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, that addresses climate change by limiting the total amount of greenhouse gases (GHG) emitted by the largest sources.

The credit protects against emissions leakage, which is a decrease in in-state GHG emissions that is compensated for by an increase in out-of-state GHG emissions. This credit protects eligible industrial sectors against emissions leakage and transitions them into the Cap-and-Trade Program by compensating for a portion of the GHG emission costs associated with the electricity they buy. Utilities will distribute this credit annually.

The first credit was retroactive and covered 2013, 2014, 2015, and 2016 if you operated in an eligible industry in those years. If you were eligible, it appeared on your bill in fall 2016.  If you maintained your eligibility, you received a second EITE credit in spring 2017.

New for 2018

This year marked the start of a new program period. If you re-submitted your eligibility claim last year in advance of the Sept. 30, 2017 deadline, no further action is required and you will continue receive the credit once per year in April,* through 2020. To start a new eligibility claim for the 2018-2020 program period, you must submit your claim on or before Sept. 30, 2018 to receive a payout of the credit in April 2019 and April 2020.

The amount of the credit is determined through the use of emissions efficiency benchmarks, which rewards businesses that have taken early action to reduce GHG emissions. This approach also ensures that, in the future, these industries have a strong incentive to produce products in California in the most greenhouse gas-efficient way possible.

For more information, visit the CPUC website

Your company can further reduce its electricity bills and its carbon footprint by taking advantage of energy-efficiency and energy-management programs and resources.

FAQs

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 depending on its type of product or service.

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, six-digit North American Industry Classification System (NAICS) code.

Eligible six-digit NAICS codes fall within these industries:

  • Apparel Manufacturing
  • Beverage and Tobacco Product Manufacturing
  • Chemical Manufacturing
  • 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
  • Transportation Equipment Manufacturing

Your facility is eligible for the CA Industry Assistance Credit if it drives most of its revenue from a product, activity or service that has one of the following six-digit North American Industry Classification System (NAICS) codes.

If you are unsure which NAICS code applies to your facility, use the U.S. Census Bureau’s guidelines.

