advocate for the agency to facilitate a long-term role for fossil gas. Following legal challenges to the finalized rules in 2024, however, PG&E signed an August 2024 joint document urging the Supreme Court to oppose applications for a stay of the final rules.
In California, PG&E has taken a mix of positive and negative positions on various decarbonization measures. While the company signed a December 2022 joint letter that advocated for the EPA to pass the Clean Air Act waiver allowing California and other states to adopt the Advanced Clean Truck rule, it also appeared unsupportive of the proposed Advanced Clean Fleets regulation in April 2023 comments. During the 2022 Scoping Plan update, PG&E submitted multiple comments, including June 2022 joint comments, that appeared to emphasize concerns with the ambition of the electrification proposals.
Industry Association Governance: PG&E discloses a list of its industry association memberships, however it does not appear to disclose its industry associations’ climate policy positions and engagement activities. PG&E serves on the board of directors for both the California Chamber of Commerce, which actively opposes a range of climate policies in the state, and the American Gas Association, which strategically advocates against measures to phase out fossil gas. According to its 2023 CDP report, PG&E also serves on the board for the Edison Electric Institute, which continues to promote a long-term role for fossil gas and strategically oppose the federal power plant rules.