Frequently Asked Questions
Below are answers to questions that are commonly asked about the California (CA) Industry Assistance Credit.
The CA Industry Assistance Credit is part of the State of California’s Cap-and-Trade Program which was 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 the CA Industry Assistance Credit to protect against emissions leakage: a decrease in in-state GHG emissions that results in an increase in out-of-State GHG emissions. AB 32 requires that the State minimize emissions leakage, to the extent feasible. This credit protects eligible industrial sectors against emissions leakage and transitions them into the Cap-and-Trade Program by compensating affected businesses for a portion of the GHG emission costs associated with the electricity they buy.
Utilities, including Pacific Gas and Electric Company (PG&E), will distribute this credit annually through 2030. The amount of the credit is determined through the use of emissions efficiency benchmarks which reward businesses that have taken early action to reduce their GHG emissions. This approach will also ensure that these industries will have an incentive to continue producing products in California in the most greenhouse gas-efficient way possible.
The CA Industry Assistance Credit is open to all eligible utility customers, including those who get electricity from community choice aggregators and other electric service providers.
Under the California Air Resources Board’s (CARB) Cap-and-Trade Regulations, it designates entities that derive most of their revenue from a product, activity, or service covered by a specific North American Industry Classification System (NAICS) code as eligible for Industry Assistance.* The state refers to these as “emissions-intensive and trade-exposed” (EITE) entities. A list of eligible entities by NAICS codes may be found in Article 5: CALIFORNIA CAP ON GREENHOUSE GAS EMISSIONS AND MARKET-BASED COMPLIANCE MECHANISMS, Table 8-1 on page A-101.
The California Public Utilities Commission (CPUC) verifies eligibility for the CA Industry Assistance Credit at a facility level. A facility is a physical structure(s) located on one or more contiguous properties. For example, a campus, factory, plant or company headquarters with multiple buildings would be considered one facility if all structures are involved in (or support) the production of the same product or service. If a company owns multiple facilities throughout the state, each facility may (or may not) be eligible depending on each facility’s NAICS code.
*If you are unsure which NAICS code applies to your facility, review your company’s federal income tax return, such as IRS Form 1120, or the U.S. Census Bureau’s guidelines
The amount of the CA Industry Assistance Credit is determined through the use of emissions efficiency benchmarks which reward businesses that have taken early action to reduce their GHG emissions. This approach will also ensure that these industries will have an incentive to continue producing products in California in the most greenhouse gas-efficient way possible.
The credit amount varies from facility to facility. The CPUC, rather than your utility, calculates your credit amount.* To protect your privacy, your utility provider does not have access to all of the data that the CPUC uses to determine your credit amount. Your utility may not be able to accurately predict your credit amount or answer detailed questions about why you received a specific amount. The CPUC will calculate the amount of the CA Industry Assistance credit for each facility according to an allocation formula that is either product-based or energy-based. Entities that have direct emissions below 25,000 MtCO2e will receive the CA Industry Assistance credit based on an energy-based allocation formula, which takes into account variables such as:
- Historical electricity usage (electricity purchased from PG&E and other electricity providers)
- GHG emissions associated with your electricity usage
- Level of assistance CARB provides to industries
- Overall “cap” on emissions
- Average price for allowances sold
- Any reconciliation of average prices for allowances between years.
*To learn more about how the CPUC calculates your credit, please read D.14-12-037 and review the formulas in Appendix A of this decision.
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 as a monthly bill credit for all eligible utility customers, including those who get electricity from community choice aggregators (CCAs) and electric service providers (ESPs).
You can confirm whether you are receiving it by looking for the line item "California Climate Credit" on your Energy Statement.
Customers may only receive one of the two credits. If you choose to attest for the CA Industry Assistance Credit and are deemed eligible, you will stop receiving the monthly Small Business Climate Credit for all electric service agreements associated with that facility.