NAICS CODE NAICS DESCRIPTION
211111 Crude Petroleum and Natural Gas Extraction
211112 Natural Gas Liquid Extraction
212299 All Other Metal Ore Mining
212391 Potash, Soda, and Borate Mineral Mining
212399 All Other Nonmetallic Mineral Mining
311111 Dog and Cat Food Manufacturing
311119 Other Animal Food Manufacturing
311211 Flour Milling
311212 Rice Milling
311213 Malt Manufacturing
311221 Wet Corn Milling
311222 Obsolete code. Soybean Processing (correct code 311224)
311223 Obsolete code. Other Oilseed Processing (correct code 311224)
311224 Soybean and Other Oilseed Processing (formerly 311222 or 311223)
311225 Fats and Oils Refining and Blending
311230 Breakfast Cereal Manufacturing
311311 Obsolete code. Sugarcane Mills (correct code 311314)
311312 Obsolete code. Cane Sugar Refining (correct code 311314)
311313 Beet Sugar Manufacturing
311314 Cane Sugar Manufacturing (formerly 311311 or 311312)
311320 Obsolete code. Chocolate and Confectionery Manufacturing from Cacao Beans (correct code 311351)
311330 Obsolete code. Confectionery Manufacturing from Purchased Chocolate (correct code 311352)
311340 Nonchocolate Confectionery Manufacturing
311351 Chocolate and Confectionery Manufacturing from Cacao Beans (formerly 311320)
311352 Confectionery Manufacturing from Purchased Chocolate  (formerly 311330)
311411 Frozen Fruit, Juice, and Vegetable Manufacturing
311412 Frozen Specialty Food Manufacturing
311421 Fruit and Vegetable Canning
311422 Specialty Canning
311423 Dried and Dehydrated Food Manufacturing
311511 Fluid Milk Manufacturing
311512 Creamery Butter Manufacturing
311513 Cheese Manufacturing
311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing
311520 Ice Cream and Frozen Dessert Manufacturing
311611 Animal (except Poultry) Slaughtering
311612 Meat Processed from Carcasses
311613 Rendering and Meat Byproduct Processing
311615 Poultry Processing
311710 Seafood Product Preparation and Packaging (formerly 311711 or 311712)
311711 Obsolete code. Seafood Canning (correct code 311710)
311712 Obsolete code. Fresh and Frozen Seafood Processing (correct code 311710)
311811 Retail Bakeries
311812 Commercial Bakeries
311813 Frozen Cakes, Pies, and Other Pastries Manufacturing
311821 Cookie and Cracker Manufacturing
311822 Obsolete code. Flour Mixes and Dough Manufacturing from Purchased Flour (correct code 311824)  
311823 Obsolete code. Dry Pasta Manufacturing (correct code 311824)
311824 Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour (formerly 311822 or 311823)
311830 Tortilla Manufacturing
311911 Roasted Nuts and Peanut Butter Manufacturing
311919 Other Snack Food Manufacturing
311920 Coffee and Tea Manufacturing
311930 Flavoring Syrup and Concentrate Manufacturing
311941 Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing
311942 Spice and Extract Manufacturing
311991 Perishable Prepared Food Manufacturing
311999 All Other Miscellaneous Food Manufacturing
312120 Breweries
312130 Wineries
315210 Cut and Sew Apparel Contractors (formerly 315211 or 315212)
315211 Obsolete code. Men’s and Boys’ Cut and Sew Apparel Contractors (correct code 315210)
315112 Obsolete code. Women’s, Girls’, and Infants’ Cut and Sew Apparel Contractors (correct code 315210)
315220 Men’s and Boys’ Cut and Sew Apparel Manufacturing (formerly 315221, 315222, 315223, 315224, 315225 or 315228)  
315221 Obsolete code. Men’s and Boys’ Cut and Sew Underwear and Nightwear Manufacturing (correct code 315220)
315222 Obsolete code. Men’s and Boys’ Cut and Sew Suit, Coat, and Overcoat Manufacturing (correct code 315220)
315223 Obsolete code. Men’s and Boys’ Cut and Sew Shirt (except Work Shirt) Manufacturing (correct code 315220)
315224 Obsolete code. Men’s and Boys’ Cut and Sew Trouser, Slack, and Jean Manufacturing (correct code 315220)
315225 Obsolete code. Men’s and Boys’ Cut and Sew Work Clothing Manufacturing (correct code 315220)
315228 Obsolete code. Men’s and Boys’ Cut and Sew Other Outerwear Manufacturing (correct code 315220)
315231 Obsolete code. Women’s and Girls’ Cut and Sew Lingerie, Loungewear, and Nightwear Manufacturing (correct code 315240)  
315232 Obsolete code. Women’s and Girls’ Cut and Sew Blouse and Shirt Manufacturing (correct code 315240)
315233 Obsolete code. Women’s and Girls’ Cut and Sew Dress Manufacturing (correct code 315240)
315234 Obsolete code. Women’s and Girls’ Cut and Sew Suit, Coat, Tailored Jacket, and Skirt Manufacturing (correct code 315240)  
315239 Obsolete code. Women’s and Girls’ Cut and Sew Other Outerwear Manufacturing (correct code 315240)
315240 Women’s, Girls’, and Infants’ Cut and Sew Apparel Manufacturing (formerly 315231, 315232, 315233, 315234, 315239 or 315291 
315280 Other Cut and Sew Apparel Manufacturing (formerly 315292 or 315299)
315291 Obsolete code. Infants’ Cut and Sew Apparel Manufacturing (correct code 315240)
315292 Obsolete code. Fur and Leather Apparel Manufacturing (correct code 315280)
315299 Obsolete code. All Other Cut and Sew Apparel Manufacturing (correct code 315280)
322121 Paper (except Newsprint) Mills
322130 Paperboard Mills
324110 Petroleum Refineries
324121 Asphalt Paving Mixture and Block Manufacturing
324199 All Other Petroleum and Coal Products Manufacturing
325120 Industrial Gas Manufacturing
325180 Other Basic Inorganic Chemical Manufacturing (formerly 325188)
325188 Obsolete code. All Other Basic Inorganic Chemical Manufacturing (correct code: 325180)
325193 Ethyl Alcohol Manufacturing
325199 All Other Basic Organic Chemical Manufacturing
325311 Nitrogenous Fertilizer Manufacturing
325412 Pharmaceutical Preparation Manufacturing
325414 Biological Product (except Diagnostic) Manufacturing
327211 Flat Glass Manufacturing
327213 Glass Container Manufacturing
327310 Cement Manufacturing
327410 Lime Manufacturing
327420 Gypsum Product Manufacturing
327993 Mineral Wool Manufacturing
331110 Iron and Steel Mills and Ferroalloy Manufacturing (formerly 331111)
331111 Obsolete code. Iron and Steel Mills (correct code: 331110)
331221 Rolled Steel Shape Manufacturing
331314 Secondary Smelting and Alloying of Aluminum
331492 Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)
331511 Iron Foundries
332112 Nonferrous Forging
332510 Hardware Manufacturing
333611 Turbine and Turbine Generator Set Units Manufacturing
336411 Aircraft Manufacturing
336414 Guided Missile and Space Vehicle Manufacturing
488111 Air Traffic Control
488119 Other Airport Operations
488190 Other Support Activities for Air Transportation

