CA Industry Assistance Program to Provide Credit for Industrial Electricity Use

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The California League of Food Processors (CLFP) is party to a proceeding at the California Public Utilities Commission (CPUC) to determine the amount of GHG revenues (industry assistance) all energy-intensive trade-exposed (EITE) facilities will receive from the investor-owned utilities Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric from the sale of the free allocations the utilities received at the start of the Cap-and-Trade.

Entitled the California Industry Assistance, the purpose of the program is to reduce the risk of emissions leakage that may result from California’s Cap-and-Trade program by facilities with large electricity use.

CARB allocated allowances for free to electrical distribution utilities to ensure that electricity ratepayers do not experience sudden increases in their electricity bills associated with the Cap-and-Trade Regulation. The regulation stipulates that electrical distribution utilities must use the value associated with these allowances for the benefit of retail ratepayers of each electrical distribution utility, consistent with the goals of AB 32.

Because CARB already collects data regarding a covered facility’s total electricity purchases under the Mandatory Reporting Requirement (MRR), all facilities over 10,000mmtCO2e are eligible for the assistance. The CPUC Energy Division is currently developing implementation details for facilities with no reporting requirements (facilities below 10,000mmtCO2e) that may be EITE through high electricity use.

The proceeding is expected to be approved by the CPUC by May. At present, if approved, EITE facilities can expect to receive the industry assistance as either a credit on their bills this October or in the form of a check from the utility.

CLFP is working with CMTA to put together a Webinar to explain how the California Industry Assistance Program will work and what companies must do to claim their credits. CLFP will provide notice of the Webinar once the CPUC has approved the program on a vote by the Commissioners.

The CA Industry Assistance program will only apply to facilities located in the service territories of the major investor-owned utilities. Publicly-owned utilities and irrigation districts may be developing their own programs for distribution of similar funds.

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