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.

SCE 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.