Small businesses and households benefit from California’s latest Cap-and-Trade bill credits, with millions set to receive automatic deductions on April utility bills

Sacramento, California – Millions of Californians will soon see some financial relief on their April utility bills, thanks to the state’s climate initiative. An average credit of $137 will automatically be applied to gas and electric bills, part of an ongoing effort to both combat climate change and ease the burden of rising energy costs.

This credit comes from California’s Cap-and-Trade program, which requires major polluters to pay for the emissions they produce. The funds collected are then redistributed to residents in the form of utility bill credits. Since its launch in 2014, the program has returned nearly $11 billion to households across the state, with customers receiving an average total of $1,120 in savings over the past decade.

Governor Gavin Newsom highlighted the significance of the initiative, emphasizing that it not only helps residents financially but also supports the state’s aggressive push for clean air and climate action.

“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. Millions of California families will benefit from this relief,” Newsom said.

Bill Credits Arriving in April

For April 2025, California will distribute $2.4 billion in credits to residential utility customers. Of that, $1.4 billion will go toward electric bill relief, while $1 billion will offset natural gas costs. Small businesses will also receive a share, with an additional $122 million set aside to support them.

The exact credit amount will vary by provider. Electricity credits range from $35 to $259, with most households receiving between $56 and $81. Meanwhile, natural gas credits will typically fall between $54 and $87. Major utility companies participating include PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas.

No Action Needed to Receive the Credit

Unlike many financial relief programs, Californians do not need to apply or take any action to receive the credit. It will automatically appear as a line item on their April statements, reflecting their share of the state’s Cap-and-Trade revenue.

Beyond bill credits, the program also plays a crucial role in funding California’s climate investments. Since its inception, Cap-and-Trade has generated $28 billion to support over 500,000 climate-focused projects, including affordable housing near job centers, public transportation expansion, and infrastructure for zero-emission vehicles. These projects have collectively supported 30,000 jobs and significantly reduced carbon emissions across the state.

A Model for Climate Action and Consumer Relief

California’s approach to tackling climate change while easing financial burdens has set a precedent for other states. By holding polluters accountable and redistributing funds directly to residents, the program provides both environmental and economic benefits.

As Californians continue to face high energy costs, initiatives like the Climate Credit offer much-needed relief while reinforcing the state’s commitment to a cleaner, more sustainable future.