There are two types of eligible facilities: (1) those that must submit an eligibility claim, known by the CPUC as an Attestation, and (2) those that qualify for the CA Industry Assistance Credit by reporting to the Air Resources Board under its Mandatory Reporting Regulation. Most California businesses fall into the first category.

Your facility automatically qualifies if...

You company already reports to the Air Resources Board under its Mandatory Reporting Regulation and operates in an eligible industry.  The CPUC has everything it needs to calculate your facility’s CA Industry Assistance Credit. 

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 Resource Board under the Mandatory Reporting Regulation.You will need to submit a form for each qualifying facility, where you:

  • Provide basic info about the facility,
  • Identify which qualifying NAICS code applies to that facility,
  • Specify all of 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 Years for which you’ll receive the CA Industry Assistance Credit When you’ll have to resubmit an eligibility claim
September 30, 2017 2018, 2019, and 2020. You will receive the 2018, 2019 and 2020 bill credits. Not applicable.
September 30, 2018 2019 and 2020. You will receive the 2019 and 2020 bill credits.

Not applicable.

September 30, 2019 2020. You will receive the 2020 bill credit.

Not applicable.

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 monthly 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 monthly Small Business Climate Credit at all service accounts associated with that facility. You will start receiving the annual CA Industry Assistance Credit instead.

Which credit is right for me? See California Climate Credit Comparison below in the FAQs. 

Submit your eligibility claim

Click the link below if you have eligible facilities within SDG&E’s service territory.  You will need to have all account numbers associated with each facility handy for entry into the form. Remember that you will need to complete the form for each qualifying facility by September 30, 2017 to claim all credits available.

Claim eligibility

Each investor-owned utility hosts its own version of the CA Industry Assistance Credit eligibility form. Visit PG&E, Liberty Utilities and PacifiCorp if you have facilities in their respective service territories. 

The amount of the CA Industry Assistance credit will vary from facility to facility. The amount of the credit is determined through the use of emissions efficiency benchmarks, which rewards 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, and 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 for usage at the facility that is not receiving the small business climate credit.

If your facility’s monthly electricity usage is … You MIGHT receive an annual CA Industry Assistance Credit of…
10,0000 kWh $500 to $600
100,000 kWh $5,000 to $6,000
1,000,000 kWh $50,000 to $60,000

The estimated bill credit represents the annual savings a facility could receive. The California Public Utilities Commission (CPUC) will calculate the actual credit amount based on the rules outlined in Decision D.14-12-037. 