Below are the key differences between the two credits:
|California Climate Credit for Small Businesses||CA Industry Assistance Credit|
|Calculation||Based on current electricity consumption||Based on historical electricity consumption|
|Eligibility||Happens automatically||Requires most customers to periodically claim eligibility|
|Application||Applies only to service accounts that typically use less than 20 kilowatts [kW] a month||Applies to your entire facility and includes all service accounts associated with that facility|
|Timing||Appears monthly on every eligible service account||Appears annually on one service account per facility|
|Audit||Will not subject you to an audit||May subject you to an audit|
If your facility is eligible based on your NAICS code, you must determine which category your facility falls in based on your annual direct emissions. Depending upon the category that your facility falls in, you either qualify automatically for the credit (but must opt-in to receive the credit), or you must provide information to verify your eligibility.
|Facility Category||Customer Description||Customer Definition||Action Required to Receive Credit|
|Covered Entities||Customers required to report emissions data to CARB under its Mandatory Reporting Regulation (MRR)||A facility with direct emissions of 10,000 MtCO2e per year, or greater.||MRRs automatically qualify but you must opt-in by providing your facility’s information for PG&E to process your credit.|
|SMBs||Customers not required to report emissions data to CARB under its MRR||A facility with direct emissions of less than 10,000 MtCO2e per year.||You must verify your eligibility through an online attestation process by September 30th.
You will need the following information:
PG&E will verify the information submitted for your facility and will reach out if further verifications are needed. If you successfully attested, you will receive your annual CA Industry Assistance Credit in April as a credit on your PG&E bill, unless you are eligible to receive a check.*
*Only facilities with emissions greater than 25,000 MTCO2 are eligible to choose a check.
Businesses receiving the CA Industry Assistance Credit are encouraged to further reduce their carbon footprint by taking advantage of energy-efficiency and energy-management programs and resources.
To learn how your business can save energy and water, visit EnergyUpgradeCalifornia.com
For more information on California Industry Assistance, visit California Public Utilities Commission’s CA Industry Assistance’s website.
If you are unsure which NAICS code applies to your facility, review your company’s federal income tax return, such as IRS Form 1120, or use the U.S. Census Bureau’s guidelines (which can be found at https://www.census.gov/eos/www/naics/faqs/faqs.html#q9).
Eligible NAICS subsectors:
- 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
Eligible NAICS Codes and Descriptions:
|211111||Crude Petroleum and Natural Gas Extraction|
|211112||Natural Gas Liquid Extraction|
|212299||All Other Metal Ore Mining|
|212391||Potash, Soda, and Borate Mineral Mining|
|212399||All Other Nonmetallic Mineral Mining|
|311111||Dog and Cat Food Manufacturing|
|311119||Other Animal Food Manufacturing|
|311221||Wet Corn Milling|
|311224||Soybean and Other Oilseed Processing (formerly 311222 or 311223)|
|311225||Fats and Oils Refining and Blending|
|311230||Breakfast Cereal Manufacturing|
|311313||Beet Sugar Manufacturing|
|311314||Cane Sugar Manufacturing (formerly 311311 or 311312)|
|311340||Nonchocolate Confectionery Manufacturing|
|311351||Chocolate and Confectionery Manufacturing from Cacao Beans (formerly 311320)|
|311352||Confectionery Manufacturing from Purchased Chocolate (formerly 311330)|
|311411||Frozen Fruit, Juice, and Vegetable Manufacturing|
|311412||Frozen Specialty Food Manufacturing|
|311421||Fruit and Vegetable Canning|
|311423||Dried and Dehydrated Food Manufacturing|
|311511||Fluid Milk Manufacturing|
|311512||Creamery Butter Manufacturing|
|311514||Dry, Condensed, and Evaporated Dairy Product Manufacturing|
|311520||Ice Cream and Frozen Dessert Manufacturing|
|311611||Animal (except Poultry) Slaughtering|
|311612||Meat Processed from Carcasses|
|311613||Rendering and Meat Byproduct Processing|
|311710||Seafood Product Preparation and Packaging (formerly 311711 or 311712)|
|311813||Frozen Cakes, Pies, and Other Pastries Manufacturing|
|311821||Cookie and Cracker Manufacturing|
|311824||Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour (formerly 311822 or 311823)|
|311911||Roasted Nuts and Peanut Butter Manufacturing|
|311919||Other Snack Food Manufacturing|
|311920||Coffee and Tea Manufacturing|
|311930||Flavoring Syrup and Concentrate Manufacturing|
