What is the CA Industry Assistance Credit?

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 (Assembly Bill 32). The Cap-and-Trade program aims to address climate change by limiting the total amount of greenhouse gases (GHGs) emitted by the largest sources.

The State of California provides CA Industry Assistance to protect against emissions leakage. Emissions leakage occurs 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 to eligible customers. These customers are often referred to as “Emissions-Intensive and Trade-Exposed” or EITE facilities.

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