Renewable Natural Gas in California, Characteristics, Potential, and Incentives

From fires to floods, climate change has fueled an increase in severe weather events across the globe. California is at the forefront of tackling the ever-increasing climate crisis, and along with its greenhouse gas emission reduction goals, has passed legislation supporting the production and use of Renewable Natural Gas. 

In 2018, California Senate Bill 1440 directed the California Public Utilities Commission to evaluate whether to establish goals or targets for renewable natural gas purchases by California’s gas utilities. In November 2019, the California Public Utilities Commission issued the Assigned Commissioner’s Scoping Memo and Ruling Opening Phase 4 of Rulemaking 13-02-008 addressing implementation of Senate Bill 1440. On December 6, 2019, the Energy Division hosted a technical workshop to discuss Senate Bill 1440 implementation.   

This report presents a snapshot of renewable natural gas in California, including the sources of renewable natural gas within California, estimates of potential production, carbon intensities for different sources, federal and state incentive programs, and federal and state policies that may affect the future of renewable natural gas within California. This report is intended to help inform and frame other policy efforts such as the Integrated Energy Policy Report and is intended to be updated periodically to keep sources and data current.