What is the California (CA) Climate Credit?
Where does the money for the CA Climate Credit come from/how is it generated?
The CA Climate Credit is a payment to California households from a program designed to fight climate change by limiting the amount of greenhouse gases that our largest pollution sources emit into the atmosphere. The CA Climate Credit received through your natural gas bill is your share of the payments from the State’s program. To learn more about this credit, visit
Funds for the CA Climate Credit come from the California Cap and Trade program implemented to fight climate change by limiting the amount of greenhouse gases that large polluters can release into the atmosphere. Each year California auctions a limited number of emission permits so that California can meet its goal of reducing its overall greenhouse gas emissions to 1990 levels by 2020. Some of the auction money is used by the state to fight climate change, and some is returned to many Californians as the CA Climate Credit. This program is one of many developed as a result of the Global Warming Solutions Act of 2006, also known as Assembly Bill 32 (or AB 32), which put California at the forefront of efforts to battle climate change.
Who is eligible for the CA Climate Credit?
All California residential customers that receive natural gas service from an investor-owned utility company, including Southwest Gas.
Why are residential customers receiving the CA Climate Credit?
The California Public Utilities Commission decided to protect each household from cost increases and to give people additional opportunities to take advantage of energy and money-saving upgrades offered by Southwest Gas.
When is the CA Climate Credit applied to accounts?
You will see the CA Climate Credit annually on your April natural gas bill (based on your billing cycle, you may see your CA Climate Credit reflected on your May bill).
What if there is a credit remaining on the account balance after the application of the CA Climate Credit?
Any carryover balance will be applied to your next bill. If there is a carryover balance, you may call and ask for a refund check instead of having the balance applied to your next month’s bill.
Does the CA Climate Credit amount vary by natural gas utility for residential customers?
Yes. However, the CA Climate Credit is distributed equally to each of Southwest Gas’ residential customers, regardless of the amount of gas you use or your bill amount.
Is the CA Climate Credit amount connected to the amount of natural gas I use?
No, all residential customer households of Southwest Gas will receive an equal amount of the CA Climate Credit regardless of the amount of natural gas they use.
How is the CA Climate Credit amount calculated?
Under rules adopted by the California Public Utilities Commission, Southwest Gas uses a portion of funds received from the carbon pollution permit auctions to pay for the climate change program administrative costs and divides the remaining portion equally amongst all of its residential customers.
Will the size of my CA Climate Credit change over time?
Yes. The size of the CA Climate Credit depends on the amounts received from the carbon pollution permit auctions from year to year, but the credit will always be calculated according to rules established by the California Public Utilities Commission.
When will the amount of annual CA Climate Credit be determined?
For how many years will natural gas residential customers receive the Climate Credit?
Normally, Southwest Gas’ proposed California Climate Credit will be filed with the California Public Utilities Commission in November of each year for the following year’s credit amount, i.e., Southwest Gas’ 2019 CA Climate Credit was filed and approved in 2018. The annual Climate Credit amount will be updated on Southwest Gas website in January of each year.
Right now the CA Climate Credit is expected to continue until at least 2020.