CA Industry Assistance Credit
for Industrial Businesses

California Industry Assistance Credit

The eligibility period for this credit is Sept. 1 - 30, 2022. Read the details below to find out if you qualify! 

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 because 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 CA Industry Assistance to protect against emissions leakage. Emissions leakage is when emissions decrease within California but increase outside of California. AB 32 requires the State to minimize leakage to the extent feasible. This credit protects eligible industrial sectors against emissions leakage by compensating them for a portion of the GHG emission costs associated with the electricity they buy.

The amount of the credit is determined for each facility using emissions-efficiency benchmarks that reward businesses and help provide an incentive to make products in California in the most energy-efficient way possible.

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, 2022 to receive a payout of the CA Industry Assistance Credit in April 2023.

For more information, visit the  CPUC website.

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. 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

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

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
111 Crop Production
211 Oil and Gas Extraction
212 Mining (except Oil and Gas)
311 Food Manufacturing
313 Textile Mills
315 Apparel Manufacturing
312 Beverage and Tobacco Product Manufacturing
322 Paper Manufacturing
324  Petroleum and Coal Products Manufacturing
325 Chemical Manufacturing
327 Nonmetallic Mineral Product Manufacturing
331 Primary Metal Manufacturing
332 Fabricated Metal Product Manufacturing
333 Machinery Manufacturing
336 Transportation Equipment Manufacturing
468 Support Activities for 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 …

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 Air Resource 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 Resource 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, 2022 You will receive the credit in April 2023. Sept. 30, 2023

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.

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, click here to claim eligibility.

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 $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 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.

Important notes:

  • If your facility successfully submits an eligibility claim by Sept. 30, 2022 or your facility automatically qualifies, your CA Industry Assistance Credit will be applied to your April 2023 bill.
     
  • If your company previously received the Small Business California Climate Credit, you would stop receiving the bi-annual California Climate Credit and will start receiving the annual CA Industry Assistance Credit.
     
  • The 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, 2022 or your facility automatically qualifies, your CA Industry Assistance Credit will appear in April 2023. 

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 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 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 September electricity bill.

To learn more about the California Climate Credit, visit https://www.cpuc.ca.gov/climatecredit.

Key differences between the two credits

California Climate Credit for Small Businesses 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 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 company may be better off sticking with the California Climate Credit. 

If your business has more than one utility service account

It’s a little harder to provide guidance on which bill credit may be better for you because the results will vary from company to company and facility to facility.

  • If ALL 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 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, 2022, you will receive the CA Industry Assistance Credit in April 2023 and will not receive the Small Business California Climate Credit for the duration of your participation in the CA Industry Assistance Program. 

Claim Your Eligibility for the CA Industry Assistance Credit