The California Climate Credit is part of California’s efforts to fight climate change
By ONME News
Every spring and fall, millions of California residents receive credits on their electric and natural gas bills identified as the “California Climate Credit.” Millions of Californians are getting an average of $146 in combined credits on their April gas and electric bills, thanks to the California Climate Credit funded by the state’s cap-and-trade program. Did you get yours?
The credit comes from the California Cap-and-Trade Program, which requires power plants, fuel suppliers, and large industrial facilities that emit greenhouse gases to buy carbon pollution allowances from auctions managed by the California Air Resources Board. The credit on your utility bill is designed to help customers as California transitions to a low-carbon future.
The climate credit provides ratepayers with their share of the benefits of California’s Cap-and-Trade Program. Usually, these credits are distributed twice a year, in April and October. Most residents receive a natural gas credit in April, and electric credits in April and October.
In 2023, the Commission accelerated the distribution of the residential spring electric and natural gas California Climate Credits to help mitigate large and unexpected winter bills. For 2024, the Climate Credit will return to its normal April and October distribution.
Each year the State issues a limited number of greenhouse gas emission allowances in line with California’s goal of reducing its overall emissions to 40 percent below 1990 levels by 2030. Some of these allowances are sold at auction, and the auction proceeds are used to either further reduce greenhouse gas emissions or benefit utility customers directly through the California Climate Credit and other clean energy programs. The Cap-and-Trade Program is one of many programs developed by the State as a result of the Global Warming Solutions Act of 2006, California Cap-and-Trade Programwhich put California at the forefront of efforts to battle climate change.
The CPUC created and implements the Climate Credit program from Cap-and-Trade Program proceeds. A customer’s utility delivers the credit on behalf of the State via energy utility bills.
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