Please note: 

  • If your facility successfully submits an eligibility claim by September 30, 2017 or your facility automatically qualifies, your first CA Industry Assistance Credit will be applied to your April 2018 bill, and every April through 2020.
  • If your company previously received the Small Business California Climate Credit, you will stop receiving the monthly California Climate Credit as of the December billing cycle that precedes the year when you will start receiving the annual CA Industry Assistance Credit. For example, if your first CA Industry Assistance Credit will appear in April 2018,* your last monthly California Climate Credit will appear in December 2017.*

  • The CPUC calculates your credit amount, not your utility. To protect your privacy, your utility provider does not have access to all of the data that the CPUC uses to determine your credit amount. Your utility may not be able to accurately predict your credit amount or answer detailed questions about why you received a specific amount.

​For complete rules about how the CPUC calculates the CA Industry Assistance Credit, look for Decision D.14-12-037 on the CPUC website.

 

* Billing periods vary by utility and may not always coincide with a calendar month. If you don’t see “CA Industry Assistance” as a line item on the bill that arrives in April, it will appear on the bill you receive in May.

The credit will appear as a line item on your bill, labeled “CA Industry Assistance.”

  • If your facility successfully submits an eligibility claim by September 30, 2017 or your facility automatically qualifies, your CA Industry Assistance Credit will appear in April 2018, April 2019, and April 2020. 

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.

 

* Billing periods vary by utility and may not always coincide with a calendar month. If you don't see the CA Industry Assistance Credit in the bill that arrives in April, it will appear in the bill you receive in May.

Your company may already receive a different bill credit, known as the California Climate Credit for small businesses. It may be a better choice for you than the CA Industry Assistance Credit.

If you successfully claim eligibility for the CA Industry Assistance Credit, you will stop receiving the California Climate Credit and start receiving the CA Industry Assistance Credit instead.

The California Climate Credit for small businesses goes to:

  • Small businesses that typically use less than 20 kilowatts (kW) of maximum power in a month.
  • It appears as as monthly bill credit for all eligible utility customers, including those who get electricity from community choice aggregators and electric service providers. 

You can confirm whether or not you receive it by looking for the line item “California Climate Credit” on your electricity bill.

To learn more about the California Climate Credit, visit EnergyUpgradeCA.

Key differences between the two credits

California Climate Credit for Small Businesses CA Industry Assistance
Happens automatically Requires most customers to periodically claim eligibility
Appears monthly on every eligible service account Appears annually on one service account per facility
Calculated based on current electricity consumption Calculated based on historical electricity consumption (2008-2010 for most customers)
Will not subject you to an audit May subject you to an audit
Applies only to service accounts that typically use < 20kW Applies to your entire facility and includes all service accounts associated with that facility
   

If your business has one utility service account

The California Public Utilities Commission concluded that the monetary difference between the small business California Climate Credit and the CA Industry Assistance Credit would be minimal for businesses that have only one utility service account and that already receive the California Climate Credit. Your business may be better sticking with the California Climate Credit. 

If your business has more than one utility service account

It’s a little harder to provide general guidance on which bill credit may be better for businesses with multiple accounts, because the results will vary from company to company and facility to facility.

  • If ALL of your facility’s service accounts receive the California Climate Credit for Small Businesses, you may be better off sticking with the California Climate Credit for the reasons outlined above.
  • If at least one of your facility’s service accounts does NOT receive the California Climate Credit for Small Businesses, 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 How much money can I expect from the CA Industry Assistance Credit? FAQ and determine for yourself whether it’s in your best interest to switch.

What to expect if you switch to the CA Industry Assistance Credit

Your monthly California Climate Credit will end.

  • If you claim eligibility on or before September 30, 2017: you will stop receiving the monthly California Climate Credit as of the December 2017 billing cycle that precedes the year when you will start receiving the annual CA Industry Assistance Credit. For example, if your first CA Industry Assistance Credit will appear in April 2018,* your last monthly California Climate Credit will appear in December 2017.*

* Billing periods vary by utility and may not always coincide with a calendar month. If you don't see the CA Industry Assistance Credit in the bill that arrives in April, it will appear in the bill you receive in May.