CA Industry Assistance Credit
for Industrial Businesses
What is the CA Industry Assistance Credit?
The CA Industry Assistance Credit is part of the State of California’s Cap-and-Trade Program. The credit was developed by the California Public Utilities Commission (CPUC) to help utility customers during the transition to a low-carbon future and prevent emissions leakage. Leakage can occur when industrial activity, and associated emissions, move out-of-state. The credit design supports businesses that take actions to further reduce their energy use, to reduce GHG emissions, and to help prevent emissions increases through energy efficiency and clean generation opportunities.
The credit amount is determined by the CPUC using emissions-efficiency benchmarks or facility-specific baseline energy usage. These methods provide an incentive to make products in California in the most energy-efficient way possible. Improvements at your facility will typically not factor in your credit calculation.
SDG&E distributes the credit on behalf of the State of California every year in April. To start a new claim, you must submit your claim on or before September 30, 2023 to receive a payout of the CA Industry Assistance Credit in April 2024.
For more information, visit the CPUC website.
The CA Industry Assistance Credit is open to all industrial utility customers in eligible industries, including those who get electricity from community choice aggregators and other electric service providers.
The California Public Utilities Commission (CPUC) determines eligibility for the CA Industry Assistance Credit at the facility level. A facility is a physical property or structure located on one or more contiguous properties, such as a campus, factory, or company headquarters.
If your company owns multiple facilities throughout the state, each facility may or may not be eligible. It all depends on the type of product or service produced by each individual facility.
A facility is eligible for the CA Industry Assistance Credit if it derives most of its revenue from a product, activity or service that has an eligible, three-digit North American Industry Classification System (NAICS) code.
Description of eligible three-digit NAICS codes:
- Apparel Manufacturing
- Beverage and Tobacco Product Manufacturing
- Chemical Manufacturing
- Crop Production
- Fabricated Metal Product Manufacturing
- Food Manufacturing
- Machinery Manufacturing
- Mining (except Oil and Gas)
- Nonmetallic Mineral Product Manufacturing
- Oil and Gas Extraction
- Paper Manufacturing
- Petroleum and Coal Products Manufacturing
- Primary Metal Manufacturing
- Support Activities for Transportation
- Textile Mills
- Transportation Equipment Manufacturing
For the purposes of the California Industry Assistance Credit, a facility is described in the California Air Resources Board's Cap-and-Trade Regulation as "any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas…" For the full definition please refer to Section 95802(a)(144) of the Cap-and-Trade Regulation.
In general, your facility is eligible for the CA Industry Assistance Credit if it derives most of its revenue from a product, activity or service that matches the first three digits in the North American Industry Classification System (NAICS) codes in Table 8-1 of the CARB Cap-and-Trade Regulations. SDG&E has provided a table of eligible NAICS codes, below.
If you are unsure which NAICS code applies to your facility, review your company’s federal income tax return, such as IRS Form 1120, or visit https://www.census.gov/naics/.
|NAICS CODE||NAICS DESCRIPTION|
|211||Oil and Gas Extraction|
|212||Mining (except Oil and Gas)|
|312||Beverage and Tobacco Product Manufacturing|
|324||Petroleum and Coal Products Manufacturing|
|327||Nonmetallic Mineral Product Manufacturing|
|331||Primary Metal Manufacturing|
|332||Fabricated Metal Product Manufacturing|
|336||Transportation Equipment Manufacturing|
|488||Support Activities for Transportation|
There are two types of eligible facilities: (1) those that must submit an eligibility claim, known by the California Public Utility Commission (CPUC) as an Attestation; and (2) those that qualify for the CA Industry Assistance Credit by reporting to the California Air Resources Board under its Mandatory Reporting Regulation. Most California businesses fall into the first category.
Your facility automatically qualifies if …
It has a qualifying North American Industry Classification System (NAICS) code and direct emissions of 10,000 MTCO2e per year or greater. Your company already reports to the California Air Resources Board under its Mandatory Reporting Regulation.
The CPUC already has everything it needs to calculate your facility’s CA Industry Assistance Credit. SDG&E will contact you to find out which service account to apply the credit to.
Your facility must claim eligibility if …
Its direct emissions are less than 10,000 MTCO2e – metric tons of carbon dioxide equivalent gas – per year. Your facility falls into this category if it is NOT required to report to the California Air Resources Board under the Mandatory Reporting Regulation.
You will need to submit a form for each qualifying facility, in which you:
- Provide basic info about the facility,
- Identify which qualifying NAICS code applies to that facility,
- Specify all the utility service accounts that belong to that facility,
- Designate one utility service account to receive the bill credit,
- Confirm your understanding that your facility may be subject to an audit, and
- Declare under penalty of perjury that what you’re saying is true.
Deadlines to claim eligibility
|Deadline||When you’ll receive the CA Industry Assistance Credit||When you’ll have to resubmit an eligibility claim|
|Sept. 30, 2023||You will receive the credit in April 2024, 2025 and 2026.||Sept. 30, 2026|
If you are a small business, you may NOT want to claim CA Industry Assistance eligibility
Your business may already automatically receive the Small Business Climate Credit, a bi-annual credit, for some of its utility service accounts. If you choose to claim eligibility for the CA Industry Assistance Credit, you will stop receiving the bi-annual Small Business Climate Credit at all service accounts associated with that facility. You will start receiving the annual CA Industry Assistance Credit instead.
