A year and a half after California started forcing some big polluters to pay for pumping greenhouse gases into the atmosphere, households in the Golden State are about to start cashing in on the program.
The state's cap-and-trade program has raised nearly $1.7 billion so far. About 40 percent of proceeds are earmarked to be spent on clean energy initiatives, while the rest will be distributed to small utility customers through various programs, helping offset any increase in electricity prices. Residential customers of the state's investor-owned utilities, which together serve more than two-thirds of the state's electricity, will receive the first California Climate Credits on this month's electricity bills, reducing the amount due by roughly $30 to $40. The next residential credits will be paid out in October. Small business customers will receive them monthly.
California Public Utilities Commission President Michael Peevey said the credits will give "millions of Californians a stake in the fight for clean air and a healthy environment." He suggested electricity customers reinvest the money in efficient lightbulbs, smart thermostats, and other energy-saving measures to further reduce costs and to join the fight against climate change.