California’s Manufacturing Decarbonization Incentive Allocation (MDI): Scope and Potential Impact

California Air Resources Board has proposed a unique Manufacturing Decarbonization Incentive Allocation (MDI) to support businesses in California. The MDI will have an outlay of atleast USD 4 billion between 2028 and 2035 in the form of extra no-cost allowances given to eligible covered entities under the California Cap and Trade (now Invest) program.
An estimated 152  facilities across California are going to be eligible for the MDI.

These facilities cover stationary sources of emissions across the following sectors:

• Petroleum Refining and Hydrogen Production
• Crude Petroleum and Natural Gas Extraction (eligible only for select project types)
• Cement, Lime, Gypsum, and Clay Product Manufacturing
• Fruit and Vegetable Canning
• Other Food Manufacturing
• Dairy Product Manufacturing
• Glass Manufacturing
• Metal Processing and Manufacturing
• Chemical, Biological, and Pharmaceutical Manufacturing
• Misc. Industrial Facilities and Legacy Contract Generators
• Natural Gas Suppliers
• Universities and Public Service Facilities
• Public Wholesale Water Agencies

This webinar will cover the following topics:

• Scope and eligibility of the MDI and how it would likely operate
• Estimating the level and value of the incentive
• Process that would be followed and timelines
• Decision framework as entities decide to submit projects.
• Scenarios on utilization of MDI and impact on the Cap and Invest Program

The webinar will look into the prototypical projects eligible for MDI and their indicative economics (with and without MDI). This will cover:

Join us for this informative session to understand how the MDI can support decarbonization investments and impact the Cap and Invest Program.

This webinar is open to cCarbon’s Essential and Analytics Pro members subscribed to our Cap and Trade markets. Can’t make it live? No problem – the recording and slides will be available in the cCarbon Webinar Archives. Not a member and still interested in attending? Sign up for our Essential Plan to get access to this webinar and a growing library of premium content. You can also simply register, and we’ll reach out with more details.