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, developed as a result of landmark legislation called the Global Warming Solutions Act of 2006 (AB 32). The program aims to address climate change by limiting the total amount of greenhouse gases (GHG) emitted by the largest sources.

The State of California provides the CA Industry Assistance Credit to protect 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. AB 32 requires the State to minimize leakage to the extent feasible. 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, including San Diego Gas & Electric Company (SDG&E), will distribute this credit annually.

The first CA Industry Assistance Credit is retroactive and covers 2013, 2014 and 2015 if you operated in an eligible industry in those years. If you’re eligible, it will appear on your bill in fall 2015. If you maintain your eligibility, you will receive the CA Industry Assistance Credit once per year in April,* through 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 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.

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.