GHG Cap-and-Trade - CA Industry Assistance

Recent Updates

The first Industry Assistance credits were delivered in October 2016. In 2017 and future years credits will be delivered in the spring. Most recipients will receive credit in April.

About CA Industry Assistance

Certain industrial facilities, known as “emissions-intensive and trade-exposed” or “EITE” entities are eligible to receive CA Industry Assistance from the State as an annual credit on their utility bill.

Purpose

This 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. Utilities will distribute this credit annually.

Credit Timing and Size

The first CA Industry Assistance Credit is retroactive and covers 2013, 2014, 2015, and 2016 if you operated in an eligible industry in those years. If you’re eligible, the first credit will appear on your bill in 2016. If you maintain your eligibility, you will receive the CA Industry Assistance Credit once per year in April, through April 2020.

The amount of the credit is determined through the use of emissions efficiency benchmarks, which rewards businesses that have taken early action to reduce GHG emissions. This approach will also ensure that, in the future, these industries have a strong incentive to produce products in California in the most GHG-efficient way possible.

Eligibility

For the purpose of allocating CA Industry Assistance, CPUC defines EITE customers as entities in industrial sectors that qualify for Industry Assistance under the California Air Resources Board’s (ARB’s) Cap-and-Trade Regulation, regardless of the amount of emissions produced. These industries are listed by 2007 North American Industry Classification System (NAICS) Code in Table 8-1 of ARB’s Regulation.

There are two ways we identify eligible facilities:

  • Eligible EITE facilities that report to ARB under its Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (MRR) will receive CA Industry Assistance through their respective utility for each year in which they operated in an eligible industry.
  • Eligible EITE facilities that do not report to ARB under its MRR (because they directly emit less than 10,000 MTCO2e per year) can attest to their eligibility. If you think you’re eligible, and don’t already report to ARB under MRR, read the instructions below about the attestation process.

 

Attestation Process for Eligible EITE Facilities with Emissions below 10,000 MTCO2e/year

If your facility is eligible to receive CA Industry Assistance from the CPUC and you do not already report to ARB under its Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (MRR), you must complete an attestation form to receive CA Industry Assistance. The main purpose of the attestation process is to show that your facility operates in an eligible industry.

Attestation Forms

Attestation forms are available from your respective utility using the following links:

The attestation process is completed at the facility level, where facility is defined in ARB’s Cap-and-Trade Regulation Section 95802(144)(A) as “. . . physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties…” If a business has multiple eligible facilities, it must complete a separate attestation for each facility.

All attestation forms are subject to a random audit to ensure program integrity.

Attestation Timing

Facilities have the opportunity to attest to their eligibility once per year. If the facility is eligible, it begins receiving revenue at the beginning of the next year.

  • If you successfully complete an attestation form now, you will remain eligible for assistance through 2017.
  • Facilities must submit an attestation form in 2017 to continue receiving assistance for 2018-2020.
  • There is a one-time, retroactive credit that will be provided in 2016 and cover 2013, 2014, 2015, and 2016.
Attestation Schedule
September 30, 2015 Deadline to submit attestation form to receive CA Industry Assistance covering 2016 and 2017
September 30, 2016 Deadline to submit attestation form to receive CA Industry Assistance covering 2017
September 30, 2017 Deadline to submit attestation form to receive CA Industry Assistance beginning in April 2018.  Any facility previously receiving CA Industry Assistance must re-attest to continue receiving assistance.

 

Contact Us

If you have questions about CA Industry Assistance, email industry.assistance@cpuc.ca.gov or call Christian Ettinger at (415) 703-1226.

 

CA Industry Assistance FAQs

Who is eligible for CA Industry Assistance?

Entities that primarily operate in industrial sectors that qualify for Industry Assistance under ARB’s Cap-and-Trade Regulation, regardless of the amount of emissions produced, are eligible for CA Industry Assistance.  A facility is eligible if its principal source of revenue comes from a product, activity, or service that is eligible.

Eligible industries are listed by 2007 North American Industry Classification System (NAICS) Code in Table 8-1 of ARB’s Regulation. See a full list here.

Facilities must be customers of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E), Liberty Utilities (CalPeco Electric) LLC, or Pacific Power.

Eligible industries fall within the following categories:

  • Apparel Manufacturing
  • Beverage and Tobacco Product Manufacturing
  • Chemical Manufacturing
  • Fabricated Metal Product Manufacturing
  • Food Manufacturing
  • Machinery Manufacturing
  • Mining (except Oil and Gas)
  • Nonmetallic Mineral Product Manufacturing
  • Oil and Gas Extraction
  • Paper Manufacturing
  • Petroleum and Coal Products Manufacturing
  • Primary Metal Manufacturing
  • Support Activities for Transportation
  • Transportation Equipment Manufacturing

When do I receive my CA Industry Assistance?

We’re currently working on calculating your level of assistance to address 2013-2016 costs, and your utility will distribute those by October 2016.

Beginning in 2017, you will receive CA Industry Assistance each April to assist with that year’s costs.

How much assistance will I receive?

The CPUC Energy Division will calculate the level of CA Industry Assistance for each eligible facility. The amount of the credit is determined through the use of emissions efficiency benchmarks, which rewards businesses that have taken early action to reduce GHG emissions. This approach will also ensure that, in the future, these industries have a strong incentive to produce products in California in the most greenhouse gas-efficient way possible.
If your facility is not a covered entity in the Cap-and-Trade Program, you will receive assistance based on your historical electricity use.
If your facility is a covered entity, you will receive assistance either based on your historical electricity use or based on the efficiency and level of your production.

To learn more about how the CPUC will calculate your credit, please read D.14-12-037 and review the formulas in Appendix A of this decision.

How will I receive my CA Industry Assistance?

By default, eligible facilities will receive CA Industry Assistance as a utility bill credit.

Only “covered entities” under the Cap-and-Trade Program may request a check instead of a bill credit. If you’re eligible to request a check, your utility will contact you.

All customers receiving CA Industry Assistance have the option to “cash out” any remaining bill credit by requesting a check from the utility.

What is the attestation process?

The attestation process applies to industrial facilities that want to demonstrate that they are eligible to receive CA Industry Assistance. The facilities do not report to ARB under MRR and must sign an attestation form to demonstrate to the CPUC that they primarily operate in an industrial sector that qualifies for CA Industry Assistance.

What is a facility?

A facility is described in ARB’s Cap-and-Trade Regulation as “any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas…”

For the full definition and the definition of facility for military installations, natural gas distribution facilities, and onshore petroleum and natural gas production facilities, please refer to Section 95802(a)(144) of the Cap-and-Trade Regulation