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 Southern California Edison, will distribute this credit annually.

The first CA Industry Assistance 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. If you submitted your claim in the fall of 2017 and you maintain your eligibility, you will receive the CA Industry Assistance Credit in April 2020. To start a new claim, you must submit your claim on or before September 30, 2020 to receive a payout of the CA Industry Assistance Credit in April 2021.

The amount of the credit is determined through the use of emissions-efficiency benchmarks and 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.

Other ways to make a difference

The State of California is encouraging businesses to further reduce their carbon footprints and improve their overall energy management by taking advantage of energy-efficiency programs and products. To learn more, visit energyupgradeca.org/credit.