See the Submit your eligibility claim section to submit your claim.
The amount of the CA Industry Assistance Credit will vary from facility to facility. The amount of the credit is determined by using emissions-efficiency benchmarks that reward businesses that have taken early action to reduce GHG emissions. This approach will also ensure that, in the future, these industries have a strong incentive to produce products in California in the most greenhouse gas-efficient way possible.
Amounts may also vary from utility to utility, based on the amount of greenhouse gas emissions in each energy provider’s supply. Amounts even vary from year to year, based on greenhouse gas prices.
For these reasons, we can’t accurately predict what your company’s actual bill credit amount may be.
Here are some guidelines to give you a general idea of what you might be able to expect.
|If your facility’s monthly electricity usage is …||You MIGHT receive an annual CA Industry Assistance Credit of…|
|10,000 kWh||$500 to $850|
|100,000 kWh||$5,000 to $8,500|
|1,000,000 kWh||$50,000 to $85,000|
The estimated bill credit represents the annual savings a facility could receive. The CA Industry Assistance amount depends on the price of GHG allowances in the prior year and can go up or down as allowance prices change. The California Public Utilities Commission (CPUC) will calculate the actual credit amount based on the rules outlined in Decision D.14-12-037.
- If your facility successfully submits an eligibility claim by Sept. 30, 2023 or your facility automatically qualifies, your CA Industry Assistance Credit will be applied to your April 2024 bill.
- If your company previously received the Small Business Climate Credit, you would stop receiving the bi-annual Small Business Climate Credit and will start receiving the annual CA Industry Assistance Credit.
- The California Pubic Utilities Commission (CPUC) calculates your credit amount, not SDG&E. To protect your privacy, SDG&E does not have access to all the data that the CPUC uses to determine your credit amount. SDG&E may not be able to accurately predict your credit amount or answer detailed questions about why you received a specific amount. Facilities can reach out to [email protected] for help estimating the value of future credits.
For complete rules about how the CPUC calculates the CA Industry Assistance Credit, please refer to page 67 in the CPUC Decision.
The credit will appear as a line item on your bill, labeled “CA Industry Assistance.”
- If your facility successfully submits an eligibility claim by Sept. 30, 2023 or your facility automatically qualifies, your CA Industry Assistance Credit will appear in April 2024.
After the credit appears on your bill, you may request a check if the credit amount is greater than your account balance. SDG&E customers may do so by calling the number that appears on your bill.
If your facility has direct emissions of 25,000 MTCO2e or greater
If your facility qualifies for CA Industry Assistance Credit by operating as a Cap-and-Trade entity with direct emissions of 25,000 MTCO2e per year or greater, you have the option to receive the CA Industry Assistance Credit as a check instead of a bill credit. We will email or a representative will contact you with instructions on how to request a check.
Your company may already receive a different bill credit, known as the Small Business Climate Credit. It may be a better choice for you than the CA Industry Assistance Credit.You can move this to where you think it fits best.
The Small Business California Climate Credit amount is the same as the Residential California Climate Credit amount and can be found at https://www.cpuc.ca.gov/climatecredit/.
If you successfully claim eligibility for the CA Industry Assistance Credit, you will stop receiving the Small Business Climate Credit and start receiving the CA Industry Assistance Credit instead.
The Small Business Climate Credit automatically goes to small businesses that typically use less than 20 kilowatts (kW) of maximum power in a month. It appears twice a year in August and September for all eligible utility customers, including those who get electricity from community choice aggregators and electric service providers.
You can confirm whether you receive it by looking for the line item “California Climate Credit” on your March electricity bill.
To learn more about the Small Business Climate Credit, visit https://www.cpuc.ca.gov/smallbusinessclimatecredit
Key differences between the two credits
|Small Business Climate Credit||CA Industry Assistance|
|Credit is based on a flat amount and may fluctuate every year||
Calculated based on historical electricity consumption (2008-2010 for most customers)Exception: Large customers with product-based formulas.
|Happens automatically||Requires most customers to periodically claim eligibility|
|Applies only to service accounts that typically use < 20kW||Applies to your entire facility and includes all service accounts associated with that facility|
|Appears twice a year in August and September||Appears annually on one service account per facility|
|Will not subject you to an audit||May subject you to an audit|
If your business has more than one utility service account
- If ALL your facility’s service accounts receive the Small Business Climate Credit, you may be better off sticking with the Small Business Climate Credit for the reasons outlined above.
- If at least one of your facility’s service accounts does NOT receive the Small Business Climate Credit, it all depends on your electricity usage. You will need to estimate how much you might receive from the CA Industry Assistance Credit (see the FAQ, “How much money can I expect from the CA Industry Assistance Credit?”). Then determine for yourself whether it’s in your best interest to switch.
What to expect if you switch to the CA Industry Assistance Credit
- If you claim eligibility on or before Sept. 30, 2023, you will receive the CA Industry Assistance Credit in April 2024 and will not receive the Small Business Climate Credit for the duration of your participation in the CA Industry Assistance Program.
Submit your eligibility claim
Each investor-owned utility hosts its own version of the CA Industry Assistance Credit eligibility form. Contact SCE, PG&E, Liberty Utilities or PacifiCorp if you have facilities in their respective service territories.
If you have eligible facilities within SDG&E’s service territory, claim your eligibility now.