Item 5 Update – Amended Resolution 2025-40 Exhibit A
IT8 – Artificial Intelligence (AI) Acceptable Use Policy The October 16, 2025 Board of Directors agenda packet was posted on October 10, 2025.
The agenda packet included Item 5, Adopt Resolution Approving Artificial Intelligence Acceptable Use Policy (IT8).
The Board of Directors adopted Resolution 2025-40 Approving Artificial Intelligence Acceptable Use Policy (IT8) as amended.
The following amendments were requested by the Board of Directors:
1) Section Headings Correction
Sections V and VI previously shared the same heading “DISTRIBUTION”. Section V was corrected to read “ENFORCEMENT”.
2) Clarification of Redundant Language
In Section IV, Item B, two bullet points were identified that share the same idea regarding impersonation using AI technologies.
The bullet point:
“Using AI to fabricate data, impersonate individuals, or misrepresent facts.” Was revised to:
“Using AI to fabricate data or misrepresent facts.”
The bullet point:
“Creation of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment is strictly prohibited. Use of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment, other than using it as evidence in or as part of an administrative investigation, is strictly prohibited.” Was revised to:
“Creation or use of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment is strictly prohibited, except when using it as evidence in or as part of an administrative investigation.”
3) Definition Relocation and Section Renumbering
In Section IV, Item B, the bullet point defining “deepfake” was removed. A new section, Section II DEFINITIONS, was added to include this definition.
As a result, all subsequent sections were renumbered accordingly.
Amendments to the Policy are complete and are attached as follows:
1) Redline version showing amendments made to Item 5 – Artificial Intelligence (AI) Acceptable Use Policy
2) Final version complete with amendments made to Item 5 – Artificial Intelligence (AI) Acceptable Use Policy
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Category: Information Technology
ARTIFICIAL INTELLIGENCE (AI)
ACCEPTABLE USE POLICY
I. PURPOSE
The purpose of this policy is to establish clear guidelines for the secure use of Artificial Intelligence (AI) tools at Pioneer Community Energy. While Pioneer encourages the use of AI to enhance productivity, creativity, and innovation, staff are expected to respect privacy, protect confidential information, and follow organizational cybersecurity standards.
II. DEFINITIONS
Deepfake - An image, video, or audio record that has been digitally altered to replace one person's likeness with another person, or a computer-generated image or video of a person doing or saying something the person was not actually recorded or photographed as having done or said.
ff.III. BACKGROUND
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AI tools, including large language models (LLMs), code assistants, automation tools and chatbots, offer powerful capabilities to enhance work processes. These tools can support research, content generation, customer service, and operational efficiencies.
However, they also introduce risks related to data privacy, accuracy, and unauthorized disclosure of sensitive information.
This policy provides staff with guidance for the safe and secure use of existing and future AI tools, especially where sensitive company or customer information is involved. All use of AI tools must align with Pioneer's Information Systems Acceptable Use Policy and broader cybersecurity practices.
Adopted: Octner October 16,
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HI.IV. SCOPE
This policy applies to all Pioneer Staff that have access to the organization's Information Resources.
Pl-:~POLICY
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Pioneer staff may use Artificial Intelligence (AI) tools in support of business productivity, innovation, and operational efficiency, under the following conditions:
A. Permitted Use
All outputs produced by AI tools must be reviewed and validated for accuracy, tone, bias, and context by Pioneer staff before distribution or use in official business decisions. AI tools may produce erroneous or nonsensical information or results that are not real, do not match any data the algorithm has been trained on, or follow no other discernible pattern. In addition, the results may reflect biased or incomplete data sets on which the AI tool was trained. AI tools must not be used blindly for decision making and/or the creation of content and must never be solely relied upon for important inquiries.
Staff must label all text-based content and audio and visual media they created using AI as having been generated using AI regardless of modifications. Labels must be clearly visible to members of the public reviewing the content.
Example label:
"This document may have been drafted with support from AI-based tools, consistent with Pioneer's policy on the use of artificial intelligence. All information represented in this document has been reviewed by Pioneer staff."
Informal correspondence between Pioneer staff, such as emails, does not need to be labeled as having been created using AI.
Adopted: Octner October 16,
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Pioneer staff may only use Pioneer email addresses, phone numbers, or other Pioneer credentials, and not personal credentials, to create an account with AI services for use in their Pioneer work.
