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California Legislature Approves Two RNG Coalition Bills

On the final day of California’s 2018 legislative session, a bill sponsored by the Coalition for Renewable Natural Gas (RNG Coalition) that would pave the way for a state renewable natural gas procurement program was approved by the Legislature, passing 29-10 in its reconciliation in the Senate.

As approved, SB 1440 authorizes the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (CARB), to adopt a biomethane (aka renewable natural gas) procurement program that would benefit ratepayers, is cost-effective, and advances the state’s environmental and energy policies.

“A renewable natural gas procurement program would create market certainty that industry developers need to access investment capital and build new projects in California,” said RNG Coalition CEO Johannes Escudero. “Nearly thirty states have RPS programs in place requiring electric utilities to procure and use increasing proportions of renewable energy. States should set similar renewable natural gas targets for gas utilities, to create new in-state jobs, decarbonize our pipeline systems, reduce emissions and improve air quality.”

The RNG Coalition’s other sponsored bill this year, AB 3187, also passed the legislature by comfortable margins. The bill requires the CPUC to open a proceeding to consider options to promote the in-state production and distribution of biomethane, including recovery in rates of the costs of interconnection infrastructure investments, by no later than July 1, 2019. It was unanimously approved (38-0) by the Senate on August 27 after passing the Assembly earlier this year.

Both bills will now go to Governor Brown for signature.

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