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The California Climate Credit is a program administered by the California Public Utilities Commission and the California Air Resources Board in which ratepayers receive a refund on their gas and electricity bills. The refund is paid in biannual installments for residential customers and monthly for small businesses.[1] The funding for the refund comes from the utility providers who pay a carbon tax for polluting the air, and the refund is the dividend portion of the carbon fee and dividend program created by the Global Warming Solutions Act of 2006. The refund represents only a portion of the carbon tax collected, with the rest of the funds collected going towards programs to fight climate change.[1]
The program is only applied to customers of for-profit utilities. Municipal utilities in California (such as the Los Angeles Department of Water and Power, the Sacramento Municipal Utility District, and the Imperial Irrigation District) do not pay the carbon tax that funds the program because the California Public Utilities Commission only regulates privately owned utilities.[1]
The program was announced in 2014 with the first payments made in 2015.[2] The program was set to expire in 2020, but in 2017 it was extended to 2030.[3]
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