LOS ANGELES - California is delivering $520 million in utility relief this month as Governor Gavin Newsom announced the latest round of the California Climate Credit.
The program, funded by the state's cap-and-trade system, aims to lower the cost of living by returning carbon-emission revenue directly to residential and small business customers.
What we know:
Millions of California households with natural gas service will see an automatic credit of approximately $40 on their bills this month.
This is part of a larger $1.4 billion residential relief package for 2026, which includes $894 million earmarked for electric customers and $520 million for natural gas users.
The credits are automatic, requiring no action from consumers, and are funded by companies that pay for greenhouse gas emission allowances through the state’s Cap-and-Invest program.
What they're saying:
Gov. Newsom framed the credits as a defensive measure against rising national costs.
"At a time when Donald Trump is making life more expensive for every American — at the pump, in their home, at the grocery store, and virtually everywhere — California is fighting back," he said.
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He added that the state is "delivering on its promise to put money back in Californians' pockets."
What's next:
The California Public Utilities Commission (CPUC) is scheduled to vote on April 30 regarding a strategic shift in when these credits are distributed.
If approved, electric credits—traditionally issued in April and October—will move to August and September starting in 2026 to help families manage peak summer air conditioning costs.
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Similarly, natural gas credits are slated to shift to February starting in 2027 to address high winter heating bills.
The Source: This report is based on an official announcement from the Office of Governor Gavin Newsom and documentation regarding the California Public Utilities Commission’s (CPUC) upcoming regulatory votes.