What the credit is
The California Climate Credit returns a portion of cap-and-trade auction revenue to residential and small business utility customers. Major industrial polluters in California must purchase allowances under the state’s cap-and-trade program to emit greenhouse gases. The proceeds from those allowance auctions are partly used to offset higher residential electricity and gas costs that result from the program.
How much is the credit?
The credit amount varies year-to-year and by utility. It is set by the CPUC based on each utility’s share of cap-and-trade allowance value. Recent residential electric Climate Credits have ranged from roughly $35 to $90 per disbursement, depending on utility and year. Natural gas customers also receive a separate Climate Credit applied to gas bills.
How and when it appears on your bill
The credit is applied automatically by your utility — you don’t apply for it, request it, or qualify by income. Look for a line item labeled “California Climate Credit” on your bill in April and October (electric) and April (gas, single application).
Where to verify
- CPUC Climate Credit page: cpuc.ca.gov/climatecredit
- CARB Cap-and-Trade program: arb.ca.gov · cap-and-trade
Source: California Public Utilities Commission Climate Credit program rules; California Air Resources Board cap-and-trade program. Credit amounts are set by the CPUC and updated annually. The amount appearing on your specific bill depends on your utility and the current allowance value distribution.