Pioneer staff may use AI tools to support business functions that include:
• Drafting content such as reports, presentations, and emails • Summarizing large public datasets or public documents • Assisting in generating code, formulas, or templates
• Automating repetitive tasks
• Translating text or improving grammar, tone, or clarity B. Restricted and Prohibited Use
Any information provided to a public AI tool is equivalent to making that information broadly available to the public.
The following activities are strictly prohibited:
• Submitting personally identifiable information (PII) or confidential data, including customer and employee data, into AI tools, particularly cloud-based or public platforms that can retain data.
• Uploading internal Pioneer documents, proprietary
business data, or system credentials into AI platforms, unless the tool has been formally approved by IT Support. • Using AI to fabricate data_, impersonate individuals, or misrepresent facts.
• Relying on AI tools as the sole basis for regulatory
compliance, public communications, legal determinations, or final decision making.
• Using AI tools to generate offensive/discriminatory
content.
• Using AI tools to discriminate against an applicant or employee based on a characteristic protected by state or federal law, for the purposes of hiring or making other Adopted: Octner October 16,
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personnel decisions. AI tools may be used for the purposes of hiring or making other personnel decisions only upon anti-bias testing of the AI tool, or other similar proactive efforts to avoid unlawful discrimination.
• A "deepfake" is an image, video, or audio record that has been digitally altered to replace one person's likeness with another person, or a computer generated image or video
of a person doing or saying something the person was not actually recorded or photographed as having done or said.
Creation or use of "deepfake" images, video, or audio for Pioneer work or on Pioneer resources or equipment is
strictly prohibited . Use of "deepfake" images, video, or audio for Pioneer ·work or on Pioneer resources or
equipment, other thancxcept when using it as evidence in or as part of an administrative investigation, is strictly prohibited .
C. Security and Approval
• AI services that access or process Pioneer data must be evaluated and approved by IT Support prior to use.
• Staff must not bypass security protocols, store sensitive data in unapproved AI applications, or disable protections (e.g., firewalls, malware detection).
• If Pioneer staff become aware of an instance where an AI system has caused harm or poses a risk of causing harm, such as compromising data security, violating privacy,
producing discriminatory or biased outcomes, or otherwise disrupting business operations, they must promptly report the issue to their supervisor and IT Support.
• All staff AI searches must be in "incognito" mode or "opt out" or other similar mode to prevent the AI tool from
retaining or using the information provided for the tool or service's use in any manner, including to train or improve the AI tool or service, or to share the information with any third party.
Adopted: Octner October 16,
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D. Monitoring and Oversight
• All AI activity using Pioneer Information Resources may be subject to audit or monitoring to ensure compliance with this policy.
• Pioneer reserves the right to suspend or revoke AI access privileges in cases of suspected misuse or risk.
• IT Support may be granted broader access to AI tools to support infrastructure, security, or system administration tasks, and are subject to oversight by the Director of
Finance and Administration.
'hVI. DISTRIBUTIONENFORCEMENT
Any staff member found to have violated this policy may be subject to disciplinary action, up to and including termination.
VI.VII. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.
'III. VIII. Policy Revisions
The Chief Executive Officer is authorized to make minor modifications, clarifications, or administrative updates to this policy, provided that such changes do not alter the policy's intent, scope, or underlying principles.
'IIII._IX_. __ HISTORY
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Version
2025.1
Date
10/16/25
Description Approved By
Initial policy release
Adopted: Octner October 16,
IT8
Category: Information Technology
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410940.2
ARTIFICIAL INTELLIGENCE (AI)
ACCEPTABLE USE POLICY
I. PURPOSE
The purpose of this policy is to establish clear guidelines for the secure use of Artificial Intelligence (AI) tools at Pioneer Community Energy. While Pioneer encourages the use of AI to enhance productivity, creativity, and innovation, staff are expected to respect privacy, protect confidential information, and follow organizational cybersecurity standards.
II. DEFINITIONS
Deepfake - An image, video, or audio record that has been digitally altered to replace one person’s likeness with another person, or a computer-generated image or video of a person doing or saying something the person was not actually recorded or photographed as having done or said.
III. BACKGROUND
AI tools, including large language models (LLMs), code assistants, automation tools and chatbots, offer powerful capabilities to enhance work processes. These tools can support research, content generation, customer service, and operational efficiencies.
However, they also introduce risks related to data privacy, accuracy, and unauthorized disclosure of sensitive information.
This policy provides staff with guidance for the safe and secure use of existing and future AI tools, especially where sensitive company or customer information is involved. All use of AI tools must align with Pioneer’s Information Systems Acceptable Use Policy and broader cybersecurity practices.
