September 24, 2018

California Governor Brown Signs RNG Coalition Bill to Authorize State Procurement Program for Renewable Natural Gas

SB 1440's approval follows Gov. Brown's signing last week of RNG Coalition-sponsored bill AB 3187 (Grayson) to facilitate pipeline integration of renewable natural gas (RNG).

Sacramento, CA - Over the weekend, California Governor Jerry Brown signed SB 1440 (Sen. Ben Hueso), a bill sponsored by the Sacramento-based Coalition for Renewable Natural Gas (RNG Coalition) that authorizes the California Public Utilities Commission (CPUC) to adopt a biomethane procurement program that benefits ratepayers, is cost-effective, and advances the state’s environmental and energy policies.

“The signing of SB 1440 into law is an important next step towards realizing increased development, deployment and utilization of renewable natural gas from a variety of feedstocks in the State,” said Johannes Escudero, CEO of the RNG Coalition. "The bill creates a proceeding where we will have the opportunity to make the case for why and how an RNG procurement program will create market certainty that the industry needs in order to access the investment capital required to build RNG production facilities in California.”

“Over the past couple of years, we have passed groundbreaking legislation to address climate change and reduce the emissions of dangerous greenhouse gases and short-lived climate pollutants,” said Senator Hueso. “With the efficacy of the RNG Coalition and the signing of SB 1440 into law, we have taken a step further to advance the state’s methane emissions’ reduction goal, while decarbonizing the natural gas pipeline system in California.”

Sunday's signing of SB 1440 follows Brown's signing of another RNG Coalition-sponsored bill last week. AB 3187 (Asm. Tim Grayson) requires the CPUC, by no later than July 1, 2019, to open a proceeding to consider funding biomethane interconnection infrastructure through a gas corporation's utility rates.

“Renewable natural gas has many environmental advantages because it can replace fossil sources of natural gas in homes and businesses,” said Assemblymember Grayson. “This legislation will help equip biomethane producers and utilities to further integrate this clean energy technology in order to meet California’s greenhouse gas reduction goals.”

AB 3187 directs the CPUC to consider addressing the single largest cost barrier – interconnection costs - and enables the industry to invest in and construct RNG facilities to lead the state to meet its climate change goals. The RNG Coalition looks forward to the opportunity to advocate for increased interconnection incentives before the California Public Utilities Commission next year.

"With California's organic waste diversion and methane reduction mandates fast approaching, it is critical that we consider policies now to enable the development of renewable natural gas facilities in California," said Nina Kapoor, RNG Coalition Director of State Government Affairs.

About the Coalition for Renewable Natural Gas

The RNG Coalition is the trade association representing over 140 companies and organizations dedicated to the advancement of renewable natural gas (RNG or biomethane), including as an ultra-clean, domestically-produced, renewable fuel in North America.  The RNG industry captures and converts methane (raw biogas) emitted by and captured from organic waste streams such as those from landfills, wastewater treatment facilities, livestock and agricultural digesters, and commercial food waste facilities, and converts the biogas into RNG.  RNG is fully fungible with conventional natural gas, and is used as a direct substitute for most commercial, industrial and residential natural gas applications.

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