Today, Governor Gavin Newsom announced that millions of Californians will see an average of $137 credited to their April gas and electric bills. This credit is part of the California Climate Credit, which is automatically applied to utility bills every April and October. The credit results from the state’s Cap-and-Trade climate program, which requires polluters to contribute financially towards climate action.
Since 2014, California households have received an average total of $1,120 in combined credits through this initiative. “Every year, our Cap-and-Trade program provides essential funding to California’s efforts to clean the air while also giving residents money back on their utility bills,” stated Governor Newsom. He emphasized that millions of families would benefit from this financial relief.
The state has returned $10.9 billion in bill credits to utility customers since the program’s inception. This year alone, a total of $2.4 billion will be distributed as residential credits: $1.4 billion for electric customers and $1 billion for natural gas customers, with an additional $122 million allocated for small businesses.
The amount credited varies depending on usage; electricity bill credits range from $35 to $259—most receiving between $56 and $81—and natural gas bill credits range from approximately $54 to $87 for residential customers serviced by PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas.
No action is required by Californians to receive these credits as they are derived from the State’s Cap-and-Trade Program managed by the California Air Resources Board. These credits represent consumers’ share of payments made under the program.
Beyond utility bill reliefs, the Cap-and-Trade program has supported broader climate investments worth $28 billion across more than half a million projects statewide. These initiatives have contributed significantly towards reducing carbon emissions while creating 30,000 jobs and supporting diverse solutions such as affordable housing near job centers and expanding zero-emission transportation options in underserved communities.