IT8
Category: Information Technology
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410940.2
IV. SCOPE
This policy applies to all Pioneer Staff that have access to the organization’s Information Resources.
V. POLICY
Pioneer staff may use Artificial Intelligence (AI) tools in support of business productivity, innovation, and operational efficiency, under the following conditions:
A. Permitted Use
All outputs produced by AI tools must be reviewed and validated for accuracy, tone, bias, and context by Pioneer staff before distribution or use in official business decisions. AI tools may produce erroneous or nonsensical information or results that are not real, do not match any data the algorithm has been trained on, or follow no other discernible pattern. In addition, the results may reflect biased or incomplete data sets on which the AI tool was trained. AI tools must not be used blindly for decision making and/or the creation of content and must never be solely relied upon for important inquiries.
Staff must label all text-based content and audio and visual media they created using AI as having been generated using AI regardless of modifications. Labels must be clearly visible to members of the public reviewing the content.
Example label:
“This document may have been drafted with support from AI-based tools, consistent with Pioneer’s policy on the use of artificial intelligence. All information represented in this document has been reviewed by Pioneer staff.”
Informal correspondence between Pioneer staff, such as emails, does not need to be labeled as having been created using AI.
IT8
Category: Information Technology
Page | 3 Adopted: October 16, 2025
410940.2
Pioneer staff may only use Pioneer email addresses, phone numbers, or other Pioneer credentials, and not personal credentials, to create an account with AI services for use in their Pioneer work.
Pioneer staff may use AI tools to support business functions that include:
• Drafting content such as reports, presentations, and emails • Summarizing large public datasets or public documents • Assisting in generating code, formulas, or templates
• Automating repetitive tasks
• Translating text or improving grammar, tone, or clarity B. Restricted and Prohibited Use
Any information provided to a public AI tool is equivalent to making that information broadly available to the public.
The following activities are strictly prohibited:
• Submitting personally identifiable information (PII) or confidential data, including customer and employee data, into AI tools, particularly cloud-based or public platforms that can retain data.
• Uploading internal Pioneer documents, proprietary
business data, or system credentials into AI platforms, unless the tool has been formally approved by IT Support. • Using AI to fabricate data or misrepresent facts.
• Relying on AI tools as the sole basis for regulatory
compliance, public communications, legal determinations, or final decision making.
• Using AI tools to generate offensive/discriminatory
content.
• Using AI tools to discriminate against an applicant or employee based on a characteristic protected by state or federal law, for the purposes of hiring or making other personnel decisions. AI tools may be used for the purposes of hiring or making other personnel decisions only upon IT8
Category: Information Technology
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410940.2
anti-bias testing of the AI tool, or other similar proactive efforts to avoid unlawful discrimination.
• Creation or use of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment is
strictly prohibited, except when using it as evidence in or as part of an administrative investigation.
C. Security and Approval
• AI services that access or process Pioneer data must be evaluated and approved by IT Support prior to use.
• Staff must not bypass security protocols, store sensitive data in unapproved AI applications, or disable protections (e.g., firewalls, malware detection).
• If Pioneer staff become aware of an instance where an AI system has caused harm or poses a risk of causing harm, such as compromising data security, violating privacy,
producing discriminatory or biased outcomes, or otherwise disrupting business operations, they must promptly report the issue to their supervisor and IT Support.
• All staff AI searches must be in “incognito” mode or “opt out” or other similar mode to prevent the AI tool from
retaining or using the information provided for the tool or service’s use in any manner, including to train or improve the AI tool or service, or to share the information with any third party.
D. Monitoring and Oversight
• All AI activity using Pioneer Information Resources may be subject to audit or monitoring to ensure compliance with this policy.
• Pioneer reserves the right to suspend or revoke AI access privileges in cases of suspected misuse or risk.
• IT Support may be granted broader access to AI tools to support infrastructure, security, or system administration tasks, and are subject to oversight by the Director of
Finance and Administration.
IT8
Category: Information Technology
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410940.2
VI. ENFORCEMENT
Any staff member found to have violated this policy may be subject to disciplinary action, up to and including termination.
VII. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.
VIII. Policy Revisions
The Chief Executive Officer is authorized to make minor modifications, clarifications, or administrative updates to this policy, provided that such changes do not alter the policy’s intent, scope, or underlying principles.
IX. HISTORY
Version Date Description Approved By
2025.1 10/16/25 Initial policy release