California Climate Credit vs. the CA Industry Assistance Credit
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 April and October 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 April 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 |
|---|---|
| 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 April and October | 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 and determine for yourself whether it's in your best interest to switch.
What to expect if you switch to the CA Industry Assistance Credit
Your bi-annual Small Business California Climate Credit will stop for the duration of your participation in the CA Industry Assistance Program.
- If you claim eligibility on or before September 30,2023, you will receive the CA Industry Assistance Credit in April 2024, 2025, and 2026 and will not receive the Small Business California Climate Credit for the duration of your participation in the CA Industry Assistance Program.