Residential and Small Business Climate Credit

The California Public Utilities Commission (CPUC) has made the following modifications to the Residential and Small Business Climate Credits:

Effective January 1, 2022:

  1. The credits will be distributed semiannually, in the spring and fall of each year.

  2. The credits will be distributed as a flat dollar amount.

For more information about the Residential Climate Credit, visit

For more information about the Small Business Climate Credit, visit

Frequently Asked Questions

What are the Residential and Small Business Climate Credits?

The Residential and Small Business Climate Credits are funded by a state government program that requires power plants, natural gas providers, and other large industries that emit greenhouse gases to buy carbon pollution permits from auctions managed by the Air Resources Board. The Residential and Small Business Climate Credits are your share of the payments from the State’s program.

Who Receives the Small Business Climate Credit?

A small business is defined by the CPUC as any non-residential customer on a general service or agricultural rate, whose usage doesn't exceed 20 kilowatts in more than three months out of the previous 12-month period. In other words, CPUC interprets small businesses as "non-residential customers with usage that is relatively low." If you meet these criteria, you'll automatically receive the Small Business Climate Credit.

Electricity customers of PG&E, SDG&E, SCE, Pacific Power (PacifiCorp), Bear Valley Electric Service and Liberty Utilities (CalPeco Electric) can receive the small business credit if they meet these qualifying criteria.

Small businesses who are eligible to claim the CA industry Assistance Credit may only receive one of the two credits. If you choose to attest for the California Industry Assistance Credit and are deemed eligible, you will stop receiving the Small Business Climate Credit for all- electric service agreements associated with that facility.

When will I receive the Residential and Small Business Climate Credit?

The credit will be distributed twice per year in the spring and fall. For most customers, it will be included in their April and October utility bills.

How much is the Residential and Small Business Climate Credit and how is it calculated?

The credit amount will vary from year to year. Each utility’s amount is based on their generation forecasts and requires CPUC review and approval.

How is the California Climate Credit funded?

Each year the state auctions a limited number of emission permits so that California can meet its goal of reducing its overall emissions to 40% below 1990 levels by the year 2030. Some of the auction proceeds are used by the state to fight climate change, and some are returned to many Californians as a Climate Credit. This program is one of many developed as a result of the Global Warming Solutions Act of 2006, which put California at the forefront of efforts to battle climate change.

CPUC created and oversees the credit program implementation. The money is from the State, not from the utility, even though the utilities deliver the credit on the State's behalf.