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 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.

Southern California Edison (SCE) distributes the credit once a year on behalf of the State of California and was previously provided to customers annually in April. Next year’s credit will be provided in March 2021. 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 March 2021.

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.