The commission shall adopt a policy to allow reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs of preparation for and participation in a hearing or proceeding to an eligible local government entity that complies with Section 1804 and satisfies all of the following requirements:

1. (a) The entity’s presentation makes a substantial contribution to the adoption, in whole or in part, of the commission’s order or decision.
2. (b) Participation or intervention without an award of fees or costs imposes a significant financial hardship.
3. (c) The subject of the hearing or proceeding is the result of a triggering event, as determined by the commission, that significantly impacted the residents of the local government entity.