AB 3187 and SB 1440 could potentially change the landscape for the biomethane industry and elsewhere.
Until a few years ago, renewable natural gas (RNG) couldn’t be injected into California pipelines; it had to be piped in from other states. While this mandate no longer exists, interconnection costs have made these projects near impossible, though two state bills, if passed into law, should change this.
In its current form, AB 3187 would require the Public Utility Commission (CPUC) to re-evaluate an existing finance program and consider covering 100 percent of interconnection costs. The current program allows up to 50 percent coverage, though the money is not being used, which industry believes is because the incentive is insufficient, given California’s high interconnection costs.
By Arlene Karidis, Waste 360.