If you live in California, you are already well aware that our state tends to adopt new environmental policies and technology at a fairly fast rate. This trend is set to continue with Energy Upgrade California’s Residential Climate Credit. This is an innovation from the state of California to try to reduce the emissions affecting climate change. This plan will involve every power plant, or industrial effort will be required to pay for permits if their activities will release a certain level of carbon pollution into the air. A percentage of the permit cost will go to California residents to help reduce their electricity bill costs. This credit will also be applied to qualifying small businesses.
How it Works:
Each year, the state of California issues a very limited number of permits, which are available for those companies who produce large amounts of emissions. The permits are auctioned off to companies, and a percentage of the profits are directed to lessen the cost of electricity bills for home and small business owners. The aim of the program is to encourage those saving money on their electricity bills to invest in cleaner innovations and technologies. The remainder of the profits will be directed into state programs which are designed to combat the effects of climate change.
According to Energy Upgrade California, all residential customers in California who receive electricity supplied by an electric service provider, community choice aggregation provider or an investor owned utility company is eligible to receive the climate credit.
How Customers Will be Credited:
While all residential customers are eligible for the Climate Credit, it will differ according to your electricity provider. The credit will not be determined by your bill amount or energy consumption, but customers of different utility companies may receive differing amounts. The credit amount is calculated by the electricity company. The utilities receive the proceeds from the greenhouse gas allowance auction. Using the rules from California Public Utilities Commission, each utility company will divide the available funds equally among their residential households. Customers will be credited directly on their utility bills, twice each year. The first credit should appear on April or May bills while the second credit will appear on October or November bills. The credit will appear on the bill as California Climate Credit or CA Climate Credit alongside the amount of the credit. You may also see a brief message which explains the credit or your utility company may provide literature explaining the program.
How Long the Climate Credit Program Will Last:
The climate credit program has been set to last until 2020. This means that homeowners have another four years to benefit from the credits. There is also the possibility that the program may be extended to last beyond 2020, but as yet this has not been confirmed. Even if the original date is held, this allows home and small business owners to enjoy a great deal of potential savings to invest in green solutions.