California's electricity and gas customers will fund a green think tank costing $600m over 10 years, the California Public Utilities Commission unanimously voted yesterday.

Under the new legislation, a surcharge will be added to monthly gas and electricity bills to fund the University of California's new California Institute for Climate Solutions (CICS).

As a result, the average power customer of California's three large investor-owned utilities could pay an extra 25c a month to fund the think tank, according to Reuters estimates. However, customers of municipal utilities in Los Angles and Sacramento will currently not have to contribute.

The CICS will carry out directed research that results in practical technological solutions to support the reduction of greenhouse gas emissions in the electric and natural gas sectors. It will also aim to speed the use and commercialisation of new technologies that have the highest potential of reducing emissions.

"Innovation, technical and otherwise is the key to alleviating the adverse consequences of climate change,” said CPUC president Michael Peevey, adding that the new research centre will allow California to devise and deploy the most cost-effective ways of fighting global warming.

A strategic plan and institute board will now be put in place to ensure the centre's research is relevant to the ratepayers that will fund it and focuses on applicable research goals. The CICS board is charged with matching the $600m and will have to find other sources of funding.

Governor Arnold Schwarzenegger backed the project, saying it will "bring together the state's pre-eminent colleges, universities, and laboratories to fight climate change".