|311941||Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing|
|311942||Spice and Extract Manufacturing|
|311991||Perishable Prepared Food Manufacturing|
|311999||All Other Miscellaneous Food Manufacturing|
|315211||Obsolete code. Men's and Boys' Cut and Sew Apparel Contractors (correct code 315210)|
|315212||Obsolete code. Women's, Girls', and Infants' Cut and Sew Apparel Contractors (correct code 315210)|
|315220||Men's and Boys' Cut and Sew Apparel Manufacturing (formerly 315221, 315222, 315223, 315224, 315225 or 315228)|
|315240||Women's, Girls' and Infants' Cut and Sew Apparel Manufacturing (formerly 315231, 315232, 315233, 315234, 315239 or 315291)|
|315280||Other Cut and Sew Apparel Manufacturing (formerly 315292 or 315299)|
|322121||Paper (except Newsprint) Mills|
|324121||Asphalt Paving Mixture and Block Manufacturing|
|324199||All Other Petroleum and Coal Products Manufacturing|
|325120||Industrial Gas Manufacturing|
|325180||Other Basic Inorganic Chemical Manufacturing (formerly 325188)|
|325188||Obsolete code. All Other Basic Inorganic Chemical Manufacturing (correct code: 325180)|
|325193||Ethyl Alcohol Manufacturing|
|325199||All Other Basic Organic Chemical Manufacturing|
|325311||Nitrogenous Fertilizer Manufacturing|
|325412||Pharmaceutical Preparation Manufacturing|
|325414||Biological Product (except Diagnostic) Manufacturing|
|327211||Flat Glass Manufacturing|
|327213||Glass Container Manufacturing|
|327420||Gypsum Product Manufacturing|
|327993||Mineral Wool Manufacturing|
|331110||Iron and Steel Mills and Ferroalloy Manufacturing (formerly 331111)|
|331111||Obsolete code. Iron and Steel Mills (correct code: 331110)|
|331221||Rolled Steel Shape Manufacturing|
|331314||Secondary Smelting and Alloying of Aluminum|
|331492||Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)|
|333611||Turbine and Turbine Generator Set Units Manufacturing|
|336414||Guided Missile and Space Vehicle Manufacturing|
|488111||Air Traffic Control|
|488119||Other Airport Operations|
|488190||Other Support Activities for Air Transportation|
If your facility has reported emissions data to ARB (meaning you have annual emissions level of 10,000 MtCO2 or greater), your facility has a 6-digit Facility ARB ID assigned by ARB. Please check with your facility staff to verify whether your facility has an ARB ID. If your facility is assigned an ARB ID and you operate in an eligible NAICS sector, your facility is automatically qualified but you must provide your facility's information for PG&E to process your credit.
If your facility does not have a 6-digit ARB ID and you have received the credit for this facility in the past, then your facility is assigned a 10-digit Facility ID by PG&E. You can use this Facility ID to submit an attestation for your facility. Please follow the steps in the attestation website.
If your facility has never received a CA Industry Assistance Credit in the past, then you must follow the directions on the website to submit an attestation.
As always, you can contact PG&E for more information and to get help determining which situation applies to your facility.
You will need your business’s NAICS code, facility address, and all electric service agreement IDs (SAIDs) associated with your facility.
Customers are required to attest for eligibility once per compliance period (3-year window). Once successfully attested, eligibility will last for the entire compliance period.
PG&E will notify eligible customers to attest for eligibility at the start of each compliance period (e.g.: 2020, 2023, 2026) but all eligible facilities may attest, regardless of whether they were included in outreach efforts.
|Compliance Periods||Attestation (Triennial)|
|Eligibility lasts for one
Your PG&E Energy Statement (bill) lists the 10-digit Service Agreement ID(s) under the Details of Electric Charges section. Please note, you may have more than one bill for a facility. Make sure to list all electric Service Agreement IDs associated with the facility when you are completing the online attestation form.
The purpose of assigning Service Agreement IDs to a facility is to determine the total electricity usage associated with a specific facility. This will allow you to receive the credit based on the total electricity usage that is related to your facility’s production.
The address associated with each electric Service Agreement ID is listed under the Details of Electric Charges section of your Energy Statement (bill). If you have more than one meter providing electric service to your facility or multiple facilities, you must determine all applicable electric Service Agreement ID(s) that are part of a facility based on the address listed. If you have more than one facility, you must complete an attestation form for each facility separately.